From SympathyTo Solution

Ed FergusonSpruce Carpets Ltd

A Short History

• A Social Enterprise• Founded 2004 by Kate Chappell• Based in Govan, Glasgow• Outlets in Govan and Shawlands• Mission– Diverting carpets from landfill– Helping the socially excluded– Providing low cost flooring

Strengths•Unique•Known•People•Some profitable activity

Weaknesses•Grant Dependent*•Doing too many things•Inconsistent Supply*•Lack of process and systems

Opportunities•The carpet tile business!•Increased environmental awareness•Corporate Social Responsibility•Increased landfill prices

Threats•Funding cutbacks•Unprofitable activity•Insolvency•If not Spruce, someone else?

November, 2009

The Problem With Grants

• Businesses align themselves with grants, rather than the other way around!

• They discourage creative problem solving

• They are spent on consumables, not long term growth

• They’re like Chinese meals!

How do we become financially self-

sustaining without abandoning our core

social values?

Change #1 - Mission

• Mission– Divert from landfill

• Focus on commercial volume• Focus on carpet tiles

– Create jobs and training• Relevant to our customers• Investing in growth• Fit for purpose

– Provide low cost flooring solutions• For organisations and individuals• Third Sector• Small Public Sector

Change #2 – Core Activities

Retail Ebay Contract

Carpets

Rugs

Tiles

Contract Tiles - A Complete Service

•Third Sector•Small Public Sector•Domestic

•Outsource

•Certified disposal•Cost-effective•Grading•Cleaning

•Equipment•Training•Due Diligence•Take Back•Competitive

Uplift

Process

Sell

Fit

Change #3 - Mindset

“Don’t do business with us because

you feel sorry for us, do

business with us because we are the best solution!”

Growing In Confidence

QUADRANT

£250,000 turnover6 employees +15% last year

+20% this yearc.20 volunteers every week

400 ton capacity of carpet tiles80,000 sqm

Sustainable 6/10

Securing Our Future

+£1,000,000– Scalability– Replication– The Solution of Choice

Thank You

From Sympathy to SolutionEd Ferguson

Spruce Carpets Ltd