Posted:13-January-2021
Interview with Daryl Perkins of Card Connection, Nottingham
Franchisee: Daryl Perkins
Territory: Nottingham
Franchise: Card Connection
Tell us about your experience launching your Card Connection franchise
It’s now almost two years since I joined Card Connection as a franchisee. Starting up was a big step and I honestly didn’t know how it would turn out. Although the company had a great reputation and I was aware of their clever business model through a franchisee who supplied the Budgens store where I worked for six years, it was still a leap of faith!
At the tender age of 24, I bought the Nottingham franchise from the outgoing franchisee who retired in 2013. I now supply products from Card Connection’s extensive range of more than 1,200 quality greeting cards and accessories to 150 retailers. Amazingly, I now have the fastest growing franchise in the network!
What challenges have you faced?
The greatest challenge when it came to starting up - particularly given my age - was securing the funds to buy the franchise. In the first instance, I contacted my own bank for advice; I just needed an ‘is this possible?’ conversation. They were not particularly helpful! So then I went to a bank with a specialist franchising department and spoke to their relationship manager.
We discussed some outline figures over the phone and he advised me that I needed to produce a simple business plan and a cash-flow which showed my estimated income and outgoings including the repayment of a loan to buy the business. The plan also needed to show the last three years’ trading accounts for the previous franchisee, which Card Connection was able to supply.
There was further clarification needed, a few more conversations and an interview but the bank approved a loan which covered 70% on the purchase of the franchise, paid back over a five year term. I needed to come up with the other 30% myself. This loan was backed by a Government guarantee scheme which is a bit like an insurance policy and guarantees to repay 75% of my loan should something go wrong. This scheme was critical to enable the bank to agree the loan. The process from initial enquiry to starting work was around six months.
The British Franchise Association lists five banks which have specialised franchising support: HSBC, Lloyds, Metro, Natwest and RBS.
How have you built up your Card Connection franchise since the launch?
With initial hurdles out of the way, I began to get to know and build my franchised business. I use Card Connection’s award winning system which means I place greeting cards in retail outlets on a ‘consignment’ basis. This is one step beyond ‘sale or return’ as Card Connection’s retail customers don’t have to buy the stock initially; they only pay for what they sell. Display equipment is also free on loan to the retailer, minimising retailers’ costs and maximising their profits. Most days are spent delivering and merchandising, meeting customers and packing stock for deliveries. No two days are ever the same!
What advice would you give those who are looking to buy a franchise?
As one of the youngest franchisees in the industry, it is hard for me to share the fruits of my experience with others who have been around for many more years than me! However, if I had to give advice to someone looking at franchising I would say: beware of cheap franchises as they are cheap for a reason! Go for the market leading franchise in your chosen sector. The product or service needs to be excellent – it should really ‘sell itself’. Also, look carefully into the company’s financial background to make sure it is secure. Lastly, when you go for an interview, remember you are interviewing the franchisor too!
If you are a young entrepreneur looking at franchising, you will not have years of experience on your side. However, make up for it enthusiasm and a fresh, determined approach and with the right training and franchisor support you will succeed. My hard work, customer focus and attention to detail is paying off and I have recently been put forward for a British Franchise Association Award for the best young franchisee of the year!
About Card Connection
Market leader in the UK for the franchised distribution of greeting cards, established in 1992 & a full member of the BFA since 1995, Card Connection and its network of 68 franchisees distribute cards & accessories to around 13,000 retail outlets. Card Connection is part of UK Greetings Ltd, a subsidiary of American Greetings Inc., one of the largest greeting card publishers in the world.
Interested and want to know more about Card Connection?
The Card Connection basic profile outlines aspects of their franchise opportunity
