In today’s fast-paced business world, few thrive for decades. John Hewitt is one of them. With 50 years in franchising, he significantly impacted tax services. Recently, on the Second Chance Podcast with Jeff Robertson, he shared his story of overcoming failures to achieve success.
John founded Jackson Hewitt and then Liberty Tax. Now, he leads Loyalty Brands. His journey shows the power of perseverance and smart business strategies. This blog post shares key lessons from the podcast. It offers insights for future entrepreneurs and those interested in franchising.
From Humble Beginnings to Jackson Hewitt
John’s business journey began with his father’s dream of self-employment. His dad bought an H&R Block franchise, sparking John’s interest. After a tax course, John joined his father’s office. Soon, he managed 250 H&R Block offices. Yet, he aimed higher. He co-founded Jackson Hewitt, turning it into a billion-dollar success. It began with a simple idea: using an Apple computer to streamline tax returns. Merging with Mel Jackson Tax Service, Jackson Hewitt was born.
However, the path was rocky. In 1995, an IRS software error nearly collapsed the industry. This chaos led to a hostile takeover, forcing John out. It was a tough blow, but it wasn’t the end.
Rebuilding Success with Liberty Tax
Instead of giving up, John launched Liberty Tax in 1998. He saw a chance to expand internationally. Within three years, it became one of Canada’s top 100 retail chains. Once his non-compete agreement ended, he returned to the U.S. market. He faced off against Jackson Hewitt and H&R Block.
Liberty Tax grew rapidly, opening over 4,000 offices in 12 years. John’s marketing, like using Statue of Liberty costumes, set it apart. This success cemented his status as a top franchising expert.
Loyalty Brands: Expanding Beyond Tax Services
John didn’t stop there. He founded Loyalty Brands, covering tax services, pet grooming, and construction. His goal? To create franchises that share marketing and resources.
For instance, Liberty Tax customers might also need pet grooming. They could turn to a Loyalty Brands pet franchise. Similarly, homeowners might need both tax services and roofing. John’s strategy connects different industries, benefiting his franchisees.
Why Franchising Works
John champions franchising for its proven success. It offers brand recognition, established processes, and support. He notes that choosing the right franchise is crucial. It boosts the chance of long-term success.
He shares a key statistic: 95% of franchisees are still in business after five years. In contrast, only 5% of independent businesses survive. This highlights the value of a solid franchise system.
John believes successful franchises have “happy, successful franchisees.” Franchisors should prioritize their franchisees’ success. This approach leads to mutual growth. Those focusing solely on profit often fail.
Lessons on Resilience and Adaptation
John’s story showcases his adaptability. After losing Jackson Hewitt, he bounced back with Liberty Tax. His journey underscores the need for resilience. Entrepreneurs should be ready to take risks and learn from failures.
Adapting to technological changes is vital. John has always embraced innovation. He encourages constant improvement. If you’re not advancing, you’re falling behind.
Advice for Aspiring Entrepreneurs
John’s advice is simple: understand yourself and your risk tolerance. Not everyone is suited for self-employment. It’s crucial to weigh the challenges and sacrifices.
For those eyeing franchising, he suggests thorough research. Testing the waters first is key. Mentorship is also vital. A mentor can save you time and money. John’s experience is a treasure trove for prospective franchisees.
Final Thoughts
John Hewitt’s journey is a testament to resilience and innovation. From Jackson Hewitt to Liberty Tax and now Loyalty Brands, he showcases the power of entrepreneurship. His ability to bounce back and build two billion-dollar companies speaks volumes. For aspiring business owners, his story offers inspiration and practical advice.
By focusing on franchisee success and adapting to change, John has built a legacy. It will influence the business world for years to come.
