TRICKY BUSINESS 2
PROGRAMME 8: RENTAHEDGE
The entrepreneur
Gareth is 21 and a full-time business enterprise student at the University of Northampton. He developed the idea for RentaHedge whilst working on a project for his Foundation degree. He spent a year setting up the business, studying for his degree at the same time. He is unafraid of hard work and often puts in an 18-hour day. He is keen to run his own business. He feels that he has a realistic view of what it entails as his father has been through a similar process and is a 'self-made man'.
The business
RentaHedge rents portable hedges in steel planters for use at outdoor events. The hedges are available in a range of heights. They provide temporary boundaries that can be used to:
- screen facilities
- divide a space into rooms
- guide and direct visitors
- enhance the look and feel of a venue.
The business problem
Gareth secured a bank loan of £110,000 to set up the business. Most of the money is tied up in stock. The remainder is earmarked for operational costs and marketing. Effective marketing is vital as the business is seasonal and has a niche market. The money is running out and Gareth needs to find customers quickly. His current marketing strategy is to cold-call people in the phone book. This scattergun approach has not pulled in any customers and Gareth is beginning to doubt his marketing abilities. He needs help to secure contracts otherwise the business may fail before it gets started.
The business solution
John believes that Gareth has a highly marketable product and a business with enormous growth potential. He advises Gareth to:
- identify key customers in his niche market
- undertake tightly focused marketing
- use a public relations agency that specialises in developing quirky brands like RentaHedge
- use the winter season to undertake strategic planning and to market the business to existing and potential customers who will already be planning next year's events.
The outcomes
Gareth acts on John's advice. The business attracts high-status customers such as the Burghley Horse Trials, the Cartier International Polo Tournament and the Royal Berkshire Show. After three months, RentaHedge has achieved a turnover of £150,000 and is growing month on month.
