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  FRANCHISE INTRODUCTION
 



Les Howard Alex Dobrin Dirk Spence
TIP: Click on the icons above to view video of Les, Alex and Dirk talking about Howards Storage World.

Hi There,
We know you will want some written details on our franchise business opportunity so you can consult with your advisers, family and friends.

You will be interested to learn that most people considering the purchase of a franchise have not managed their own business before and we understand how big a step this is for you.

We know how important it is for you to feel comfortable with our type of retail business, and understand and believe that we want all of our franchisees to be successful.

We are expanding as a national retailer, and together we can make Howards Storage World the dominant niche retailer in storage related products.

McDonald's, Freedom Furniture, General Motors, Harvey Norman, all started small and are giants today thanks to lots of customers believing in their product and service and the franchisees pulling together as a team.

Our franchisees will come from all walks of life but we strongly believe they must be hard workers, share in our excitement and our big plans to grow, be quick learners so they benefit from the successful way we have developed our business system.

Franchising is definitely a win-win situation for both us, as the leader franchisor, and you, our prospective franchisee where we both end up as a successful team in a no surprises long term and profitable relationship.

After you have absorbed our background information, let's meet again to discuss the when and where questions, so we can get started on the 'reality' of helping you build your own business.

 
WHAT IS HOWARDS STORAGE WORLD?
The word "Storage" covers a very broad meaning, but when you see our huge range of wire baskets, Elfa Storage Systems, waste bins, wine racks, TV support brackets and plastic containers of all colours, shapes and sizes, you will be fascinated by our storage world, speciality retail concept.

Les Howard and partner, Dirk Spence have joined together to build on the 24 years of retailing success of the Northbridge Plaza Store and are actively seeking out owner operator franchisees, to open more Howards Storage Worlds initially across Sydney with an ultimate goal of 100 stores nationwide.

In November '97 Les and Dirk engaged Garry Williamson from the Franchise Centre to assist with the operational set-up of Howards Storage World. Garry has had 27 years experience in the franchise arena and with his assistance to Freedom Furniture, Oz Design Furniture, Traveland, Wendys and Godfreys, to name a few - his credentials are of the highest order.

The shop sizes will vary, but ideally will be a minimum of 250m2 up to 500m2 in either shopping centres or well patronised strip locations.

The products that are sold are continuously changing with the seasons and customers are always remarking over the huge variety of interesting merchandise carried out and love to browse through the newest shipments.

The Franchisees will come from all walks of life, but ideally will enjoy dealing with people. As past experience has shown, many customers need professional advice on their home storage requirements, such as a home visit to measure and quote for either the unique Swedish Elfa Wire Storage System, installation of a TV support bracket or their wine rack requirements.

Here is a rough breakdown of our product/sales mix, which is constant throughout the year
 
Elfa Wire Basket & Ventilated Shelving System
20%
 
TV 1 Audio Brackets & Storage Systems
10%
 
Wardrobe Accessories
10%
 
Kitchen Storage & Accessories
10%
 
Plastic Containers
10%
 
Bins & Boxes
10%
 
Office Storage
5%
 
Wine Racks
10%
 
Laundry Storage 1 Airers
10%
 
Workshop Storage
5%
 
Total
100%
















 
WHY ARE WE FRANCHISING?

A very good question and sometimes we ask ourselves the same question, when things are not going as well as we would want them to!

I'm sure you have heard of 'Murphy' and his laws. Well, the one most appropriate to our situation, and maybe yours, is "Things always take longer and cost more than the best laid plans of mice and men."

Our marketing strategy which, by choice. is 'a very public one', is that we intend growing Howards Storage World to become a major force in providing a total stack and storage product range to our customers.

If that means people believe we have a big ego, well so he it. But it also means we are determined to grow and the only logical way we can grow to the size and strength we want, is by embracing the 'Culture of Franchising'.

Regardless of what others may tell you, the only honest reasons any business has to franchise are:

1) It's almost impossible to find, train and keep good employees, as they are either poached by your competition, or decide they know your business well enough and decide to become your competition!

