Envirocare franchise opportunity represents low business risk

Grounds maintenance specialist Envirocare provides a regular service to hotel groups, care homes, office blocks, restaurants, medical facilities, schools and many other commercial locations

Government cutbacks and tightening business belts have led to an increase in business outsourcing. An industry survey in late 2011 suggested that outsourcing for UK businesses grew at the fastest rate in three years and ahead of the five year average rate. In early 2013 the BBC reported that the service sector would lead the country out of recession.

One business benefitting from both trends is leading grounds maintenance management franchise Envirocare. Envirocare Grounds Maintenance started in Lancashire in 2005 and has grown to 18 depots from Southampton to Gretna since launching as a franchise in 2010. The franchise now provides a regular service to hotel groups, care homes, office blocks, restaurants, medical facilities, schools and many other commercial locations.

Booming
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In the past 12 months the business has increased turnover by over 120 per cent, more than doubling in size. For Envirocare, business is booming. The company has taken a unique approach to the provision of an established service and by focusing on an environmentally sensitive way of delivering grounds maintenance franchisees’ businesses stand out. Carbon footprint and chemical usage reduction programmes, together with a strong focus on recycling, have helped Envirocare franchisees to be different to their local competitors.

Ian Morton is the Envirocare franchisee for the Newcastle area and for him the potential offered by local government restructuring was a key reason to consider the business. “I was looking into starting up my own business and I felt that grounds maintenance could benefit from the government change in expenditure policy,” he says.

“The change, which sees local government able to outsource various services to the private sector, would, I thought, benefit the maintenance industry. Government departments, however, have quite strict purchasing requirements, so becoming part of an award winning, accredited, national commercial grounds maintenance company was the best option. The support I receive from the franchisor helps me to win contracts and tenders that I could not approach as an independent.”

Envirocare franchisees employ operatives who visit corporate clients to provide a comprehensive grounds maintenance service. The opportunity is based on repeat business from regular visits to business locations. High client retention and a profitable model means the business can grow quickly and franchise director Dan Archer believes repeat business is essential for any business to succeed.

“Our franchise is benefitting from the unique business environment,” he says. “Many of our clients are looking for better value and the improved service that comes from a national player with industry leading accreditation.

“We are winning business from smaller local competitors, as our franchisees have ISO 9001, 14001 and OHSAS 18001 and also benefit from other industry recognised kitemarks. However, the really attractive thing about our market is that the clients pay for the service with a standard monthly charge. We visit their location regularly and the franchisee is guaranteed regular monthly income.”

Stable
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Archer continues: “This makes our business stable, as we are not always having to find the next job. Additional clients build the order book of the business and increase the value of the business too. We do not maintain domestic locations, as we feel the domestic market is too competitive with little brand loyalty - for our franchisees over 95 per cent client retention is common.

“The franchise is ideally suited to anyone wanting to run a sustainable, flexible, low risk business. As a management franchise, our franchisees employ teams who will actually cut the grass and maintain the sites. The franchisee’s time will be best spent running the business and building client relationships.”

Envirocare is a growing franchise network with new franchisees joining the business each month. One such new face is Stewart Astley, who opened the Blackburn franchise in January 2013.

Stewart says: “Prior to Envirocare I was a finance director for an asbestos removal company. My first few months running my Envirocare business have been more satisfying than the previous 10 years of my corporate life. The sense of accomplishment of seeing the difference my employees make to a client’s grounds is great.”

After completing the three week training course in February, Stewart has already added a significant number of clients to his business. Speaking about his success, Dan says: “Stewart would be the first to admit that he is not a salesman, having spent his career in accountancy. What he is very good at doing is following our system and he is proving that if you do that you will be successful. He has added a significant volume of new contracts to his business in the first six months and, after recruiting his first staff, he has added additional help to the business. He is set to have a record breaking first year with Envirocare.”

After starting his business when the economy was at its lowest two years ago, Ian Morton has been successful in building his local area and has already expanded into a second territory.

Talking about the challenges of building a successful business, he says: “I now understand what others had to endure when trying to reach me in the past. Getting through efficient secretaries and receptionists to talk with the decision maker was my initial stumbling block. I am now experienced in all aspects of the fieldwork and there is no better feeling that getting a deal, doing the work, seeing a site transformed and then having the site manager come to you and express their happiness in the difference. It’s a very satisfying feeling from beginning to end.”

Advice
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Ian’s advice to anyone considering the business is: “Never stop marketing. I have found this to be like rolling a snowball down a hill. The bigger it gets as you add your quotations to it and as it rolls the more work comes in from it, but you have to continuously add to it for it to expand. I take some time out each week to carry out my local marketing.

The investment for an Envirocare franchise is £43,000. The franchise runs from a depot location, but the franchisor can help with locating premises and the cost of the franchise reflects the costs of starting a premises based management franchise. Funding is available via the main franchise banks for up to 70 per cent of the total start-up costs. Franchisees will need £16,000- £18,000 in unencumbered funds and the desire to build a substantial business.

Envirocare is an associate member of the British Franchise Association. Dan Archer has been on the board of directors of the bfa since 2008 and is a former chairman of the bfa finance and general purposes committee.