What happens when you outgrow the very business model that launched your career? This pivotal question often arises for seasoned entrepreneurs who, after years of success, find themselves constrained by external frameworks. In a recent episode of the Moxie Creative podcast, “Outgrowing the Franchise: Eric Heipel on Building Heartland Painting His Own Way” we had the privilege of speaking with Eric Heel, owner of Heartland Painting. Eric’s journey is a compelling testament to the power of taking control of your brand and daring to build something entirely your own, even after more than a decade of running a thriving franchise.
This isn’t just a story about a painting company; it’s a masterclass in strategic evolution, brand ownership, and the courage to pursue greater opportunity. For small business owners and aspiring entrepreneurs in St. Cloud, Minnesota, and beyond, Eric’s insights offer invaluable lessons in recognizing growth plateaus, navigating complex transitions, and understanding the profound impact of a brand crafted with intention. At Moxie Creative, we believe in helping businesses not just start strong, but also stand out and stay bold, and Eric’s narrative perfectly embodies that philosophy.
The Launchpad: A Decade in Franchising
Eric’s path into the painting industry was unconventional. He started in the non-profit world, working in Christian camp ministry. He humorously notes that the early years of a non-profit share a “fairly good parallel” with being a business owner, particularly in the lack of immediate profit. When he decided to pivot, franchising presented itself as an attractive option. It offered a “proven business model,” mitigating the inherent risks of starting from scratch when transitioning from a steady paycheck.
As Kelly points out, there are undeniable pros to the franchise model, especially for new entrepreneurs:
- Proven Systems: Franchises provide a pre-established framework for operations, marketing, and often, lead generation.
- Ongoing Support: Many offer continuous guidance and training.
- Mitigated Risk: The established brand and operational model reduce the initial uncertainty.
However, Eric’s experience highlighted the limitations as well. While his franchise was “more affordable,” it lacked the sophistication of larger, well-known brands. He found “a lot of systems… missing” and had to “bolt on” his own solutions. This inherent gap in support, particularly for established, successful franchisees like himself (who was among the top 10 of 150 franchisees), became a growing source of frustration.
The Inevitable Outgrow: When a Franchise Becomes a Constraint
The decision to leave a successful franchise is rarely impulsive. For Eric, the realization came subtly, almost passively. He admits he hadn’t actively “contemplated that for years” until the point of his franchise renewal. He was, in fact, a year past his renewal date when he initiated conversations, a detail that, in itself, speaks volumes about the franchisor’s attentiveness.
His primary concern was the lack of a “forward-thinking plan” to help larger, more established franchisees like himself scale their businesses. The franchisor excelled at supporting beginners but offered little value to those who had already achieved significant success. Faced with a “huge amount of money” in franchise royalties over the next decade, tied into another 10-year commitment, Eric questioned the value proposition. The math simply didn’t add up.
This critical juncture forced Eric to confront a powerful question: Was the existing model still serving his growth and vision, or had it become a constraint?
The Courage to Rebrand: From Familiarity to Foundational Control
Making the leap from a known franchise name to an entirely new, independent brand like Heartland Painting was, as Eric admits, far from “completely relaxed.” The biggest concern was the potential loss of “repeat customers” and brand recognition. “We don’t want to confuse the marketplace that… your business closed,” Kelly emphasizes, highlighting the delicate balance of communicating a name change without signaling closure.
To mitigate this, Eric leveraged existing communication channels – a regular email newsletter, a printed newsletter, and other direct communication methods – to inform his client base that they were “still here… just having a name change.”
The practical implications of rebranding were also immense:
- Financial Investment: The cost of reprinting all collateral – signs, vehicle wraps, business cards, stationary, envelopes – was substantial.
- Time Consumption: Choosing a new name, a process Eric found “a lot harder than I thought,” was a meticulous and time-consuming endeavor, especially under a deadline to launch before key industry events like the CNBA home show.
- Legal Hurdles: As Kelly and Eric discuss, legal repercussions are often the “tractor beam” that traps many franchisees. Eric faced a “scary” legal process, a natural tactic used by franchisors to deter departures. However, the very “lack of having a… mature franchise system” (their reliance on him to build so much of his own local system) ultimately made his departure easier. His independently built customer base and marketing efforts minimized the impact of the franchisor’s digital marketing strategies, which he felt “caused harm” to his business.