2) It doesn't matter how big your business may be, or how much capital you can invest in growing your business. The simple fact is, we are able, by franchising, to have access to an unlimited amount of capital, 'other peoples'. and the self-motivation that comes with that capital commitment, ie. nobody works as hard as the boss.

Franchisees are both physically, emotionally and financially committed and any comparisons to employees, agents or commission sales-people simply fails to meet the marketing dynamics a business benefits from when it's franchised.

We need you to supply your investment dollars, your enthusiasm, and most importantly your burning desire to succeed to build a successful retail business.

You need us, to show you the best way of operating this type of specialist business, and avoid failure and maximise your operating profits.

Franchising as a marketing tool is still coming of age in Australia, and yes it 1 s true to say franchising has had its fair share of 'quick buck franchisors', but our bottom line is very easy for you to understand.

Without you, we won't achieve our goals; without us. you may not achieve yours. Our job, as Franchisors, is to show you how to make a good living, a fair return on your investment and to feel personally terrific in being a part of our Howards Storage World Franchise Family.

We challenge you to ask us lots of 'why' questions and we will in turn qualify you as best we can to ensure you understand what it takes to succeed in retailing in today's tough marketplace.

Our goal is to find up to 100 franchisees and choosing from an Australian population of 20,000,000 people we reckon its going to he a match making process for both of us!

 
WHO ARE YOU?
You may be surprised to learn that most people who decide to open up their own business haven't done enough homework.

Regardless of how often we meet to discuss our franchise opportunity, and in that Interviewing process try to get to know and understand you, 'the real you', is often hard to get to know.

So we strongly suggest, the mirror in your bathroom, is a great place to start your self analysis steps and you must Fit the following profile, if we are to get down to some serious business planning together.
  1. You are a self starter.
  2. A joiner - team player.
  3. Enjoy people and a good joke.
  4. Are realistic when it comes to the work you need to put into growing your repeat customers.
  5. Are not frightened by the idea of quoting for shelving and perhaps installing product at the customers home.
  6. Will listen and take advice.
  7. Enjoy getting together to share ideas.
  8. Are honest, and can get a problem off your chest by talking about it rather than bottling up your feelings.
  9. Don't expect to make a million dollars overnight but are hungry for the material benefits a successful business can deliver.
  10. Enjoy the idea of your own business but are smart enough to see the advantage of group buying power and joint advertising clout.
 
WHAT WE OFFER YOU
  1. A 10 year contract with a further 10 year renewal option at no additional cost to you.
  2. Monthly meetings where we will all compare retail results and update our selling skills and product knowledge.
  3. A management fee of 6% of your sales, so we are both tied to the task of steadily increasing your sales and profit.
  4. An advertising levy of 2.5% of sales which is split between a National contribution of 1% and 1.5% of your sales that will be spent by you in your own local area.
  5. An annual conference where we all share information and invite our suppliers to offer us the best pricing deals based on bulk buying arrangements.
  6. Ongoing field visits by our franchise management team to ensure you are operating your business to its maximum capacity
  7. Negotiation with your landlord to get the best possible rental deals and minimum rental increases.
  8. An insurance package to cover all your business and personal insurance.
  9. Negotiation with our bankers to get you the best loan deal, if you choose to partly borrow or lease your shop fit out.
  10. An genuine ongoing caring attitude to make sure you, as our number one customer, are happy to stay with us!
 
YOUR INVESTMENT
A Howards Storage World franchise s a sound business investment. We invite you to fill out our application form and we will call you to discuss your interest and our requirements for new franchisees.

 
INTERNATIONAL
We are now ready to launch our unique franchising system internationally and have targeted for 2004, New Zealand, South Africa, the UK and Europe. Master Franchisees will be granted on the basis of 150,000 people per store, so as an example, in the UK with its approx population of 60 million we believe 400 stores will ultimately be opened. If you are interested in more information, please contact Dirk Spence by emailing dirk@hsw.com.au or phone (61 2) 9452 8888.