Work, work, work

Loyal readers may have noticed that I haven't posted regularly for over a year. The reason for this is simple. In June last year, Garry and I acquired Artiwood, a boutique toy importer and wholesaler with a strong eco-friendly philosophy. It took five months of intensive negotiations, starting in February, to finally do the deal. Since then we've been working crazy hours including most weekends.

It took us three years to find the company. I’d almost given up hope of ever finding a truly well-run small business that, (a) Garry and I could afford, (b) that we liked enough to buy and, (c) that played to our collective strengths and passions. Artiwood is probably about as close to ideal as we could have imagined.

In the three years before we acquired it, the company grew more than 40% annually. According to the previous owner, he wanted to sell simply because it had become too successful. As he tells the story, the rapid growth adversely impacted his laid-back, alternative lifestyle. At the time, he lived in a communal rainforest retreat in the hills near Byron Bay.

However, despite his remote location, he’d set the business up with a highly outsourced infrastructure.  The warehouse function was outsourced, as were marketing, IT and accounting activities. It could basically be operated from anywhere in Australia (or overseas). As a result, it was relatively easy for Garry and I to transfer its operations to Sydney. We now run it remotely from a home office in our apartment.

We also put the former owner on contract for a year to help get up to speed on the toy industry, transition existing business relationships and help source new suppliers. Hiring him part-time also enabled us to negotiate a better selling price and reduce our stamp duty. He ultimately decided to exit the business early, and left in March, thus saving us a few additional dollars.

It’s been an intense period, to say the least. In year to 30 June, we grew Artiwood another 29%, with record growth in nine of the previous 12 months. We’ve also launched a new CRM system, added a new accounting system, and introduced new product safety procedures. We're now hard at work developing a new, modern e-commerce website, and refreshing its corporate identity.

If that wasn't enough, we’ve also published a new catalogue, built in an entirely new application, (and added 20 pages to it), exhibited at three Melbourne trade shows, plus another in Sydney, kicked off a monthly email marketing program, added a new part-time salesperson, and done all of this while enduring the usual learning curve that comes with owning a new business.

UPDATE: 20 July 2017

Almost a year later than planned, we've finally launched our new website. The initial response from retailers, suppliers and industry colleagues has been overwhelmingly positive.