Source:       My Business

Date:           September 1, 2007

JUST OVER A DECADE AGO, a group of Perth business people decided that there had to be a better way for shortrun, time sensitive printing to be handled. They saw how quick printers had taken a share of the market from larger printers which were struggling to compete with the relatively low cost, quick turnaround times of the newer, shopfront printing businesses.

Putting their heads together, the Perth team reasoned that there was a further evolution possible which would marry together the economics of larger presses with the marketing and easy availability advantages of the neighbourhood quick printery.

The concept they came up with - they conceived it as the hub and the spoke - has snared a sizeable and growing percentage of the quick print market. Worldwide Online Printing now has 79 franchisees across Australia whose focus is on generating sales of business cards, brochures, stationery and other business items, mainly from small- to medium sized businesses in each of their localities. What is really novel about the concept is that the actual printing is performed at a small number of centralised 'hubs' - in Perth, Sydney and Brisbane. The franchisees do not have any traditional printing equipment such as large presses in their offices - all the work is managed in the hubs; which operate around the clock to quickly complete the job and send it back to the franchise outlets for handing over to clients.

Worldwide has been such a viable growth area for entrepreneurs and potential business owners because it removes the two main issues facing potential franchisees: high investment in machinery and lack of printing expertise.

Paul Sowerby said that each franchise was based on being able to service a local population of 3500-4000 businesses. He estimates that, based on current population growth expectations, the franchise system can continue to grow to around 150 across Australia - mostly along the eastern seaboard - before it exhausts its market. The average well-established franchise achieves annual sales of around $700,000 with a respectable margin.

Franchisees comes from all walks of life, but many of them have a sales, design, or marketing or professional services background, because they need selling and relationship building skills.

Jon Nixon and his wife Julie, for example, have built up their Worldwide centre in Preston, Victoria, as a new site with no previous experience in print or design. Jon had worked in various areas, most recently as the owner of a coach hire business, and Julie in corporate administration. "We opened our doors on day one with not one customer!" Jon said. "Even though we were inexperienced, we weren't hung out to dry because we needed help. We made lots of mistakes, but that was OK because we had the huge support base from Worldwide," said Jon.

"Our favourite phrase when we started was 'I'll take that up with our production manager". It could have been one of 10 or so production managers, but they were working for our store through Worldwide's network. It allowed me to talk to clients with confidence because I knew I could get the advice and help I needed.

Stephenson laughs about how the other Worldwide franchisees are going to give her 'heaps' for being in a magazine. However, it's clear that she values their support. "The business world is a lonely place, and it's tremendously reassuring to know that, as a franchisee, you're among friends who have already come across your challenges," she says.

CEO Manderson adds "Sure, owning a business is gritty, it's tough, and it's not for the faint hearted. And neither is it the place for anyone without determination and the motivation to succeed. But we can give franchisees the edge - for everyone who comes to us with those vital assets, it's the right time and place to generate considerable wealth." The costs of purchasing and starting a new Worldwide franchise is around $200,000, plus working capital.