Michael Pearce joined premium outdoor umbrella company Shade7 in 2009 in a sales and accounting role. Shade7 designs and manufactures high-end outdoor sun umbrellas exporting to over 20 countries around the world.
Within a year of starting at Shade7, the owner offered Michael 10% of the company and to take over running the business from Auckland, so he could move overseas to work on charitable projects.
It was an opportunity that would change Michael’s life, after coming from humble beginnings with no formal qualifications.
“I came from nothing, I failed school and dropped out at 16, but I was naturally good at finance and had an interest in business,” he said.
“When I was 13 my grandmother bought me the book Rich Dad Poor Dad which sparked a new passion in my life for business and investing. I then began to read about Warren Buffett and Richard Branson.
“I started working at 16 in back-room data entry and accounting jobs for various companies. I learned to work hard, like I was working on my own business, rather than feeling like an employee. I met the owner of Shade7 through church when I was 24 and he employed me, taught me how to sell and a year later I was running his business."
The owner wanted to take his family and move overseas to get involved in charitable work and needed someone to lead the business while he was gone. Michael was promoted to General Manager and bought a small shareholding as an incentive to grow the business long term.
But after eight years of running Shade7, Michael wanted to purchase 100% of the company and that’s where Kiwibank stepped in.
“I’d been growing the export business around the world and some years we grew 20% to 30% per year. If you go to Fiji or French Polynesia, the majority of the hotels you go to, you’ll be sitting under a Shade7 umbrella. In the earlier years I got those deals through cold visiting every hotel and selling face to face.”
I met the owner of Shade7 when I was 24. He employed me, taught me how to sell and a year later I was running his business.Michael Pearce, Owner of Shade7
Shade7 umbrellas can now be found in over 20 countries, all through the South Pacific, to places like Mauritius, The Maldives, Guam, Tanzania, Nepal, and through North America. Kiwi homeowners account for around half of Shade7’s sales, with the balance being commercial projects around New Zealand and exports overseas, with their bread-and-butter export market being the South Pacific.
Shade7 grew considerably over 10 years; however, as the business grew it became more expensive for Michael to buy the remaining shares.
“As the company became more profitable, so did the cost for me to purchase more shares, and to take my ownership to 100% I was going to need a large loan. I went to my accountant and told him I wanted to buy out my partner and have 100% ownership with my wife. We spoke to all four big banks, but my accountant recommended I speak to Kiwibank, who were offering aggressive deals in business banking. Only Kiwibank and one other bank offered me the full amount that I needed to gain 100% ownership and Kiwibank offered the better deal, so I took it.
“A year or two after gaining full ownership of Shade7, my Kiwibank business manager then helped me buy a beautiful lifestyle property for my family, after that he helped me buy a commercial building for Shade7. Those were three major financial milestones in three and a half years with Kiwibank. It’s been a really good experience and they helped me achieve both my business and personal goals with my wife and family.”
Michael’s Commercial Manager at Kiwibank, Dasha Boland, said his integrity, discipline and focus is a winning combination.
“We saw how disciplined and focused Michael is, which has led to the successful growth of Shade7. When he wanted full ownership of the business, we saw that as an opportunity to help a Kiwi business thrive as well as help him achieve his personal goals along the way. Shade7 is a great example of one of our import/export business customers who we’re proud to work alongside for all their business needs. Whether that be in foreign currency exchange for paying overseas suppliers and manufacturers or setting long-term goals here in New Zealand and offshore. Kiwibank is proud to be supporting Michael's business and the continuous journey he’s on,” Dasha said.
After achieving his goal of owning 100% of the business by the age of 33, Michael’s advice to other young entrepreneurs is to make sure you can sell.
"Learn how to sell," he says.
"You can have the best product, packaging and marketing, but if you don’t know how to get out there and sell what you have, you’ll never go anywhere. You’ve got to sell your vision to your bank manager, your staff, your customers and everyone else. The design, quality and packaging all need to be there, but you’ve got to go out and meet people and sell them on what you can do for them.”
Learn how to sell. You can have the best product, packaging and marketing, but if you don’t know how to get out there and sell what you have, you’ll never go anywhere. You’ve got to sell your vision to your bank manager, your staff, your customers and everyone else. The design, quality and packaging all need to be there, but you’ve got to go out and meet people and sell them on what you can do for them.Michael Pearce, Owner of Shade7
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