Neil and Laura Westwood Interview

Neil & Laura Westwood – Magic Whiteboard

Raw Business Magazine Interview

Neil and Laura Westwood have been successfully trading as Magic Whiteboard Ltd since April 2006, offering an innovative range of successful whiteboard stationery products.

After the birth of their first daughter, Ella, Neil was inspired to provide a better life for her and his family. He only started the business with a £1,000, but their turnover has now increased to over £1million and they have generated substantial profit within the business.

When Neil and Laura were at a wedding talking about his aspirations and dreams, a friend suggested that they contact the BBC's BAFTA award-winning programme Dragon's Den and the following year they appeared in series five of the show.

The Dragons were so impressed with the innovative Magic Whiteboard product (which allows you to create a whiteboard from a roll – anywhere, in seconds) that James Caan, Duncan Bannatyne, Theo Paphitis and Deborah Meaden all made offers to invest in the business – a very rare event in the Den!

Neil left the Den with £100,000 investment and the backing of Deborah Meaden and Theo Paphitis, in return for 40% of the business. We met and interviewed Neil and Laura about their story so far...

Neil, Laura, thanks for taking the time to speak to Raw. Can you tell me a little about how Magic Whiteboard started and how you came up with the idea?

Neil: We set up the business three years ago. I was a trainer in the NHS and I would often have to give presentations using flip charts, which was wasting paper. So I came up with the idea of a portable reel. Basically, I was trying to combine the best parts of a flipchart and a portable white roll. We started off with £1,000 worth of stock, and went up to £1million+ in three years.

Laura: When we went into business, we worked together on each stage as the business developed. As individuals, we have very different personalities and we complement each other. Where Neil is focused on the sales strategy, as he is very passionate about the business, I am focused more on the marketing and IT.

As you were a start-up with very limited budget how did you go about marketing such a new product before you gained National Exposure on Dragon's Den?

Neil: The first thing we did was get a website in place, and set up the website so we could continuously develop the brand. The common problem with a lot of start-up businesses is that they don't simplify the message. For example, we used 'Create a roll anywhere in seconds' – that was our strapline. We have done a lot of tradeshows and networking. We aimed at trainers to begin with; people who do coaching in front of audiences and present to them. So we would take the product out with us and let them use it, and show them how easy it is to use. We also went to learning conferences, and managed to get through to the finals of Learning Innovation Product of the Year, which gave us fantastic publicity about the product. We also targeted the education sector.

Laura: Networking is definitely important, we learnt so much from meeting different people and talking to them about our product. Feedback is key and it helped us to create and mould our product – whether people thought it was good or bad – so we could keep constantly developing the product. We would talk to people about how they could use it, and what their specific requirements would be. Then we came up with the idea of running a competition for the most innovative way they could use the whiteboard – it kept giving us more and more ideas.

So what was it like on Dragons' Den?

Laura: I was very nervous, waiting about at the bottom of the stairs. Then when you get in front of them, realising how close the Dragons are to you, it was more nervous for me than for Neil I think. Neil started pitching, then once they started asking questions, I relaxed a lot more – like it was just a difficult job interview or something.

Neil: Well, I wouldn't say I enjoyed it! But I was so focused and desperate for them to understand the benefits of the product. I was quite serious, but tried to reveal how passionate I was. And then, when they were asking the right questions, I started to get excited.

I watched your appearance on the show, and I remember Peter Jones said: 'I think this is ridiculous." What thoughts were going through your head when he came over to the whiteboard and wrote "I'm out"?

Neil: My initial thoughts were: "I'm not getting off to the best start here!" But I just kept talking about the business. I mentioned that we started off with just £1,000 worth of stock and the big blow came when I mentioned that turnover from that was now half a million – the other Dragons then started to listen. What was what not aired was the point when Peter made his "ridiculous" statement and Duncan Bannatyne actually told him to "Shut up"! I did actually value his opinions even though it's not up his alleyway. So I then looked at focusing on the other Dragons who were interested – especially Theo with his own line of shops that could potentially stock our product!

