20 entrepreneurs
Bright future as Diamond’s franchise operation continues to shine
Empowerment, determination and the belief that she could do anything she set her mind to, sums up Kate Lester’s approach to business. It’s an ethos which has stood her in good stead as Guildford-based Diamond Logistics, the company she set up in 1992 at the age of just 20, is forecasting revenues of £40 million by 2018/19. She says it has taken her 20 years to become the 'overnight success' which has won her a string of top business awards and, as an entrepreneur, media commentator and published author, she has provided business consultancy and turnaround advice to many small businesses. Courtesy of one of her award wins, shortly before this interview Lester was about to go into debating battle with Charlotte Proudman, the barrister who hit the headlines when she challenged sexist behaviour on LinkedIn. Alison Dewar found out how Lester polishes up her own act
Kate Lester’s parents were “£10 Poms” and, with her two younger sisters, she grew up in Perth, Western Australia. A return to the UK in the mid-1980s saw the teenager arrive in Winchester midway between her O and A Levels and, with the mindset that she could do a better job than her teachers, she left school before taking her exams, landing eventual scores three grades higher in each subject than originally predicted. Rejecting offers at Reading, Kent and Sussex universities, her first “proper” job at a large relocation company reinforced her belief that she wasn’t cut out for corporate life either, and she joined the courier company which today has become Diamond Logistics. Having grown the business slowly over the years, her fortunes changed when she realised the opportunity to franchise the Diamond name and business model. The company now has some 25 franchisees from Bournemouth to Glasgow, and she expects to finish 2016 on at least 40. Away from the office, Lester is mum to Chloe, 23 and Oscar, 21, and enjoys reading and travel.
went under before this could happen, so I asked the clients if they would use me and the rest is history.
I originally had another partner who helped with the working capital for the first three months, but it wasn’t working out and when my grandmother left me a small inheritance of £4,000. I bought him out.
I don’t know if it was good or bad planning, but I conceived the business and my daughter in the very same week.
In the early days I did the deliveries myself in a bright orange D reg Astra van called Jaffa and I nearly went into labour while delivering a parcel.
Where does your passion for business come from?
I always believed I could do anything and I knew I had potential to fulfill. My father ran his own business and my sisters and I are all powerful girls. The making of me was when I read Troubleshooter by Sir John Harvey-Jones MBE; it made a lot of sense.
You clearly didn’t enjoy corporate life?
I think big businesses are now striving for the authenticity that small businesses have always had. Corporate life is so soulless. I couldn’t bear all the office politics and hierarchical structure. I believe in socialist capitalism. Shared Success© is my mantra and I believe you can run a different type of company.
Tell us more about starting your own business
When I joined the courier company it was effectively going bust. I offered to buy the client list and set up my own company. The business
www.businessmag.co.uk
What’s the business model behind Diamond?
We’re a third-party logistics provider, offering same day, overnight and international courier services. Because we have our own warehouses, we also manage the logistics and outsourcing for companies who need support for storage and despatch of stock. We have our own network of people for the same-day service, but we also work with all the carriers such as Yodel and TNT, ensuring our customers get the best service at the best price. They can also use our software to book and track consignments and we proactively monitor every delivery so we can manage expectations.
We’re unique because we’re effectively opening the door for small businesses to be able to use those services which normally need a large minimum spend to set up a direct account.
What prompted the move to a franchise operation?
By 2011, I’d been running Diamond for almost THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2016
20 years in the Surrey, Sussex and Hampshire areas and I was incredibly frustrated at how small the company still was. I just couldn’t see how to upscale it to recognise the potential I was sure was there, but then I had what I call my “lightbulb” moment and realised that franchising it could be the breakthrough I needed. I met Daniel Allin, who joined the board to help me make the necessary changes. Our first pilot franchises were in 2012 and since then it’s really taken off. Turnover has increased from £2m to £4m to £8m over the past four years.
I say it’s taken me 20 years to be an overnight success and finally I feel I am fulfilling that potential, everyone is motivated and on board with
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