Through the brutal economic climate of the past three years, most businesses have found it tough to grow and prosper - but Fibrenew, the world-wide leader in leather and plastic restoration, has grown by leaps and bounds. Fibrenew sold 300 percent more franchises in 2009 than in 2006, the year before the recession. Sales in 2010 are looking even stronger than in 2009, a trend that can be largely attributed to an aggressive approach and a flexible business model.
Instead
of cutting costs at the start of the recession, Michael Wilson, CEO continued
to invest money into the company and created new revenue streams by expanding
into markets previously untouched by the rest of the industry.
"At
first, people kept asking me why take such a big risk when the future is
looking so unstable?" said Wilson. "It's people's first inclination
to sit on their cash and try to preserve it when they're looking ahead at tough
economic times. I chose to invest in something I have some control over -
somewhere I could grow the money rather than just let it sit in a bank or
dwindle in unpredictable markets."
Franchise
Growth by the Numbers
2006: 6
franchises sold
2007: 9
franchises sold
2008: 12
franchises sold
2009: 24
franchises sold
2010: 26
franchises sold since January
New and
Untapped Markets
Fibrenew's
core business has traditionally been refurbishing furniture and the interior of
cars, boats and air planes. At the start of the economic downturn, Fibrenew
sought new business from insurance and warranty companies struggling to stay
out of the red. Fibrenew began renewing marred leather and plastic parts for
these companies that have spent years replacing everything from dashboards to
vinyl siding to leather couches. Not only can Fibrenew refurbish these items
for a fraction of the cost of replacing them, but they also save tons of
plastics and leather from being sent to the landfill.
Healing
Hospital Chairs
Fibrenew
also formed a new source of revenue by working for hospitals that have
struggled to keep the cost of healthcare down during the recession. When exam
room chairs become damaged and worn, the exposed cushiony foam becomes a
breeding ground for germs, posing a serious health risk. Traditionally,
hospitals have been forced to replace them, but Fibrenew has started to
refurbish this equipment, eliminating the health risk at a fraction of the cost
without the waste.
Aggressive
Moves During the Recession
Fibrenew
leaders also:
-Spent a
significant amount of time and money expanding its state of the art training
facility, as well as their training processes for new franchisees
-Completed
extensive testing to ensure that Fibrenew's products, manufactured in the
company's own facility to its own formulas, conform to FAA and OEM standards,
giving them a leg up in the aviation and automotive sectors
-Revamped
and updated their web site and made leaps in search engine optimization with a
cyber-marketing company. Traffic increased by 85% the first day following the
launch of Fibrenew's refreshed website.
-Expanded
its franchise consultant network aimed at increasing US sales and global
expansion
-Expanded
its US sales team
-Hired
919 Marketing to maximize exposure
-Brought
in full-time I.T. support for the corporate office and for franchisees.
"It
was a risky move and a scary process, up and changing some of the core parts of
our business function, but it's paying off in spades. While other companies
were standing still, we kept selling more and more franchises," said
Wilson.
Growth
Numbers
Since
acquiring Fibrenew in 1995, CEO Michael Wilson has grown the number of
franchises ten-fold. Impressive franchise growth rates were achieved early on
in Canada and New Zealand, where the countries are now blanketed by Fibrenew
franchisees. Interest in Fibrenew franchises is accelerating into the United
States where the average annual revenue growth rate has exceeded 40% per year
over the past four years.
About
Fibrenew
Fibrenew,
founded in 1985 in Canada, is an international franchise company that
specializes in the renewal of leather and plastics, servicing five major
markets: aviation, automotive, commercial, marine and residential. There are
nearly 200 Fibrenew locations in 9 countries around the world. As a global
leader in the environmental movement, Fibrenew prevents thousands of tons of
leather and plastics from entering landfills. Fibrenew also supports
initiatives that give opportunities to women in third world countries. For more
information visit http://www.fibrenew-franchising.com
