Logistics franchise opportunity proves a driving force for success

With the help of his franchisor, Driver Hire franchisee Maniit Singh survived the credit crunch and was recognised for his efforts

Manjit Singh’s first experience of running a business came when he invested in an independent wine shop. While it enjoyed some success, he reached a point where he needed guidance on moving the business forward and, as a result, decided to sell up and look at various business-to-business management franchise opportunities in order to access a business model where advice and support were readily available.

Manjit opened the Driver Hire Enfield office in April 2007 with nothing more than a database of lapsed clients and candidates in a second floor office within a business complex. With the support of the Driver Hire head office team, his neighbouring offices and one other member of staff, his first week of trading billed three clients just over £1000. But in the space of six months and with a lot of hard work Manjit had a record turnover week - billing just over £15,000.

Profits
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“In my first year and a half of trading the growth we achieved was more than I could have initially imagined,” he says.“Going from a turnover of zero to £450,000 in year one had me planning grand things to spend the profits on.”

When the credit crunch began to bite in September 2008, Manjit initially didn’t experience any signs of a downturn in business. However, by April 2009 the impact became apparent. According to Manjit, he began to think about leaving the business: “By May 2009 I achieved my lowest weekly turnover since opening and made my first monthly loss in December 2009. I started to seriously consider walking away with what cash reserves I find a buyer, maybe even my franchise fee.”

At this point Manjit turned to his franchisor for support. He recalls: “After a number of discussions with Driver Hire franchisor directors, the message I got was that I had the right attitude to recover and take the business to bigger and better things.

“They also highlighted that while some other offices had seen revenues fall, there were many offices that were growing. This was a turning point for me, proof that Driver Hire’s core business was sound and that there would always be demand for its services. It was this that gave me the reassurance that I was looking for to continue and work with my franchisor to come up with a recovery plan.”

He adds: “it was time for me to make use of all the tools, systems and support mechanisms put in place by my franchisor, instead of trying to battle through on my own.”

For Manjit this include:

* Attending all regional meetings and conferences.

* Regularly meeting and working closely with his area development manager.

* Building good working relationships with neighbouring Driver Hire franchisees.

* Distributing bespoke mailshots assisted by the Driver Hire marketing team and press officer.

* Using the Driver Hire league tables as a motivator for the office team.

* Making operational changes to his office, including job roles, bonus structures and tactical pricing.

With hard work and, as a result of making use of the Driver Hire network and support structure, Manjit saw his business start to improve and grow once again. In the financial year zomin Driver Hire Enfield achieved in excess of £1 million turnover and the office is on target for a 2011/12 year-end turnover of around £1.5 million.This has meant that Manjit has also been able to expand the team to further invest in his business’ future growth.

Reward
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In September 2011 all the effort was recognised and rewarded. Manjit - for his excellence in franchising - made it to the regional finals of the British Franchise Association Franchisee of the Year Awards. Driver Hire were also proud to give Manjit and his team the Rose Bowl Award for endeavour at the company’s annual winter conference, which was held in January 2012 in Edinburgh.

“With challenges along the way, running a business is always going to be a rollercoaster affair, but the support and dedication provided by the Driver Hire team and network has meant that I know I’m not alone and can push forward with a positive outlook,” says Manjit.

“Being recognised for the hard work is an added bonus and certainly helps to motivate me and the team.”