IN this week's SME Focus we hear how a young entrepreneur drew on her baking skills to make a low cost move into business.
Name:
Rachel Hanretty.
Age:
26.
What is your business called?
Mademoiselle Macaron.
Where is it based?
Edinburgh.
What does it produce, what services does it offer?
We are a specialist in French macarons - a delicate patisserie made of ground almonds, egg whites and icing sugar, which we produce in a variety of flavours from pistachios to Hendricks Gin. Our shop has a small cafe area where we serve artisan tea and coffee and hold consultations with customers.
Whom does it sell to?
Our business is split into different revenue streams - the shop and cafe, food markets and events, private orders/commissions for weddings etc, website sales and wholesale. Our wholesale customers include Harvey Nichols and the Balmoral Hotel. Web sales from across the UK have grown by 300 per cent since we launched our e-commerce site last year.
What is its turnover?
£178,000.
How many employees?
Seven, plus me as the director.
When was it formed?
The idea arose while at university in 2010. I took part in, and won, a 20-second business pitch competition. I think the plate of macarons I put in front of the judges helped! The winnings helped me get my idea off the ground. In 2013, I gave up a part-time job to make macarons at home full-time. I sold these at Edinburgh’s food markets and was making at least 1000 macarons a week in my flat. Demand was so high I quickly managed to build up enough capital to open my shop and cafe on Grindlay Street in May 2014.
Why did you take the plunge?
The moment when I fell in love with macarons was on my 18th birthday. I was in Paris to celebrate with my mum and we queued for ages at Laduree bakery on the Champs-Elysées. I went to the University of St Andrews to study English and French, and as part of my degree I spent a year living in Paris and macarons came to be the biggest treat for me on my tiny teaching assistant budget. During my time in the city I went to the Alain Ducasse cookery school to learn how to make macarons. Although I took a job after graduating I knew, in order for my ambition and potential to be truly realised, I had to start my own enterprise and forge my own career.
What were you doing before you took the plunge?
I was working for a not for profit organisation called Women’s Enterprise Scotland. I met the most amazing women who had built businesses from scratch and saw them succeed. It was incredibly inspiring.
How did you raise the start-up funding?
Mademoiselle Macaron was relatively low risk to start. I made macarons at home with limited overheads, which meant every penny was ploughed back into the business. I was also fortunate that family members had left me money which helped as well. The day before the shop was due to open, a close friend from university passed away. He’d been a huge support with my business venture. He was so young and generous, leaving me money to buy coffee equipment to match his passion for good coffee. It was a sure sign that I had to get on and do the best I could with Mademoiselle Macaron.
What was your worst moment?
I’ve had a few bad days that could all compete to be the worst but working 15 days on the trot and collapsing at the end of it comes close to being the worst! I don’t think that example is unique to me, quite common among business owners.
What do you most enjoy about running the business?
I enjoy the freedom to be successful and pursue my ambition. I have the energy and drive to overcome any obstacles that arise with no superior or boss in the way. I enjoy the opportunity to always learn something new. I truly believe that you could study business all you like but never be prepared for the realities of it until you go into business. Every day is different, and each day stretches and pushes me, sometimes to my limits. But I’m very lucky nonetheless.
What do you least enjoy?
Dealing with HR issues and managing people.
What are your ambitions for the firm?
I’m firmly focused on opening up more shops and creating a clear presence in Scotland and across the UK as well as developing a range of merchandise and recipe book. We want to keep to our value of liberté in recipe development and invent more daring and exciting flavours.
What are your top priorities?
1. Undertake a soft rebrand of our Mademoiselle and redesign our packaging.
2. I opened the business with no debt but realise that in order to grow we need to raise finance whether through bank loans, equity funding or crowdfunding.
3. Gaining a greater understanding of our online metrics as web sales are where our growth will come from.
4. Build a group of advisers who I can turn to for help and advice as the business continues to grow.
5.Develop new products.
What single thing would most help?
Money and finance always helps! As the business is now two years old, we no longer qualify for start-up loans which offer a less rigorous application process. Having banks understand that the ‘middle’ phase is just as tricky would be helpful.
What could the Westminster and/or Scottish governments do that would help?
The Scottish Government has been very good at helping small businesses and I’ve benefited enormously from organisations supported by them such as the Scottish Institute of Enterprise. The Prince’s Youth Business Trust and Business Gateway have also been helpful. My adviser at Business Gateway helped me access specialist legal advice regarding copyrighting and trademarking my brand. They also gave me HR advice and, at the most simplest level, just having an adviser to turn to when it all gets too much is a great benefit. Outwith these organisations, I’ve benefitted from a European initiative to hire a young person in a role which we wouldn’t have been able to create otherwise.
If it is possible that a government could educate the public about the importance of small businesses, I would be very grateful as, sometimes, I feel people don’t understand why every business is not able to offer products at very low prices.
What was the most valuable lesson that you learned?
I have definitely learnt (the hard way) that it is better to have a tracked and recorded list of tasks and expectations, whether it be issued to contractors or staff. If it’s recorded, then it is easier to measure performance against. Getting things in writing is key.
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