Video report: Focus on price and product pays off for Simon Showman

NORTH West businessman Simon Showman has revealed how working in an auction at the age of 16 set him on the path to business success.

Mr Showman, chief executive of Oldham-based Ultimate Products, told TheBusinessDesk’s Entrepreneurial Services seminar how he had learned at an early age that consumers want the latest product at value prices.

He said his big opportunity as a young entrepreneur had been when his boss, the auctioneer, had not been able to work and he was told to lead the sale.

“This was my chance and I took full advantage of it- I took more than double what my boss would usually take. I had made my mark.”

[VIDEO: 106]

Mr Showman said his path to success had been a ‘minefield’ – and he had learned many lessons along the way.

“I learned one lesson about the importance of quality control with some electronic golf trolleys some years ago.

“The boss of TJ Hughes called me from his golf course after his broke half-way round. I had to recall £1m of stock, but I learned from it and I now have 29 people in quality control.”

[VIDEO: 107]

He said that entrepreneurialism could not be taught or built, but comes from within.

Taking a product from bright idea to market, is he said “nearly impossible”, and said the popular TV show Dragons Den gives a “false impression” about how this is done.

He said his journey over the last 12 years had been built around a simple concept, which he has combined with hard work and honesty.

“Value for money has shaped my business life for the past 20 years.I learned early on to listen to my customers and what they wanted and I would travel the world to find the product at the best price and deliver to them.

“I was relentless in my search to find the goods they wanted.”

Controlling costs and building a capable and reliable team around him have been vital, he said.

“I learned the skill of investing in good strong people and surrounded myself with them – this was key.

“I remembered some very good advice I had been given: ‘A good CEO can lead a team, but a great CEO creates a team that can lead.”

Discussing the recession, Mr Showman said the last two years had been the most difficult and challenging time in Ultimate’s history.

“In November 2009 when banks began to implode and the recession started to bite, we began the necessary and extremely hard work of cutting costs and creating cash.”

To protect jobs the board and management team worked evening warehouse shifts, a step which saved more than £350,000 in 12 months.

Cash conservation allowed Ultimate to make acquisitions – which has driven turnover growth in the last year from £59m to £80m.

The event at the City Inn, Manchester, heard also from Robert Jackson, chief executive of Montpelier Chartered Accountants, which sponsored the event alongside law firm Pannone.

[VIDEO: 108]

Mr Jackson said three phases of planning – strategic, fiscal and business – are vital for all companies.

He predicted VAT would rise in the next year to the European average of 20% and also that high earners would be “clobbered’ in the forthcoming budget.

“I expect capital taxes to go up because, as a whole the voting masses are not affected. There won’t be much to smile about in the Budget I fear.”

Mr Jackson said entrepreneurs should now be planning for the future, and also looking at costs.

Kay Kennedy, head of entrepreneurial services at Pannone, said her firm had acted proactively to cut costs and weather the storm of the recession.

[VIDEO: 109] 

In addition, supporting customers had was key, and Pannone has set up its own buying group, which clients can use free of charge to save money.

Looking ahead she said the availability and pricing of capital remains a key issue.
“Banks are prepared to lend, but the charges are astronomical,” she said.

She said entrepreneurs should must keep a tight rein on costs, but maintain their unique selling point.