We caught up with the awesome Sarah Longthorn from the absolutely fabulous WedgeWelly.
What made you start your business? Was it a particular passion or did you just spot a niche in the market and had to go for it?
It all began one Saturday night, Glastonbury on the TV and the rest of the WedgeWelly Family on the sofa. V Festival was the topic of conversation, Laura & Sarah were all wrapped up in fashion, frantically discussing what to wear, hair and footwear. Then in this moment during an alcohol fueled conversation about much loved high heels and rubber Wellies, WedgeWelly was born!
The WedgeWelly concept was developed after searching unsuccessfully for wedge Wellies to wear at V Festival. In August 2007 the founders attended V Festival to undertake market research with the target audience. The purpose was to ensure that there was a clear demand for such a product, and it clearly noted that no Wellington boot currently existed that satisfied the needs of the fashion forward festival goer, or a practical Wellie for those girls who are petite and require additional height.
Have you always been an entrepreneurial girl from a young age?
Yes!! I first had a taste for business when I set up a small business selling ice pops as part of my business studies course at school. The business was a huge success, I really enjoyed it and everything seemed so easy!!
How much effort did you put into launching the business?
A successful business it takes a massive amount of drive, determination and persistence. A successful business is not lead by someone who is easily distracted or takes no for an answer. {AF template=round_quotes} Massive amounts of creativity and commitment are required in the early days (first 3 years), the effort required should not be underestimated, it’s tremendous. {/AF} Once your business is established and you start to reap the rewards, it’s more than worth it.
Did you need money to start the business or were you able to boot strap yourself?
The WedgeWelly Family are well known for being resourceful, and this quality has enabled them to translate an idea into a credible business, despite the lack of capital available to invest.
The founders were only able to raise £500 through personal funds, they therefore looked to alternative sources. They were very successful in obtaining a substantial amount of grants (which unlike loans do not have to be paid back) from the following sources:
Business Link Yorkshire
· Legal support @ £2,500
· Branding & web development @ £3,000
· Marketing & PR support @ £6,000
Hull City Council
· IT equipment @ £2,000
University of Hull
· Logistics & supply chain support @ £2,000
· Implementation of Sage50 @ £5,000
Probe
· Financial management support @ £4,000
Train to gain
· Marketing & PR support @ £6,750
· Training @ £150
Leadership & management
· Financial management support @ £1,000
· Financial management support @ £1,000
UK Trade & Investment
· International trade support @ £1,500
Total grants obtained £34,900
Despite the credit crunch, and a lack of assets available to secure loans against, the WedgeWelly Family were successful in obtaining a £25,000 bank loan through the Royal Bank of Scotland. This was supported via the government EFG scheme.
Expansion and growth was funded through:
· £50,000 overdraft obtained through the Royal Bank of Scotland, supported by the government EFG scheme.
· £25,000 loan obtained through the Royal Bank of Scotland, supported by the government EFG scheme.
· £65,000 investment obtained from Theo Paphitis via Dragons’ Den in return for 25% equity stake.
· £20,000 overdraft obtained through the Royal Bank of Scotland.
How important is a long term vision of your business (and sticking to it)?
In the current economic climate it’s impossible to predict what might happen next month, let alone in 3 – 5 years time. We don’t have a long term vision which we stick to at WedgeWelly, our approach is to evaluate our business weekly and make decisions which take us in different directions. We’re not afraid to change the plan (even drastically in some instances). Business is all about spotting opportunities and pursing them, a rigid plan prevents you from being able to do this.
Why should students start a business right now?
{AF template=round_quotes} What one thing would you dare to do if you knew you could not fail…… You have to take a step back before you take several steps forward financially, if students are not used to large salaries the financial sacrifice will be much easier!! {/AF}