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Based on an editorial written for Redline
magazine
but updated since..........
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Like so many
companies of its kind, Motorsport World was started by the owner,
Colin Stewart, working from his back bedroom. 'Back bedroom company'
has become a rather unkind phrase in the trade but Colin has developed
Motorsport World from its launch in November 2000 into one of the
largest, and probably the fastest-growing, mail order performance
parts companies in the UK. Now operating from two industrial units
in Scotland and employing three staff, including Colin's wife, Motorsport
World is now firmly on the map.
The business
is very much an 'internet company' in as much as the main advertising
is the website - www.motorsportworld.co.uk - and the majority of
new customers find the website through the Search Engines on the
Web. There is an online shop on the site but, Colin says, it only
accounts for 10-20% of sales with most people still prefering to
phone and discuss their requirements as well as prefering not to
provide credit card details online. The online shop is fully secure,
but Colin expects it will still be a couple of years until real
confidence develops throughout the entire marketplace in buying
online.
And what does
Colin reckon is the secret of his success? Well it almost goes without
saying that single minded determination and working long hours are
mandatory in setting up your own business, but, Colin explains,
it was his ability to do everything himself that kept overheads
low and therefore allowed him to offer great discounts on everything
he sold. The original website cost him £300 back in 1999 but
he then taught himself website design and has done everything himself
since, including the search engine optimisation work. He says that
in the first couple of years he really struggled with the search
engines and got quotes from various companies to do this work which
varied from £250 - £5,000! In the end he got one of
the cheaper companies to do some work but they didn't finish the
job, so Colin had a look at what they had done and finished it off.
You will now find Motorsport World up the top of the main search
engines for most of the performance parts that you will require.
The other ingredient that makes the business work, Colin believes,
is the personal touch. Everybody knows that a marvellous website
can hide the fact that a business is one man working from his shed
or bedroom, but Colin has never believed that this pretence works
long term. In the early days he always made it clear he was a 'one
man band' and found that many people respected this and were happy
to support someone who was willing to 'give it a go'. He has always
made his a personal business and you are still greeted by him on
the homepage of the website introducing you to his site and his
business. He has also taken care to employ lads who are 'into cars'
and modifications, and above all are keen to help customers buy
what they want.
But was it that easy - a good idea and hard work? No way, says
Colin! An online shop was always part of the general plan but not
a fully blown mail order business using a six line phone system.
The original
website was designed to be an on-line motorsport magazine with listings
of events from around the world, cars for sale, project cars, downloadable
video clips from various motorsport events, etc. The idea was to
generate a large amount of 'traffic' to the site, especially from
the video clips, and to then sell advertising space to the big names
in the tuning market just as 'normal' magazines do. Colin visited
events such as the Goodwood Festival of Speed, the Scottish Rally
and various hillclimb events and spent many hours digitising and
uploading video clips to the website but, he says, these high-traffic
advertising ideas never really took off on the net. So, he was left
with large bandwidth costs to pay for people downloading the video
clips but with no advertising revenue.
However, in order to attract advertisers, Colin had uploaded many
pages on the website promoting products from all the big brand names
in the tuning market to make it look like lots of companies were
already paying for advertising! This only resulted in one advertiser,
but emails started coming in asking for prices of brakes, suspension
and tuning parts. So after nearly two years plodding away trying
to turn the website into a business, Colin decided mail order was
the way to go and at the grand old age of 40 quit his job as an
engineering consultant to give it a go.
He
took a job driving a delivery van for a friend and spent every spare
minute on his mobile phone setting up accounts with all the main
names in the market and landed his first sales while 'on the move'.
To promote the business he wrote an article for CCC (Cars and Car
Conversions) and is seen here being welcomed onboard as the Scottish
correspondent for CCC at the Autosport Show in January 2001. That
article about a track day at Knockhill turned out to be the only
one he did but he had so many more ideas. He was also lined up with
Race Tech magazine to do an article on CFD (Computational Fluid
Dynamics - one of his previous specialisms) with one of the F1 teams,
and an article on signal analysis with another team but by the time
they came off later in 2001 the mail order business had taken off
and the payment for magazine articles was not very good........
Around
the same time as the CCC article, Colin was also contacted by the
Top Gear website to provide
prizes for their online competitions and he negotiated with both
Recaro
and Red Dot
Racing
to provide prizes with the agreement that both their
name and the Motorsport World name would be promoted at the same
time. He also negotiating similar deals with Piper,
Kent, Spax, Compomotive
and TSW
until Top Gear took cold feet, considering these products too risky
to deal with!
So, instead, he ran a competition on the Motorsport World website
during January 2001 for a cam kit courtesy of Piper
Cams.
Meanwhile,
Colin had lost the van job because of 'differences' between the
company directors and he entered 2001 with no means of income other
than the occasional sale. With a family and a mortgage to support,
difficult times were ahead......
So, when he
attended the Autosport Show in January 2001, it was with a certain
urgency to get more suppliers onboard, to get companies to advertise
on the website and to land web related work in order to support
the development of the mail order business. It was at this show
that he met Koolart, the caricature company, and within a month
had landed the contract to host and manage their website. At that
time the Koolart site, www.koolart.co.uk,
had 30,000 visitors a month and now, over two years down the line,
it has gone up to 140,000 a month. Not bad!
The Koolart
website was the break that Colin needed. It provided a means of
income while he developed sales in Motorsport World; the main benefit
being that he could answer phone enquiries and respond immediately
whilst also working on the PC. However sales were slow and Colin
continued to seek further web site work, almost landing the Knockhill
Racing Circuit web site contract in the process.
Then in the
summer of 2001 the Mitsubishi FTO Owners Club approached him asking
what discounts he could offer and he soon found that he could easily
beat the best discounts already available and still make a profit.
This, and feedback from other enquiries, soon showed just how much
discounting would be necessary in order to win sales in the highly
competitive internet marketplace. So, after further market research
with the help of his early customers, Colin managed to home in on
what discounts he would need to apply to each brand in order to
win sales and these discounts pretty much survive to this day -
much to his competitors' annoyance!
To Colin's great
relief this led to a very rapid increase in sales through the latter
half of 2001 and he took on his first full-time member of staff,
Simon Harkness, in March 2002. He'd had his eye on an industrial
unit 2 minutes from his house for a few months by this time and
as soon as he was sure that everything was running smoothly he took
the plunge and moved into the unit in April 2002. Sales continued
to increase steadily but the increasing paperwork was distracting
Colin from developing the business further, so he then took the
final leap of faith - he asked his wife, Alexa, to quit her job
and come to work for him full time as his book-keeper/administrator.
This she did in July 2002 and they haven't looked back since. In
March 2003, Neil Samson joined Simon in sales and Colin rented the
unit next door which now houses a showroom for all the products
that they sell.
The original
unit has been retained and ramps will soon (Jan 2004) be installed
to launch a fitting service in February 2004. The main emphasis
of this launch will be a build-and-fit exhaust operation in partnership
with Zaust who are are the main rivals to Powerflow in the UK.
Motorsport World
are also entering 2004 by exhibiting at the prestigious Autosport
Show at the NEC, UK, in January and will be attending all the major
shows throughout the year. This, combined with continued investment
in the online shop, says....watch this space!
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