Member Article

Gateshead startup creates new jobs following TEDCO support

Two enterprising businessmen are celebrating a successful first year in business as Victoria Motors in Gateshead doubles staff numbers just 12 months after opening its doors.

David Harris, 35, from Kingston Park, opened the car garage with business partner Robin Kyle, 40, in 2014 after purchasing the business from the previous owner.

The duo sought the assistance of start-up support agency TEDCO Business Support to identify how to bring the fading garage back to profitability.

David got in touch with TEDCO Business Support and was assigned a business advisor to work directly with Victoria Motors through the Ready for Business programme.

Ready for Business aims to support individuals considering setting up a new venture and manage the demands of a startup business, whether it be business planning, leasing premises or assessing the potential of a business idea.

Ready for Business is supported by the Government’s Regional Growth Fund and Barclays, and is delivered nationwide by the Cavendish Consortium, a partnership between some of England’s leading enterprise agencies, together with the National Enterprise Network.

So far the programme has created more than 3,500 new jobs across the UK, more than 580 across the North East, and provides individuals with concentrated support in the pre-start and early stages of their business.

David Harris said: “I was actively looking for a new challenge after running my own social enterprise to support homeless individuals in Newcastle for a number of years. Along with Robin, we came across Victoria Motors as a possible business opportunity but had some hesitation around the level of investment it would take to modernise the garage and encourage customers to return.

“After balancing the business opportunity with the capital needed, we decided to go ahead and initiate the takeover of the garage. With Robin’s background in car mechanics and my own experience running a business, we were able to devise a business plan and outline a strategy to modernise the business fairly quickly.

“We made it a priority to install up-to-date equipment which would allow us to broaden services into diagnostics, as well as repair, and made additional investments to upgrade the premises. We knew we could make Victoria Motors work but needed guidance when it came to the particulars of purchasing an existing business.”=

“We were able to work on very much a one to one basis with TEDCO to help support us with set up of Victoria Motors. Whilst I am experienced in the daily demands of running a company, there were questions when purchasing an existing business we needed to find answers to in order to progress quickly.

“For example, we needed to put an accurate value on the cost of the business premises, something our business advisor was able to help us with.

“Just having that extra person on side was advantageous at every stage of the set-up to bounce ideas off and make sure our plans were heading in the right direction.

“Because of the scale of our modernisation plans, we needed to know that our investment would have a positive effect on the business and through the support of TEDCO, we had the luxury of being able to take a step back and look critically at what we needed to make Victoria Motors a success.

“The result is we have more than exceeded expectations for our first year with turnover at the end of 12 months 18% higher than our initial projections. We’re confident that the changes we have put in place to make Victoria Motors a viable enterprise have not only given the business a new lease of life, but justifies our faith in the potential of the garage for the future.”

James Craft, business advisor with TEDCO Business Support said: “Purchasing an existing business can be complicated and we were able to advise David and Robin on the most effective way to manage the process in a careful and considered way.

“The success of the business over the past 12 months is testament to the hard work and attention of both David and Robin in giving Victoria Motors a new lease of life and creating four new jobs in the process.

“I wish the team every success in the future and hope to continue to provide guidance to Victoria Motors as the business continues to flourish.”