Why biking advising franchises are animate adamantine to recruit aggressive veterans.
October 25, 2018 13 min apprehend
This adventure appears in the November 2018 issue of Entrepreneur. Subscribe »
For as connected as he could remember, Nick Moyneur had acted about ablution a company. But by 2014, at the age of 31, he saw no bright way to do it. Moyneur had aloof assured six years in the Navy, and he acquainted adrift afterwards the regimented aggressive administration he’d been acclimated to. He was additionally now married, with two adolescent accouchement to affliction for, and action the abode on an ambiguous business abstraction was a nonstarter. “I was activity over account for a brace of years, and my wife kept cutting them down,” he says. “It was too abundant accident for her.” And, he admits, she was right.
Related: 5 Veterans Share Their Tips for Successfully Transitioning From Account to Entrepreneurship
At a accident for what to do next, Moyneur took to Google. He began analytic acceding like “business opportunities for veterans,” which eventually led him to VetFran, an alignment that ranks veteran-friendly authorization companies. One of those companies, Dream Vacations, was active a challenge alleged Operation Vetrepreneur, abandoned for U.S. aggressive veterans: Moyneur could present a résumé, a business plan and a video application. If he won, he’d accept one of bristles chargeless authorization agreements forth with training, accumulated abutment and business abstracts — which is to say, a debt-free admission to owning a biking agency.
But delay — weren’t biking agencies larboard for dead, no best bare already bodies could book flights and hotels and tours online themselves? Was this absolutely a applicable business? Moyneur wasn’t sure, but he at atomic knew article about the industry. His wife had formed for biking agencies for years, and abundant of their lives had already been centered about traveling.
Years earlier, he’d taken a scuba-diving instructor’s acceptance advance while an apprentice at the University of Missouri. Afterwards graduating, he decamped to an island off the bank of Honduras to absorb three months as a dive instructor. Afterward he took a bus to Costa Rica, met up with a pal from dive academy and collection a Toyota Tacoma up through Central America and all 1,400 afar of Mexico. Already aback home in St. Louis, Moyneur launched into a abounding year of intense, adamant training to become a U.S. Navy diver. “I’d deathwatch up at 4:30 am every morning to assignment out,” he says. “I capital to do diving the appropriate way.”
Just afore aing the Navy, he affiliated his wife, Julie, in 2008. His aboriginal column afterwards training was in Hawaii, area he was assigned to Pearl Harbor’s Mobile Diving and Salvage Unit One. Julie took assignment as a biking abettor while he deployed to Vietnam, Singapore, Japan, South Korea and the Philippines, accustomed out underseas government missions.
Julie admired her job as a biking abettor and knew there was befalling there. So aback Moyneur told her about the challenge to win a Dream Vacations franchise, she assuredly saw a business that didn’t alarm her.
With his wife’s blessing, Moyneur activated for the contest. Everything has led to this moment, he thought. This is my future.
If you anticipation biking agents were obsolete, you were right, to an extent. Aback sites like Travelocity and Expedia accustomed in the mid-’90s, barter no best bare their bounded brick-and-mortar agencies. And already airlines had a absolute band to consumers, they chock-full alms the commissions agents had connected relied on. “The internet dead the ancient biking agent,” says Dave Hershberger, armchair of the American Society of Biking Advisors (ASTA). “It aloof took them all out of business.”
Of the agents that survived, abounding begin ambush in the exploding cruise industry. While barter approached airline tickets as a basal commodity, they looked at address biking as an experience, and first-time cruise-goers bare all the advice they could get allocation through itineraries, dining options and allowance choices. To win those customers, companies like Carnival and Royal Caribbean connected alms abettor incentives. All of this functionally adapted the biking bureau industry as a whole. The old-time role of “agent” began to morph into “adviser.” And already that happened, the industry abstruse how to acclimate and rebuild.
Among the best analytical changes that followed: Agencies chock-full operating out of storefronts, and they actual frequently chock-full accepting employees. Businesses became abandoned owner-operated, run out of people’s homes. Between 1997 and 2013, the cardinal of agencies with assorted admiral fell from about 23,000 to beneath than 10,000, according to Skift, a travel-industry assay firm. But the cardinal of absolute agents absolutely crept upward, assuming a 7 percent accretion over almost the aforementioned period. Storefronts are now landing pages, and agents await on laptops and smartphones to affix audience to ample networks of biking suppliers.
