REDRHINO franchise business model is based on the corporate prototype based in Los Angeles, California. For over six years now, the concept has proven that despite difficult economic times, the business model can grow. Year over year growth at the corporate business has been between 15-30% per year. The founder of the organization, Michael Kenealy, entered this industry from an executive position in the management consulting field.
Why would someone leave a $200,000 a year job to start this business? Find out for yourself with the REDRHINO Value Proposition.
Q: Why did you choose to get into business for yourself?
MK: I had grown frustrated with the uncertainty so common in corporate America. This uncertainty ranged from job security, to annual salary increases, to promotions, to where my box in the organizational chart would fall at any given time. After 15 years in the corporate trenches, I had no more control of my professional future than I had on the first day of my first job. I had to break the cycle.
The traditional belief is that entrepreneurs run the most risk, and that the “salary-man” has job security. The “salary-man” can claim a stable job, a consistent paycheck and promotional opportunities that are onwards and upwards. This may have been true for our parent’s generation, but today, it could not be further from the truth.
The entrepreneur or small business owner finds satisfaction in knowing that their value to the organization rests entirely on their own efforts. Their professional future is not decided by a middle-manager who may not be any more qualified than those they are responsible for. The REDRHINO franchise owner knows that their success and their compensation for that success is tied directly to their own efforts.
Q: Did you have a plan for what you would do when you left Corporate America?
MK: The decision to leave my job was an easy one. What I would leave my job to do was the big unknown. I was a mid to senior-level manager with a background in technology deployment and account management. I was a jack of all trades with no specific ability in any particular discipline. I was at a salary that made me unhirable in a down or competitive economy. Finally, I had a family to support. I was stuck.
What skills did I really have? I couldn’t just hang a shingle and open up a law practice or a medical practice or an accounting service. I didn’t have the education, aptitude or experience for any of these. I had missed out on the dot.com bubble. And even if I did have the next Facebook, I didn’t have the technical expertise to program it myself, I couldn’t afford to hire programmers and I didn’t have the network from which to capitalize from.
One evening a friend gave me a call and said that he had an idea for me. He was in the flooring business and had his own company that installed everything from carpet to linoleum to quarry tile. He was just starting to get into epoxy flooring and thought that I might be interested in “painting” garage floors. I shot-down his idea as being silly and having no real future. After all, how many people really “paint” their garage floors? He went on to mention that he was doing a commercial job over the upcoming weekend and would I hang out with him while he supervised the job. The job would start on Thursday and conclude on Sunday – a total of four days. He would make approximately $40,000.00, plus or minus a few dollars.
Thursday morning I was at his house at 4:00 a.m. to pick him up for a 5:00 a.m. job start. I went back into the office on Monday morning committed to leave my job and become an installer of epoxy floor coatings.
The plan was for me to keep my day job while I became familiar with the epoxy industry and make a safe and careful transition. At least this was the plan. As Cortez burned his ships upon finding the New World, I resigned, without notice, three weeks later. I was now committed.
On reflection, there could not have been a better industry or business for me to transition into than the epoxy coating business.
-There was a low upfront cost for the necessary tools, trailer and other miscellaneous supplies of the trade.
-I had someone who could provide training and support both in product application and manpower.
-The learning curve was not too difficult.
-Epoxy coatings in the industrial and commercial space were required by miscellaneous health and safety laws and the industry was very much a niche industry. Unlike other forms of flooring – carpet, tile, etc.,there was not a lot of competition.
-Not being from the construction business, I was able to see many opportunities that may have been taken for granted or not considered because of the background and experience of the average industry participant.
-The business provided high margins on relatively low investment. Epoxy jobs regularly pay 35% to 50% margins. This is an excellent return given that most service businesses work on 13% to 15% margins.
Q: How do you make the transition from Corporate America to a business like REDRHINO?
MK: The first years were not easy. Ultimately, I was able to apply to a blue-collar industry what I had taken for granted in a white-collar world. This ability combined with the willingness to work hard has allowed me to develop a turn-key business opportunity that anyone can be successful at with the right attitude and the willingness to follow the program that I have put in place.
Today, I am my own boss. I have achieved financial independence and I have the prestige of being the person in charge. The decisions made are mine and not handed down to me by someone who has a box higher than my own. I am able to involve myself in the total operation of the business, from concept to design to creation, from sales to operations to customer follow-up and client development.
I would have it no other way.
Thank you for your interest in REDRHINO: The Epoxy Coatings Company.
Michael D. Kenealy
President & CEO
REDRHINO, Inc.
For more information on the franchise, contact us: Connerc@redrhinoinc.com
