TRICKY BUSINESS 2
PROGRAMME 7: FIVEZ
The entrepreneurs
Stuart Mitchell is a football-mad 23-year-old who lives in Kilbride. An economics graduate, he turned down a job with HM Treasury to devote himself to Fivez. Enthusiastic, energetic and unafraid of hard work, he has big plans for the business. He wants it to make a real difference to the quality of life in Scottish communities, particularly the disadvantaged ones. The programme follows Stuart as he tries to expand the business. His business partner and cousin, Paul Spacey, lives in Coventry. Most of the action takes place in Scotland so Paul remains in the background for much of the programme.
The business
Fivez is a five- and six-a-side football business. Teams register to become league members. Fivez organises the fixtures, pitches, match officials and equipment, including shirts if necessary. It has a niche market of teams from disadvantaged Scottish communities. Its objective is to make a real difference by offering people something fun to do that has positive by-products, such as improved health and fitness. Players' costs are kept to a minimum. They pay £2.50 a game but team registration and league membership are free.
The business problem
Fivez was set up in 2005 and had a turnover of £100,000 in the first year. Current weekly turnover is £3,000. Pitch rentals and match referees cost £2,500 a week. This leaves £500 a week to pay the wages and run the website and office. Stuart and Paul know that they must boost profits by increasing the number of leagues they have. They are struggling to obtain extra pitches and plan to overcome the problem by creating their own venue.
The business solution
John points out the flaws in Stuart and Paul's plans. Creating their own arena would be expensive and represent a 180-degree change in strategic direction. They would lose their niche market and be in direct competition with major players in the sector. John believes that they have a growth business and could have a turnover of £500,000 or so within a couple of years. He recommends that they concentrate on marketing their business, particularly to local councils. This will help them to roll it out across Scotland and gain access to under-utilised local facilities.
The outcomes
Stuart and Paul act on John's advice. They have doubled their number of leagues and have developed good working relationships with several local councils.