The Branding Process: A Creative Partnership with Moxie
Eric’s experience with Moxie Creative in developing the Heartland Painting brand was a stark contrast to his previous franchise experience. He admits he was “surprised” by the sheer volume and diversity of creative options presented. “There were like… 50 concepts to choose from,” he recalls, emphasizing the depth of the creative process that goes far beyond simply picking a logo.
For Eric, who had never been part of such a rigorous branding exercise, it was “a fun process.” The intentionality behind every detail, from the choice of colors (which were meant to feel “clean” yet “comforting, homey, folksy”) to the numerous variations of the logo, deeply impressed him. Moxie’s goal was to create a brand that visually matched the “integrity of your work,” transforming a previous “kitschy” image into something professional yet approachable. The result was a Silver Addy award for the rebranding effort, a testament to the power of strategic design.
Building a Culture of Excellence: Hiring for Core Values
Beyond branding, Eric discussed the critical challenge of attracting and retaining top talent in the trades, an industry often plagued by personnel shortages. He acknowledged that as his business grew and gained name recognition, it became easier to attract “A players.”
However, the real key, he believes, is his active role in “creating and maintaining a culture that A players want to be attracted to.” This involves:
- Jettisoning “B and C players”: “A players don’t wanna work with C players.” Ruthlessly removing underperformers is essential to foster a high-performing environment.
- Rigorous Hiring Process: Heartland Painting now employs a multi-interview, “super rigorous” process for all hires, even painters. This “scares the wrong people away,” but attracts those who value a serious commitment to quality and professionalism. It signals to potential employees that the company cares about excellence.
- Culture over Skills: While skills are important, Eric prioritizes cultural fit and alignment with his core values. He seeks individuals who share his commitment to quality and service.
With a team of 12 employees, including production staff, salespeople, an office person, and even a virtual assistant, Eric has built a diverse and dedicated workforce that lives up to his high expectations.
The Future: Aggressive Growth and a Focused Lifestyle
Looking ahead, Heartland Painting has an “aggressive growth plan” aimed at scaling the business while maintaining its commitment to exceptional customer service. For Eric, growth is not just about profit; it’s about a lifestyle standpoint. He seeks a “reasonable work week” and the ability to focus on strategic initiatives rather than getting bogged down by the “tyranny of the urgent.”
A key decision this year was to get out of sales estimating almost entirely to focus on building and coaching his sales team. This strategic delegation allows him to leverage his expertise where it matters most, empowering others and ensuring consistency in service delivery.
Eric’s approach to growth is admirable: he’s willing to “be overstaffed to an extent” to guarantee the highest level of client experience. He firmly believes that providing an average service, even if still better than competitors, is not enough. He wants to go “above and beyond every time.”
Key Takeaways for Entrepreneurs: Plan, Trust, and Grow
Eric’s journey from franchisee to founder offers powerful lessons:
- Have a Plan: “A business with no plan is a plan with no business.” Strategic planning, including working on the business rather than just in it, is crucial.
- Seek Mentorship: Utilize resources like the Small Business Development Center (SBDC) for free business consulting and build a network of trusted advisors.
- Invest in Your Brand: A professional brand image that matches the quality of your work is essential for standing out and building customer confidence, even in less “professionalized” industries.
- Hire Great People (and Don’t Be Afraid to Delegate): Recruit individuals who align with your culture, even if it means hiring “sooner than later” and initially investing in new team members. Overcoming the fear of giving up control (and money) to hire help ultimately frees you to focus on high-impact growth activities.
- Embrace Evolution: Be prepared to adapt and change your business model when it no longer serves your vision or the market’s needs. The “next chapter of your business doesn’t have to look like the last one.”
Tune In and Get Inspired
Is your business feeling stuck in a model that no longer fits? Are you ready to take control of your brand and unlock bigger opportunities?
What would it look like to build something that’s entirely your own? And who can help you get there?
At Moxie Creative, we understand the challenges and triumphs of evolving businesses. Whether you’re considering a rebrand, a strategic growth plan, or simply need expert marketing guidance, we’re here to help you articulate your vision and make it a reality. Don’t let complacency hold you back from your next bold move.
