Black MBA - Spring 2008 - (Page 94)

ENTREPRENEURSHIP Franchising Keith Sims – Dunkin’ Donuts Dan Marino’s blind side, and Sims overestimated the ability of his managers to lead the business without his direct involvement. He says there were many “dark days” and he lost $100,000 in the first year of business. Even after retiring from the NFL, Sims wasn’t immediately able to devote his full energies to the enterprise, because he was learning to walk again due to post-career surgeries. Sims says the experience motivated him to learn more and work harder. “I had to really roll up my sleeves in order to fix this,” he says. “I went and visited local franchises. I got a list of who had the best stores in the area and spent time in their restaurants… and went to the local bakery to learn about food cost control.” He advises prospective franchisees to do their homework and investigate franchisor claims. “Go talk to existing franchisees when the franchisor is not there,” he suggests. “Sometimes you get the real story. Visit the location in peak and off-peak hours. Dunkin’ is a morning business… Really understand the depths of the business.” Next, Sims had to get the right people on his Dunkin’ Donuts team and put them in the proper positions. Fortunately, he found great partners in Ken and Clint Privett, brothers who also owned a couple of Dunkin’ Donuts stores. The three formed a partnership in 2001. Sims says the first year after the merger, employees played each of the partners against one another – that’s before the owners settled into distinct roles. “My strength is people… marketing, training, developing sites and leveraging the celebrity that I have in South Florida,” says the former Miami Dolphin. “I have a partner that loves spreadsheets. The other partner is our operations guy, and he understands donut baking.” Sims says the combined company’s revenues jumped to between $12 and $14 million in 2007 from $2 million at the time of the merger. Today, their company, Dania Management Group, Inc. owns Dunkin’ Donuts, Dunkin’ Deli and Baskin Robbins franchises in South Florida and distributes baked goods to about 50 other Dunkin’ Donuts restaurants. Sims says they have found success, in part, because of high expectations. “My mom taught me to shoot for the stars whether it be in football or business,” he says. “[When] I got into business, people thought I was crazy. People thought we were crazy when we moved to an office park.” Sims was undeterred. You can’t run an empire from the back of a donut shop, he reasons, and his sights are now set on owning 50 stores. His company’s expansion parallels Dunkin’ Donuts’ efforts to rapidly grow to 15,000 locations from the 5,400 it currently operates. It seeks multi-unit franchisees with a net worth of at least $1.5 million and liquid assets of at least $750,000 to commit to a five-restaurant minimum. Sims concludes and credits football for teaching him to relentlessly pursue goals. He says, “I never had a coach say you can’t do it.” mba K E ITH S I M S SAW his share of adversity from heartbreaking losses to debilitating injury during 11 years as a professional football player. But, the three-time Pro Bowl participant credits the sport with laying a foundation for his success off the field. Valuable lessons in goal setting and team building have paid off for Sims who, today, owns 16 Dunkin’ Donuts stores with a development agreement for eight more. In football, Sims says the goal is to get to the Super Bowl and win it. In retail, it’s to satisfy the customer. “It sounds easy, but it’s the hardest thing I’ve had to do,” he says. He signed his first store development agreement with Dunkin’ Donuts before the start of the 1999 NFL season and started putting an organization into place. “I was heading toward retirement, and the prospect of working for someone didn’t thrill me,” Sims says. “I wanted to have something I could manage from a distance, because I was still playing [football].” Franchising also appealed to Sims because his parents were entrepreneurs who enjoyed working for themselves – despite the endeavor’s inherent struggles and fluctuating pay. Sims had a couple hundred thousand dollars to spend and investigated several franchises before deciding a donut shop was a good fit for a 300-pound offensive lineman. But selling coffee and donuts is a far cry from protecting former teammate 94 BlackMBA • Spring 2008 • www.nbmbaa.org Photo: Getty Images Keith Sims’ Recommended Reading List for Entrepreneurs The E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do About It by Michael E. Gerber Good to Great: Why Some Companies Make the Leap and Others Don’t by Jim Collins Who Moved My Cheese? An Amazing Way to Deal with Change in Your Work and in Your Life by Spencer Johnson, M.D. Why We Buy: The Science Of Shopping by Paco Underhill The Goal: A Process of Ongoing Improvement by Eliyahu M. Goldratt and Jeff Cox http://www.nbmbaa.org

Table of Contents Feed for the Digital Edition of Black MBA - Spring 2008

Black MBA - Spring 2008 Passion, Purpose and Power Contents Web Browsing From the President & CEO Up Front Advertising for Change CEO to CEO: Straight Talk with Barbara L. Thomas and Renetta McCann The New Executive Search Wealth Building: A Head Start on Investing and Saving Young Continuing Education: Lifelong Learning is Easier than You Think Making Good: Catching up with some of NBMBAA’s 2007 Scholarship Winners On Campus: Universities Win Grants to Fight Poverty Public Service: Does Your MBA Fit in the Government Sector? Bridge Building: Make a Career of Giving Back Steady Speed: Kim Harris Jones Shares what Drives a Successful Auto Industry Career Financial Planning: A New Way to Work Your MBA Global Focus: Keeping up with the Competition Clock On the Move: Member News, Promotions and More Industry Focus: Biotechnology, Energy, Food & Beverage, Global Media and Entertainment Employer Profiles: Campbell Soup, FINRA Financial Finesse: Denise Hales Harrod and CompuCredit Advocate for the Financially Underserved Creating Lasting Change: GE Impacts Quality of Life in Africa William W. Wells Jr.: Finding Strength in Diversity Leaders of Tomorrow® Community Service Program: NBMBAA® and Wal-Mart Partner to Reward Students Who Give Back Reaching Out: NBMBAA® Chapters Give Back to Their Local Communities How To… Buy a Franchise: Understanding the Basics of Acquiring a Franchise After the Gridiron: Keith Sims – Dunkin’ Donuts Franchise Confidential: Paul Hubbard – Papa John’s pizza Strength Through Adversity: Bob and Hortense Bobbitt – McDonald’s On the Ground Floor: Valerie Daniels-Carter – Pizza Hut, Burger King, Auntie Anne’s Use Your Superstar Status: Black Entrepreneurs Break into Japanese Economy Marketing Maven: Odyssey Media Entrepreneur Linda Spradley Dunn Staying the Course: Black Marathoners Share Lessons from the Race Relationship Forum: Soul-Mate Strategies for the Career-Minded Vacations that Matter: Travel to Make a Difference Advertisers Index

Black MBA - Spring 2008

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