A Chamber Member’s Story

 

Talk with almost any small business owner these days and before long they are lamenting the shortage of qualified workers—but not franchise owner Carol Trahan. She’s surrounded by qualified workers.

 

Trahan’s human resources company, a Spherion franchise, manages 1,500 contingency employees throughout northeast Tennessee and southwest Virginia. She has 15 employees in three offices in Johnson City and Bristol, Tennessee.

 

Trahan and her husband considered other types of franchises before purchasing a human resources business from the Norrell franchise in 1996. Cost and convenience were two of the main reasons why Trahan decided to purchase a franchise, instead of starting her own independent business. Norrell provides workers’ comp insurance, keeping the cost and paperwork burden off Trahan’s shoulders.

 

Trahan had previously worked for Norrell as a contingency employee, giving her “an inside peek into how they do business.” Nevertheless, Trahan says she did her due diligence—something she recommends for all potential franchise owners. She read up on Norrell and spoke to its franchise owners about their experiences—including how they handled shared expenses, as well as opportunities for professional development. Says Trahan, “Getting out of a franchise contract can be hard and expensive, so you want to make sure you’re picking the right franchise.”

 

Trahan’s first big challenge came in 2000 when Norrell merged with Interim, another human resources company. (Interim became Spherion in 2003.) “We weren’t informed of the merger until after it was complete,” she says. Further complicating matters, Trahan was already competing against a nearby existing Interim office.

 

Eventually, Trahan bought out her competitor, but 50% of that location’s clients chose to leave. Trahan had to lay off five employees. “I learned how difficult it can be to bring an existing staff under your roof,” she says. It took five years for the location to build back its client base. “I learned to look at the client differently—to listen more closely,” Trahan says. “I don’t sell business to everyone. Rather, I pick and choose clients I can have long-term relationships with.”

 

Two of those long-term relationships have resulted in Trahan opening offices at the clients’ production sites—one at Strongwell Fiberglass in Bristol, Virginia, and the other at the John Deere facility in Greenville, Tennessee.

 

To share a Success InSight, e-mail Greg Galdabini at ggaldabi@uschamber.com or phone 202-463-5563.