Go From Knowing Nothing to Being Something
July 21, 2010
Some
people are planners and some people are doers. Richard Hodge is the rare
combination of person who can do both. Hodge did his homework before becoming
an electrician, before joining an electrical network, and before purchasing an
electrical franchise.
Hodge was introduced to a master electrician from New Zealand who helped him
shape a career in the electrical field.
“After that meeting with the master electrician, I did some research on the
trade that did peak my interest,” Hodge said. “What I found was that there was
a national shortage of skilled electricians in North America to the tune of
100,000.”
The shortage was predicted to grow as a result of two factors: Baby Boomer parents
discouraged their children from vocational/trade careers and encouraged
college, and a majority of electricians in the market were Baby Boomers and
were soon going to be retiring.
“I asked myself the following: ‘What other service business have I come into
contact with that has an immediate and future growing inequality of excess
demand versus supply?’” Hodge said. “That statement is why I ultimately
purchased a Mister Sparky® franchise. We had spent three years doing
construction and quickly realized there was no way I was doing that for any
length of time.”
Hodge, 41, who was born and raised in Los Angeles and moved to Houston,
received several calls from Electricians’ Success International® (ESI) inviting
him to attend one of their Profit Days, to learn more about ESI
opportunities.
In September 2007, Hodge attended his first ESI Expo in Orlando,
Fla.
“We had just signed on during that meeting,” he said. “I had also sat in on a
Mister Sparky presentation. Eventually, I thought about the competition in
Houston, the length of time in market and their market saturation, and made the
decision to migrate to Mister Sparky after starting up with
ESI.”
After Hodge purchased a Mister Sparky franchise it enabled him to attain the
success he was looking for, which he defines as being able to enjoy more
vacations and take time off whenever he needs to.
MORE VACATIONS
Richard Hodge, far right, and his wife, Jessica, left, recently posed for a family vacation photo during a cruise. “For the kids, we are taking them to Atlantis in 2011,” Richard Hodge said. “Good stuff.”
“This is a big plus,” he said. “Because of a few key proprietary offerings in the Mister Sparky franchise, I am literally able to check out for weeks at a time if need be.”
In summer 2009, Hodge took about a month out of the office to work on a project outside of Mister Sparky. “My franchise did not miss a beat at all,” he said. “During December 2009, I was out most of the month due to travel and an extended hospital stay — ; then the first 10 days of January for a cruise. Again, my franchise did not miss a beat.”
What is the key to Hodge’s new-found time away from work? “I think the key is that I am not at the center of my franchise’s universe; it has a life on its own,” he said. “I have empowered and encouraged my team to use the OPX Operational Excellence manuals and establish relationships with the folks at the corporate office. If my team has questions, they know I am the last person to call. There is better support in place for all vertical issues in Mister Sparky than me.
“Generally, we as a family are vacationing between 2-3 weeks per year,” said Hodge.
With respect to vacations, Hodge said his family has taken seven-night cruises every year to places like Mexico, Cayman Islands, and Jamaica. “This year, over Thanksgiving week, we are taking another seven-night cruise with our whole family,” he said.
Hodge also has been able to get away monthly with his sons on almost every Boy Scout camping trip.
“In June 2010, I traveled with my son on a weeklong Boy Scout camping trip to the Arkansas Mountains,” Hodge said. “Our master electrician, Tony Durr, and his son, also participated in the campout.”
Hodge has also taken a couple weeks’ vacation down to the family condo in Hilton Head, S.C., over the past few years.
“Going forward, in February of 2011, my wife and I are going to Ireland and Egypt for a couple of weeks and are planning a few stops in between,” Hodge said. “For the kids, we are taking them to Atlantis in 2011. Good stuff.”
FRANCHISE OF THE YEAR
Since
becoming a franchisee, Hodge’s Mister Sparky was named Franchise of the
Year.
“I got rid of all instances of nepotism that didn’t make sense financially or
to the culture of the company,” Hodge said. “This is one of the key issues I
see that is pervasive in our business, and it holds franchises back from
growing early on.”
Hodge said revenue productivity is a key element in the success of his Mister
Sparky franchise.
“My approach to business is definitely long-sighted,” he said. “I tend to focus
on things that are not easily acquired in business. I do not like the quick
fixes. I much prefer to move silently through the market, rather than abruptly.
In my experience, top- line sales are easy to get — just advertise more and hire more people — simple.
“But it doesn’t equate to productive revenue,” he continued, “revenue that
makes sense from the top through the bottom line. No business should ever grow
more than 10 times its working capital. Next to undercapitalization, unchecked
and undercapitalized growth is a killer for small
business.”
GROWTH AND RETIREMENT
Through
sound education from Mister Sparky, Hodge now has plans for growth and
retirement.
“Again, my approach is threefold here: win-win for the client, team member,
corporate and franchise; revenue productivity from top through bottom line; and
friction-free systems that make sense,” he said. “Technology only works in the
enterprise if it feels like you’re not using it. So I am careful with
this.”
With respect to Hodge’s growth: “I would be happy to share with any franchise
our strategies that have worked and not worked, but my competitors are reading
this too, so I will leave it at that,” he said.
“We have been able to pretty much double our growth year after year and
maintain strong double-digit profitability,” he continued. “We are on track to
do this again this year. I don’t plan to continue this growth rate in years
going forward because it doesn’t work as numbers get bigger for many reasons.
It’s the velocity to value equation problem.
“Now more than ever, it is imperative to run your business as a business,” he
said. “There will be more opportunity in my opinion going forward for those
that respect the market as it exists. Revenue productivity is imperative and
clean balance sheets are a must. The business environment has always been
challenging, but more now than ever, if the past was checkers — the future is chess. Again,
I think this is a great opportunity to weed out the B and C players and take
that market share.”
As far as an exit strategy for his Mister Sparky franchise, Hodge has changed
his tune.
“At first I thought it was to build it up and sell it,” he said. “Now, I like
the business. It’s not difficult for me to run and not all-consuming. It throws
off cash at end of year, so I’m not in such a hurry to leave as I thought. I’m
only 41 so I have plenty of time. I am looking at other ventures outside of
trade services, though, to diversify our business.”
FRANCHISE BENEFITS
Mister
Sparky offered Hodge business boundaries that he would have to respect in his
personal business decisions.
“Being part of a franchise feels like you are a part of a larger company, which
I and my team have really come to appreciate,” Hodge said. “Our team is well
plugged in with other folks and our franchise business consultants. If we don’t
know the answers, they are not far away.”
Scale was a big part of the reason Hodge became a Mister Sparky
franchise.
“I simply didn’t want to go toe-to-toe, dollar-for-dollar, against competition
that had a head start in the market,” he said. “Being a part of Mister Sparky
has allowed me to slowly and fully realize the benefits of being part of a
larger organization in terms of scale and consolidated branding and marketing.”
