How Jim Penman built Jim's Mowing into a franchise empire
In this episode of The Bottom Line, we sit down with Jim Penman, founder of Jim’s Group and one of Australia’s most recognised voices in small business.
For many Australians, the Jim’s name is instantly recognisable. It has become part of everyday life, appearing across homes, neighbourhoods, and local communities through one of the country’s best-known service brands.
What started as a lawn mowing business has grown into a franchise group with thousands of franchisees across a wide range of service industries. But behind the scale of Jim’s Group is a very practical story about small business, customer service, leadership, systems, mistakes, and the importance of looking after the people who represent your brand every day.
The conversation explores how Jim built the business from humble beginnings, what helped it scale, and what business owners can learn from his approach to franchisee support, customer experience, pricing, and long-term growth.
The Early Days of Jim’s Group
Jim’s business journey started long before Jim’s Mowing became a household name.
He shares that his first paid job came when he was just eight years old, doing odd jobs for a neighbour while raising money through Cub Scouts. Years later, while studying, he started doing gardening work as a student job.
At the time, it was not meant to become his life’s work.
Jim originally planned to pursue an academic career, but after finishing his PhD, he realised that path was unlikely to work out. With debt, limited money, and a desire to continue his research, he turned his part-time lawn mowing work into a full-time business in 1982.
What began as something to keep him going eventually became the foundation for Jim’s Group.
From Lawn Mowing to Franchising
The move into franchising came after Jim saw another franchise lawn mowing business entering the market.
At first, he thought they would crush his business. But after looking more closely at the model, he saw an opportunity to create something better for the people joining the system.
Jim wanted to build a franchise structure that he himself would want to join.
That meant creating a model where franchisees felt supported, protected, and able to succeed. It was not just about growing the brand. It was about creating a business that worked for the people inside it.
When Jim launched the franchise model in 1989, his stretch goal was to one day reach 100 franchisees.
He reached that number in around 18 months.
Selling by Not Selling
One of the most interesting parts of the conversation is Jim’s approach to selling franchises.
Rather than relying on hard selling, he focused on proof.
In the early days, when people were interested in joining, Jim would give them the names and phone numbers of existing franchisees and encourage them to call around.
His view was simple: let the people already in the system explain what it is really like.
That approach became what Jim calls “selling by not selling.”
For business owners, this is a powerful reminder that the strongest marketing often comes from the experience people have with your business. If your customers, team, or franchisees are genuinely happy, they become your strongest advocates.
Why Franchisee Welfare Comes First
A major theme throughout the episode is Jim’s belief that franchisee welfare must come first.
While customer service is critical, Jim explains that the reason customer service matters so much is because it directly affects the success of the franchisees.
If customers are looked after properly, more work comes in, the reputation of the brand improves, and franchisees are more likely to build strong, profitable businesses.
Jim’s leadership philosophy is built around the idea of serving franchisees. He describes the model as servant leadership, where the role of the leader is to support the people doing the work.
For Jim, this is not just a nice idea. It is built into the way the business operates.
Franchisees are given rights, protections, and pathways to raise concerns. Jim also makes himself personally available to franchisees, giving them his phone number and email address so they can contact him directly if something is not right.
Staying Close to the Frontline
One of the strongest lessons from Jim’s leadership approach is the importance of staying close to the frontline.
As a business grows, it becomes easy for leaders to become disconnected from what is actually happening with customers, staff, or franchisees.
Jim takes the opposite approach.
He wants to know when something goes wrong. He wants franchisees to contact him. He wants customer complaints to be visible. He wants to understand where the system is not working so it can be improved.
For business owners, this is a practical reminder that growth should not mean distance.
The bigger a business becomes, the more important it is to have systems that keep leaders connected to the real experience of customers and team members.
Customer Service Is Not a Slogan
Jim is very direct about customer service.
Many businesses say they provide great customer service, but Jim believes most do not actually know whether that is true.
His view is that customer service must be measured.
Jim’s Group uses complaints, surveys, warning systems, standards, and follow-up processes to track service quality. If a franchisee does not respond to a customer quickly enough, that can become a complaint. If complaints continue, there are consequences.