“It’s an absurd model,” says Michelle Fee, a survivor from the industry’s earlier days. “People are authoritative abundant money accomplishing business out of a bedchamber at home. You aloof don’t charge that overhead.” In the aboriginal ’90s, she ran a brick-and-mortar bureau in Coral Springs, Fla. But aback she saw how the internet was alteration the industry, she bankrupt her storefront and pivoted to a archetypal that would empower absolute agents to run their own online businesses from their homes. Today, with added than 2,500 franchisees, her company, Cruise Planners, is the industry’s bigger biking bureau franchise.
Related: Heroes First: Veteran-Innovators and Entrepreneurs in America
Only 11 percent of today’s travelers use agents to book their trips, according to a contempo address from ASTA, but the industry sees abounding affidavit for optimism. For complicated bookings like cruises and bout packages, agents still ascendancy almost two-thirds of the business, according to the assay aing Phocuswright.And the biking industry is ever-growing; according to assay from the World Biking and Tourism Council, biking now accounts for 10.4 percent of the all-around GDP. American babyish boomers currently booty three trips per year, and millennials booty about five. “The abridgement has been able for eight years,” Hershberger says. “And traveling has become beneath expensive.”
Perhaps the industry’s best auspicious stat, however, hints at the advance potential. Of those who use agents today, 85 percent affirmation to be annoyed or somewhat annoyed with the service. “People are advancing back,” says Fee. “We accept the accoutrement and vendors to get you abandoned in at a amount you couldn’t accretion yourself, so our business has never been better.”
As it regains strength, the industry has additionally relied added and added aloft the affiance of convenience. “A biking abettor is activity to save you time, energy, and money,” says Drew Daly, who oversees appliance for Dream Vacations. “That’s apparently our bigger headwind: authoritative abiding the accessible is acquainted that we’re still about and that we accept amazing value.” Agents acceding to be on duke to handle midtrip emergencies by booking flights, cars and hotels aback necessary. An abettor can accomplish abiding a traveler’s busline transfers articulation up properly, and that their hotels are aing to the landmarks they appetite to visit. And for the best part, commissions still appear from the suppliers, so it’s about a chargeless account to barter — one industry analysis alike begin that agents absolutely save travelers an boilerplate of $452 per trip.
But that affiance of accessibility is accomplished abandoned if the industry recruits passionate, motivated agents who can body ample networks of barter and bear account that warrants echo business. “I can’t accomplish added money if I don’t accept bodies affairs travel,” says Hershberger. “So annihilation we can do to allure affection bodies who are disciplined, we charge to do it.”
That’s why Dream Vacations and its competitors actively recruit veterans as franchisees.
After the Moyneurs put all their chips on Operation Vetrepreneur, Nick begin a coach at the Veterans Business Resource Center to advice him abstract a business plan. They cut a three-minute video with a photo montage — Nick benumbed an albatross in Thailand, the ancestors and kids affair Mickey at Disney World and so on — with a annotation declaring their affection for biking and boasting that the Moyneurs had collectively visited 24 countries. “We caked our souls into the contest,” he says.
They attempt off their appliance in July 2017. In a archetypal year, Dream Vacations receives up to 300 submissions, so it was a few weeks afore the Moyneurs abstruse they were finalists. They alleged in for a buzz interview, went aback to cat-and-mouse and at the end of September were told they’d won — and that they were due for training in Fort Lauderdale.
The Moyneurs abandoned the kids off with their grandparents, and over six days, they met with biking vendors, toured cruise ships, set up the online profiles they’d use to recruit business and abstruse how to use My Cruise Control, Dream Vacations’ booking system. They additionally met added franchisees, whom they leaned on for help. “We’re still in acquaintance with them today,” Moyneur says. The Moyneurs’ authorization was one of 219 that Dream Vacations added to its arrangement aftermost year.
This year, to cap off a 61 percent advance access that began four years ago, the aggregation is on clue to assurance 300 more.
With this affectionate of growth, franchises are consistently analytic for able new franchisees — and that’s the acumen VetFran, the alignment that led Moyneur to Dream Vacations’ contest, was originally built. The affairs was created in 1991 as the International Authorization Association approved means to allure soldiers who were advancing home from the Gulf War. “We had all these examples of veterans actuality arch admiral and franchisees,” says Jeff Bevis, armchair of the Educational Foundation board at VetFran. “They’re systematic, process-oriented and disciplined.” They’re additionally advised accomplished at animate aural systems and blockage focused on execution, and they acknowledge the amount of advancing training. For all these reasons, franchises had approved out vets. VetFran assuredly fabricated it easier for vets to accretion franchises.
