What's the Next BIG acquisition for this Power Couple?

1. As a power couple in franchising, you both transitioned from successful corporate careers to entrepreneurship. What was the turning point in your lives that made you think outside the box and take the plunge into the world of franchising?

So it was not sudden and it was not a particular point. It was a long 2 decade journey of pretty insignificant moments which when we look back now solved the puzzle of entrepreneurship for us. 

Since our marriage in 2001, Ruchika and I had been driven by the desire to establish our own business. Over the years, we ventured into various industries, from a child care venture in 2002 to auto trading in 2003, an IT consulting business in 2010, and even a hotel/restaurant investment in Thailand in 2018. Unfortunately, these endeavors lacked the necessary vision and ultimately faced challenges.

But being open to opportunity even after all these failures finally opened up the doors to Franchising in the Salon industry.  Even that came with huge setbacks as 5 months into the business we were closed because of COVID. But since then slowly but surely we have recovered and learnt lessons and are still learning something new everyday. 

We feel blessed to have been able to undertake this journey.

BTW we are not a power couple but rather a couple who has learned and grown together despite facing more downs than ups in the past 22 years. By sharing our story, we aim to inspire others to find strength in their relationships and persevere through life's obstacles.

2. Salon franchising was a successful venture for you, and now you have ventured into the AI space by acquiring the entire territory of Robot Labs. Can you walk us through the process of purchasing the Robot franchise and share the excitement and thrill you are experiencing as business leaders in the rapidly evolving AI industry.
Ruchika had the honor of being invited to a panel at UTD, where the topic of discussion was “Success in franchising”. It was during this event that we had the pleasure of meeting Elad, the founder of RobotLAB. Instantly, there was a mutual recognition of synergies between our respective strengths.

In the weeks that followed, we continued to meet and explore the possibilities that lay ahead. The potential of AI and Robotics for the betterment of humanity filled us with excitement and exhilaration. We are proud to be part of this incredible journey, standing alongside Elad and sharing in his visionary outlook.

Believing wholeheartedly in Elad's vision for Robotics, coupled with our ability to scale, we are confident that this partnership is a winning combination.

3. Maintaining consistency and high standards across multiple franchises while allowing each location to have its unique identity can be challenging. How do you approach this balance and ensure that the brand's standards are upheld while embracing local variations?
That’s an awesome question. Every Franchisee starts the business with a vision to scale and it is imperative that standards be maintained as you do it. The key point to be noted is that the owner’s job should be to create a culture that binds everyone together. If the owner is doing operations then their reach is limited. Delegate everything that can be delegated. Empower your senior management to make decisions. Keep them accountable and  aligned with your vision but don't micromanage them. 

We have achieved this by outsourcing everything that can be done remotely to our arm in India. We do all the BackOffice work there so our team on the ground can focus on Customer Experience and Employee engagement. In fact our Franchisor liked this idea so much that they encouraged us to offer these services to other Franchisees and today we are helping more than 500 locations across different industries.

Again, I would like to reiterate, decouple yourself from operations as early as possible  in your entrepreneurship journey. Small operational issues will tire you and scare you. Businesses are run with a happy and positive mind and not by focussing on issues. 

4. Now Elad, I would like to ask you the next question, as a CEO of Robot Labs What were you looking for in a Franchise?  Franchisee selection plays a crucial role in representing your brand effectively. How do you approach the process of selecting franchisees and building strong partnerships with individuals who align with your brand's values and vision?
Elad Inbar- Choosing the right franchisees is indeed a critical step in extending the RobotLAB brand. 

We mainly focus on Personal and Brand Culture Fit, trainability, excitement about our products and about servicing customers. 

For us at RobotLAB, choosing a franchisee is not just about their ability to pay the franchise fee. The best partnerships come from finding individuals who are passionate about our brand, share your business vision, and are capable of running a successful operation. We put together processes to hear and implement feedback from franchisees, we invite them to join all our company meetings, and generally speaking, we see them as an integral part of RobotLAB. Their success is our success!

5. In any partnership, differences of opinion can arise. As a power couple, how have you managed to navigate disagreements and ensure harmony in both your personal and professional lives? Have you established a system or division of work to maintain a healthy balance?
As a couple, we often find ourselves having disagreements on various topics, and when it comes to business, it can be an additional source of tension. However, we recognize that disagreements can actually be healthy for our relationship and partnership. It's not about avoiding them, but rather how we handle them that truly defines the strength of our bond. Like anything worthwhile in life, it takes practice and learning from failures.

Over a period of time, we have established a clear division of responsibilities. Ruchika oversees the Salon and Hospitality business, while Prashant takes care of the BackOffice and Robotics. Although there are overlaps between our areas of focus, we navigate through them as they arise, finding solutions that work for both of us.