Laura: I think you just have to go on and believe in what you're doing. If you get knocked, just keep on going.

Would you say that the £100k investment you secured has had the most impact in the business, or the help and guidance from the Dragons?

Neil: The £100k has been a great investment into the business and has accelerated the route to market. We got into 240 stores after three months. Theo had the contacts in stationery and we got a deal with a company in Ireland who are one of the biggest contractors. Before you know it, everyone was stocking it. Deborah Meaden has also been fantastic and has had a daily hands-on approach to the business. She has helped with practical advice, trained us on bringing in sales, re-branding, marketing and more detailed focus.

Laura: Also with our site as well, helping us with the rebrand of our site, and attracting customers. Also improving the pace of the business

You mentioned on Dragons' Den how you wanted to use the investment to build and develop a sales team to move the business forward. Have you managed to implement this and would you recommend the same strategy to others looking to follow in your footsteps?

Laura: The reality is that Neil is the sales team. Because Neil is so passionate about the product, he is the one that speaks to the trade dealers, and people love the story. Neil is natural, enthusiastic and tenacious and consistently delivers because he believes in the product so much. We are currently looking at outsourcing, as we now have a new product range to launch as well.

Neil: The last couple of trade shows we have done, we have worked in affiliation with Viking. We train their sales team about our products as they have to sell them anyway. By teaching their staff and demonstrating the product in front of them, they sell our products through telemarketing. If you can get an alliance with a larger brand to sell your product, it is a great way into the market.

Have you had any serious problems within the business before the success of the Dragons and their investment? What was it and how did you overcome the problem?

Neil: Well, for us the credit crunch kicked in during November last year, and cash flow in any business is so important – especially when you are buying in stock like we have to. Always forward plan your cash! You have to be consistently thinking about new ways to proactively increase new business and about finding new customers.

So what has been the hardest part of being in business?

Neil: Tricky one. Getting things done quickly has been the biggest challenge; breaking into bigger companies with our product, when you're passionate and plugging away and they are so slow to accept anything new. That can be frustrating. If you can make your profit though when the markets are down, competition tends to disappear.

Laura: Not being able to take any time out of the business for the first couple of years. All the time and energy that's required can be very draining, especially when you have a family.

What's more important to you – money or success?

Neil: Definitely success and achievement – the money follows. We want to be the best at what we do. I wish I'd done this straight from school. But you have to passionate about what you do and make the sacrifices of being in business. You have to be dependent on your mindset. I'm not doing this for the money; I'm doing it for my daughter's future. It's Ella that motivates me and we now also have a son on the way.

Laura: Success. We have both worked hard at whatever we have done together. We both want to provide a secure future for our children.

If you both lost everything overnight and had to start again, what would be the first thing you would do and why?

Neil: Something else. I would look for a new opportunity. I wouldn't look back and dwell. I would look at what others have done in the past and find some inspiration from somewhere.

Laura: We only started with £1,000 – we started with nothing before. We have a fantastic family, who are around and will support us with whatever we look to do. But this is the decision you make being in business. You choose the rewards and also the risks – that's all part of being in control and being able to make business decisions. But the journey we have been on together has been better than any business career.

If you could offer our readers one piece of advice to help move their venture forward, what would you say to them?

Laura: Be prepared to take risks. That is not my natural character, but I had to do it to move the business forward. Be ready to go out on a limb.

Neil: Be the best at what you do. Whatever it is you're doing, communicate the message in the best way possible, be prepared to work hard and put everything into it – and you will have to take calculated risks. A lot of what you do is generally common sense; you don't have to be a genius to be in business. And you will always have to sell your idea to other people.

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Neil, Laura, thank you for your time – it was great to meet you both. To see Magic Whiteboard's product and service line, please visit their website: www.magicwhiteboard.co.uk

Laura and Neil have been shortlisted for Entrepreneur of the Year 2009 – Chamber of Commerce – on 17th July.
Since the interview, they have also moved into their new premises in Worcester.

Finally, Raw would also like to pass on congratulations to Laura, who gave birth only a few weeks ago to Morley, who weighed in at 9lb 10oz.