Franchise opportunity provides teamwork and growth

They’re a winning combination for gas-elec, the premier gas and electrical safety company

Many a new small business fails not because of the quality of its service or product, but because the owner doesn’t have the admin skills or back-up support needed to ensure business growth in the long-term. This is not, however, a headache for franchisees at the country’s premier gas and electrical safety company.

At gas-elec, the company’s bespoke bureau facility does all invoicing, credit control, payment collection and VAT preparation for the network. For safety inspection franchisees, there is also no selling, advertising costs, job coordination or access arrangements; it’s all done for them by the regional management franchisees and their office staff, leaving them free to spend most of their time out on jobs earning money.

Ex-navy man
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Like former navy chief Jason Davey, who operates his safety inspection franchise in the south west. He knew that a life in uniform had not equipped him with strong admin skills, so sensibly chose a business where it was all done for him.

“My regional office in Somerset typically books me four or five jobs a day - all I have to do is turn up and do the work,” says Jason. “There is absolutely no selling, which I would have found hard after a navy career where work was always generated for me.”

Another reason for gas-elec’s success and longevity is it works in a growing market, the private rental sector, which is obliged by law to have annual gas and electrical safety inspections. In 1996 only 11 per cent of homes were rented; today it’s 18 per cent - that’s 4.6 million homes. And in five years’ time it’s predicted that 23 per cent of homes will be privately rented. Since the recession began five years ago, gas-elec’s core market has grown by a massive 48 per cent and the franchise has enjoyed year-on-year growth since its inception in 1996.

But no market is static, and as gas-elec’s markets have evolved, so has the franchise changed to meet the needs of its customers. Supporting its 100-plus franchisees throughout the UK is a dedicated franchisor team whose remit it is to make life as hassle-free as possible for clients and the franchisee network. As well as the bureau service, gas-elec’s in-house expertise provides a bespoke IT system, web and email marketing, technical support and auditing and new product development - the latest of which is the Green Deal, a government initiative to provide affordable warmth in people’s homes.

Bespoke IT
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gas-elec’s regional management franchisees rely on its exclusive ‘e-cis’, a web-based bespoke IT system. Jay Sachania, Head of e-services, is responsible for ensuring the system is providing what the network needs; educating and supporting the franchisees and offering Hot Line and troubleshooting support plus virus protection advice.

Harlow-based safety inspection franchisee Dean Martin, who has renewed his franchise for a second five-year term, says: “Whenever I have a computer problem, Jay sorts it. Usually I work alone, but people in franchise support and in my regional office are at the end of the phone ready and willing to help me.”

Jay Sachania explains: “I train new franchisees to use the e-cis system. I set up their computer equipment - I can do that remotely from head office - and the IT equipment we supply as part of their package is set up in-house before it is allocated. I act as an interface between our franchisees and IT development; we can tailor the system to any special requirements to suit their business needs.”

“e-cis is a superb piece of kit,” says Dee Curl. She and husband Richard are regional management franchisees running gas-elec in the south and south west. “Without it, we wouldn’t be where we are today. Our franchisor has been open-minded enough to produce something that puts us in the forefront of the market and head office encourages us to come up with ideas for ongoing improvements. e-cis allows any form of reporting, so I can see exactly how my business is going, any problems and how I can maximise sales. It even allows head office to pick up on areas where we may be falling down so they can alert us.”

gas-elec’s Website Developer is Daniel Lambert. Having recently launched gas-elec’s new website, Dan is also responsible for the company’s presence on Facebook, Twitter and LinkedIn. By creating social networks, as well as pay per clicks and web optimisation, Dan ensures that a wide section of the market knows about new products and services.

“All these elements of web marketing drive sales to our regional offices and our engineers,” he says. “We can monitor where leads come from and at what cost per lead.”

gas-elec engineers provide dual gas and electrical safety checks, boiler servicing and associated remedials in rented properties, small commercial businesses and private homes. More than 100 safety inspection franchisees based in 18 regional offices carry out more than 100,000 inspections every year.

First-rate franchisor support is the bedrock of the gas-elec success story, which is why most of gas-elec’s franchisees are on their second or third five-year franchise term. In the past two years, 41 of 45 franchisees renewed their franchise agreements; a dozen are in their third five-year term.

In his 16th year
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gas-elec’s first-ever franchisee, Gerry McGuiness, has just embarked on his 16th year. “Over the years the marketplace for what we do has grown enormously,” he says. “More people than ever seem to be renting now and demand for safety inspections in my area has meant that my income has grown almost year-on-year.”

He attributes much of his business success to client retention - the service provided by him and gas-elec ensures that leading agents rarely switch providers, so Gerry has clients who have been with him for years. It’s a business ethic that’s paid off in more ways than one - Gerry’s income over the years has grown and grown:

“gas-elec told me back when I started in 1996 I could earn £40,000 a year. I did that in year one. And I have always earned more than that. So I think you could say I am a very happy man.”

Success in Scotland
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North of the border, Colin Smith has created a lucrative business during his six years with the company. “I’ve managed to build up such a good relationship with our clients that in some cases they won’t let anyone else do the work for them,” he says. “A year or so back one of my customers went for two days without heating until I could get there.”

gas-elec’s ongoing development means that franchisees can also offer their customers new products such as Floodcheck, a leak prevention device, and inspection hatches, now mandatory in properties with concealed boiler flues. Plenty of work, in short, for the likes of Jason, Colin and Gerry.

In fact, as Jason puts it: “gas-elec is recession proof.” Which is more than you can say about most lines of work in 2013.