Lee Hunt is not usually a risk-taker. But after a five-year break from the travel industry and waiting years for a shop lease to become available in his town, the former Thomas Cook manager knew he had to get some money quickly to make his dream of running his own travel agency come true.
So when he got a call from a shop owner about a free lease in a plum high street location – a day after resorting to putting letters through shop doors – he wasted no time in visiting his bank to ask for £50,000 to fund the setting up of the business.
But Lee recalls: “They didn’t even look at my business plan. Within 15 minutes I was walking out of the bank because they would not lend to travel businesses.
“It was at the time when Thomas Cook was having a lot of financial problems and travel was being put in the same risk category as bars and restaurants.”
Desperate not to miss the chance to set up his own agency, Lee realised he had no choice but to take out personal loans to fund his dream – and took the plunge to borrow £50,000 the same day the bank turned down his business loan.
“Looking back, it was the adrenalin,” says Lee. “I was on a bit of a high after I had been told I could get a lease for a shop, and I knew my business plan stacked up. But I was worried; I am not necessarily a risk-taker.”
That was in November 2011; two months later, Deben Travel opened.
“I’m pleased to say we got it right – £50,000 was just about the right amount,” says Lee. “We had to pay for nine months’ rent in advance instead of three – again, because travel was seen as high-risk. And we had the cost of the shop fitting, joining the Global consortium and our monthly running costs. But from the first day we were busy.”
Despite a tough first few months, the agency is now flourishing.
“It has exceeded expectations and we have made a profit both years. Our loans are the only debt the business has got and in five years we will be debt-free.
“All the stress was worthwhile because if I hadn’t done what I did I would never had got the shop,” says Lees.
He adds: “I still get a buzz with every booking and feel a huge sense of pride if someone chooses to book with us.”