How to Build a More Successful Business
This is the story of how Nick Wheeler, Founder of Charles Tyrwhitt, built a more successful business. Nick’s opening comments reflect his humble nature, “I feel like the most scruffy person here in the presence of so many smart people!”. This, of course, belies the steel and tenacity of a man who has been bust once and nearly bust again a few years later. Overall Nick is now seen as a picture of a successful business owner.
The First Un-Successful Business Idea
Having an entrepreneurial spirit from an early age, Nick was always looking for ways of building a business. Destined for University, he took a trip to India in his teens, he decided to go into the bespoke shoe business. The economics were compelling – he had bought a pair of made to measure shoes for £10 and he knew he could easily sell them for £50. It seemed like a no-brainer. With a plan to conquer the shoe market on the side, whilst studying for his degree, he got 50 customers to buy these great value shoes.
His plans went a bit awry when his order method was put to the test. To get the shoes made to measure he simply traced round a customer’s feet, then faxed the tracing to the supplier. For anyone who remembers fax machines, what you feed in often came out the other end either very compressed or very extended – resulting in a delivery of a mix of small shoes or incredibly long “clown” shoes. Lessons in logistic learned!
The First Successful Business Idea
His next major idea was shirts – he bought fabric before even knowing where he would have them made. In fact when he asked the cotton mill owner “Who makes the best shirts?”, they thought he was barking mad and bound for failure. But Nick is not one to let anyone or anything get in the way of making his business a success. He was still at University and while his fellow students were out on the town, he spent every night chasing customers. He had 5000 leaflets printed for £99 and he bought an Amstrad computer for £199 – the rest was plain hard graft.
His first year he turned over £12k, and repeated this in year two. Leaving University to work in a London consultancy, his 3rd and 4th year turnover was – consistently – £12k. At this point he decided that if things were going to change, so did he and he took the leap to give up work and take his business to the next level. By his own admission, in the early days, he took the tortoise approach by getting going and sticking with it rather than being an entrepreneurial Hare – throwing everything at it and going for broke.
Three Big Lessons to Build a Successful Business
Charles Tyrwhitt as a business has never sought equity investment to fund growth. One of the big take aways from listening to Nick was that “It’s easy to spend other people’s money. When it’s your own you are much more careful!”
His second big lesson was “It’s good to make mistakes – as long as you learn from them”.
By year 8 (1994), Charles Tyrwhitt was turning over £2m – at this point Nick was 29 and was starting to get bored. He looked around and decided to buy a chain of childrens clothing stores – and within 3 months went bust!
His third lesson “Be good at one thing and focus on it”
From the ashes of bankruptcy, Nick went about rebuilding the core shirt business, and by 2005 turnover was £40m and life was good. Nick felt the pull of something new and decided to diversify again into women’s and children’s clothing – teetering on the edge of being bust again at 39! With £9m of unsold stock and fighting for survival, Nick wasn’t just battling to keep his company alive, he was also in combat with Royal Bank of Scotland who were trying to force the company into liquidation!
Fixing Things – for Building a Successful Business
Recognising that things needed to change – including his own role in the company – Nick appointed a new CEO and the business really started to thrive! It’s a hard lesson for many founders that they might be part of the problem and need to get out of the way of their businesses potential for success. Figuring out who is best to run the company and recognising it often is not YOU is a challenge for a lot of entrepreneurs. Your business is like a child, when they are small you do everything for them; as a teenager you tell them what to do but when they are 32years old, you need to manage the relationship!
Nick has one aim “I want to create a great business, where all the stakeholders – customers, suppliers, staff – love the company because they make it their own”. They feel as passionately about it as you do – and this level of engagement creates a tribe, a community that is as involved in the business success as the founder.
It is well documented that Nick is married to Chrissie Rucker, founder of the White Company. And it’s his passion for his business that got her started with her own idea. He gave her seed capital of £5,000 for 25% of the business when Nick was 30 – he now owns 1% (but that’s a story for a different article!)
The 4th Lesson of a Successful Business
The 4th lesson from Nick is “Compound growth is the 8th wonder of the world” – the first £1m turnover is REALLY HARD! But as a tortoise you stick with it and the next £1m is a lot easier. Sticking with it for him and Chrissie has given them 22% annual growth every year for over 20 years! Between the two companies their turnover is almost £400m, and as Nick stated, it’s not a competition, officially – unofficially it absolutely is.
The Final Lesson for Building a Successful Business
And finally, his last lesson “Don’t sell out too early!” – he has always been committed to looking after his stakeholders. There are 1200 employees, millions of customers and a cohort of amazing suppliers all making Charles Tyrwhitt the shirt maker of choice in the room!
In the early days his dad had advised him to “stop messing around with shirts and get on with his job” – these days he likes to think is Dad is quite proud! (And rightly so!)
Christine is an author, speaker and Accredited Member of the Associate of Business Mentors who helps business founders significantly change business outcomes and with it their quality of life. She saves them THOUSANDS and increases the value of their businesses by MILLIONS. Since 2000 she has generated over £500m of crystalised value in business exits.
The published author of 4 critically acclaimed business books, 5 Minute Finance and What’s Your Profit Score, which has been described as “the most useful business book of the year”, she is currently writing the next book.
Is your business saleable and exit ready for you to leave it (no matter when it happens)? Click to to get Christine’s free Exit Ready Checklist the expert in making sure your business is saleable for more money and on better terms. Christine helps you get out of the day-to-day, guides you through the handover of controls and gets you and your businesses exit ready so you can enjoy a happier, richer future. She saves you THOUSANDS so you can increase the value of your businesses by MILLIONS.