Opinion


kbb Birmingham 2018 Show Special


How to… survive a recession and come out stronger


It’s 10 years since the start of the global financial crisis that triggered huge changes in the KBB sector. Trevor Scott, owner of Rugby Fitted Kitchens, explains how he managed the impact it had on his business and how it emerged even stronger


ended nearly five years ago. W But when I started giving it some thought, I realised


that not only had RFK survived the recession, we had come out the other side much stronger. I also realised that what we did then, and the lessons we learned, apply to any business, at any time, and not just during a recession.


Much of what follows might seem blindingly obvious, but sometimes you can’t see what’s right in front of you.


Prior to the last recession, RFK had shown steady growth, but this stalled as the recession bit. So, we rebranded.


It was a subtle distinction, but changing the name


from Rugby Fitted Kitchens to RFK broadened our appeal and opened up the whole region to us. Almost straight away, clients from areas we’d never done business in before started to come to us. We also went lean. We looked at all of our fixed costs and reviewed where we could potentially save money. This included fixing our rent for a further five years, securing a downward rates review and small business rates relief and researching the best deals for our utilities, including credit card service charges and telecoms. Variable costs, such as marketing, were next on the list. This was a tough one for me, as I’ve always accepted the importance of marketing and advertising and am a firm believer that, as a market slows, your marketing should increase. But, times were a-changing back in 2009 and they still are.


It also pays to get your website design right and spend a bit on Search Engine Optimisation (SEO), but make sure it’s tablet- and smartphone-compatible. Our new one will be, when it’s launched shortly. We cut back on advertising, sticking with those


The road we’d been on for 20 years had served us well but, as is the case with many secondary high streets that you’ll find many kitchen studios on, its day was done


platforms we knew were successful. Social media platforms like Facebook, Houzz, Pinterest, Twitter, etc, cost relatively little but, with some inexpensive targeting, can be very effective. We worked on ours back then and it’s a continuous process to this day, with the help of an outsourced but inexpensive PR and marketing provider who bills by the hour. On average his bill is less than £120 a week. Definitely worth thinking about. Then there’s staff. Is everyone who works for you pulling their weight? Can you combine multiple roles in one job? Is it time to let someone go? It’s tough being the boss, but ultimately it’s your survival that’s at stake here so, if you have to, cut quick and cut deep. In our case we managed to avoid letting anybody go during the recession, but we did cut hours and renegotiate contracts with some of the staff. Our mutual loyalty has paid off in the long run as all the staff from 2009 are still working for RFK plus more besides.


And do you really need all those suppliers? Are you 10 kbbreview kbb Birmingham Special Edition March 2018


hen I was asked to contribute this piece for the kbb show special, my first thought was… recession, what recession? For us, that


getting the best deals? Renegotiate your terms and improve your margins. This doesn’t mean entering a race to the bottom, either. RFK went more upmarket during the recession and has continued to do so subsequently – but that shouldn’t stop you from securing the best buying prices. Remember, too, the old adage that profit is sanity and turnover is vanity. Of course, we did deals to win orders, but we never lost sight of the bottom line, as turnover for the sake of it is only putting off the inevitable.


Diversify


Also, consider whether you should just do kitchens or bathrooms? Have you considered doing both? We don’t, but why shouldn’t you? We chose to enter the contract and developer market, but not until after the recession, when we felt the time was right. Today, this is one of our strongest growth areas. So, the result after four years of recession? We hadn’t grown, but importantly we hadn’t gone backwards, we had money in the bank and we had survived. In 2011, after watching the business tread water, I wasn’t happy. I knew we had done everything we could, but for one last thing…


And that was the location. The road we’d been on for 20 years had served us well but, as is the case with many secondary high streets that you’ll find many kitchen studios on, its day was done.


So, I went out and found us new premises, three times the size of our original place, with plenty of parking and at a very reasonable price. We began our fit-out in late 2011 and opened our doors in March 2012. I had a gut feeling the time was right and so we were ready to meet the upturn. And the business hasn’t looked back, doubling in size in less than three years and continuing to grow. There is no magic cure to the ills of a recession, but hard work and simply doing the obvious – even if someone else has to point out to you what that is – will give you a chance to survive and fight another day.


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