CASE STUDY
Slumbersac
From a £500K loss-making business to a profitable £5 million online retailer — and a Business Excellence Award.
Key Improvements working with James
Business grew by £1 million
New network of experts
Improved work-life balance
About the business
Slumbersac is a children’s sleeping bag manufacturer and online retailer. Karina Grassy joined as the German distributor in 2008, and when the business was offered to her in 2012, she saw an opportunity to turn it around from its loss-making position. By shifting from wholesale to online retail, the business grew organically to £2.5 million in sales by the end of 2014.
With ambitious plans for further growth, Karina began considering external funding for a more structured expansion — and that’s when she was introduced to James Akin-Smith.
Why Karina sought coaching
Karina enquired about funding options at a local business growth event. The organisers recognised she would benefit from speaking to a coach with experience in this area before committing to borrowing large sums of money. She struck up a friendship with James immediately and began weekly one-to-one coaching sessions in April 2015.
First improvements
James initially encouraged Karina to look closely at the business in detail — the team, the financials, the systems — getting clarity and focus on the real priorities. She had gone to the event thinking she needed an investor, but once she understood the numbers, she realised that investment was not the priority at that stage.
Karina began developing stronger plans for the future. Her partner joined the company around the time she started coaching with James. Having previously worked shifts in the oil industry, they realised his management experience would be a real asset in the warehouse — not just financially, but for their work-life balance too. This was just the start of building out a key team.
With just these initial improvements — concentrating on team, not sales — the business grew from £2.5 million to £3.5 million in turnover.
Ongoing coaching
Karina’s three-year plan was to grow turnover to £10 million with the backing of investors, to secure the success of her rapid forecasted growth. Slumbersac invested £100,000 in an e-commerce system that facilitated scaling their web presence across various markets in different languages and currencies — leading to significant improvements in sales, conversion and reporting.
Karina ultimately turned down an offer from an investor and instead raised finance with HSBC, taking the business to the next level while retaining 100% ownership.
James continued to introduce Karina to experts who can help grow the business, including an Amazon specialist who helped improve sales in that channel from their very first meeting. He challenged Karina and asked the right questions — prompting her to find the answers her business challenges required.
Recognition and giving back
In early 2016, James encouraged Karina to enter the Business Excellence Awards. She didn’t expect much — but was shortlisted in the Best E-commerce Business category, and won! Sharing that success with the team gave her the confidence to enter again the following year, targeting the Best Growth Company category.
At the conference, Karina was introduced to the charity Buy1GIVE1 (B1G1) and signed Slumbersac up as a lifetime member. With a children-focused brand, giving back felt important. Each month, Slumbersac counts the sleeping bags sold and makes donations to three B1G1 projects: maternity care for working women, immunisations for babies, and power to provide light on a maternity ward — all in areas of the world where this vital support isn’t readily available.
In Karina’s own words
“Without James, it would have taken us a lot longer to be making this impact. If you are prepared to work hard and make things happen then working with James can take your business to the next level.”
Karina Grassy, Director, Slumbersac
Looking ahead
Slumbersac had plans to expand into Canada, Japan and India, as well as extending the product range to include new innovative ergonomic styles and a selection of contemporary baby shower related gifts. The business then had a team of 18 full-time staff, 4 part-time staff, and an international team with global reach.
Karina always had an exit strategy in mind — to eventually sell Slumbersac and move back to Germany. Having the right team in place was key to that plan. Taking more control of the business meant she could keep weekends free to spend with her family, comfortable in the knowledge that the team could run the business without her. James’ weekly coaching sessions with both Karina and her leadership team proved invaluable when ultimately the time came to sell the business.
Find support to steer your business forward
Are you looking for a way to move your business forward? James has worked with a wide range of businesses to help leaders gain the perspective they need to make better decisions. If you’re ready to gain experienced support and guidance, get in touch to start the conversation.
