Daily Express - 10th April 2003

Internet trading has transformed the prospects of a flooring firm, paving the way for a multi-million pound turnover and a doubling of staff. "The change was dramatic once I had a website", says Adrian Lee, 42, owner-manager of Flooring Supplies, a firm specialising in wood covering for homes.

He knew keeping prices down was the way to expand his small business and that meant dealing in volume.

"My only option was to import wood by the container load," he explains "I took the gamble and paid £100,000 up front for a load from Sweden. It was a big risk because I had to sell it quickly to get my money back.

"While the wood was in transit, I advertised it on the website. As we were unloading it, the first order rang in. In 10 days the lot had gone. Only a website could have delivered that kind of nat­ional advertising at a price that I, as a small business, could afford "

Flooring Supplies now handles two container loads of Swedish wood a week and offers 8,000 product lines, including lino and carpet tiles, in addition to the vast range of wood and laminate flooring.

When Lee first started trading online he was still working with one employee - the same situation since he began the firm in 1985, both selling and installing flooring.

"One night I came back from a job and found 87 calls on the answer machine," he recalls. "I had built the business on reliability and prompt response. But trading online was changing the nature of my business. E-commerce brings success but you have to be prepared to change to make the most of it."

He took on more staff - the firm now employs nine with plans for 18 as the growth accelerates. He also wound down the installation side for a while as he restructured the operation, moving out of a converted barn into nearby warehouse units with ample storage space and a showroom in Long Stratton, Norfolk.

Lee started on his own after learning the trade in a relative's business "I wanted to sell as well as install," he says. "When I started I just needed a van, a helper and £500-worth of tools "

Contacts with local military bases got him jobs even in Germany. "It was cheaper to take us over than pay German rates."

The company grew steadily, aided by the home improvement revolution. "More people wanted wooden floors so we specialised , offering unbeatable prices and deals. With our set-up we have always been able to undercut chains and the High Street. Wooden flooring is thought of as expensive: we have made it attainable.

Two years ago Flooring Supplies was turning over £350,000, this year its £2.5 million, with a further £1 million on the cards for 2004. Reliability and a large stock base enable Lee to offer next-day deliveries for 80 per cent of the products and a three-hour response time to enquiries.

But delivering on that pledge has proved difficult at times. "I spend £9,000 a week on fulfilment . Having a reliable service is crucial as I rely on word-of-mouth recommendations. I have gone through 20 delivery firms. Damage to goods in transit has been the main problem. Now I use an excellent local company. Elite Distribution. They are slightly dearer but cheaper in the long run".

Lee's battle against fraud, however, continues. "It's a major issue that is get­ting worse. Small companies are the most vulnerable," he says. "It was only six months ago we really got on top of it. We have the security in place and our staff are specially trained to spot callers with stolen credit cards. It comes in waves that never end, one month London, the next Manchester."

Now I'm ready to provide a fuller service

Flooring Supplies owner Adrian Lee says trading online has opened many new doors. "It has allowed me to innovate and become a national business," he says. I am glad I became established when I did, though, as registering with search engines is far more expensive now."

Another obstacle that remains is the lack of broadband availability in his area. "It is scandalous that small businesses in Norfolk are being denied this competitive advantage. We are doing our bit to contribute to the economy, yet we aren't getting the support we deserve." Lee uses a package from e-commerce specialists Actinic to run his online store and process the 500 orders placed each month. "It cost just £350, is very easy to work and reliable" he says.

Ninety per cent of Lee's customers are based in the UK and his next move is to expand the commercial side.

He aims to supply building contractors and beef up his installation service. He is even considering a new site just for business customers.