Hone plans at home

Alan Grant with Australian business partner Jenny Mays. Photo / Supplied

Honing a business model in New Zealand is a good way to get it right before taking it to the world, says a businessman enjoying international success.

Alan Grant, the Hamilton-based founder of Lollipops Playland, sold the business in March so he could concentrate on his Australian childcare business, Explore and Develop, which is experiencing growth of about 25 per cent a year.

Grant divides his time between New Zealand and Sydney, and also runs four childcare businesses in Indonesia. "I had been [running Lollipops] for 17 or 18 years; it was time for some fresh energy and someone to take it to the next level," he said.

There are 16 Explore and Develop centres in the wider Sydney area and two more are being built. "We had a similar concept in New Zealand with Lollipops Educare, which we started in the late 1990s."

Grant said franchising and childcare went well together because the owners of the childcare centres had the benefit of the brand, as well as support for things such as compliance issues. "A hands-on owner-operator, when you have a precious product like this, that's particularly important."

He said a lot of New Zealand businesses seemed to struggle when they moved across the Tasman and the size of the market meant owners had to be more meticulous with their business plans. "The scale of the market opportunity is bigger but there are higher costs - real estate, wages, operating expenses ... you have to be a bit more on top of your game."

New Zealand Trade and Enterprise cites Lollipops, Fastway Couriers and shoe retailer Kumfs (now Ziera) as successful New Zealand franchise models that have made the jump across the Tasman.

It says there are lots of opportunities for Kiwi businesses in that market and most successful Australian franchises are small- to medium-sized businesses in non-food retail.

Grant said the intention was to grow to about 25 franchisees, with about 30 outlets between them. New products were being considered, such as internet portals at the centres where parents could check on their kids remotely.

Grant put his success down to having a good business model.

"Fine-tuning in the smaller New Zealand market is a good way to start. New Zealand is a challenging market, particularly because of its size. If you do well in a smaller market, it's easier to do well overseas."