This week ISB chats with Sujain Krishnan, a former IT consultant who has taken his passion for bespoke watches and turned it into a flourishing business, The Melbourne Watch Company.
ISB: When and how did The Melbourne Watch Company come about?
SK: I have always been a keen collector of watches. A few years ago I started a hobby business making a few bespoke watches and selling them online, while still working full time in the IT industry. After a year or so I felt I had learned enough about the business to make a go of it, and went out on my own in 2013.
ISB: How did you fund starting your new venture?
SK: I ran a crowdfunding campaign that raised $30,000 and supplemented that with my own savings. I worked from home, designing one model that I outsourced production of 500 units of to a manufacturer in China, that I sold via my website.
ISB: You have a background in IT, so did you create your own website?
SK: I designed the theme, drew up a plan of how I wanted it to look and operate, and got a developer to do the coding. My website is linked to an eCommerce site, BigCommerce.
ISB: So you reached a point where you’re up and running with one model that you have a “shop window” for, how did the business develop from there?
SK: Once the first watch started selling I developed new models and ran another crowdfunding campaign to raise the capital to get them made – using various manufacturers in China. In early 2016 a Hong-Kong based watch company took a stake in the business, and that deal included them taking over all the manufacturing of my watches.
In December 2016 I opened a showroom in Carlton, so now instead of receiving finished product from overseas I imports the components from the Hong Kong company and have two full-time workers assembling the watches here in Melbourne. They also do repairs and adjustments. I plan to expand that team to four people by end this new financial year.
I also have a showroom manager, who arranges to see people by appointment only – we are trying to convey The Melbourne Watch Company not so much as a retailer but more as a consultancy.
ISB: Who looks after the financial side of things?
I manage the bookkeeping myself – although I had no experience in this field my mum is an accountant so helps me out and I have learned as much as I can from her.
On the “product” financial side, most of our watches are in the $500 to $1000 price range, which is more than fashion watches but an accessible pricee point for boutique watches. In the last financial year we sold 1500 units, and this year we plan to increase that to at least 2000.
ISB: What about marketing – how did you initially get the message about the Melbourne Watch Company out, and has that changed as you’ve grown?
SK: Initially I concentrated on being active on online watch forums – there is a sizeable community of watch enthusiasts around the world who are very active on these forums. As the business grew I engaged a PR company who started promoting the brand via social media and digital marketing as well as gaining media coverage.
ISB: What has the single biggest challenge you have faced on the journey to date?
SK: Marketing the product and finding a niche for it at the outset. In the early days I spent a fair bit of money on more traditional marketing – newspaper ads and so on – and if I had my time again I’d concentrate on digital marketing, as that gives you far more control and better transparency on your ROI.
ISB: Finally, what was the best piece of advice you have received you could pass on to others with an idea they’d like to turn into a business?
Before I started I was told not to spend one minute or one cent on your product until you have devised a clear plan on what you’re going to do with it and created a business plan that includes a budget so you don’t run out of money. Many people don’t take into account supplementary expenses such as insurance, I had the good fortune of being able to brainstorm these things with my father, a successful businessman in his own right.
