He left the business – along with his core team – to launch Smart Offices in 2006 as an independent, family owned business to commence quality manufacturing "in-house" and to ensure a more personal service for his customers. The team has produced more than 250 garden offices to date, with Mr Dalton, as a director, involved in every building the company produces, and personally signing off each one.
The company, based in Ipswich, now also operates a bespoke design service, using the latest in CAD/CAM technology and allowing the customer to choose a model that matches his or her house and garden. The bulk of the company's business is done through its website, at www.smartgardenoffices.co.uk
Last year Mr Dalton decided to branch out further, and began to investigate the possibility of offering a service whereby the offices were provided to customers on a rental basis. The company needed funding to develop a fleet of offices – but, despite trying several options, Mr Dalton drew a black with traditional finance providers.
At this point Stephen Jagger, a recruiter for the FSB, introduced Mr Dalton to David Hall, director for Norfolk and Suffolk for the FSB Service Provider ASC Finance for Business.
When Mr Dalton met Mr Hall, the plan was still in its infancy – so Mr Hall recommended he prepare a detailed business plan with financial projections, incorporating the existing business and stating how the two separate projects would complement each other.
The plan took several months to come together – by which time, unfortunately, the financial crisis had taken hold and business funding was even more difficult to find. But, despite banks becoming ever more cautious, Mr Hall reassured Mr Dalton that his detailed preparations would stand him in good stead with potential lenders.
Specifically, Mr Hall knew that Mr Dalton's best chance of finance was through the government's newly-launched Enterprise Finance Guarantee scheme. This £1.3bn scheme was aimed at ‘supporting bank lending, of three months to 10 year maturity, to UK businesses with a turnover of up to £25 million who are currently not easily able to access the finance they need,' according to the Department for Business, innovation and Skills.
Even though Mr Hall also knew that there were precious few lenders who were prepared to do business under the scheme, he pursued one particular finance company and, after detailed discussions, arranged for them to visit Smart Offices' premises to see the business' potential for themselves.
The visit did the trick – a business and finance structure was agreed and, with several
orders already in the bag, the lender approved the facility. As a condition of the arrangement, Mr Dalton had to agree to transfer Smart Offices' existing banking and lending to the new financier – but, with orders needing to be fulfilled, he was happy to agree.
Mr Dalton said: ‘David's involvement in our business was invaluable. As a small business knowing we needed to expand – and knowing that we needed the capital to undertake that expansion – we were left in a quandary, a quandary common among small businesses.
‘Having crystallised our thoughts, he set about approaching the correct lenders with a
sound and empathetic understanding of our business, personalities and long-term visions. That he was able to approach a portfolio of lenders has been of particular benefit to us as a company, and he enabled us to get the right message to the right lender, at the right time.'
‘That ASC managed to get a bank lending to a small business, with a government guarantee, in the depths of a recession and in the thickest part of the maelsrom of the world's worst financial crisis in 80 years is not only testament to their skills – it is, quite frankly, very very impressive!'
Many businesses across the SME sector can qualify to apply for the scheme, although some have found it difficult, particularly in the early months of the EFG. Henry Ejdelbaum, managing director of ASC Finance for Business, told First Voice
that having the right help and guidance improves the chances of gaining finance.
He said: ‘Don't believe what you read in the newspapers: yes, it is difficult to obtain this finance; yes, you are likely to have to jump through a few hoops along the way; and yes, it is a very bureaucratic scheme. But we have the necessary expertise, and urge FSB members to come and talk to us.
Sandy Harris, FSB Chairman of Member Services, said: ‘This story shows that, even in a recession, the FSB offers terrific value to its members. ‘The fact that Mr Dalton had no joy finding finance elsewhere shows what an impressive service ASC Finance for Business offers. It is clear that their expert knowlege and long list of contacts have been crucial in securing the right deal for Smart Offices.
‘We hope Mr Dalton's company continues to prosper and that the new venture does well. We are delighted to see an FSB member making such a success of his business in an economic crisis such as this.'
