Reality check
Forewarned is forearmed

My Wardrobe Promotions supplies its corporate customers with branded clothing and promotional items.

There are many other promotional and branding businesses in South Africa, particularly in Gauteng, and they all tend to offer much of the same service.

Yet, the business' turnover has been increasing substantially each year.

Yet, the business keeps on growing and winning more clients.

Yet, owner Peter-Jon Gaddin still invests in the business each month.

Gaddin is no-one's fool and he understands that his business is one of many different players in the market.

He also understands that he is competing in a price-sensitive market where clients are not necessarily loyal.

The difference however, is that Sanlam / Business Partners Entrepreneur of the Year competition entrant understands these nuances and ensures that he does not lose sight of the market dynamics that influence the business.

Something different

"We recognise that clients aren't always loyal," Gaddin explains.

"But, all our clients stem from referrals which starts the relationship off on a strong footing.

"Thereafter it's about maintaining the relationship – we can never drop the ball.

"Our clients need to know that they cannot get a better product, turnaround time or service anywhere else.

"We can't control what they do but we can give ourselves a better chance (of keeping them) by doing our utmost."

Seemingly, Gaddin's recipe is simple – ensure that you always deliver, that the client is always happy, and that you perform better that your competitors.

This approach has stood the business in good stead for the last three years and Gaddin says that there is still some room for growth.

Do or die

Not too long ago, Gaddin found himself in a different space installing call centres for large corporates.

"I got to the point where I knew that I would not realise my full potential if I didn't go out on my own. It was the best thing I ever did."

While keeping his job, Gaddin invested in a branded clothing outlet with a partner. Unfortunately this business was based in the wrong location and struggled.

"It was intensely stressful because we owed R2 million. There are always obstacles (in business) and every day you can tear your hair out. But, if you can deal with the stress, you set yourself apart."

During this time Gaddin tried to move the stock through different channels and he saw that the corporate market was hungry for labelled, branded clothing. The partners went their separate ways and My Wardrobe Promotions was born.

"Necessity breeds invention – I found a way to get them what they wanted," he explains.

"Looking back, it was very daunting but I did not have any real alternative."

The business model worked for Gaddin because there was almost no capital outlay. All he had to do was sell the branded items, procure it from suppliers and make sure that the client was happy.

Gaddin says that business started booming and employees came onboard within a few months.

Doors open

There are a number of different ways to approach the promotional branding world and one solution is to stock and brand items in house to maximise the profit margin.

Gaddin decided to outsource all functions of the business that did not relate to selling and servicing customers to ensure that he could offer as much as possible as quickly as possible.

"It has taken a long time to get a really good network of suppliers and that you cannot buy. We might be beaten on price but clients will come back after they have been bitten… I know that when my stock is delivered, there will not be a single error."

This in turn means that the My Wardrobe Promotions staff focus almost exclusively on their customers, growing the business and its reputation.

Gaddin believes there is still room for the business to grow but he envisages a sustainable ceiling being hit at some stage.

"I can throw sales reps at it but then you no longer have your finger on the business' pulse the whole time," he says, explaining that if the business becomes too big, service will suffer and it will simply become a machine.

This also means that his staff need to keep the personalised service levels up and Gaddin says it was difficult letting go initially.

"Its always difficult to delegate because you think that people won't do as good a job as you will. But, you need to give people a chance to impress you."

Entrepreneurial wonder

Letting go is difficult for entrepreneurs because a business is part of who they are. Gaddin, for example, has always looked for the opportunity around him and he shyly tells how he ran a tuck shop from his school dormitory room.

"When you leave school, the top athletes get trophies and recognition. You don't get one for being an entrepreneur.

"It is always good to know where you stand as a sole entrepreneur," he says, explaining the decision to enter the Sanlam / Business Partners Entrepreneur of the Year competition.

As for the recent recession, Gaddin says that the business came away relatively unscathed.

This does not mean that he did not adapt to the new market conditions however: "We use to have orders for branded Mont Blanc pens (for example). But, clients tend not to go overboard anymore."

Gaddin adds that his clients are willing to pay a premium because they know that the service and quality of goods received from My Wardrobe Promotions is difficult to beat.