Episode 4 The Bottom Line

Lincolnshire. -- a six-year-old boy. Police believe it was a tragic

accident. It is now time for The Bottom Line. Whenever struggled to

get middle aged guests on this programme so today we depart from

our normal service with three young entrepreneurs - all enthusiastic

twenty-somethings. They will not be a grey hair in the studio unless

there is the challenge of setting up their own business has got to

The guests are: Suleman Sacranie, founder of online wholesaler

99pwholesaler.com. Kelly Goss of independent fashion brand Rock n'

Needle. Louis Barnett, founder of luxury chocolate maker Chokolit.

company is now moving in to allowing all these people allowing

goods on the cash and carry and compare prices. 99pwholesaler.com.

I found at a fashion label named Rock'n'Needle in 2008. I started

the business when I was studying. I a designer collections which are

wholesalers into boutiques and I am a represented by an agency in

Brussels. By founded Chokolit in 2004. We are a luxury chocolate

maker - from cakes to everything, selling all over the world and

doing 5% of our business in the UK. We are all natural and nothing in

it then they should not be there. Welcome. 99pwholesaler.com is an

internet wholesale retail or? the end of gold has always been to

develop a comparison engine because I have been brought up with a

family... My father is a shopkeeper... They go around saying

which is the cheapest cash and carry an even for the sake of 10p

There will travel 20 miles not realising the ensure it is costing

them... I dropped out of university to develop these. I was studying

chemistry. They used to drink lots of coffee in the cafeteria because

it got so boring. Do you think that is a good idea dropping out? At the

time it was the worst decision. When I dropped out, I did not

realise it was a nightmare. To get the initial model going, it was

about finding when the company. You have to buy a domain name. The

worst thing is you have all these dreams - I am going to be a

millionaire tomorrow. The reality was I was buying products for

customers, put in an in a box and making a loss. In terms of the

customer experience, can I go to the website? There are two sides a

retail side which a normal customer can go in there. Is it all

99pwholesaler.com? And the wholesale side which doesn't deals

for 24 hours because shop keepers when Daley offers a required. --

and Daley offers. It will be launching in March. And then ate

you will create a comparison shop. Tell us about Rock'n'Needle? It is

a fashion label. I design collections. I have people and nine

with an agency in Brussels and we will sell the collection to mainly

Independent boutiques. You did not drop out of university, you studied

fashion and design? I went to the fashion Academy for a year where I

did a diploma or and before that I did a national diploma for two

years. Upon my experience -- experience... But you didn't study

some of the technicalities off of the business you a ring.

Rock'n'Needle - the needle is a reference to tattoos? There is a

tad too inspiration? It is inspired by rock'n'roll culture, sewing

needle, a tad too needle, vinyl needle and the Rock'n'Needle.

were inspired by a tad too is that here you do not? No. There is no

inconsistency? People were quite surprised when I showed up with no

stance on wore tattoos. -- stance. How old are you now? 22. How is the

business going? I would rather not disclose the turnover. Last year I

had to change all my processes and I used to make the closing myself

and obviously that was her very small run to boutiques and I did

not want to carry on like that because I wanted to grow. Last

August I started to outsource my manufacturing and did my first

trade show in Bell's Court and signed up with an agency to develop

began distribution. I cannot force you but you have a couple of staff?

It is not just you working? There are four of last... Sometimes five.

Louis Garnett Chokolit. I started when I was 12 years-old. I left

school when hours 11. I was told by the teacher was a lap to take the

exams because they could not right. I'd have some outside tutoring and

at that time I was diagnosed with a number of diagnosis says. --

diseases. I dropped out when I was 11. There are only two things are

ever enjoy doing with my spare time after school and that was cooking

and animals. The first thing I ended up doing was working with

birds of prey. Then I moved on from that... I got asked by my Auntie to

make a cake for a 50th birthday and that when on to local family and

friends and it grew and grew. As these things happen in life, back

in 2005, I saw a couple of products and recognise that there were local

businesses as well. I told the so manager I made chocolates and he

shook me away with a business about. A founder head office and they

asked me for a meeting after a couple of days. Bring us up to date.

For some reason, for various decisions, we were very small and a

naive and business. We went from very small to very large very

quickly. As we realise now, we were overtrading a little bit but we

grew very quickly as a brand. After the end of 2008, a couple of things

happen in our business. The UK market started to drop out. In 2009

I started to look for exports. Ice that had an export programme and

now, two years later, or we do 5% in the UK. Just 5%, the rest is

exports. How old are you now? 20. How big is the Business?

problem with the business is we are going through a real transitional

phase. We went from a UK-based business to an export business. We

when from having a production site with 10 local staff and then we

split into production starts -- sides in the UK. We are setting a

site in Mexico at the moment. is the turnover? The problem with

the turnover... What I love about you, is you never answer the

question. Go on, what is the story on the turnover? Here you are

asking about turnover and that mack we could get to the Public Domain

that mack it is the one question I get asked in the UK but in any

other country I do not. It is more about the achievement of what

you're doing. I am not trying to take it away from you but it is

interesting to get a rough idea of the scale of the business. You

employ people and outsource? We and poi people. In the next month we

are going to open a brand new production site in the UK. Across

the world we probably have 20 or 30 staff at any one time. But the

production changes constantly. are all at the start of your

business careers. Let us talk about some of the headaches. Three young

entrepreneurs - what is the thing you lose most sleep over? I would

guess it would be raising capital or getting investment in the

business. Cash flow. In the early days, or supporting yourself can be

a nightmare. You're putting all your money in the business.

