My holiday inspired my new direction
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[PAGEBREAK]New Directions
Lots of us come back from a trip abroad with fantasies of a new and better life. Beth Ivory spoke to four women who made it happen
[PAGEBREAK]“I was sure there would be a demand for these fab Italian fragrances”
Old Job: Conference and event organiser.
New Job: UK distributor for room fragrance.
Start-up cost: £25,000.
First year’s earnings: Hope to break even.
Debbie Knight, 45, was in Florence when she noticed a delicious room fragrance in the hotel. As these room fragrances were not available back home, she decided to set up a company distributing them in the UK. She lives in London with her husband Peter and their 14-year-old daughter.
“The idea for my new business came about by chance. Last Easter, Peter and I went to France to ski, but lack of snow meant we had to change our plans and go to Florence instead. We found a hotel and, as soon as I walked into the foyer, I was struck by a lovely subtle, fresh fragrance. The hotel owners told me it was the work of a Dr Vranjes, a perfumer who has a workshop in Florence. I was intrigued and decided to visit him. Dr Vranjes was passionate about his work and told me the recipes for the fragrances had been passed down from his grandfather. When I returned to London with four bottles of the scents, my friends’ reactions confirmed that I’d found something special.
I’d worked as a conference and events organiser for about 15 years, but gave up work in November 2004 when I was diagnosed with breast cancer. I recovered quickly, but the whole experience made me realise that I didn’t want to return to a stressful job. Finding Dr Vranjes’ fragrances really inspired me and I felt confident there would be a demand for them in the UK.
I had his contact details, so I rang and spoke to his assistant Frederica about the possibility of distributing his fragrances here in the UK. Frederica was very enthusiastic and, it turned out, so was Dr Vranjes. I put my ideas on paper in an informal business plan and went back to Florence to visit him in June. We agreed that I’d buy £17,000 worth of stock, which I was able to acquire through my savings. It was a large initial outlay and there were nights when I lay awake thinking, ‘What have I done?’ But I told myself I had a product that would sell and, even if I didn’t actually make a massive profit, someone would buy them.
I wasn’t prepared for the amount of work involved, but my husband, who runs his own PR company, helped me. I arranged to store the scents in a warehouse-cum-distribution centre that would also send out the orders. I started contacting possible stockists in my local area and the first order arrived in October. There are six fragrances in all and a 250ml bottle sells for £39.95 from our website.
Dr Vranjes said he’d always dreamed of having his scents in Fortnum & Mason, so I gave the store a call and the buyer arranged an appointment with me. She loved the fragrances and they hit the shelves in January this year. I’ve found numerous other stockists and I always seek out particular shops that play upon the luxury and exclusivity that I associate with Dr Vranjes’ scents. It’s still early days, but I’m determined to get the fragrances in stores nationwide over the next year.”
WORST MISTAKE When the bottles were shipped over, there were breakages, but fortunately the shipping company paid on its insurance. Make sure you check out all aspects of a business carefully.
BEST MOVE Forming good relationships with stockists for that “personal touch”.
TOP TIP Research is vital. Although you may think you’ve discovered something unique, make sure you do your research, because it’s likely that there are similar products on the market. You must strive to be better than the competition. Find out more about Dr Vranjes’ range – call 01372-370879; www.senti.co.uk.
[PAGEBREAK]“I spend my days skiing or walking on the slopes”
Old Job: Secretary.
New job: Chalet host.
Start-up cost: Nil.
Current earnings: £60 a week, but food, wine, accommodation and ski passes are all free.
Jo Turner, 58, had spent most of her working life in secretarial temping jobs until a skiing holiday inspired her and her husband Mike, then a wine trader, to work as chalet hosts.
They now split their time between their home in London and French and Austrian ski resorts.
"In my job, I wake up to views of snow-capped mountains tinted red by the sunrise. I spend my days on the slopes and the evenings cooking and sharing wine in front of a log fire with new friends and my husband. It’s a far cry from my previous job.
I’ve skied since I was a teenager, but it wasn’t until a few years ago that I thought about working in a resort. We’d just paid off our mortgage and were itching to do something exciting. We applied to Skiworld, but I thought we’d be considered
too old. I was shocked when we got the job – apparently our age worked in our favour. Our first job was looking after 13 guests. We arrived in December and, before I’d had a chance to get used to cooking for large numbers, I had to make Christmas dinner. I really felt the pressure but, with Mike’s help, it all went well. I thought, if I can do this, I can do anything. Mike and I share the cooking and cleaning and he also works as a ski guide. I get every afternoon off to ski, walk or ice skate – it’s like being on permanent holiday. I can’t believe how much my life has changed since I turned 50.”
WORST MISTAKE: Not realising that cakes don’t rise properly in high altitudes!
BEST MOVE: Keeping in touch with guests.
TOP TIP: Move around different resorts, so you can go back to the ones you really like.
