PRIME business club

Karen and Errol Spires, who are aged 46 and 60 respectively, are a husband and wife team who have gone into business together. They run a fish and chip shop in Grimsby, the historic seaport on the south bank of the Humber estuary in Lincolnshire.

In the 1950s Grimsby was the largest fishing port in the world. Although the industry has been in decline for many years since, Grimsby still has the UK’s largest fish market and many food producers are based in the town.

When they decided to move into self-employment, Karen and Errol had both been working for some years at a local pizza chain. The idea of running their own business was suggested to them by Karen’s stepfather.

“We had worked for two years at a local pizza place,” explains Karen. “We started as delivery drivers and then I was manageress. To be honest, when my stepfather suggested we should set up a business of our own, we weren’t sure if we wanted to do it. We had a regular income, both from the pizza place, where we were working part-time, and from some benefits we qualified for, and we weren’t at all sure about going into self-employment.”

The move into self-employment for Karen and Errol was helped by two main factors. They had spotted potential premises for their business, which had been empty for several years. Although the shop was in a bad state – “It was derelict,” says Karen – they felt it had potential and when they made enquiries, they felt they would be able to afford to go ahead with the business.

They also went on a free, three-month business course provided by the local council “The course was extremely helpful, covered a great deal of ground and gave us a lot of information about setting up a business of our own,” says Karen. “The advisers told us that it was not the end when we left the course, and that they would be available to help, and they have been true to their word. They are very helpful and even now, if we need any information, we can phone them up and they will come round and have a chat about things. It has been extremely useful.”

Following the formal ending of the course, Karen and Errrol felt they were in a position where they could put together a business plan.

In order to raise the necessary finance to renovate the premises, install the necessary equipment and pay the rent, Karen and Errol used a mixture of funding. Karen’s stepfather, who had been the original inspiration behind the move, put money into the business and Karen and Errol also took up loans from Business Link and from PRIME.

The couple approached their local Business Link and put forward their business plan to be approved for a loan. “Attending the meeting and answering questions about our proposed business was a little daunting, but everybody was very friendly,” says Karen. Business Link could not provide the full amount, but put Karen and Errol in touch with PRIME, which was able to provide a further loan.

The couple were then able to set up the business and opened the doors of the Mariner Fish Bar in Lord Street in August 2003. The first year was challenging, acknowledges Karen. In fact, the first evening was something of a challenge. “We opened the doors at 4pm and there was no-one there. But by 4.30pm, it all took off and we never really stopped,” recalls Karen. “There was a queue down the street.”

Karen and Errol realised they would need extra help running the business and this became one of their challenges. While they had dealt with the complexities of tax and national insurance on their business course, the reality of finding reliable employees remains something of a challenge. “We had thought it would just be the two of us, but we realised we would need help,” says Karen. “It can be difficult, finding people who are honest and willing to work.”

The business demands long hours. Both Karen and Errol begin at eight in the morning; Errol prepares the machinery and peels potatoes, while Karen shops for other produce and bakes. One of the distinguishing factors at the Mariner is its wide range of products. The Spires do not only sell fish and chips, they also provide cakes, a salad bar, kebabs, Chinese cuisine, curries, homemade pies and, one day a week, full-cooked meals, including vegetables and potatoes.

Karen’s background includes earlier work in the fish and chip trade, learning the business, and she has also previously run a catering business from home when her children were young. She gave up that business when regulations made it too onerous to run a business from home, but it provided her with valuable experience

The Spires have also learned new lessons about running their business from the Mariner’s customers. For instance they tried selling other types of cooked meals right from the start, but at first these failed to take off. “It was because people didn’t know us,” explains Karen. “But after about nine months we had a set of regulars, who were saying to us that they were fed up with chips every day. So now we try to do something different every day. We do the cooked meals on Mondays and homemade pies on Thursday, and there will be some kind of special offer every night, such as a discount, or getting something free.”

Karen and Errol appreciate the help, both financial and practical, they have received, particularly from their local Business Link advisor, who is always available if help is needed. When a freezer broke down and a lot of stock was lost, the couple were able to take a three-month break from their loan repayments to Business Link and PRIME, which helped them recover their business. Since then, they have been able to pay off both loans early.

Karen says setting up the business has been hard work, but Karen and Errol are still enthusiastic. They have now bought their premises and plan to expand to set up another, similar business. Karen believes hard work and high standards of food and cleanliness have paid off. “Our success has also been through word of mouth and this has been the best advertising,” she says.