Scaling a small to medium sized business can feel like walking a tightrope. You want to grow, but the thought of losing control over quality, burning out, or simply not finding the right people can be paralyzing. Many businesses hit a plateau, struggling to break through to the next level. But what if there was a different way? A way to not just scale, but to empower your team and build a truly thriving business? The answer, for some, lies in an employee co-ownership model.
This innovative approach transforms employees into invested partners, creating a team of highly motivated individuals dedicated to the company’s growth and committed to maintaining its standards. Just ask Angela Kennedy, the founder of Lash Envy, a global award-winning Melbourne-based lash salon that has successfully scaled to multiple locations and $4 million in revenue using this very model.
Think about it: who cares more about your business than someone who has a vested interest in its success? By turning your employees into co-owners, you’re not just adding staff; you’re adding partners. You’re creating a team of highly motivated individuals who are invested in the company’s growth and dedicated to maintaining its standards. This is the secret sauce behind Lash Envy’s impressive expansion.
Source: Lash Envy
Lash Envy’s story is a testament to the power of co-ownership. Faced with the challenges of scaling, Kennedy rejected franchising, citing its impersonal nature, lack of strong leadership for brand maintenance, and the constant loss of trained employees to their own ventures. Instead, she pioneered a co-ownership model, offering her employees a “Willy Wonka golden ticket” – the opportunity to own their own Lash Envy salon.
This model offers a powerful alternative to traditional scaling methods. It allows you to grow without sacrificing the personal touch and quality that define your brand. Instead of spreading yourself thin, like Kennedy initially feared, you’re building a network of passionate leaders who are just as invested in the business as you are.
The Benefits of the Employee Co-ownership Model
- Increased Motivation and Engagement: Co-owners are more likely to be proactive, take initiative, and go the extra mile. They’re not just employees; they’re stakeholders. As Lash Envy discovered, owners drive success, not just employees.
- Improved Retention: When employees feel valued and have a clear path to ownership, they’re more likely to stay with the company long-term, reducing turnover costs and preserving valuable experience. Lash Envy boasts employee retention far exceeding industry averages, a direct result of their co-ownership model.
- Faster Growth: With dedicated co-owners managing each new location, you can expand more rapidly without compromising quality or brand consistency. Lash Envy’s growth from a single location to multiple thriving salons is a prime example.
- Stronger Brand Consistency: Co-owners are deeply invested in upholding brand standards, ensuring a consistent customer experience across all locations. Lash Envy’s commitment to quality is maintained through their rigorous training program and ongoing mentorship.
- Reduced Burnout: By delegating responsibility and sharing the workload, you can avoid burnout and focus on strategic growth. Kennedy’s co-ownership model allows her to focus on the bigger picture while her co-owners manage their respective locations.
Source: Lash Envy
Structuring the Partnership: The Lash Envy Blueprint
Lash Envy’s success isn’t just about the idea of co-ownership; it’s about the execution. Kennedy has developed a clear and equitable structure for her partnerships, ensuring buy-in and shared success:
- 50/50 Ownership: Each co-owner has a 50% stake in their salon, fostering a true sense of partnership.
- Shared Investment: Both Kennedy and the co-owner contribute equally to the initial costs of fitting out and opening the new location. This shared financial commitment reinforces their partnership.
- Goodwill Fee: A fee is charged for access to Lash Envy’s brand reputation, established systems, comprehensive training, and built-in clientele. This ensures that the co-owner benefits from the existing foundation of the business.
- Ongoing Mentorship: Kennedy provides daily mentorship to her co-owners, offering guidance and support while allowing them to run their locations independently using a proven operations model.
- Centralized Support System: Lash Envy head office handles all administrative tasks, including marketing, recruitment, training, payroll, and even bookings. This centralized approach streamlines operations, reduces overhead, and ensures a consistent customer experience across all locations.
This structured approach allows Lash Envy to scale efficiently while Kennedy maintains oversight and control, ensuring that the brand’s quality and reputation are upheld.
The Key to Success: Standardized Processes and Training (The Lash Envy Way)
Of course, the employee co-ownership model only works if you can maintain consistency across all locations. This is where standardized processes and comprehensive training become crucial. Each co-owner, and their team, needs to be trained on the specific procedures, best practices, and brand values that define your business. Lash Envy understands this implicitly, requiring all potential co-owners to first work at their flagship location, absorbing the culture and mastering the techniques.
This is where a powerful tool like Way We Do comes into play.
Source: Lash Envy
Way We Do: Your Partner in Scaling Through Employee Co-ownership (Just Like Lash Envy)
Way We Do is a platform designed to help document, organize, and deliver standard operating procedures and repeatable processes with ease. It’s the perfect solution for training both new location owners and their employees, ensuring that everyone is on the same page and that your brand standards are consistently upheld, mirroring Lash Envy’s dedication to training.
Here’s how Way We Do can help:
- Centralized Process Management Platform: Create a comprehensive library of all your processes and procedures, from customer service protocols to operational checklists. This ensures that everyone has access to the same information, no matter their location.
- Interactive Training: Use Way We Do to create engaging training programs that walk new co-owners and employees through your processes step-by-step. Include videos, quizzes, and other interactive elements to make learning more effective, just like Lash Envy’s dedicated training academy.
- Consistent Onboarding: Streamline the onboarding process for new locations and employees. Way We Do provides a structured framework for training, ensuring that everyone receives the same high-quality instruction.
- Ongoing Support: Way We Do isn’t just for initial training. It’s a living document that can be updated and accessed at any time, providing ongoing support and guidance for your team.
- Performance Tracking through Workflows, Reviews and Audits: Monitor manager and employee performance and identify areas where additional training or support may be needed.
Scaling with Confidence (The Lash Envy Legacy)
The employee co-ownership model, combined with the power of Way We Do, provides a proven roadmap for scaling your business without sacrificing quality or burning out. By empowering your employees, standardizing your processes, and investing in training, you can build a thriving business that’s poised for growth. It’s not just about expanding your reach; it’s about building a team of passionate partners who are invested in your shared success.
It’s about scaling with confidence, just like Lash Envy. It’s about creating a legacy.
For the full story, go to Smart Company.