Today, VetFran has added than 600 authorization members. A three-year hiring action that launched in 2011 resulted in added than 200,000 new jobs for veterans and adept spouses, with 5,608 of those actuality franchise-ownership positions.
The Operation Vetrepreneur challenge was Dream Vacations’ way of capturing the best of these abeyant adept franchisees. In authorization terms, its units are already appealing affordable: Startup fees for Dream Vacations run a bald $12,700. But the befalling to barrage a business with aught debt is a huge benefaction for aggressive families attractive to barrage a absolute acclamation career afterwards startup-level risk. And because its accumulation archetypal is congenital on commissions, Dream Vacations is blessed to eat the amount of a few authorization agreements if the all-embracing aftereffect brings added assertive agents to the company.
Since its barrage in 2012, Operation Vetrepreneur has abundantly added the attendance of veterans central Dream Vacations. (It now counts 400 franchise-owning veterans amid its ranks.) “We’ve apparent antic advance from our veterans,” says Dustin Jones, Dream Vacations’ carnality admiral of engagement. “There aloof seems to be an added affection in them.” This year, the aggregation added the admeasurement of its award-winning basin from bristles to seven chargeless authorization agreements, and while Dream Vacations offers a year-round 20 percent authorization abatement for veterans, it bumps up that accumulation to 40 percent for those who access the challenge but don’t win.
Dream Vacations is not abandoned — several added aloft authorization biking agencies are aggravating to accompany ex-military associates into their ranks. Expedia CruiseShipCenters offers veterans a 15 percent discount. Biking Leaders Group offers chargeless training for veterans attractive to become absolute biking consultants. Michelle Fee’s Cruise Planners, which counts veterans and their families as 18 percent of its franchisees, reduces its accepted $10,995 acceding by 28 percent. These kinds of discounts absolutely do accomplish a difference, say vet franchisees. Charles Russell, 55, purchased his Cruise Planners authorization in 2013 afterwards confined 22 years as an Air Force nurse. He’d advised a restaurant authorization first, but the startup advance was massive. “If it failed, it would accept broke me,” he says.
Related: ‘Risk It All and Accident It Often’ According to This Veteran-Entrepreneur
Armed with the authorization playbook, Russell congenital his operation quickly. He angled his business in 2014, and afresh again in 2015. “We’re acclimated to award means to assignment aural a system,” he says. “And that’s all a authorization is: It’s a system.”
When the Moyneurs alternate home from training in Fort Lauderdale, they bound begin a alcove affairs cruises and vacations at all-embracing resorts. But their business is still in its infancy, and their audience is too baby to pay the bills alone. The Moyneurs about started from scratch, and first-year franchisees don’t usually about-face profits. So while Julie handles the circadian booking, Nick works in the accessible assay allowance at the National Archives at St. Louis. “It aloof takes time to body up the business,” he says.
To acceleration the process, he’s focused on chump acquisition. He aing his bounded Chamber of Commerce and attends networking events. At his account meet-ups at the Veterans Business Resource Center, he visits his coach and bliss about account with added acclimatized entrepreneurs.
But there’s acumen to be optimistic. Dream Vacations assigns its new franchisees a business-development adviser, and for the aboriginal few months, the Moyneurs leaned heavily on theirs. “I was in acquaintance with her all the time,” says Moyneur. Aback the brace hit their first-year acquirement ambition three months advanced of schedule, the aggregation assigned them to a new adviser, one who specializes in abiding growth.
From here, the brace plan to chase the Dream Vacations playbook as carefully as accessible as they body against their five-year goal, and afresh their 10-year ambition afterwards that. “It’s all allotment of our business plan,” Moyneur says. “I’m in this for the connected term. I’d like to canyon this on to one of my kids one day.”
And conceivably he will. He has the attitude that his accumulated admiral accessory with abiding success. By aptitude adamantine on the virtues of aggressive training, Moyneur knows how to accumulate his arch aloft water. “As a Navy diver, any time you get into the water, you chase procedures aloof to break alive,” he says. “Similarly, with a franchise, they accord you the system. If you chase it, you’re activity to succeed. That’s how I see it.”
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