Building a franchise in any industry is difficult because the franchise market is a very competitive market. Aspiring franchisees look for the best platform in which they can make a profit without putting in a lot of work. Justin Lowe provided exactly that when he founded the Matrix Warehouse in 2002. He created a franchise model that offers franchisees sustainable growth. His franchise came with a solution to a congested franchise market, so even with the highly competitive environment, he managed to infiltrate and dominate the market.
But with this bold and strong brand he had to ensure that whoever he brings on board will represent the brand accurately, this includes employees and business associates.
“Finding a good franchise with the right business acumen that can run a franchise successfully is very important. This also goes for a finding of good retail premises for the franchise, getting staff and going through intensive training before the shop opens. Liaising with different role-players such as landlords, contractors and service providers... to make sure the shop opens on time whilst following the Corporate identity of the company.”
He adds the importance of thoroughly knowing a person who is going to carry your name and brand out there. Louw adds that "a good vetting process needs to be done to ensure that the franchise is a trader with some business acumen because that is a must. The finer details of the I.T. industry can be taught. The process has changed over the years, you could open a franchise 15 years ago for next to nothing compared to today’s costs".
Lowe is a motivated businessman that has the passion for making money and enjoys challenges. He believes that it is important to look after employees that are passionate about what they do or where they work. He says that aspiring entrepreneurs when embarking on the journey of entrepreneurship they should know and “realize that you have a business to run and everything else in your life becomes second. If you do not give 100 percent of your time and effort into your business, it is destined to fail. There is no such thing as a happy medium between family time and business time. Retail business is a 7-day commitment”.
With this mindset, Lowe who is the founder of Matrix warehouse built a strong franchise brand that employs over 500 people. Even with the high number of people he employs, Lowe still encounters challenges such as loyal staff member. But this hindrance has not limited or paralyzed him and his business from reaching their growth targets.
His business model is focused on hard work and ensuring that customers receive the best service at all times. "Commitment to our customers and very hard work, as opposed to working for someone, you now work twice as long hours for less money. It is worth it if you see the light at the end of the tunnel. He believes that to ensure that your business grows, young entrepreneurs need to learn to reinvest in their businesses. Lowe has made major investments in his own business; he has a complete financial back end that safeguards his investment. He also employs the best accountants because the tax can ruin a person a business but "if you pay your tax then you have a good business".
Lowe believes South Africa is still a very great place to live in with a lot of opportunities, so young South Africans need to take these opportunities and run with them. Also advising that if an aspiring franchisee is looking to invest in a franchise business they must "make sure they invest in a franchisor with a track record".
Founder - Justin Lowe
Age: 56
Name of company: Matrix Warehouse Group (PTY) LTD
Start-up Funding: From R920 000-00
Number of Employees: 500