Starting young in the dry-cleaning business

Russel Asquith has always been something of an entrepreneur.

At 12, he started Russel's Car Washing, and his bicycle and homemade trailer became a familiar sight around his home town of Conisborough in south Yorkshire.

And even when he left school at 16 to work as a fitter, he still harboured ambitions of running his own operation.

Going it alone

Now he's hoping to clean up as the youngest dry cleaner in Britain.

Ironically, the impetus to strike out on his own came when he was made redundant, on the day he completed his three-year engineering apprenticeship.

He spent some time working with his father as a dry cleaning service engineer, and realised that Conisborough had no dry cleaners.

Then when he heard that some equipment was available at a good price, he decided to make his move.

First steps

His first step was to seek some advice from Doncaster Chamber of Commerce.

"I didn't know anything about running a proper business at all," admits Russel.

The Chambers business start-up manager, Sandra Edwards, says: "We give support, encouragement and motivation, and we signpost them and encourage them to apply for funding and training."

Russel was put on a business start-up course and advised to seek funding from the Prince's Trust, which gave him a grant of �4,000.

Financing the idea

He then supplemented his redundancy payoff with a bank loan of �6000, backed up by the Department of Trade & Industry's loan guarantee scheme.

This is aimed at those people without a home or guarantor to secure a loan.

If the business should fail, the DTI would repay 85% of the loan.

Russel found dilapidated premises in the centre of town and renovated them.

Last summer, the doors opened at Pro-Clean.

Record

Russel was just 20, and according to his trade association, the youngest person to own a dry cleaners in the country.

The average owner is in their 50s.

Russel spent a total of �28,000 getting his shop up and running, much less than the average cost.

"I have put every last penny in," he says.

Business was steady, but it soon began to take a rather unexpected turn.

Branching out

Pro-Clean was finding there was a big demand for sewing work, which Russel was having to outsource.

But now he's planning to bring the sewing in-house by taking on his first member of staff, a seamstress.

And Russel's already looking to the future.

A new airport near Doncaster has been given the go-ahead, and he's hoping it might provide some opportunities.

"What we are looking for is a level of commitment," explains business adviser Sandra Edwards.

"They might have a dream they want to see through."

Own boss

Setting up his own business hasn't been without its problems, such as having to chase clients for late payments, but Russel is happy to be his own boss.

And his advice for other young entrepreneurs?

"Start small and don't try to grow too fast, or you could become a victim of your own success," he says.

Russel Asquith has got things organised from an early age. He didn't just wash cars for the neighbours but built his own trailer to carry the buckets, cloths and polishing equipment. His business spread across the town.

He learnt a trade as a fitter but employment was short lived. No sooner than his apprenticeship was finished, he was made redundant and had to decide what to do next. He looked for a gap in the market - and realised there was no dry cleaners in Conisborough, where he lived.

Just think...

Why do you think Russel wanted to run his own business?

Is there a gap in the market where you live?

Raising the money

Russel had to raise some money before he could get going. He had his redundancy money but needed more. He produced a convincing plan and took it to the Prince's Trust and was given a grant of �4,000.

He still hadn't got enough so he turned to the bank. When banks lend money, they like to know that they are going to get it back. It's tough for new businesses as enterprise is always risky. If people own a house or flat they use it as a guarantee - but Russel didn't.

The Department of Trade and Industry helped out. It provided a guarantee that would pay back 85% of the loan if his business fails.

Just think...

Why is it difficult for a new business to raise money?

Why is important to produce a convincing plan?

What information should the plan include?

If you were the bank manager, what would you be looking for in the plan?

Getting going

Russel obviously did a good job because he managed to raise enough money to get going. He then set about turning his ideas into reality.

He found a dilapidated shop in the centre of town and got to work to turn it into Pro-Clean. Finding some dry cleaning equipment at a good price helped his finances.

In 2-3 years time I hope to have a few more shops Russel Asquith

In 2002 Russel became the youngest person in the country to own a dry cleaning business. He ran it himself and business was steady. He kept his fingers crossed as he'd put in every penny he had.

Just think...

What resources did Russel need to get his business going?

Why was it important to keep the set up costs as low as possible?

Do you think Russel was prepared to work hard to make his business a success?

People are often prepared to work extremely hard when they run their own business. Why do you think this is so?

A new opportunity

People kept coming into the shop and asked if he ran a sewing service. Russel hadn't thought of that but, always prepared to grab a new opportunity, immediately started one. At first he found someone outside the business to do it. As demand continued to grow, he decided to employ a seamstress.

Just think...

Why do you think Russel decided to develop a sewing service?

How should Russel set about finding a seamstress?

What criteria do you think he should use to select the right person?

How does the law affect Russel once he has started to employ staff?

Looking ahead

Russel doesn't stop for long. He's now looking for more opportunities at the new airport. He won't rush in because he's well aware of the risk. He listens carefully to his own advice. "Start small and don't try to grow too fast, or you could become a victim of your own success."

Just think...

What sort of opportunities might there be at the new airport?