Enterprise Agony Uncle

Every month we will feature an enterprising story. This month read how Katie Alexander got started with her business.



Katie Alexander, owner of Achilles Heel, running shoe specialist

Katie Alexander, 38, is the owner of Achilles Heel, a Glasgow store specialising in running shoes. She got the idea during a shopping trip to Edinburgh at the end of August 2000 and, two months later, her business was ‘up and running.'

Q  Who came up with the Achilles Heel name.
A  I did. I'm a runner myself and I'd had an Achilles operation.

Q  What were you shopping for when you got your business idea.
A  Running shoes. I live near Glasgow and I was driving through to Edinburgh for a new pair when I said to the friend who was with me: ‘This is crazy. Why am I going from one big city to another for shoes?  There should be a place in Glasgow.'

Q  You'd never thought about owning a shop before and the idea just popped into your head in the car.
A  That's exactly what happened. Then when we got to Edinburgh, I spent about an hour-and-a-half in  the shop having a really good look around.

Q  Didn't the owners get suspicious.
A  No. Runners often spend a long time looking at the shoes and I wasn't taking notes or anything.

Q  Did you buy a pair of shoes.
A  Yes. Runners get through at least three pairs a year and that's what convinced me that my idea would work. I knew there were hundreds of other  people like me who couldn't get what they wanted in Glasgow.

Q  Weren't you worried about being self-employed.
A  I already was. I used to be a gym instructor and had gone freelance as a personal trainer. I'd been doing that for almost ten years and also operated my own running club.

Q  A lot of people get really excited when they first come up with a business idea but then they start having second thoughts.
A  I didn't. I couldn't stop thinking about it and the more I thought about it, the better it sounded. I started talking  it over with some of my clients who were in business themselves. They thought it was a good idea as well and said I should get some facts and figures together and start drawing up a business plan.

Q  Didn't it cross your mind that they might try to steal your idea.
A  No. I spoke to a lot of people about what I wanted to do and as a result, I not only got encouragement and some good advice, I also got my premises.

Q  How did that come about.
A  I was discussing the idea with another client and he said there was a space to let in a small shopping arcade he had an interest in the the West End of Glasgow near the university. I couldn't afford a place in the High Street and I didn't want that volume of business anyway . . .

Q  Hold on a minute. Surely you want as many customers as you can get.
A  No because it's a specialist business. It can take a runner a long time to choose the right pair of shoes and they often need help from someone who knows what they're talking about. In my shop, I'm not looking for lots of passing trade but customers who will come back time and again.

Q  Okay. You were saying . . .
A  I went along to have a look at the space and although it was just a shell, I thought it was great. I could see it was in the kind of area that runners would live in. When I came back two days later to have another look, someone else was inspecting it so I immediately said: ‘I want it!'

Q  So you had the premises. But what about money.
A  I estimated that I needed a minimum of £5000 - because the whole shop needed to be fitted out - but I decided to ask my bank for £8000 because people had been telling me that you always end up needing more money than you think which turned out to be true. You have to have a certain amount in your account because your suppliers check up on you and they need to know you can pay. A friend helped me draw up a six page business plan and I went to my local TSB because I'd had an account there for several years and they knew my business track record. I took my accountant along in case any tricky financial questions came up.

Q  Did they give you a loan.
A  No, they turned me down. They said the business could never work because I wouldn't be able to compete with the High Street sports shops.

Q  But you weren't planning to compete with them.
A  Exactly. I said: ‘If you'd read my business plan you'd see that I'm going to be offering a specialist service which isn't currently available in Glasgow. That's the whole point of my business.' My projected sales figures showed that even if I sold only six pairs of shoes a week, I'd be able to cover my basic costs. And I knew that if I couldn't sell that many in a week, I was doing something wrong.

Q  Did you kick that manager in the balls or what.
A  No! But I was really disappointed by their attitude. I ended up borrowing the money from my family and friends because by that time, I could see the business I wanted to set up so clearly that I couldn't turn back. Then I went and opened my business account at a rival bank. I discovered that banks are delighted to help you when you already have money.

Q  Achilles Heel has been opened now for two years. How's it going?
A  It's brilliant - the  best thing I've ever done. By the end of the first year I'd paid back all the money I'd borrowed and started paying myself a salary. We expanded into the unit next door within six months and we're just waiting for another space to come up. But I don't have plans to open up a second shop. Once we can take email orders on our web site, I intend to grow the business that way. We also have a beautiful van that we take to major running events and use as a mobile shop. If I wasn't so busy, I'd like to go back to the TSB that turned me down and show them my sales figures.

To view Iain's blog please click here