Interview: Matthew Riley

By TARA EVANS
Updated: 11:22 EST, 9 July 2008

Matthew Riley is chief executive and founder of Lancashire-based telecoms firm Daisy Communications.

After winning the Bank of Scotland Corporate's inaugural Entrepreneur Challenge in 2007 Matthew Riley had the chance to meet Sir Philip Green.

In 2007 he won the Bank of Scotland's Entrepeneur Challenge - giving him the chance to spend four days with retail king, Sir Phillip Green.

Daisy Communications began trading in 2001 and now has a turnover £34m per year. It specialises in providing communications services to small to medium enterprises in the UK.

Matthew Riley spoke to This is Money about setting up a business and taking risks.

How did Daisy Communications begin?

I worked for a German Telecommunications company called Deutsche Telekom and I recognised there was a gap in the market. I saw an opportunity to set up a service provider for small businesses in the UK.

So I took the plunge - I quit my job and set up Daisy Communications. We are quite unique because during the first six months we didn't trade, we used the time to do some bench testing and set up a business plan. It really helped and I think that this time was spent well and helps to really set us apart from others.

How much has the business grown?

Well in six years we've gone from £0-£34m, which was our turnover last year, to an expected increase of £64m next year.

Daisy Communications is your fourth company - What were you doing before?

While I was working for the German company I was investing in other start-ups. The first company I invested in was a recruitment business and because I was the main investor I was then able to sell the company back to the management – I repeated this process with two other companies. It was a great way to start and I learnt a lot.

What was your first job – how much were you paid?

I was 16 and I repaired fax machines – I was earning £27.50 a weak. Although I was always an entrepreneur and was constantly selling things, by doing that I made more money in a day than I would in a week when I was repairing fax machines.

What affect did winning the Bank of Scotland's Corporate Entrepreneur of the year award have?

It gave us a great profile and it was incredible to have Sir Philip Green as a mentor. He has introduced me to new and exciting people and helped me develop a professional profile. It is so important to have exposure these days.

What's the worst mistake you've made in your business life?

The worst mistake I've ever made is probably not setting up Daisy sooner, as things would be much further along. I always try to trust my gut feeling.

How do you see the current environment for those hopeful of starting a business?

It is really difficult for anyone setting up a business these days. All the banks are tightening their belts and decreasing lending, so it is increasingly difficult for anyone who is looking to start up a business.

How important is it to take risks?

Risk have to be calculated. I think any entrepreneur looks at the worst possible scenario that could happen as a result of taking a particular risk and then calculates whether or not they should go through with it.

What are your key pieces of advice for wannabe entrepreneurs?

I would say, although it sounds simple, it is really important to believe in yourself. It also takes a lot of hard work to make a business a success. But people think it is easy - they watch shows like The Apprentice and think that they can be successful without the hard work. You've really got to love what your doing, so that you can work hard to achieve your goals.

Who's your business hero?

I think I would be in a lot of trouble if I didn't say Philip. He is the first self made corporate billionaire and he manages to do everything with a smile on his face. He also has a set of principles and he sticks to them – I really respect him for that.

What does the future hold?

It is very, very exciting for both myself and the business. I'd like to think that we are positioning ourselves to give BT a run for their money.