It is a tough system, but Jim believes it is necessary.
The reason is simple: poor service damages the customer experience, the brand, and the franchisee’s own business.
For Jim, customer service is about standards, response times, accountability, and constant improvement.
Why Systems Matter
Another important theme is the role of systems in business.
Jim explains that businesses cannot simply assume things are working well. They need to measure, record, and review what is actually happening.
This applies especially to customer feedback and complaints.
If complaints are not recorded properly, leaders may think service is better than it really is. If leads are not followed up quickly, potential customers may go elsewhere. If no one is checking the data, small issues can become major problems.
For business owners, the lesson is clear.
Systems do not have to remove the human side of business. When used well, they help protect it. They make sure customers are followed up, standards are maintained, and problems are not ignored.
The Role of Selection and Training
Jim also discusses the importance of selecting the right people.
From the early days, he did not want to put people into the franchise system if they were unlikely to succeed. Prospective franchisees had to go through a process, including interviews, training, and practical checks.
Jim’s view is that it is not fair to take someone’s money if you do not believe they have a strong chance of succeeding.
This is one of the reasons training and selection remain such important parts of the Jim’s Group model.
For business owners, this applies beyond franchising. Whether you are hiring staff, choosing partners, or bringing people into your business, getting the right people matters.
Skills can often be developed, but attitude, reliability, and alignment with standards are much harder to replace.
Learning from Mistakes
Jim is also very open about the mistakes he has made.
He shares that one of his biggest mistakes has been rushing into ventures he did not fully understand. Over the years, he has tried different businesses and projects that did not work, some of which cost him significant money.
His reflection is honest and useful for business owners.
Optimism is often necessary in business. Without it, many people would never take the risk to start or grow something. But optimism can also become dangerous when it causes people to move too quickly into areas they do not understand.
For Jim, one of the greatest virtues in business is humility.
Business owners need confidence, but they also need to know what they do not know.
Pricing for Value, Not the Lowest Price
Jim’s view on pricing is another practical lesson for business owners.
Jim’s Group does not compete on being the cheapest.
Instead, the focus is on quality, reliability, service, and protection for the customer. Jim explains that customers want good service, but franchisees also need to earn a strong income for the business to be sustainable.
This means the business has to charge properly.
For service-based businesses, this is an important reminder. Competing only on price can weaken the business, reduce margins, and make it harder to deliver the level of service customers expect.
Jim’s approach is to focus on value, not just cost.
If the service is strong, the follow-up is reliable, and the customer feels protected, price becomes only one part of the decision.
Technology and the Future of Jim’s Group
Jim also shares where the business is heading next.
One of the most exciting areas for Jim’s Group is technology. The business is investing heavily in systems designed to help franchisees run more efficiently, convert more leads, reduce travel time, and increase income.
One example Jim discusses is technology that could allow jobs to be booked directly into a franchisee’s diary, rather than relying only on a call-back process.
Another area is helping franchisees better manage and sell the rights to service regular clients, allowing them to build tighter territories, reduce travel, and improve their work-life balance.
For Jim, technology is not just about innovation for its own sake. It is about helping franchisees succeed.
The Human Side of Small Business
Although Jim’s Group is now a large organisation, the conversation keeps coming back to very human principles.
Look after your people.
Respond to customers.
Measure what matters.
Stay close to the frontline.
Be honest about mistakes.
Do not move into areas you do not understand without humility.
These are simple ideas, but they are often difficult to execute consistently.
That is what makes the conversation so relevant for small business owners. Jim’s experience shows that growth does not come from one single decision. It comes from years of standards, systems, learning, service, and constant improvement.
Looking Ahead
Jim Penman’s story is a powerful example of what can happen when a small business is built with discipline, focus, and a deep understanding of the people it serves.
From mowing lawns to building one of Australia’s most recognised franchise groups, Jim’s journey offers practical lessons for business owners at every stage.
The episode is a reminder that great businesses are not built on branding alone. They are built on service, systems, leadership, accountability, and the willingness to keep improving.
Listen to the full episode of The Bottom Line with Jim Penman to hear more about building a business from the ground up, scaling through franchising, supporting the people in your network, and what it really takes to succeed in small business.