Willie Haughey, the founder of Glasgow-based City Refrigeration, is one of the
Scotland judges for The Sunday Times Bank of Scotland Corporate £35 million
Entrepreneurial Challenge 2008. Under Haughey, City Refrigeration has grown
from a small, specialist engineer to a diversified business with annual
sales of £230m, covering such areas as equipment rental and facilities
management. He owns pubs, hotels and a property company in Scotland, and
from 1994 to 1997 was a director of Celtic Football Club plc. Haughey is
also involved in Scotland’s Entrepreneurial Exchange.
Q: What is your entrepreneurial background?
A: After starting off as an apprentice refrigeration engineer in the 1970s I
got the opportunity to work in the Middle East in the early 1980s. I went
out there as an engineer but ended up as a contracts manager. I got an
insight into how to run a P&L and that gave me a taste for running my
own business. When I returned in 1985 my wife and I set up a small
refrigeration company, serving the licensed trade. We set up the business
with £70,000 of savings. There were four of us working then, trying to build
up our reputation, but all the cash had just about run out after one year.
And just when I was contemplating sending out my CV, I got a bit of luck – I
got a call from a brewer to help them out. That was in 1986 and over the
next nine years the business grew from a £100,000 turnover to £6 million
turnover with 40 staff. Today we have10,000 staff and a turnover of about
£230 million.
Q: Why did you agree to become a judge?
A: I watched the competition last year with interest and was very impressed
with the calibre of some of the companies that entered. I have a keen
interest in this, being involved in the Entrepreneurial Exchange. Anyone out
there trying to help entrepreneurs is good in my book.
Q: Why is the Entrepreneur Challenge important?
A: I think it’s a fantastic initiative. It gives people something extra to go
for and in the present climate it is a fantastic opportunity to be able to
take a quantum leap for your business and getting it funded by a bank loan
with no interest. I wish it had been about in my day.
Q: What will you look for in a competition entry?
A: Something that really stands out, maybe a bit different. Obviously I’m
looking for the people involved in the business to have real passion. The
calibre last year was first class and I don’t think it will be any different
this year. I’m sure it will be tough but hopefully we’ll find a company
that’s got a real chance of growth and with that, hopefully, creating
employment opportunities.
Q: In the competitions you have judged before, what common mistakes do
unsuccessful entrants make?
A: I won the Entrepreneurial Exchange’s Entrepreneur of the Year Award in 2001
and I was on the judging panel the following year, and it was a great
experience. I picked up some invaluable tips during the judging process but
I would say that a couple of entrants had pushed their business plan to the
limit. Sometimes people think that big is beautiful, and that stood out a
mile as a negative.
Q: What difference will a £5 million interest-free loan make to the
winners?
A: I believe they should totally discount the fact that it is interest-free.
I’d be more interested in what they’re going to do with the £5 million and
I’ll be looking for someone who is going to demonstrate to me that they are
certainly going to get the best bang for their buck. If someone says,
“Hopefully I won’t need it or I might need just part of it” … that would
impress me.
Q: Why is encouraging enterprise in the UK so important?
A: If we don’t encourage enterprise we’re never ever going to improve our GDP.
In Scotland we still lag behind the rest of the UK but, to be fair, I think
we’ve closed the gap tremendously over the past few years. Organisations
like the Entrepreneurial Exchange and the Prince’s Scottish Youth Business
Trust have brought Scotland on leaps and bounds and if they continue to grow
as quality networks then I think we can catch up, especially in encouraging
start-ups. With [serial entrepreneur] Sir Tom Hunter I’m also involved in an
enterprise in schools campaign and so we now have a conveyor belt of
enterprise in Scotland. I’m very proud of the fact that in Scotland the help
is there if you need it.
Q: What makes a successful entrepreneur?
A: Desire. Passion. A willingness to work hard. Determination. And a bit of
ego – we all need that.
Q: How important an incentive is money to entrepreneurs?
A: If any entrepreneur sets up a business and their driving focus is that they
want to be a millionaire, there’s a good chance they’ll fail. If on the
other hand the passion is to be the very best you can be at what you do,
there’s a right good chance you’ll end up a millionaire.
