IN this week's SME Focus a creative entrepreneur explains how he plans to breathe new life into Scotland's once mighty carpet making industry.
Name: John McIlvogue
Age: 39
What is your business called?
Stevens & Graham
Where is it based?
We have a showroom in Bath Street, Glasgow and an office and warehouse on the city's southside. I am planning to open a further showroom, probably next year, in Edinburgh and then, later, because of the international appeal of our product, one in London.
What does it produce, what services does it offer?
We are the world's largest supplier of tartan carpets and rugs. Stevens & Graham has full-time and part-time designers and employs freelance weavers in traditional carpet-making centres such as Kidderminster in Worcestershire. I have long-term plans to re-introduce carpet weaving to Scotland which, until the latter part of last century, was a major international carpet manufacturing country. Our carpets are designed in Scotland but woven in Kidderminster and Salisbury in Wiltshire. It seems there simply aren't any carpet weavers working in Scotland at the moment and that is something we would like to rectify. Carpet making is a very labour intensive process and there are many complex issues between taking the wool from the sheep to laying the finished product on the floor. We would love to bring the craft back. Weaving a quality carpet is a fairly niche business, but the looms I have in mind would make an Axminster quality carpet .
Who does it sell to?
Home-owners, golf clubs, hotels, restaurants, department stores and anyone else who is looking for a tartan carpet or rug.
Stevens & Graham has supplied carpets to international retail names such as Brooks Brothers, Tommy Hilfiger and House of Fraser and has a range of 136 tartans, to which we are continually adding. We recently sold a carpet in Black Watch tartan to Buckingham Palace. At the moment, 60 per cent of our sales are in the UK and 40 per cent abroad. At the rate we are gaining overseas orders, we expect to reverse that ratio by next year. Export sales to countries such as Australia, Canada and New Zealand are driven by our internet presence and in recognition of that we are investing substantially in a new website with considerably enhanced interactive capability.
What is its turnover?
£750,000 in this current year but as a result of a distribution agreement we signed this year with a US distributor we expect to make it through the £1 million turnover mark next year.
How many employees?
14
When was it formed?
It was formed by Messrs Stevens and Graham in 1947. I acquired it from the Graham family in 2013 after the death of Mr. Graham.
Why did you take the plunge?
I thought the business had enormous global potential and that it had been under-performing for a number of years. I knew the quality and design of the product was first class and that there was demand for it throughout the world.
What were you doing before you took the plunge?
I have been in the carpet and floor covering business for eight years. I also have a shop in Shawlands, Glasgow, JMV Carpets, which I am planning to re-launch later this year as Carpets & Flooring by Stevens and Graham.
Before I became involved in the floor covering sector I owned and operated a decorating business. I studied stained glass as a major part of my degree course at Glasgow College of Building and the creative element of carpet design has always held a huge appeal for me.
How did you raise the start-up funding?
I used all of my personal savings to buy Stevens & Graham. There were no borrowings from the bank.
What was your biggest break?
Signing an exclusive distribution agreement worth up to $1 million a year with US-based business Stark, the $0.5 billion turnover New York headquartered carpet, fabric and wallcoverings business which distributes products to north American-based interior designers.
What was your worst moment?
I haven't had it too bad really. I suppose the most challenging element was changing the culture of the employees I inherited when I acquired the business. Some of their ways of working were not mine and, with my entire personal wealth at stake, I had to ensure that the business was as efficient as it could be.
What do you most enjoy about running the business?
I enjoy meeting a wide range of people. I have to travel abroad a lot and that widens my horizons. I also enjoy the creative element of our work. We are currently working alongside Randak Design of Glasgow, for example, which is about to launch a range of 'Toshie' wall coverings and fabrics inspired by the work of Charles Rennie Mackintosh. As part of that initiative we have developed a range of Toshie-inspired carpets which we will be exhibiting jointly at Decorex, the major international home decorating exhibition held in London.
What could the Westminster and/or Scottish governments do that would help?
Keep supporting small businesses. I've found Business Gateway very helpful as an advisor. I've also had support from Scottish Enterprise, and though it was quite slow in coming through, it has now come good. I have had help with the costs of international travel to win our US contract and also a grant towards the upgrade of our website. There is lots of talk about helping young people get skills and we have recently hired a school-leaver who we will train in the skills of carpet fitting, partly on the job and also through day-release at college. When someone spends a good few thousand pounds on a tartan carpet they don't want the laying of the carpet to be left to chance and we need highly-skilled fitters to get the job done right first time. I plan to hire more apprentices as we grow and it would be helpful if we could get some Government funding.
What are your top priorities?
First, to launch this autumn a new wholesale range consisting of our 12 best-selling tartan carpets to 12 selected, high-end independent carpet retailers throughout England. Second is, to consolidate our US relationship with Stark. I am scheduled to visit New York again later this month. Third is to complete the upgrade of our new website and to get it launched later this year.
What was the most valuable lesson that you learned?
Stick to what you believe is the right business path for you and never stop working on it.
How do you relax?
Spending time with my family; I've no real interests aside from my business.
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