Frequently Asked Questions

The number one thing that make Stroud Homes different is our background as a franchisee. We know what it feels like to be a franchisee and that understanding affects everything we do.

Rather than accept the status quo James Stroud first created his own building firm in 2011. A few years later he used this as a template for re-envisioning the way home building franchising should be done. There’s plenty of reasons why owning a Stroud Homes franchise makes good business sense but here are some main points:

• The Stroud Homes franchise fee structure keeps more money in your pocket and encourages the franchisor to give you every support you need. Remember, if you’re not building homes we’re not collecting fees from you.
• Our business philosophy and culture will encourage you to be innovative and agile. You will become a better business person.
• A Stroud Homes franchise provides a successful business model with a proven ability to sustain years of massive growth. It is an extremely efficient, cost-effective, well-organised, full service platform for your building firm.

Because we know what it feels like to be a startup franchisee, we’ve kept our entry costs low. Let’s break the initial investment into three parts:

1. Working capital – we think you should have working capital that equals 10% of the total contract value of your builds. This is not an expense, rather capital you’ll need to have access to in order to safely operate your business.
2. Startup package – a well planned startup package means you keep more in your bank for working capital! Upfront costs are 25k plus a 10k Grand Opening advertising allowance. This is an “at cost” package that includes: – A new laptop (always start a new business with a new computer) – Initial setup of the Stroud Homes software system. – Training and travel allowance – Uniforms, stationary and marketing items to help “Stroudify” your office
3. Sales Venue – our builders typically start with a shopfront. We usually keep fitout costs surprisingly low because our suppliers support us by providing most of the fit-out materials at no cost, and we have been successful at negotiating “rent free periods”.

To learn more about initial investment we recommend that you book a business planning meeting with us where you will be able to learn:

• How Stroud Homes builders are able to fund the startup of their business (Tip: Most builders don’t have their startup capital sitting in a bank account)
• What the typical first year in business looks like.
• How many jobs you have to win.
• About how to project when you will get your money back and start to make money.

Other miscellaneous costs you should budget for when establishing a new business may include:

• Legal and Business fees
• Adviser/Accountant’s fee
• Setup of business entity
• License, registration and insurances
• Travel involved in due diligence

For each home you build, your business will contribute 3% as a service fee and also a 1% Marketing fund contribution.

• There is no fixed monthly fee. At Stroud Homes, if you are not building homes you don’t pay.
• Whilst buying power is relative to what you already have, most builders are able to purchase materials about 6% better as a Stroud Homes builder (than as an independent operator) thus offering their homes about 3% more competitively.
• Conferences are free!- no fee - (you cover your own travel and accommodation)

Think in terms of ‘running a business’ rather than a ‘full-time job’. Like any successful business, a Stroud Homes franchise requires plenty of hard work and commitment especially during its early years. You will be supported every step of the way but in the end, it comes down to how much you put into the business that will determine its success. What we can tell you is that as your business grows and you make full use of the systems and expertise contained in the Stroud Homes group, you will be able to step back from the business and have greater time to enjoy the rewards.

Yes! In many ways. Lets count them:

1. You’ll have access to James Stroud, founder of Stroud homes. Actively involved in the Stroud Homes business on a day to day basis, James ensures that you regularly benefit from his decades of building experience.
2. Business coaches are great right, but if they are so good at running a building company - why aren’t they in business? At Stroud, you’ve got easy access to a group of builders who are using the same software and business systems as you and are keen to share their learnings.
3. Our resource library includes screencasts that make it easy to learn to use the software and our head office team can provide on screen support to keep you moving when you are still learning the systems.
4. Our quarterly franchise conferences provide a great opportunity for formal and informal learning. As a new franchisee, you can start attending these events once you have signed on to Stroud Homes.

We have a few key areas available throughout New Zealand. The exact locations can be found here, however, we customise and finalise the location with the builder to make sure it suits the preference of the builder we work with. Once we know what area you are interested in then we can confirm availability.

