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Organic idea is bearing fruit

The Organic Supermarket, which set up just as the recession began, shows that good business ideas can work even in a downturn, writes Dermot Corrigan.

Establishing a new business on the cusp of a global recession may seem foolhardy but for Darren Grant, founder of the Organic Supermarket, doing just that has proven a fruitful endeavour.

When Great established the Organic Supermarket in July 2008, Ireland’s economic fortunes were on the wane.  Rather than walk away, however, he took a good look at the marketplace and decided that changing consumer trends wood feed, rather than destroy, his new venture.

“With all the talk of recession around, people started to go back to basics,” Grand said.  “There were a lot of cooking programmes on TV with things like how to make an Irish stew.  There was a return to buying food, instead of buying pre-packaged meals for €6 or €7 apiece, so it was a good time to set up.”

“I loved food and felt that food retail in Ireland had become homogenised with a few general stores taking over everything.  I did some research and found that there was no 100 per cent dedicated supermarket in Ireland.  We decided there was a viable business there.”

The Organic Supermarket

Located in Blackrock, the Organic Supermarket sells a broad range of organic products, from fruit, vegetables, wines, cheeses and breads right through to cosmetics and body care products.

“I did a lot of background work with suppliers to find out whether I would be able to have an organic version of everything you get in a normal supermarket and now we stock over 3000 products in the store,” said Grant.

Although armed with eight years’ experience as a senior manager with computer-maker Dell, setting out alone was still a risky move for Grant.

“I gave up the safety and security of working for a multinational with a guaranteed salary,” he said.  “I went from being a specialist within a multinational to having to run everything myself.  I suddenly became the head of accounts as well as the head of PR.  It was a challenge, but I really enjoyed the change.”

At the time, Grant secured assistance from the First-Step Microfinance programme and Dun  Laoghaire-Rathdown Country Enterprise Board.

“I received an unsecured €20,000 loan at a very reasonable interest rate from First Step.  They have been an absolute pleasure to deal with, and I would recommend anyone starting off  to contact them,” he said.  “I also did a recruitment course and entered a mentoring programme with the local enterprise board.”

Managing Cashflow

Grant staid that he quickly learned about the financial realities of running a small business.

“Managing cashflow was one of the major challenges at first,” he said.  “You have to plan so far in advance and really need to have six weeks’ cashflow in your mind at all stages.  Dealing with tax affairs and other financial bits and pieces was also new to me”

Grant believes that more government support is needed to help SMEs to create new jobs in a tough economy.

“There are not sufficient structures in place to encourage people like me to hire new staff,” he said. “The Government could introduce a PRSI holiday for the first 12 months, or allow the individual to keep their job-seekers allowance for the first six months in a new job.  With new SME’s profitability is not instant, so some nurturing of the start-up phase of a business would be really useful.”

Grant will take part in a public panel discussion entitled ‘Thing Big, Start Small, Move Quickly” at the Small Firms Association’s Annual Conference, which takes place in Dublin Castle on Thursday.  He believes that larger companies tend to grab the headlines when it comes to job creation.

“There does not seem to be the same support structure there for entrepreneurs who are prepared to try and establish an SME,” he said.

“If you fail, you are not even entitled to jobseeker’s allowance yourself.”

The Organic Supermarket employs seven people, with Grant prioritising recruitment of candidates who are a good fit for the business.

“Getting the right staff on board was absolutely critical for me,” he said.  “During our research, we found that good service was really lacking in the convenience store experience.  It was just a case of ‘next, next, next’. Two years in, we still have the majority of our original staff here, which is nearly unheard of in retail”

Grant belives that consumers who buy irish can make all the difference to small business in Ireland.  “You night go to a discount retailer, but also give some business to a local independent business,” he said.  “I see a change in people’s attitude recently.  I feel very positive about the coming year.”

Natural Progression for an Organic Supermarket

Darren Grant, founder of the Organic Supermarket, said his decision early last year, to launch the online store www.organicsupermarket.ie , had been crucial to the business’s survival.

“We realised at the beginning of 2009 that it was sink or swim,” Grant said.  “Our sales figures were not hitting the targets projected in the business plan.  We wanted to keep our overheads the same, while expanding our market reach, so the web was the next logical step.  We decided to go for it and invested the last of our capital in the website.”

Grant said that the site, which was developed in association with digital media agency the Creative District, was designed to stand out from the crowd.

“We did not want to have just another version of  a supermarket online shopping experience,” he said.  “We wanted a very visual, funky site which would get our wholesome message across.”

“By keeping the content fresh and vibrant, with things like recipes and new product news, we make super people return to the site and keep our Google ranking up.”

“We also invite guest bloggers such as celebrity chef Rozanne Stephen and nutrition expert Dr Oliver Moore.  Its all about building a brand and not just forcibly selling stuff.”

Organicsupermarket.ie was named Best Retail and Commercial Shopping website at the 2009 Golden Spider Awards and Most Beautiful Website in Ireland at the Irish Web Awards 2009.

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