For more details, visit www.skiworld.ltd.uk.
[PAGEBREAK]“Post-holiday blues made me take action to realise a dream”
Old Job: Magazine ad sales.
New job: Importing accessories, clothes and homes goods and setting up a shop.
Start-up cost: £5,000.
First year’s earnings: £33,000.
Martha Trimming, 35, was so taken by the beauty of Morocco when holidaying with her husband Ross that they both quit their jobs – and their combined salary of £100,000 – to open a boutique, Soukh, selling imported accessories, clothes and interior goods. They live in Frome, Somerset, and have a son, aged two, and are expecting their second child.
“Talking to customers, friends and family at our opening party a year ago, as they sipped Moroccan mint tea and discussed how many pairs of sequinned slippers they were going to buy, I knew I’d made the right decision.
As soon as we stepped off the plane in Marrakech, I sensed we’d arrived somewhere special. No guide book can prepare you for the brilliant colours and spicy smells of Morocco – it was overwhelming. We were staying in a riad called El Cadi, by the big maze of markets in the main square, Djemaa el-Fna, and we went shopping as soon as we’d unpacked. The souks are exciting places. Every stall is packed with hundreds of one particular product – leather bags, bright shawls, pottery, bowls of bright yellow and red spices. Haggling is par for the course and we learnt a bargain is usually about a third of the price originally asked for. But the main obstacle was bartering in my rusty French – Morocco’s second language.
That night, the beautiful goods and reasonable prices started us thinking about setting up our own shop. But it wasn’t until we got back home with post-holiday blues that we began to consider it as a serious proposition. I was six months pregnant with our first baby and we’d been thinking about moving out of the city. We sold our house in London and moved to Frome, half an hour from my parents, in May 2004. I was at home with my son Oscar and Ross was travelling to his job in London every day to keep the money coming in while we set up.
A major factor in starting Soukh was my friend Julie, who lives in Morocco and speaks Arabic and French. She helped contact suppliers and shipping companies
– there was so much to consider. Ross created a website in March last year and we started selling online first. We used £5,000 of our savings on our first order.
After three months, we spent the profits we’d made placing our next order and setting up the shop. I found the premises by literally walking around and seeing an advert in the window saying it was available. We had to take a year’s lease and pay £400 a month rent, plus council tax, lighting and heating bills. We also spent £1,000 installing a toilet. We were aiming to be up and running in time for Christmas.
The opening party was petrifying – we’d posted fliers in letterboxes and got the local paper to write an article on us, but there was no guarantee anyone would come. One of the first people through the door was someone just passing by, but she spent £160 on two embroidered pashminas. It was an affirmation that we were off to a good start.
When I dreamt of owning a shop, I had a romantic notion of wrapping things up for customers and the warm glow of making a sale. But the reality of late and lost deliveries, bills and mountains of paperwork takes over. We’re earning a third of our previous combined salary now, but when I lock up after a day at the shop, I feel so proud of what we’ve done that I wouldn’t change it for anything.”
WORST MISTAKE: Six purple silk jackets that have been in the shop since opening day.
BEST MOVE: Ordering in what customers want rather than just what I like.
TOP TIP: If you don’t have a budget for advertising, call the local paper to see if it wants to run a story on you.
Call 01373-471718; www.soukh.co.uk.
[PAGEBREAK] “I had to think of an idea to let me spend more time in Greece”
Old Job: Advertising art director.
New job: Importing organic olive oil.
Start-up: cost £5,000.
First year’s earnings: Broke even.
Judy Hamnett-Smith, 49, fell in love with the Greek island of Zakynthos when she visited on a business trip. She now juggles her career as an advertising art director with running her year-old company Flying Olive, which imports olive oil from the island. Judy lives with her partner Patrick and her son, 15, in London.
“I arrived in Zakynthos at night and when I looked out of my window the next morning, I was blown away by its beauty. In 2000, I bought an old farmhouse, a stone’s throw from the villa I first stayed in. I wanted to find a way to spend more time there while still continuing my work in advertising.
The islanders swear the local olive oil is the reason they have such long, healthy lives. Much of it is shipped to Italy and France, but it didn’t seem to be going to the UK. I’d found a niche. I wanted the oil to be organic as I think it’s healthier and also because it’s a great selling point. The Soil Association in the UK put me in touch with the Association of Organic Agriculture in Greece, which told me 15 farmers on the island were certified organic producers. I visited the farms and arranged to buy just 350 litres. I then looked on the Internet here to find half-litre bottles, corks and labels. A graphic designer friend helped with the style of the labels. I then shipped everything out to the olive press in Zakynthos where my 700 bottles were filled with oil. My friend Peter became my business partner and invested £5,000, which covered my start-up costs. We visited delis and markets in the UK to see if they wanted to buy. Our big break was when Planet Organic said it would stock the oil in its London shops. It’s taken a year to sell all 700 bottles. Next year, I’m confident we’ll make a profit.”