Yes. Stroud Homes has researched the building statistics and demographics New Zealand-wide and have come up with territories that provide the maximum opportunities for all. We can customise and finalise the location with the builder if required to make sure it suits the preference of the builder we work with. You can learn more about our territories and the way we classify them here: Stroud Homes Franchises for Sale.

Stroud builders have full flexibility to use the best suppliers and subbies.

• Our builders DO NOT purchase materials through the franchise, rather have full freedom to take advantage of Stroud Homes pre-existing supplier agreements when it is beneficial for them.
• Stroud Homes reputation means we buy materials at 3-10% better than some builders
• Call us now to find out how Stroud Homes buying power and procurement agreements can turbo charge your business.

Stroud Homes has a huge range of tried and tested designs covering single and double storey, duplex, dual living and granny flats. In addition to being the designs most customers want, each has been designed to maximise profit and workflow efficiency. We strongly encourage our builders to make use of these designs. One of the great things about being a part of Stroud Homes is that many of our builders can bring to the group their own design ideas which we then review and refine as a group. The final design is then approved and made available to all franchises. At Stroud Homes we want to make sure your creativity can continue to flourish in a franchise environment. The Stroud system has the ability to help you quote custom plans if that is the market you want to target. We’ll consider the best market for you to target as part of developing your business plan.

Yes, the business must have a builder who is licenced to build in New Zealand.

We require that all your building work is conducted under the Stroud Homes brand and you must trade under a name that reflects your region, e.g. Stroud Homes Hawkes Bay. Transition period – many of our builders are running a building related business of some type when they start their Stroud Homes operation (reno’s, inspections or carpentry). We work out a transition plan that allows the builder to supplement startup capital with cashflow from their previous business. As the Stroud Homes business starts to take off, the previous business can be gradually wound down. If you’d like to see how this works, request a business planning meeting where we can design a transition period. Ongoing – some of our builders have a team of carpentry or bricklaying subcontractors who are relatively self-sufficient (leading hands are trained and run the show on their own). They’ve continued their businesses running alongside Stroud Homes because it is easy cashflow and helps ensure trade availability. If we think your business is going to be too distracting or time consuming to allow you to effectively run your Stroud Homes business, then it won’t work out to run both side by side – either in the transition period or ongoing. Rest assured that, because of our background as a franchise - you’ll find we take a common sense approach.

Yes, you will need a location from which to run your business. This is usually a Display Centre (shopfront) or a Display Home but these premises don’t need to be in place on day one. The best option for you will depend on your circumstances and your Franchise Development Manager will assist you in working out the best approach.

No - not at the start. The Stroud Homes franchise start-up process lets you gradually ramp up the number of staff required in line with the development of your new business. In the early stages, you will find you will perform as many of the roles as you are able and drawing on support from the Stroud Homes franchise support team. As you start getting deposits and laying your first slabs you will then need to start bringing specialist staff on board - Estimator, Accounts, Sales Consultant, Contracts Administrator and the like. To get the full picture check out this great article describing the business start up process.

Not quite. We take each franchise applicant through a selection process to make sure you and Stroud Homes are a good fit. In this initial phase, we’ll talk more about your goals and current circumstances. To own a Stroud Homes franchise, we firstly look for people who want to get more out of life through their business. They want to see both personal and professional growth. Later, we work through these items:

• We will have a business planning meeting, where we make sure you and your partner understand the typical Stroud Homes business plan.
• We will do a discovery day where we spend time travelling around your area.
• We encourage you to get in touch with some Stroud Homes offices and speak to as many Stroud Homes builders as possible.
• You’ll visit your accountant, an independent franchise expert solicitor and a business advisor to gain a solid understanding about being in business as a franchisee.

By the end of this process you will know whether a Stroud Homes franchise is for you.

This depends on several factors including your current workload/business arrangements, level of skill in establishing a new business and whether you already have office premises. To go from initial conversation to launching your Stroud Homes business can take anywhere from one to six months, depending on the situation. We need to go through many stages including software training, selecting and fitting out an office, and setting up accounts with relevant suppliers and contractors.

You can call us direct on 00 61 435 803 411 or email us at james.stroud@stroudhomes.com.au

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