NatWest - Helpful Banking

How I did it - Retail

Cartridge World: 'Buying a franchise'
David Pryke and Shelley Thomas bought a franchise to operate a Cartridge World shop in Luton and set up business in November 2009. As David explains, the couple had considered buying a business from an independent owner but were eventually deterred by a lack of available information. "It can be difficult to get all the information you need to decide whether or not to buy a business," he says. "Some owners don’t seem to know much about their own businesses."

Buying a Cartridge World franchise was much simpler. David and Shelley bought from an existing franchise holder who was happy to talk them through the business and provide information on customers and top selling lines. Much of that information was stored in the POS machine.

As franchisees, David and Shelley benefit from national marketing but are free to do their own marketing at a local level. Under the terms of the agreement, they are also free to set prices, based on the market conditions in Luton. "Cartridge World allow us to fix prices, but there have stipulated a maximum," says David. David and Shelley have also taken advantage of the openness of other franchisees. "The shops aren’t competitive with others in the network, so people have been willing to talk to us about ways to improve the business," says David.

Garden gifts: ‘How we grew by expanding our stock’
The Gluttonous Gardener is an online retailer selling food and gardening gift packages. As e-commerce director Sally Golland explains, the current range of 50 gift packages shows just how far the shop has come since its launch. "When we started we had just three products," she says. "But we have continually added to that. Each year, we introduce about four new items."

The decision-making process is based partly on the availability of new plants and food products and partly by asking customers what they’d like to see. And while there is a certain amount of guesswork in terms of what will be popular and what will be less so, Golland says they avoid understocking or overstocking by working closely with suppliers. "We tend to work with small suppliers who are usually more flexible. They will supply us with small quantities to enable us to test a product. At the same time, because we know them, they will work hard to help us if we have a rush of orders."

Shopping complex: 'Location, location, location'
Lapstone is a complex of businesses – including a shop, hairdressers, spa and café – nestled in Chipping Campden in the North Cotswolds. As founder Simon Hudson recalls, the idea behind the venture was to give customers a complete experience. They could indulge in some retail therapy in an upmarket gift store, enjoy being pampered in the spa and finish the day with a meal.

The location dictated the shape of the venture. "We had farm buildings available and we thought we could create an experience," says Simon. The site featured an attractive building, beautiful surrounding countryside and the proximity of centres such as Birmingham and Cheltenham. By offering a unique day out, Lapstone has succeeded in attracting a regular base of customers from the local area rather than relying on periodic tourist trade.

"Because of where we are, the marketing side is hugely important," says Simon. "For this reason we’ve relied on a kind of viral marketing. Lapstone is a something that people pass onto their friends." Building the business has been a slow burn, supported by other business activities, but has now achieved its goal of building a solid base of loyal customers.