Brother and sister Clare and Paul Vallely set up The Rug House in 2007. This online operation is based in Newry, Co Down, and employs 24 people.
What is special about your business? We design our own rugs, creating ranges around upcoming trends and taking inspiration from around the globe. We then have them made primarily in Turkey, China and Belgium. This allows us to maintain high quality at an affordable price.
What sets your business apart in your sector? Customer service, no doubt about it. Our Dad has sold everything from car parts to home wares direct to the public for over 30 years and he always emphasised the importance of giving the customer what they want. This has really stuck with us and our customer service team is the most important part of our company. A third of our staff work in customer service.
What has been your biggest challenge? Buying our first container direct from the manufacturers. It was a daunting prospect. The banks wouldn't lend to us so we got money from a loan company "for a new car" and spent it and every penny we had on our first container. It wasn't the perfect product but the price was right and we made it work.
What has been your biggest success? Becoming the largest online rug retailer in Ireland and Britain. We now sell to more than 60 countries worldwide but becoming established and successful in our own local markets is an achievement we are very proud of. Last year, we won the Digital Advertising Northern Ireland exporter of the year award and we have also been short listed for the cross-Border Ulster Bank-sponsored Business Achievers Awards.
What advice would you give to someone starting a business? Get out and talk to people. Join local chambers of commerce and networking groups and talk to other people locally who have started businesses. Most will have been down the same road and will be happy to offer help and advice. Also, do not underestimate just how much hard work goes into it. If you want to make a success of it, be prepared to give up all your free time and all your creature comforts to get it up and going.
Whom do you admire most in business and why? Richard Branson. He is an incredibly hard worker with wonderful passion, creativity and a willingness to try just about anything that sounds like it makes sense. Most impressively, though, he employs people with different attributes but the same attitudes as himself and manages to motivate and inspire them to even greater things.
What two things could the Government do to help SMEs in the current environment? Access to capital is the main external issue currently affecting SMEs. Countries like Japan, Norway and Denmark are experimenting with negative interest rates to try and force capital into the market. Maybe this should be tried here. High-speed internet is also essential for modern-day businesses. In this regard we are still in the Stone Age. Huge capital investment is needed in this area.
In your experience, are the banks now lending to SMEs? Extremely tentatively. Lending is by nature a risk business but the banks' appetite for risk is practically zero. Private funding circles are becoming ever more prevalent and they are much more willing to look at the possibilities within a business. You have to be creative when it comes to funding these days.
What is the biggest mistake you have made in business? That's a tough one – there have been so many! Waiting too long before hiring people; not trusting that the business would fly; not getting out and talking to other business owners early enough and not seeking professional advice at key times. You think you don't have the time or money for these things but the errors you make as a result cost far more in the long run.
What is the most frustrating part of running a small business? Wanting to do everything straight away. There are so many opportunities out there and it can be difficult to let some of them pass you by but sometimes you have to be patient and let things play out. Patience is not an attribute possessed by all business owners and I definitely don't have it.
What is your business worth and would you sell it? We have a strong position in the market and excellent growth figures year on year, so I'm sure it's worth something reasonable on the market at this stage. However, it's worth a lot more to Clare and me and we see the business as a long-term growth project that keeps us entertained and fed! In conversation with Olive Keogh
