Video – When will I see a return on my investment with a Diamond Network Partnership?

Diamond Logistics explains how a Network Partner’s level of focus, existing infrastructure and growth ambitions can affect the time required to recover their initial investment.

Transcript

So, this is an investment. When can people expect to see a return on their investment in the Diamond Network Partnership?

It’s entirely up to you as a Network Partner, effectively. The reality is that the more activity you put in and the more focus there is on the Diamond side of the business, the bigger the rewards will be and the faster those rewards will come.

We’ve had Network Partners who have invested massively, front-loaded their sales effort and put lots of resources in there so that they reach that break-even level a lot quicker.

Others have to do it slightly more prudently and organically to a certain degree, while making sure that they’re following the methodology and putting that focus into the Diamond side of things.

We like the fact that we’ve got pre-existing logistics businesses joining the network because it brings that experience, and they’ve got some of that infrastructure already in place, so it makes the transition quite seamless.

However, one of the watch-out points is that, if you are consumed by your existing business as it stands at the minute, or even in some cases spending 50% of your time in the van doing deliveries yourself, then you need to think about what focus you can put into the Diamond side of things.

Are you going to do it justice? If you can’t, then obviously it’s going to take a little while for you to reach that break-even level.

I would say that it really does depend upon you and how much effort you put into the business. We’ve had people repay their initial investment within the first six months. For others, it might take a little bit longer because they’re investing more in their infrastructure for bigger scale later on.

The reality is that we’ve got the capacity to scale as slowly or as quickly as you wish. It’s your effort and your ambition that will determine how quickly you’ll make the return on your investment.

Just to add to that, in terms of what you can see for your money and your return on investment, we’ve got Network Partners who are grossing over 50% in gross margin.

We’ve also got Network Partners who have scaled to over £1 million worth of revenue within the first three years of becoming Network Partners. That is based upon them starting at ground zero with no infrastructure.

So, if you’ve got infrastructure, knowledge of the sector and you’re putting significant focus into the business model, you can far exceed that achievement. It’s quite a hockey stick of growth, should you have the game to do so.

We launched Cambridge with their first big client, which was effectively worth £300,000 a year. That was a client negotiated by Diamond HQ.

We even send people around to help set up people’s WMS, warehouse management system, not wanting to use too much lingo there. So, there’s a huge amount of support from Diamond HQ.

And not just from Diamond HQ. I think we really are a family here. Every single Network Partner that we’ve taken on board, and there are over 30 as it stands at the minute, are like-minded business owners who are all pushing in the same direction.

That real collaboration and camaraderie across the entire network is really important.

I’ve run a small business in the past, and likewise you have as well. It is lonely sometimes. Just having fellow business owners that you can rub shoulders with, have a coffee with and bounce ideas around with is something that we very much champion within our business.