cannot pay yourself a salary? not even that. I was more than

prepared to do struggle to start the business but the enterprise

grant I looked into, for example, he had to be on ships seeker a liar

and the share allowance for six months. That is utterly illogical

to me. Because I had not been on any benefits at all. I do not

understand how... Y six months for a start? You are not going to reach

six mums and suddenly decide you're going to be an entrepreneur. It is

off-putting for people that could be looking at that as a career

choice. What capital did she use? had a loan of Prince Charles and

charity. It is interesting, with that, you have to be making

repayments straight away which I have got such a strong view on

considering students who come out of university do not have to pay

back their minds until they reach a certain income bracket. University

was good for one thing, I ended up with the enterprising scheme where

they give you �5,000. I got into that programme straight away and it

was really good. You got your student loan. You have all had to

sum or thought of some not entirely commercial support. The Prince's

I don't understand. I applied for funding from the Welsh Assembly

Government. I was not eligible because I did not have a degree. I

don't understand a lot of these processes. If I have potential

orders at the time and significant injures, I do not understand how

having a degree is more important than what is happening. Did you

have government money? We had a grant from the master scheme about

two years in. What is the Masters team? It was opened by the Midlands.

It was graphic design and Wear Development. We were such a small

business. We had about 30 clients when I started in 2004, my grandad

bought my first chocolate tin. Their age has brought some benefits,

it had its downside. From my point of view, in my industry, chocolate

and food is quite a snob industry. I found a lot of disrespect to

start it when I was meeting by years. Had defaced other things

because of your youth? -- had you faced. I am quite fortunate now. I

had people in my business to have grey hair. I came across quite

professional but you could tell they were thinking they had a kid

sitting in front of them. White other headaches? You have not

spoken much about the expansion of Your Business. You go from selling

their own staff in your own little studio at to having to outsource it.

The most difficult thing was the cost. I did not have anybody in

that field who I could ask what the average Markup, what is a good

price, what is a bad price. I were shooting in the dark. Even business

centres, I never got any straight answers on price setting. They

would recommend a business plan writing course Budgen no-one will

ever tell me, no that is a rubbish price. -- but no-one. There is

something wrong here. It was only until I chatted with two investment

backers where I finally got some sound advice about my pricing.

are the first person to have a positive remark about investment

bank people. They help you. They gave you a straight answer. I am

not going to lie about it. If it was not for them, I would still be

charging too much. They taught you to put the price down. Yes. You do

not have to worry about pricing because it is all 99p. I do not

know about the rest of you, but business models do change and they

changed quite drastically. I went from a retail site two Getting To

the End goal. It is about selling advertising space which is

different to what we were doing before.

We spoke about the headaches and challenges you face in your

businesses. I want to move to the next chapter which is where you

will go in terms of selling your business or parts of your business.

We often think of entrepreneurs hanging on for too long and not

letting other people getting involved. Are you keen about having

other investors taking part? You do not have any external investors.

am in discussion by I own 100% of it. I want to get other people

onboard. I am happy to give away part of the business. I am not

bothered about saying I own 100%. How much could you use? 20-40%.

That is what I am prepared to give away. What about you? I have

investors now. Individuals do not make things up, teams do. Would you

rather own 22-day to the scent of �10 million. That is a famous

phrase. One had to present a nothing is not very good. How much

are you -- do you own? They do 5%. Still in a scheme in the game?

Still early on in the business. It gets tricky. Do I want to carry on

or is it time to exit? The most important part is you should have

an exit strategy. Do you have to have an Tasered strategy? You will

stay in your business. You will carry on designing. -- exit

strategy. As long as it makes money. I'm happy to stay. De-seed as, I am

building this business are up, and together we said and then I retire.

-- do you see it. I do see it as a long-term setting because I have

nothing else going on. It is believed all or nothing. If you

sold your business, which is set up another business? Hard to say.

about you? We are looking at an exit strategy. It is knowing when

to get to that strategy stage. Last here, Whitaker on the first two new

investors. -- we talked on. There will be an exit strategy in the

next five years. What we do? I will also -- always keep my hands in his

-- chocolate that I have other responsibilities as well. What will

you do? That is a good question. I have no idea at the moment.

problem with investors is if they take too much of the business, and

your state goes to know, you do not have been up of a business to feel

like... The most important thing is, 40% of start-ups fell in the first

year. Geeky thing is, any investor coming in the first year is such a

huge risk, it depends on how much they put in, you have to think

yourself, in the first year, which is the most crucial year at... It

is a time and a place. Four investors it is more of a strategic

role. I was losing a be part of my Business but the investors also

owned a print company. A product and Industry, the perfect fit far

as is the raw product and the packaging. We have become a part of

a bigger business. That was important for me in. My role in the

business is very specific. I have been there from the start and I

developed many recipes. I am very much the face of the business.

However small my role is, I will still be very influential because

it is my brand and I do all of the recipe development. That is

important. For my company, the investor's own a number company. --

another company. We could have a 3 million pound portal without having

to pay for it because we had the way company backing out business.

If it came to the stage of exit, the company is part of this company