Editorial

The Small Business Professionals Excel at Franchisee Satisfaction

With 400 franchised units and a presence in 46 states and all Canadian provinces, Padgett knows what it takes to make successful and happy franchisees. And they should – they’ve been in business for 40 years and Franchising for 30. You don’t achieve that longevity, especially in franchising, without getting the details right.

Padgett, says Steve Rafsky, CEO, started by helping small business owners manage the financial aspects of their companies. The service was much desired by these small companies as the owners needed to concentrate on growing their businesses rather than spending time on back room tasks.

“We started by providing reports,” says Rafsky, “such as P&L and balance sheets. But with time, we found our role to be much more than that. We are now considered by our clients as business advisors. We answer their questions and help them keep their businesses on track. In fact, we did an extensive survey of our clients and found that 92% o them say we are their first or only business advisor. Our evolution is that we changed from a paper business to a people business.”

Padgett keeps general information about their clients in a database which helps them learn how the clients are doing. “Because we have so many clients, we can see how clients are doing compared to others like them. Then we can find areas where they may need to improve. We have a tremendous amount of experience and knowledge available. In fact, we are an important resource of information to the IRS and other government entities on small business,” says Rafsky. “They turn to us for input with regard to small business issues because we have such an extensive knowledge base and are known for our experience.

“Padgett is not a sexy business,” says Rafsky, “like ice cream or sporting goods. “Yet for the 19 th consecutive year we have been named as a top Franchise in Entrepreneur’s franchise 500. We’re very proud of that recognition. Also, during the first year of this award, franchise business Review named the top 50 franchised businesses based on franchisee satisfaction and we made this prestigious list. Keeping 400 franchisees happy, particularly since some have been with the company since it began, is a challenge but it is our primary focus. We’re happy to say we are succeeding.”

Clients of Padgett franchisees are also very satisfied. Padgett helps over 25,000 small businesses with services such as accounting, financial reporting, government compliance, tax preparation, payroll and general business consulting. With nearly 85 percent of all businesses in the U.S. and Canada employing fewer than 20 people, both the need for the services Padgett offers and the quantity of potential customers are enormous.

“We are the first place the small business owner turns to to learn about running their business,” says Rafsky. “We provide a whole array of Financial Services but what we really do for our clients is to be there to answer their questions and to keep them focused on running their businesses.”

Rafsky, who started with Padgett 14 years ago as a franchisee, says this is a business which will work in most any area – rural or city. You don’t need to have worked in our industry because we provide complete training in the services you will be offering, says Rafsky. But there are some consistent attributes of their successful franchisees, such as:

Wants to own and run a business
Entrepreneur in spirit
Wants to grow a business (not have a hobby)
Understands that accounting is a back office process while marketing is a front office process
Has business experience and basic business aptitude
Has a familiarity with financials
Loves B2B sales and building relationships

“Padgett works so well,” says Rafsky, “because the model is right. It’s a proven model developed over a 30-plus year process. We have an organization committed to our franchisees and their clients. Our process is to make the product more efficient and our commitment is to the success of that product.”

Franchisee support is obviously one of the keys – not only to franchisee contentment but also to the success they experience. Padgett offers training at their franchise facility in Athens, Georgia. Then they work with the franchisee on location as the new business opens. “As far as our existing franchise owners, we have some kind of training going on somewhere in the country every single month,” says Rafsky. “Our most successful franchise owners are the ones who participate in training every year. We have training that is appropriate for whatever level of development the franchisee is at and we find that those who stay engaged really excel in this business.

“This is an affordable business to enter,” says Rafsky. While an office location is recommended, it doesn’t have to be in an expensive, high-traffic area like a retail mall. “In fact, this is an ideal business for a husband and wife team, particularly where one spouse handles the marketing and sales and the other takes care of the operations side of the business. You can add an employee or two as you grow but you won’t be managing a crew of people.”

Rafsky, who started with Padgett as a franchisee with his wife, not only knows the business from the management side but from on-the-job experience. “It’s helpful to have learned so much about the business from the franchisee’s perspective,” says Rafsky. “But I’m not the only one in the corporate office with this experience – our president, Roger Harris, also started with Padgett as a franchisee.

“That’s the difference between Padgett and our competition,” continues Rafsky. “Our management learned this, did it, exceeded in it and then got into management.”

If you are at the place in your life where being your own boss makes sense to you and if you are excited about growing your own business with the help and support of a dynamic franchisor, consider Padgett for your future. For the last 30 plus years we have done a very good job helping people start a second career with us,” says Rafsky. “We’d love to help you, too.”