One valuable lesson we have learned is the importance of keeping business discussions separate from our personal time. However, because we both are deeply passionate about our ventures, we don't mind occasionally talking about business even during our date nights while sipping wine:) It's exciting for us to share our ideas and plans with each other, knowing that we both understand and support each other's passions.

What's even more fulfilling is seeing our boys show an interest in our businesses and contribute their own inputs. Even at such a young age, they actively engage in discussions, which we find inspiring and encouraging. Witnessing their curiosity and willingness to learn is a source of joy for us as parents.

6. Every entrepreneurial journey comes with obstacles and setbacks. Could you share any significant challenges you have faced as a power couple in franchising, and how did you overcome them?

Indeed, it is crucial to acknowledge that embarking on a new venture or taking a different path will inevitably bring challenges. As entrepreneurs, we understand that uncertainty is part of the game, and our ability to handle it effectively is what sets us apart. We have certainly experienced our fair share of missteps and setbacks, just like any other business person. However, we approach these challenges with a mindset that they are normal and solvable.

One notable challenge that comes to mind is the COVID-19 shutdown. It was a scary time for businesses worldwide, and we knew we were not alone in facing this crisis. To navigate the situation, we focused on minimizing our cash outflow. We took advantage of government allowances and temporarily stopped paying our mortgage and credit cards. By being resourceful and strategic, we were able to come out of that situation.

Another recent challenge we encountered was when we took over 11 Salons in the State of Tennessee. During the transition, approximately 70% of the existing staff decided to walk away. This unexpected development posed a significant problem as we had already invested a considerable amount of money based on certain projections and valuations.The numbers we based our valuation on did not hold true.

To address this challenge, we immediately started reaching out to each individual who had left and initiated negotiations. Over the course of the next few days, we engaged with them individually, taking into account their emotions, concerns, and desires for attention. It was a painstaking, tedious, and mentally exhausting process. However, we understood that rebuilding the team was crucial to the success of the salons. Through persistent efforts, we were able to convince almost 90% of the departed staff to return. While it drained our energy, we knew it was a necessary step that had to be taken.

In facing these challenges, we hold onto core principles that guide us. We believe that setbacks are temporary, everything is fixable, and everything is negotiable at every stage of the journey.

7. Supporting and inspiring each other's professional growth is vital for a power couple's success. How do you motivate and encourage one another to reach new heights in your respective careers?

After spending 22 years together, we have developed a deep understanding of each other's strengths and weaknesses. Ruchika's attention to detail is remarkable, while Prashant has a knack for spotting new opportunities. Ruchika's negotiation skills are excellent, and Prashant possesses the ability to remain calm in the face of adversity.

We support and uplift each other based on our individual strengths, and we help one another in areas where we may have weaknesses. Over time, we have reached a stage where our collaboration happens organically, without the need for extensive planning. We operate like a well-oiled machine, smoothly navigating through challenges and seizing growth opportunities.

However, we are mindful that real growth in relationships, as well as our understanding of business, occurs when faced with difficult times. It is during these challenging moments that the true nature of our partnership is revealed. When everything is going well, it's easy for shortcomings or conflicts to remain hidden. Therefore, we constantly remind each other of the importance of staying aware and attentive even when things are good.

8. What advice would you give to aspiring entrepreneurs looking to enter the franchise industry and expand their portfolio? What key lessons have you learned along your journey that you believe would be valuable for others embarking on a similar path?

Entering the world of entrepreneurship or franchising is indeed a roller coaster ride, unlike the predictable and structured nature of a 9-5 job. It's important to embrace this unpredictability and understand that making mistakes is part of the journey. The key is to keep moving forward and making decisions.

Many aspiring entrepreneurs or franchisees fall into the trap of constantly finding excuses to avoid making decisions. This "finding an excuse to not take a decision" syndrome hinders progress and leads to a false sense of being on the right path. In reality, it only delays progress and doesn't benefit anyone, including themselves.

The franchise industry is a wonderful model, often underestimated, especially in industries beyond food. To embark on this path, it's important to find an industry that genuinely excites you. Once you identify a compelling industry, analyze the franchise model without getting caught up in overanalysis. Determine the amount you can invest and then take the plunge.

The truth is, there is nothing more to it than that. Everything else beyond these essential steps is just part of the aforementioned syndrome. By acknowledging this, you can avoid getting caught in analysis paralysis and take the necessary actions to pursue your entrepreneurial dream.

About the Author

Seema Govil has extensive business and media experience, as a consultant for Franchise Consulting Company, co-chair at India Franchise Council, and Founder & CEO of Cosmo City Media. Seema is also a journalist with TV Asia and hosts a podcast - Fablife360. Contact Seema at Seema@thefranchiseconsultingcompany.com.