Signal, a leading physical security franchising company, takes pride in recognizing exceptional franchise owners who demonstrate unwavering dedication, outstanding performance, and remarkable growth. For June, the "Franchise of the Month" award goes to the dynamic father-son team of Wes and Weston Smith of South Dakota. Their story is a testament to the power of perseverance, strategic vision, and outstanding performance. We are excited to feature their journey and celebrate their achievements.
Background and Motivation
Before venturing into the world of Signal franchising, Weston was already an established entrepreneur, running an automotive performance company, and a dog training business (which he still owns). The decision to join Signal was significantly influenced by his father, Wes, who had already begun growing a Signal franchise in Billings, Montana. Seeing the success of others and the potential to follow a proven playbook was a compelling factor. They knew that if someone could provide a process and specific steps on how to be successful, then they could do it. Wes decided to take the leap, with Weston joining later. Since that time, their franchise has tripled in size as they’ve taken on additional territories including South Dakota.
A Family Affair
Together, the Smith’s now own all of Montana, Wyoming, North Dakota, and South Dakota. As the business grew, they expanded to Rapid City, South Dakota, and eventually acquired the remaining territories. Their strategy was clear: leverage the strength of the Signal brand and operational support to drive growth and success.
“We had previously looked at many franchise companies to potentially start a second line of businesses. However, we didn’t want to do it on our own; we wanted to join an organization that wanted franchise owners to succeed,” Weston explained. “With our own business ventures, we had seen first-hand many examples of how a franchise company should not be run, and how a franchisor should not behave.”
Challenges and Overcoming Obstacles
Running a franchise spread across multiple states comes with its set of challenges, particularly staffing. However, their resilience and dedication shone through as they personally covered shifts and ensured that operations continued smoothly leading them to maintain 100% client retention. This experience underscored the importance of strong leadership and the ability to adapt and learn from challenges.
“Our markets are a little weird, because they are not large cities. People tend to only stay in their jobs for about four months and then hop to another job thinking their pay will continue to increase with that newly gained 4-month span of experience. A lot of times, people just don’t want to work, so we learned quickly that if we wanted good talent, we would need to offset that hurdle by increasing our starting pay rates,” said Weston.
Weston also shared that they don’t really focus on employee retention numbers and instead focus on a higher standard of employee. They know that they’ll have turnover, but they really expect employees to tow the line. By doing that, it empowers the good employees who follow the rules, do the right thing and stay long term. That mentality will eventually create a culture that truly “sticks” and becomes the norm. They are not losing good employees, just the ones who don’t really want to work or commit long-term.
Strategic Growth and Client Relationships
Focusing on net profit, profitability, and efficiency has been key to their success. Weston implemented a strategy of charging clients what their services were worth, resulting in an average increase of 28% across the board. This approach not only boosted their financial performance but also helped build stronger relationships with clients who valued their premium services.
“We went in and played hardball with our clients. We are always transparent in what it cost to pay the guards and receive our services, “this is what it costs, this is what you’re going to need to pay… if you don’t wish to do business with us, that’s fine, we wish you the best, and call us back when you’re ready. In our takeover with Sioux Falls, we increased contract amounts by 3x what they were previously paying. We stick to our guns and explain that we are a premier company, and we offer premier services, so we are going to charge a premier price. We only lost two clients by doing that, and we’ve had significant increases in our net profit,” Weston explained.
Maintaining High Standards
One of the core principles guiding their operations is maintaining high standards. This applies not only to client relationships but also to internal staff management. Wes and Weston prefer to promote from within, ensuring that only those who meet their stringent standards rise through the ranks. This approach has fostered a culture of accountability and excellence within their team.
Vision and Support from Signal
Weston credits much of their success to the support and vision of Signal’s leadership. The growth of Signal’s Home Office, from about 50 employees to around 150, has provided invaluable expertise and assistance. This support system has been crucial in navigating complex issues, from insurance to payroll, and has significantly contributed to their operational efficiency.
Future Goals
Looking ahead, their goals are ambitious. They aim to hit the $10 million across all territories with a specific target of $2.5 million in South Dakota. The focus for the coming year will be on solidifying their operations, establishing robust policies and procedures, and continuing their organic growth.
“This year, with our focus on expansion, was just getting everything under control. We weren’t super worried about growth this year because we knew it would happen organically. It’s mostly about getting all of our locations under control, getting contracts switched over, establishing our policies and procedures, and getting everything in order,” Weston explained.
Advice for Aspiring Franchise Owners
For those just starting out, their advice is straightforward: put in the work and be patient. For those taking over an existing franchise, they recommend not being afraid to make significant changes to align with high standards. This approach attracts the right people and sets the foundation for long-term success.
“Starting a fresh franchise – put in the work and you’ll see the results. It takes time and don’t get discouraged by the time it takes. Taking over a franchise – don’t be afraid to clean house and hire all new people. Establish a strict policy and do not waver on it. The people you’ll attract by doing that are people you want in your organization,” Weston advised.
Winning the Franchise of the Month award is a testament to the hard work, dedication, and strategic vision of Wes and Weston Smith and their South Dakota team. It’s a recognition of their efforts and serves as an inspiration for other franchise owners. Their story illustrates that even in smaller markets, exceptional performance and a commitment to excellence can lead to significant achievements.
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