Garrett Pitcher runs Indigo & Cloth – a lifestyle business encompassing a menswear shop and a studio which concentrates on branding.
He employs five people on a full- and part-time basis in a building in Dublin’s Temple Bar.
What's sets your business apart from the competition? We operate across multiple sectors – I haven't come across a similar business that encompasses retail, a design studio, one that makes product, that produces a magazine and that has a coffee shop. We also try to maintain a very high standard in everything we do – whether that is the store, the studio or anything else we plan to do in the future.
What was the best piece of business advice you've ever received? When we first started in a basement on South William Street, I wrote this quote on the office wall from mathematician GH Hardy who said: 'It's not worth an intelligent man's time to be in majority. By definition there are already enough people to do that.' That set the tone for the kind of business I wanted to achieve. We didn't want to do anything similar to what anyone else was doing and so paved our own path and, I hope, continue to do so.
What's the biggest mistake you've made in business? Investing too much money in various aspects of the business. The one thing I have learned is that cash is always king. For us, there is a balancing act between a term investment and the return that it is due to achieve, so I have learned to spread the risk. In our first year we invested too much money in stock – I thought: 'You can always sell stock so it's an investment'; but it can also be a liability that hangs around your neck.
We have also invested too much into things like fixtures and fittings, for example. I have learned is to keep liquid so I can make the moves when I need to.
And your major success to date? How the company has evolved. We started out in a basement during the recession and now we have several businesses that we either founded or co- founded across various industries including retail, product, branding and publishing.
Who do you most admire in business and why? I look at a lot of young businesses and follow them either through Twitter or through direct links. There are also older ones I admire. If there is one person I admire it is probably Richard Branson. He is your quintessential entrepreneur. I admire that he gives everything a go and is not concentrated on one sector.
Based on your experience in the downturn, are the banks in Ireland open for business to SMEs? In our personal experience, I would say no. My understanding of banks is that they are probably in more trouble than we are. We have a signed guarantee with our bank but we can't get the same amount of money out of them as that guarantee, which is a ridiculous situation.
What one piece of advice would you give to the Government to help stimulate the economy? I think we need to sort VAT – I can't understand how the guy next door to me in the hospitality industry can pay 9 per cent VAT and I pay 23 per cent. The gap is too large and is unfair. I think VAT for retail needs to be addressed. The proof is in the pudding – we have so many restaurants, cafes and bars because of the 9 per cent VAT.
Now that this sector has been given a leg-up I suggest that something similar be done for retail. Obviously 9 per cent is not going to happen but something in the late teens is fair and equitable.
What's been the biggest challenge you have had to face? We finally got to our break clause in our lease after 2½ years in business and then were able to renegotiate our rent. Until then it was touch and go for our business at times. After that it became easier and it has certainly been a lot easier since we moved to the new premises in Temple Bar last year, for which we pay a fair rent.
How do you see the short- term future for your business? Very bright. We've seen a huge shift in the past 12 months whereby consumer confidence is high and spending is high. I think everything is cyclical and that we are going into a new cycle. Maybe if things like corporation tax and property get sorted out in the macro economy the little guys like ourselves will be fine.
What's your business worth and would you sell it? I think a business is worth only what someone is willing to pay for it. In the case of our business the real value is in human capital, so it would make more sense for someone to come into the business as an investor rather than buy us out.
indigoandcloth.com
