“How I launched a million-pound business in one year with just £200”
Rob Arnold shares the step-by-step process he took to create Simply Bike Stuff – and how Clearpay proved to be a crucial element.
Rob Arnold’s advice for small business owners:
- Research, research, research
it’s vital to understand – and get to know – your customers and their behaviour
- Keep set-up costs small
With the amount of free resources, software and government advice available there's no reason to spend above your means when setting up your business
- You can’t listen to everyone’s opinions
“Dave down the pub” and “my mum’s friend” don’t know more about your business than you do. You have to trust your opinion – and own your successes and failures
Rob Arnold never intended to create a million-pound cycling business.
Instead, the ex-financier’s original more modest ambition was to teach aspiring entrepreneurs how to launch their own business. And he knew that the best way to model his advice was to demonstrate how to launch a business himself.
So, he started looking for a small business idea to develop.
A long-time fan of outdoor sports, including cycling, Arnold began to research the niche online bike store market – and found it lacking. Most online sales came from relatively expensive local bike shops, making cycling “generally elitist… I wanted to offer lower-cost bikes,” he explains.
Within two months he had launched Simply Bike Stuff, a website selling bikes, accessories and spare parts, as well as e-scooters and electric bicycles. The business didn’t hold stock; Arnold would order from the suppliers once customers purchased.
Within a few months the website had become so successful that he abandoned plans to develop an online training course for entrepreneurs in order to focus solely on Simply Bike Stuff.
A year later, the business is on track to turn over £1m in gross sales and has recently relocated to a dedicated 1,150 sqm warehouse and office space in Worcestershire.
Keeping set-up costs small
It’s a considerable achievement given that Arnold’s set-up costs were just £200.
He designed his own website using Wix, an affordable template bought online, and admits he relied on “good old-fashioned Google many times”, as well as roping in his mother and sister to assist him packing-up bikes as sales began to grow.
Despite his solid business experience, he admits that launching Simply Bike Stuff was a “massively steep learning curve”.
A customer-first approach
Key to the site’s success was adding a blog to the website, “which attracted traffic to the site and provided a space for people to ask questions and get info, just like in a real-life bike shop”.
Arnold soon realised that a customer-first approach was critical – even when it came to small details like providing a phone number that customers could call for support.
“We originally had the phones answered by a call centre 24-7, taking messages that were then emailed to me. This was OK but left most customers frustrated.
“I changed the call hours to when staff were available in the business and agreed a deal with my main suppliers that they would cover the phones when I wasn’t available.
It’s reassuring for the customer to speak to an enthusiast who wants to help guide you.
“I now have full-time customer service staff who are very knowledgeable about cycling... It’s reassuring for the customer to speak to an enthusiast who wants to help guide you and it also reduces our returns rate.”
Speeding up delivery times was another way to meet customer expectations. When the business first launched, delivery times were slow. “I would list products on the website and only buy them from various suppliers after people had ordered them. I didn’t get very good feedback and I noticed people kept asking about next-day delivery and spreading the cost.” It took just five months for Arnold to change this model and start holding stock.
Growing the business
Taking on Clearpay proved to be another turning point in Arnold’s business journey.
When Simply Bike Stuff launched the average purchase was around £82 but Arnold knew, via feedback from the website that people were prepared to spend more if they could pay in instalments: that’s when he resolved to get Clearpay involved. Today, the average order value is £156, with Arnold explaining that offering Clearpay encouraged customers to add accessories and apparel to their orders.
“Now the majority of all our sales are paid for via Clearpay, and having it available has made Simply Bike Stuff unique – it means people who perhaps are new to cycling can buy an inexpensive bike, spread the cost and get delivery within 24 hours.”
Clearpay is the best decision I made. It’s been a game changer.
“Clearpay is the best decision I made. It’s really been a game changer: I say to people ‘you can’t look at it as a finance cost, it’s a marketing outlay’ as so much business comes our way thanks to Clearpay.”
Arnold admits that it hasn’t always been easy, and that early mistakes included employing a big marketing agency “who treated us like a very small fish in a big pond and didn’t help us at all”. But the business has big plans, which include increasing stock levels and offering next-day delivery.
Simply Bike Stuff founder Rob Arnold’s advice for small business owners:
- Research, research, research
it’s vital to understand – and get to know – your customers and their behaviour
- You don’t have to spend loads of money to prove something works
ask Google, and check out the free government advice out there, because there’s plenty: gov.uk/business-support-helpline
- You can’t listen to everyone’s opinions
“Dave down the pub” and “my mum’s friend” don’t know more about your business than you do. You have to trust your opinion – and own your successes and failures
All references to any registered trademarks are the property of their respective owners. Clearpay does not endorse or recommend any one particular supplier and the information provided is for educational purposes only.
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