Objectives need to be reviewed

Paul and Neil Benardout were casting around for a new selling concept when they noticed a gap on Britain's High Streets.

Specialist furniture shops for children were missing.

"It's a concept that has gone throughout Europe and throughout America and it was about time that somebody tried it here," says Paul.

The two budding retailers are cousins, sons of Ramon and Michael Bernadout, who built up World of Leather until it was 35 stores strong, then sold the chain in 1997.

With that kind of background, Paul, 26, and Neil, 25, were unlikely to pass up what looked like a business opportunity.

That's how Junior Living was born.

They invested �180,000 of their own money and opened a shop on the Fulham Road in London.

A year later, sales have topped �600,000 and the business is close to breaking even.

Market leaders

"We wanted to be market leaders in what we do," enthuses Neil. "The end goal was a roll-out throughout the country."

At first, Paul and Neil aimed to sell top-price beds and furniture to the well-heeled shoppers of Chelsea and Kensington.

If that tactic worked, the plan was to repeat their success by opening as many as 30 stores in other cities over several years.

But a year of trading has taught the cousins some valuable lessons.

The first was about price.

"We had a four poster bed, for instance - beautiful with hand painted designs," explains Neil.

"It was �895 and it didn't really go. It was far too high a price."

Functional

"We've changed probably 40% of the furniture from the day that we started," adds Paul.

Now the emphasis is on good quality, functional furniture and the price tags asking for silly money have been discarded.

The plan to open dozens of stores has had to be modified as well, because there was one way of selling which they had neglected.

"Mail order," smiles Neil. "We overlooked that."

The cousins recently placed some advertisements in glossy magazines to see what demand would be like. They had thousands of enquiries.

Bricks and mortar

"To start with, we felt that parents would not want to spend �300 to �500 on children's bedrooms via mail order," admits Paul.

"We were wrong."

Calls have come in from as far away as Saudi Arabia, Australia and Canada.

It may mean that we don't need to invest so much in bricks and mortar," he says.

"The goal a year ago was 30 stores. If mail order and e-commerce take off, the goal now could be half that."

It's still early days for Junior Living. To bring those plans to fruition, Paul and Neil are looking for professional investors who want to risk some venture capital with them.

All new businesses set out to achieve their objectives.

Junior Living is no exception.

Selling fashionable furniture for children and young people means selecting the right products and being in the right place.

The aim was to be better than Ikea but not as exclusive as the handmade designer furniture shops.

The objective was to roll out a chain of shops across the country. The plans are on target - but strategy is changing.

Just think...

What are the "right products" for this market?

Where is the "right place"?

What might make strategy change?

Setting objectives

Paul and Neil Bernadout come from a family of entrepreneurs.

If Dad was out searching for sites for new shops throughout the night, enterprise is probably in the genes.

The cousins discovered a market niche which was vacant and decided to fill it.

They identified their target market - middle to higher income groups.

They identified the product - and bought exclusive lines.

They located their first site - in Chelsea, one of London's exclusive locations.

They set their target - sales of �600,000 in the first year.

Just think...

Why is setting objectives important to a new business?

Why is important that objectives are realistic?

Meeting objectives

Junior Living has been a success.

There has been a regular flow of people through the shop and the target for operating profit has been met. Not a bad start!

The rollout of more shops across the country is being planned.

Paul and Neil make a good working partnership. They know each other well and are not afraid to disagree - but they are still agreeing on the main objective, which is to make Junior Living grow.

Sometimes young businesses like this, which are showing promise, are tempting for people with money to invest.

A business that has been set up and is meeting its objectives is attractive to investors.

Paul and Neil are still agreeing on one thing. They don't want to sell the business - yet. They still have plans.

Just think...

If you were planning to locate more shops around the country, where would you put them?

What are your criteria for choosing a location?

Why would Junior Living be tempting for someone who was looking for a business to buy?

Why do you think Paul and Neil don't want to sell the business at the moment?

Changing objectives

The Bernadout cousins have been watching the market develop as they have been running Junior Living.

They have spotted an opportunity to sell their furniture in a different way from the one that they had planned.

The personal service that a shop offers had seemed to be an important part of their marketing strategy.

It obviously is - but not everyone can make it to Chelsea or the other locations where they plan to open up.

One solution made their products available to everyone.

Mail order - and eventually online - selling means that their furniture can reach every corner of the country and beyond.

Just think...

How will mail order and online selling help the business to achieve its targets?

How can the business let people know about its website?

What risks does Junior Living face in setting up online marketing?