Franchises help drive the economy
Yesterday I was invited to the rebranding (don’t you love the window washer) of Home services company Green Acres, one of New Zealand’s leading Franchise companies. Over the last 5 years they have added 130 franchisees and do $60m of revenue annually through the group.
Green Acres are a great team lead by Logan Sears. ANZ Bank’s Brent Evens and ad legend Mike Hutcheson also spoke.
Small businesses are the powerhouse of all economies because as a group they are the biggest contributor to GDP. The latest numbers I’ve seen are 38% in New Zealand and 46% of GDP in Australia.
One way we believe we’re helping small business grow is by making owners more productive by connecting them with accountants and bookkeepers. Another great way to grow the small business economy is the franchise model, where the business systems and operating model is laid out. Franchises allow a wider range of people to participate in self owned businesses with significantly less risk, more support and much greater efficiency.
When we look at franchises we usually see a lot of focus on the operating model, but not the administration and finance side – often the painful part of running a business. That’s all changing of course with cloud accounting where it’s much easier for the franchise company to include accounting software and business processes as part of the franchise model and value. This might include regular admin procedures, a standard chart of account (useful for benchmarking of course), proactive monitoring and business coaching.
Green Acres have gone a step further and integrated their Tiger operating platform directly with Xero through our API, providing seamless system support for their Franchisees. We think this is an exciting evolution for Franchise businesses and makes it even easier for a wide range of people to become efficient owner operators. That has to be good.
Congratulations to the Green Acres team. It’s been a pleasure to work with you and we think what you do is important.
You can find out more about Green Acres at http://www.greenacres.co.nz
And more about Xero for Franchises at: http://www.xero.com/franchises