It has been nearly a year since Jeff (formerly Mr Jeff) took a turn towards becoming a multi-service Super APP. During this time the company has experienced a rebirth leading to exponential global growth (at times selling more than 100 franchises per month!) while maintaining a centralised corporate structure to nurture company culture — all of Jeff’s 500+ employees are based in sunny Valencia, Spain!
So what is Jeff? Jeff was born in 2015 as Mr Jeff, a laundry service app that revolutionised the way we do our laundry chores with an offer to save users time to instead focus on doing the things they love. In its early days the company identified the heavy operational costs involved with running a daily services business and decided to veer towards franchising as an operational solution. The results have been remarkable; within one year the company had sold over 1,000 franchises and in two had expanded to more than 30 countries, 2020 will start with 2000 franchises sold and will be the year of becoming a Super APP.
At Jeff, we are 100% confident this latest rebirth will enable us to become a global daily services player, bringing the Good Good Life to millions of new users. Below are some do’s and don’ts that have become vital to our global operations expansion effort.
DO’S
DO form partnerships that are 100% on-board with your expansion “mantra”: At the center of Jeff’s growth strategy is the discovery and acquisition of innovative and successful daily services players. However, local/regional success does not always transfer globally. Incorporating know-how partners that are from day one able to understand the intricacies of culture, language and location while at the same time implementing timely operational adaptation strategies is crucial to rapid growth.
DO research what other players are doing worldwide: Chances are you’re not the first person starting a business in your sector. As you develop your business model continue asking questions. What do your competitors’ locations look like? How do they manage their employees? What are their service offers? What segment of the population are those services targeted towards? How do they differ worldwide? Are those vastly different from yours? Why? Identifying the best aspects and practices of each industry sector and incorporating them to your business model will be key to your success.
DO incorporate easy-to-source construction materials: When designing a HUB’s interior always avoid materials that are complex to source or furniture that is too unique. The general rule is to stick to generic and natural materials for both furniture and finishings. Do this, and your set-up costs will not only be low, but you will also accelerate your growth immensely.
DO build trusted contractor relationships: At Jeff we have built a global network of turnkey contractors to adapt the premises of our locations. When seeking new contractors the rule is to always avoid high-end and low-end contractors. High-end contractors will likely add-on an experience component cost that is unnecessary with a basic/scalable design model, while low-end contractors will lack the capacity to keep up with your growth targets. Your sweet spot is those that are mid-tier. They will be cheaper, eager for business, and more willing to negotiate prices. Keep them happy and they will become your growth advisors and “eyes on the ground”!
DO invest in your design and creative teams: A good team of motivated designers will bring your location wish list to reality. These are going to be your business model dream alchemists! And time is their most valuable commodity. Avoid burning them out and you will create unique brand identities that are hugely appealing to your end users.
DO hire a Head of Regulatory Compliance: Legal & regulatory roadblocks are potentially your biggest adversaries to expansion. Regulations can come from multiple sources (city, state, regional, federal governments, NGO industry regulators, etc.) Knowing what your obligations are in each market can avoid delays and prevent operational losses.
DO build a supply chain and procurement structure: Providing a consistent experience and service in multiple markets is an important component to sustained growth. Your supply chain and procurement team will create an effective supply structure that will strengthen your brand recognition and increase profit margins.
DO hire culturally diverse staff: The importance of workplace diversity is essential when it comes to a company’s ability to reach multiple foreign markets. A diverse workforce will help you localise your service offer, understand a buyer, and identify local roadblocks. Immigrants in culturally diverse societies have also been proven to foster innovation and entrepreneurship. The company’s reputation also highly benefits from an image of diversity; it enables it to attract a more diverse pool of applicants, and it will be seen as an organisation that is flexible and highly responsive to changes.
DO establish clear and motivating company values: As your company grows you’ll want to ensure that the values upon which it was founded are not diluted or lost so that they continue being essential growth drivers. Zero tolerance for personal conflicts. Equal involvement from all in pursuing the mission and vision of the company. Maximum individual effort from all, always raising the bar. Jeff’s values: Zero Bullshit. All in. Never Enough. One Team.
DON’TS
DON´T create internal roadblocks — of any kind! / and be wary of excessive corporate bureaucracy: During the process of building an efficient company structure we must consistently identify and find solutions to external roadblocks to growth. Having an additional layer of internal roadblocks to overcome can very quickly dissipate your employees´ motivation and initiative. These roadblocks can come in many forms but most often manifest themselves in the form of excessive (and lengthy!) purchasing and contractual approval processes. Solution: Create STREAMLINED and CLEAR processes that incorporate efficient, faster, and simpler working methods while at the same time meeting your financial and audit needs — a challenging balancing act that requires understanding the needs of multiple teams but one that can make or break your company’s growth.
DON’T wait too long to invest in middle management talent: Once you gain momentum and secure more capital, take a step back, and invest in middle management talent with expertise matching your needs (i.e. customer service, innovation, business development, etc.). These people will be your strategists, growing your teams with a forward-looking vision while refining their talent for identifying operational pitfalls.
DON´T replicate the corporate structure of other companies: It’s no doubt that much insight can be learned about the growth path of leading companies, however not all companies are made equal. Startup growth stories are inherently unique and are comprised of multiple expansion stages, each with different needs and priorities. The formula that worked for Amazon, Facebook or Microsoft may not, without modifications, work for your company at this moment, or ever. It will always be highly dependant on your company’s current growth needs, personnel capabilities and future vision.
DON’T overcomplicate business models — keep it simple!: As you are developing your business models strive to keep them as simple as possible. Offer a simple, and transparent services to your customers with a clear value offer — focusing on services that have the highest recurrence rate, and avoiding long lists of service offers. The more complicated the model the less scalable it will be.
At Jeff’s Verticals department we consider these do’s and don’ts an integral part of our formula for rapid growth. These elements have allowed us to launch our current franchise lines (Mr Jeff, Beauty Jeff, Fit Jeff) and will accelerate our growth even further as we plan to incorporate more than 10 new verticals in 2020.
Hopefully the above will be helpful considerations for people seeking to prepare their business models for global scalability.
