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Barriers Direct undercut rivals by at least 15% - Financial Times 31/10
Monday, 02 November 2009
Outsourced hands can make for a lighter workload
By Jonathan Moules
Published: October 30 2009 18:26 | Last updated: October 30 2009 18:26
Janine Carhart is a truly self-made woman.
Her Essex-based street furniture business Barriers Direct is on track to turnover of £2m this year, supplying everything from bollards to bicycle racks to businesses, home owners and local authorities across the country.
However, Carhart is the only person on the payroll because she has handed over everything she feels is not core to the operations – from manufacturing to finance and marketing functions – to external suppliers.
“Basically we are an outsourced company,” Carhart says, noting that this flexibility allows her not only to undercut her rivals by at least 15 per cent, but also to enjoy the freedom to operate from wherever she connects her laptop.
In fact, Carhart spends half of every month operating out of her second home in Sweden. “Wherever I have my computer, I can work,” she says.
Carhart’s focus on getting the maximum bang for her bucks may be influenced by her experiences before taking the jump into starting a business – having spent several years with the notoriously cost-concious budget airline Ryanair.
Carhart says she respects the achievements of Michael O’Leary, Ryanair’s chief executive, but stresses that she has managed to save her customer’s money without the negative commentary her former boss has received.
She is not alone. A number of owners of small, but fast-growing, businesses are now opting to build operations that outsource all but the core value-adding service.
Some of this trend is being driven by the recession, as established companies use third parties to help shave costs.
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