Q & A
Define in the US went under and was bought by someone else . Brosa in Australia went under .
There are many parts – the marketing you need to get right , product development , logistics , your P & L structure needs to be correct , your capital structure needs to be correct , and your cashflow cycle needs to be right . I guess that [ knowledge ] came naturally for me because I was in banking for so long .
The problem when you raise funds with so many VCs is that you are no longer able to take a long-term view because you ' re driven only by growth . You have to take short-term bets and that ’ s when everything starts to go a bit haywire . If [ Castlery ] were all VC-backed , I couldn ' t have said , ‘ Let ' s slow down , let ' s think about what we ' re doing , let ’ s be customer-first .’
But because we never went down that path , we could do that . We rejigged everything to improve the cashflow cycle , and that ' s all traditional business . Warehouse management , managing your cash flows , supplier management – it ’ s very old-school , which is all about relationship building and putting in the hard yards .
On top of that , you need to tap everything else to make it more efficient . So for example , instead of hiring 22 warehouse managers because I have 100 containers coming in and they have to figure out where to stack each piece , I have a warehousemanagement system that matches the rack and tells them where it slots in based on my accounting system .
IR : As a business leader , you need to be able to inspire other people with your vision for the business . Is that something you ’ ve always been good at , or have you honed that skill over the years ? DE : I always wanted to find meaning in my work . I love theatre , and I think there ’ s magic to the stage , and then you translate that to real lives and you realise that the world ’ s a stage , and every customer is living out their life [ on it ]. I was always moved by that . And I think if you can
All these seamless customer experiences , all that aside , we ’ re solving for attainability . find meaning in your work , that ' s everything .
Ultimately , it ' s meaningful work with people who matter that creates an unforgettable journey . [ Working at Lehman Brothers ], the toughest times , even during the bankruptcy , were fine because I had a great team . Then the great times , when we were paid well , we were miserable . It ’ s how I was brought up as well – to find that bit of meaning .
IR : Switching gears , where do you go for inspiration or good advice on how to improve yourself as a manager ? DE : I have a forum of entrepreneurs I meet with every month , where we share quite deeply and honestly . Books , coaches – I ’ ve worked with various coaches , from technical business coaches to personal coaches . Even meditation , hearing your own voice in the right way . I mean , it ' s just selfawareness . Once you have that level of awareness , it ' s easier to change . [ You need to have a ] willingness to stay in a slight zone of discomfort so you can grow and change .
IR : Do you have any business heroes or leaders that you really admire ? DE : It has changed over the years . In my younger days , it was very sexy to be inspired by Richard Branson . I was lucky to spend some time with him last year on Necker [ Island ]. He has a really cool story of being dyslexic and how he overcame it .
But as you get older , you learn different things . Like Elon Musk , how he ' s obsessively breaking down very complex things to the simplest detail and re-engineering them . I think I draw inspiration from different people .
Castlery is starting to open international showrooms , like this one in Sydney .
michael @ mbaker-retail . com .
44 www . insideretail . asia August 2024