Meet Mark: the man who bought a business online and turned it into a million-pound sustainable enterprise

• Business name: Purple Planet Packaging 

• Industry: Sustainable packaging 

• Founded in: 2019

• Top business product: Business loan

• Key learning: “Not every opportunity is the perfect opportunity, so you need to listen to your customers, and stay close to them, because ultimately they are the ones that make your business a success.”

Mark Farr became CEO of Purple Planet Packaging in 2019 because he wanted to make a positive, sustainable impact for the next generation.

But he could never have predicted what would happen next. 

Here, Mark shares his business story so far, and how buying a business online became a million-pound success story. 

What motivated you to start your business? 

We are a family-run business as a husband and wife team. We bought the business in 2019 because we wanted to make a difference. It’s important for businesses to be responsible and sustainable, and our focus has always been on creating a positive impact for future generations. 

Is that why you chose Purple Planet Packaging? 

Yes, I discovered the business on uk.businessesforsale.com, and we bought it for £24,000. It was turning over around £250,000 at the time, and we thought it would be a good business to run as we could do it from home. I am a paramedic and I worked in the health service for many years, so this was a very different lifestyle. We started the business in the shed at the bottom of our garden, but then Covid hit and it accelerated our business beyond our expectations. It grew exponentially and now we have a 15,000 sq ft warehouse. 

How did you manage to grow your business during Covid? 

Purple Planet Packaging operates within the packaging and containers industry, and we provide eco-friendly packaging for the hospitality sector. When Covid hit, the hospitality sector had to close and pivot to a new model, which was predominately takeaways. This meant our product was in demand and our turnover rose to £1.5 million in five years. 

When we started the business, we had a plan of continuing what it was originally doing, but Covid meant we had to think quickly and adapt. We also needed to find a financial solution that would help us to scale. 

What was that solution? 

We integrated a Buy Now, Pay Later (BNPL) solution called Two to our e-commerce checkout process. Before we used this, our customers were making purchases via card payments and this created cash flow challenges for small businesses that were ordering supplies. Paying upfront was difficult for some of our customers, and we found BNPL removed these barriers, so this revolutionised our business. 

We had a 400% increase in average order value and stronger cash flow for our business and more importantly, our customers. It works a bit like a credit card but without the interest, so it’s very attractive. This is just the start of how we plan to use innovative solutions within the business, and I’m looking forward to Purple Planet Packaging continuing to evolve. 

Were there any financial products that helped in the early days of growing the business? 

Yes, we benefitted from the Bounce Back Loan Scheme, which helped businesses during Covid. The business loan had a low interest rate and we could spread the cost over a number of years, so it worked for us. We also used The European Regional Development fund, which was designed to improve local investment and support businesses across the UK. This funding was crucial as it meant we could buy equipment like forklifts, computers and desks. 

We also have a business bank account with Santander and we’ve kept that since the beginning. I think banks could do more to support SMEs in the UK, as it’s difficult to get loans, even when you are profitable. 

What’s next for your business? 

Right now, we want to grow our sales team, as we’ve just moved into a brand new unit and we have massive growth potential. This means we want to work with even more businesses of all sizes. 

We also have a growth strategy and we plan to turnover £10 million by year 10. I would love to achieve this and it’s important to set stretch targets within your business. But, if you don’t hit them, you have to be prepared to ask yourself why. The world is always changing and what’s here today could have a different outlook tomorrow. 

We’re thankful for what we’ve currently built and we will always keep moving. We have to be dynamic and agile, and I think that will keep us on the right track. 

How would you describe your customer base? 

We service everyone, from small cafes, bars, restaurants and vendors to stadiums and arenas. One of our biggest customers is the Coventry Building Society Arena, so we have thousands of products being used there every week. 

What would you say to someone who is considering setting up a business? 

I would say that they need to be open-minded. Not every opportunity is the perfect opportunity, so you need to listen to your customers, and stay close to them, because ultimately they are the ones that make your business a success. 

This case study is for informational purposes only and is not intended as financial or professional advice. The results described are specific to the individual's personal experience, so please consult with a qualified professional if you need financial advice.