WORST MISTAKE: Forgetting to fill the bottles before weighing them for postage. Our profits went down £2 per bottle.
BEST MOVE: Entering the oil in a tasting competition, which got it mentioned in Judy Ridgway’s Best Olive Oil Buys Round the World (Gardiner Press, £11.99).
TOP TIP: Ask opinions of friends and family rather than spend on market research.
Call (020) 7792 5362; www.flyingolive.com.
[PAGEBREAK]What does it cost to import goods?
o First, contact HM Revenue and Customs (0800-595000; www.hmrc.gov.uk). You’ll need to register each item imported using a specific commodity code that will be provided. Import duty is between 0-20 per cent of the purchase price. If you’re importing from an EU country, you won’t need to pay import duty.
o If you are importing the goods directly, you will pay the duty when they arrive at your door. If you are importing via freight agents, they will pay the duty and then bill you.
o In addition to import duty, you will also pay VAT on everything you import, even if you’re not VAT-registered, which you will incorporate into your retail price.
[PAGEBREAK] 10 things you should know before you start a business
More of us than ever before are becoming our own boss, with 19 per cent of small businesses now set up by women. But what does it take to be a hit? We asked three experts for their top tips
Our Experts
Caroline Anstee, 46, is a lecturer at Everywoman Business Services (www.everywoman.co.uk) and co-founder of Elements, an independent financial advice service for women in business.
Michelle Grindley, 45, is head of training at the Women’s Business Development Agency (02476-236111).
Clare Barclay, 35, is head of small business at Microsoft. Visit www.microsoft.com/uk/business.
1 Know your market Caroline: “It’s easy to come up with a business idea, but you have to test your market. This involves serious research: check out your potential competitors; decide how your idea will stand out from the others and who will buy it. Talk to as many people as possible. One client stood in a town centre with a questionnaire and asked passers-by. That’s the level of determination needed.”
2 Draw up a business plan Caroline: “Your bank manager will want to see you’ve done your homework, so you’ll need a detailed business plan, including a marketing strategy, who your customers are and how you’ll reach them. It can take a few months, but it’s vital to think about your costs and how you’ll sustain the business.” Visit the government-funded www.businesslink.gov.uk for details.
3 Shop around Michelle: “Visit as many banks as possible to ensure you get the best deal on a loan. Don’t be afraid to negotiate and have it put in writing. You may be entitled to government funding, depending on where you live and the nature of your business. Visit www.businesslink.gov.uk and look at the section on ‘Finance and Grants’ to see if you are eligible.”
4 Get Training Michelle: “There are lots of courses offering excellent advice and many are free. The Women’s Business Development Agency (www.wbda.co.uk) runs an informative pre-start up course, which covers everything you should know. It’s also important to continue with training once your business is up and running.”
5 Don’t expect overnight success Michelle: “Over half of all new businesses fail in the first three years, often because people aren’t realistic. Although many start with no financial back up of their own, I would recommend that you put savings by of at least six months’ income.”
6 Keep your costs down Michelle: “Work
from home or hire a unit in a ‘business incubation environment’ (www.ukbi.co.uk). These provide a telephone, computer and other office equipment, plus business support. Most are government funded, some are free for a limited period and many charge below the commercial rate. If you are starting your business from home, alert your local council, which will want to assess the effect your business may have on the local area. Visit the Inland Revenue business support website (www.hmrc.gov.uk/bst) for guidelines on tax issues. Your mortgage provider should be informed of your new status and home insurance may not cover work activities.”
7 Do things by the book even with friends Caroline: “If you’re going into business with a friend, put a partnership agreement together – consult a solicitor who handles corporate law. You will draw up your agreement on your own terms, so think about how you want the business to be shared, including any property, and what will happen if one of you falls ill or takes maternity leave. It might seem like a chore, but I’ve seen businesses collapse without one.”
8 Spread your finances Caroline: “The biggest mistake small business owners make is to view it as their nest egg. Many people get a nasty surprise when they try to sell and discover it doesn’t have any real value to prospective buyers. For example, if you were planning to retire next year and owned a chicken farming business, with a potential bird flu crisis looming, your future could be pretty bleak. Invest in other areas, such as the stock market and property, so your financial eggs aren’t all in one basket.”
9 Be web savvy Clare: “With a good website, a new business can appear much bigger, so it’s worth spending money to ensure that it’s easy to navigate and is smart and businesslike. For £300, a professional will build a simple three-page website. Check out www.bcentral.com.”
10 But beward Clare: “Trading online opens up a global market, but before you sell your products overseas consider how you’ll get them there. It often makes sense to have an agent at the destination who can deliver a product and offer post-sale care. You may also encounter legal issues or difficulties with Customs. A snag-free service means people are more likely to use you again.”
