“Self-employment is great. But not everyone should be self-employed.”
The recent Thryv Connect virtual event featured this and other observations on life, business, and success in a “fireside chat” with Neighborly President & CEO Mike Bidwell. Mike and Thryv Chief Strategy Officer Gordon Henry covered everything from what it takes to win in the franchise business to what are the keys to a successful life.
Neighborly is a private-equity backed franchising company founded in 1981 that operates 27 brands concentrated in the home services space. Some of the more familiar names include Rainbow Restoration (where Bidwell got his start as a franchise owner in 1984), MollyMaid, Mr. Rooter, Mosquito Joe, and Mr. Handyman. Bidwell has been at Neighborly’s helm since 1995.
Here are some highlights from the fireside chat.
On Sticking to Your Knitting
Gordon asked Mike why Neighborly hasn’t branched out into other franchise categories.
“You know, we started there [in home services] and fortunately we’ve had the discipline over the years to stay in our sandbox. We’ve been tempted with certainly some of our private equity sponsors over the years to venture out into other opportunities. That isn’t us. I’m a firm believer in picking something and doing it well.”
On Franchise vs. Independent Businesses
Gordon also asked if the odds of success are better for entrepreneurs who choose franchising vs. starting their own independent businesses.
“It takes a magic formula to get a business just right. There are so many people that start up a business and the failure rate is pretty high. You don’t have that much time when you’re starting and everyone’s got a limited amount of working capital when they get going. And most people run out of money. They burn through it before they get the marketing formula right. Or the branding may not be good. Maybe they have a poor pricing model and they’ve underpricing their services. So, franchising, by contrast, gives you a proven format. It gives you help and support.”
“I think it’s 80% of all new businesses are out of business in five years, or something like that. The success rate of most franchise systems kind of turns that on its head.”
On What it Takes to Win in Franchising
While Mike said the odds of success are higher for franchise owners vs. independent businesses, success isn’t assured. And a certain type of owner tends to perform better.
“Not all franchise owners make it. If you’re not a self-starter it’s not a good idea. You can lead a horse to water, but you can make it drink. If you won’t get your foot out the door each morning, that’s going to be an issue. But it gives you every opportunity to succeed…
“We really don’t want our franchise owners out in the truck…running service calls. We want them running the business. So, it really takes a willingness to accept and embrace the system. If somebody wants to tinker and innovate, that’s not a franchisee. They should do a startup. So we want somebody that’s going to accept the system and just going to go out and execute. But one of the most important success factors would be tenacity. It’s that discipline to get up every morning. We call it grit. That’s what we’re really looking for. And we find that those are the most successful owners.”
On Private Equity Ownership
“We’re in our fourth iteration of PE sponsorships. And each time we’ve enjoyed our partners. They’ve been great, and they function very much like a partner. It’s been a very collaborative relationship and this company is much bigger than it would be without the sponsorship. I would say our customers are better off because we can provide a better experience. Our franchise owners are better off, and our associates are better off because we’re a more successful, more capable company. So yeah, I’m a big fan. And not everyone has that experience [with private equity]. Just like if you were thinking about becoming a franchisee you should talk to other franchisees. The same thing with PE companies. You have to pick the right partner.”
The Mike Bidwell Reading List
The discussion wound down with Gordon asking Mike for a list of books that have influenced him, both personally and professionally. He shared three.
“Extreme Ownership” by Jocko Willink
“This book goes along with the concept of persistence and tenacity and not leaving anything to chance.”
“How to Master the Art of Selling” by Tommy Hopkins
“As I was starting my Rainbow franchise, I build it by doing direct sales, door to door…I am not wired to be an outside salesperson. That’s not me. I don’t want to go and talk to strangers all day, every day. I am more of a make a list, check it off type of person. Tommy helped me become an outside salesperson.”
“The Seasons of Life” by Jim Rohn
“I read this in my late 20s and it really influenced my life. It’s all about being intentional with your lifestyle.”
