Two former bankers tell New Businesss how they set up their own business after being made redundant, what steps they have taken to expand the firm and why they are on a misssion to change the old-fashioned image of tailoring.
What are your business backgrounds?
James Sleater (JS): I was originally a banker for a French bank, which I did for the best part of a decade. When the recession came there were different periods of redundancies and I had a brainwave about tailoring. So in the background I was putting down the framework and the ideas. Both Ian and I got the chop from our respective companies and it turned out to be a huge blessing in disguise - it meant that we had some money as part of our redundancy packages to set up the business and to survive the first few months.
Ian Meiers (IM): I left university and joined Barclays Bank on their graduate programme where I did three years of training and qualified as an accountant. I then decided I didn't want to be an accountant so moved into their wealth management business and became a project manager. I then worked for a start up company for a year - they had a good product but bad management so the business failed and I was made redundant.
How did you meet each other?
JS: We were put in touch by a supplier who told me there was a guy of a similar age who was thinking about starting up the same business. Ian was going to do it with his business partner at the time and I was going to do it by myself. So we agreed to meet up and have a discussion and, luckily, he turned out to be an alright guy! After meeting we realised that we brought in two different skill sets and when Ian's business partner fell by the wayside it seemed right to combine our different talents.
What are your different skill sets?
JS: It is different skills, but also different views on things. I come from a background where I had suits made for me when I was 16 and Ian is used to the high street experience, so we had different perspectives on the tailoring world and what people would be willing to pay. Ian is much more on the accounting side of things - he is more analytical - and I deal more with sales and marketing. When Ian has a bad idea I normally rein him in and when I have a bad idea he reins me in.
How did you come up with the name of the firm?
JS: The name of a company is very important and we pondered over the name almost more than anything else. It is people's first impression of you and neither of us have surnames that roll off the tongue, and we are not that arrogant that we want our names above the door. We wanted the name to be catchy, a little bit different and convey an open message to get rid of the stuffy nature of tailoring, to be a bit more accessible. Like it or loathe it, our name tends to stick in people's minds.
Did you spot a gap in the market?
JS: I've had suits made from Savile Row and been left with a bitter taste in my mouth about the amount of money it cost, and been to see a travelling tailor and thought ‘this is nothing like what I have bought before'. It's cheaper but the quality isn't there. I saw it quite passionately and Ian saw it much more as a unique business opportunity.
IM: I didn't want to go into tailoring initially but I saw it as a business opportunity. When I was travelling I sat down and went through every business idea that I could think of and I had seen there was a market for travelling tailors but the product was poor quality. I thought we could do something at a competitive price that was actually very good. The gap was to bring high level, Savile Row tailoring with more affordable pricing.
Like it or loathe it, our name tends to stick in people's minds
Do you have a typical customer?
JS: Because of our proximity to thousands of businesspeople we find that professional bankers and lawyers make up the bulk of our custom, but we see people from all areas because our starting price is £350 so we can entice a lot of people off the high street. We have people from all walks of life, which has probably been the most surprising and pleasing thing.
How do you offer the quality at a cheaper price?
IM: We do more suits. Because of the infrastructure that we set up, we can do more volume. We also stitch the suits overseas, which brings the cost base down, and it is also down to our operating platform. We set up a system where we don't have to employ administration staff to process orders, order fabric or track orders; it is all done online. This has saved us the cost of two or three employees a year.
Is the idea to make the customer experience less intimidating?
JS: The idea of the website is that it is a shop window and if you are in a shop you can browse - it isn't as easy to do that in a tailoring company. By putting some fabrics online and creating a design tool, the idea is to allow people to browse and see the different options you can have in a suit. Far too many people are still nervous about walking through the doors into dusty tailors. The idea is to break down those barriers and make it a more approachable business and industry.
Are you surprised by how quickly you have expanded?
IM: Yes, a little bit. When we launched I was thinking that maybe it wasn't the best time to launch a business, as it was the start of the worst recession for 70 years. But because of our product and price we have stolen some customers from Savile Row and from other areas; we haven't gone out and just targeted one area, we have quite a broad range. Last year the business had a turnover of £400,000 and this year we are looking to do a million. We are on target for that and our projection for next year is double again.
What is the process if someone wants a suit?
IM: We sit down with clients and spend some time talking about the different fabrics and linings that we can do, discuss the style options and measure them up. It takes roughly an hour and then they come in for a fitting and we can tweak things, as you can't properly fit the suit until it is on the body. It generally takes five to six weeks to make the suit and we do travel out to businesses but primarily people come to us, as they like to see us in the shop. People like to sample the atmosphere of the shop because it is a working tailor's.
How important is it for business owners to look the part?
JS: Hugely important. For instance, in the election debates in every single paper after the first debate there was a reference to what suit they were wearing. We do live in a society where impressions are gathered from the aesthetic; how you appear and how you dress is vital to get your message across and how people perceive you.
What have you found are the hardest elements of starting a business?
JS: Dealing with not having the same salary that you had before when you were employed. Coming to terms with that drop is difficult, as is the stress that that can bring until you can generate enough money so you can pay yourself.
IM: The crazy hours that you have to work to start a business, because nothing means more to you than that business and you will work seven days a week, 14 hours a day to back it. It is a lot of work and it does consume your entire life.
What advice would you give to someone starting a business?
IM: Plan well. Do your research, do your financial modeling and make sure you know what you are going into. Keep your costs low when you set up because then you give yourself a chance.
JS: Don't be afraid to ask for help. We asked our web designer if they knew of a photographer and it meant we paid less for a professional photographer for the day. Everybody loves to be asked for help; it is a hugely flattering thing, and it is amazing when you do ask how many people are willing to get involved and give you feedback about all aspects of the business.
For more information please visit www.cadandthedandy.co.uk
