A redundancy payment was the catalyst for senior executive Charles Batt to farewell the corporate world and kickstart a new life as his own boss.

“I had a career in retail buying for stores like Big W, and then moved to a multi-billion dollar IT distribution company,” Charles says. “The redundancy was perfect timing; I got a payout that was the nest egg I needed to do something on my own.”

Initially Charles approached business brokers in his search for an independent small business.

“Then I realised that if you buy a one-person and one-staff-member business, all you’re buying is the knowledge that’s in their head – and that’s not comforting.”

So he shifted his attention to franchising, confident he would gain the procedures, systems and supplier relationships that make a franchise such a powerful buy.

MBE business model ticked all the boxes

Charles attended the 2006 franchising expo on the search for a business-to-business (B2B) opportunity.

“I listened to one of the keynote speakers who was a successful Mail Boxes Etc (MBE) franchisee. I thought, ‘that sounds like the right business for me’,” he says.

“It ticked all the boxes; it was B2B, a Monday to Friday operation, and had multiple revenue streams; it wasn’t just one product solution,” he explains.

MBE is a global brand, a store-front business that provides services including printing, private mailboxes, virtual office, express couriers, direct mail and graphic design.

Charles was convinced after conversations with head office and franchisees that the business was a perfect match.

Rather than buy an established MBE store where he would boost existing sales he decided to purchase a brand new location in Sydney’s Parramatta and really test his business-building skills.

He admits now it was challenging. 

“You lay out all your cash and you have zero revenue on day one. But what you end up with is 100 per cent yours, you live and die by what you do with it.”

From big business to small business

He says adjusting to the scale of the sales was his biggest challenge.

“In my corporate career, if I was making a decision worth $10,000 we would write it off if it would take more than 10 minutes to decide.

“In your own business, it’s amazing how much time you are willing to spend chasing $2!” Charles admits. 

“I had to get used to much smaller numbers. I learned that a $500 sale is a fantastic sale,” he says.

Networking is crucial

Meeting potential customers was a crucial part of kick-starting his MBE business. Charles attended a business networking breakfast with the local BNI group and hasn’t looked back.

“It has worked exceptionally well for the 18 years I’ve been in BNI,” he says. “For my personality, networking is preferable to cold calling. Business is about building relationships. In any business, people do business with people they enjoy working with,” he points out.

Charles is a member of three Chambers of Commerce, regularly supports local expos and trade shows, and loves to share his knowledge with new business owners.

Charles also points out the importance of the relationships between franchisees.

“We are all here to support each other, and through sharing ideas we can achieve anything,” he says.

So it was a particular thrill for him to win the Franchisee Choice award at this year’s conference; a franchisee-nominated award for the franchisee who adds most value to the group.

Top quality team

As a result of all the hard work, Charles and his team of five have built up the Parramatta store to become the biggest MBE in Australia. 

“I’ve built a great team; three key staff have been there 12, 11 and six years,” he says. “One of the team started as a 17 year old trainee, he did formal training at TAFE while working with us. He’s now the technical whizz.

“Even without the skills, if someone has a great attitude you can train them on everything. How the staff treat customers is crucial to the success of the business.”

Marketing advantage

Charles knows he has a big advantage when it comes to marketing the business as MBE has the creative campaigns designed and ready to execute.

“We have the printing technology so head office sends the artwork and I print; that makes marketing cost effective. And you’re walking the talk – you demonstrate that print marketing and direct mail works,” he says.

A new strategy, a new store

Two years ago, as a result of reviewing his business strategy, Charles bought a second store, an existing MBE in Ultimo. At the same time he acquired a small independent printer and combined the two businesses under the Mail Boxes Etc banner.

“I realised that if I want to access capital later in life, I have to sell a store. Now with a second business, if I decide to take time out or buy a holiday home, I have one store to sell and one to keep for its recurring income.”

Charles is now well-positioned to take advantage of any further opportunities.

“I could buy an independent print business and bring it into the group because all the infrastructure would be in place. Once you understand the franchise group and how it works, there are a number of ways to get extra wins,” he says.

In his early 60s, Charles insists he’s nowhere near ready to retire.

“It’s the relationships I develop as a Mail Boxes Etc franchisee that I enjoy most. I get to know my customers well, many become friends, some are trusted advisers. I might be doing marketing agency work, for instance, and I’ll have a lunch with the client and I get ideas from them. It’s a sharing of knowledge.

“I love what I do too much to stop!” he says.