Find out the criteria needed to be a Cash Converters’ franchisee, the key takeout that will make you successful in the franchising industry and if this business is the right fit for you.
Trust is at the forefront of everything
“The trust that consumers have in the Cash Converters brand in this country is always amazing,” says Peter Forshaw, Co-Founder and CFO of Cash Converters. He believes that there are various reasons for this. For customers, there is buying and selling of second hand goods, plus secured and unsecured money lending; a Cash Advance Loan is a 1-month loan against the things you own, whereas a PayDay Loan is a 1-month loan to tide you over until you get paid at the end of the month. For franchisees, there is the freedom of being your own boss and the financial security of multiple revenue streams.
“Customers come back because they know that we are a great source of providing them with cash when they need it – no matter what the reason. Likewise, they know that they can always find a bargain at Cash Converters,” says Richard Mukheibir, Co-Founder and CEO of Cash Converters Southern Africa. Continues Peter: “When somebody does a Cash Advance with us, they are leaving their precious item in our care for a period of 30 days, with the expectation that when they come back and give the store the money, they are going to get their product back – their precious Rolex watch, their jewellery, their TV or their laptop.” So, the trust factor goes both ways between franchisees and customers.
Key questions and factors to success in the franchising industry
If you want to become a success in the franchising industry, the duo believes that you need to focus on two words: Customer satisfaction. “If you can get that right, then you will be a successful franchisee and you will make lots of money,” says Peter. Most importantly though, you will have a sustainable business that will allow you to look after your family, and, as extended family members often get involved in the business, it is an opportunity to create a legacy too. Before joining the Cash Converters’ family, Richard has one piece of advice for potential franchisees: “Chat to existing franchisees to really understand the industry and business,” he says.
Richard believes that these are important questions to ask existing franchisees:
- If they had the choice again, what would they do?
- Would they buy a Cash Converters or wouldn’t they?
“On the basis of that, you will get a very good indication of whether this business is for you; whether this company is successful; and whether you actually want to take on the challenge and join the family,” elaborates Richard.
The criteria to become a Cash Converters’ franchisee
If you have the upfront capital and want to buy one of a Cash Converters’ franchise, that is only part of the equation. “However, if you don’t fit the Cash Converters’ profile, you are not going to get in the front door; that is critically important to us,” explains Richard. So, it is imperative that you think about what kind of person you are and whether you would be a good fit as a franchisee.
Do you have the following qualities?
- Desire to be an owner-operator
- High energy
- Previous business experience
- People skills
- Entrepreneurial mindset
- Hard working
*If you answered yes to most of these, becoming a Cash Converters’ franchisee might be the perfect opportunity for you.
Concludes Richard: “Franchisees must be able to communicate, manage, motivate and drive their staff because that’s vitally important. Their staff is the front-end of our business; they are interfacing with our consumers every day. Our franchisees need to be managing that process, motivating their team daily and ensuring that we constantly deliver a high level of service to our consumers.”