How Sir Tom Farmer made his fortune

Sir Tom FarmerYou might think that it would be hard to relate to a business leader and philanthropist who sold the UK’s largest chain of tyre and car part service stations to American giants Ford for a little over £1 billion in 1999. However, Sir Tom Farmer is just one of the many examples of a success story stemming from an unlikely background, going on to create two successful businesses from humble stock and continuing to act as mentor to aspiring entrepreneurs and as benefactor of many charitable organisations on a national and global scale. Tom Farmer is best known for the creation of Kwik Fit within the UK, but he didn’t start out at the top and is a great reminder that hard work and patience are two key virtues required for business success.

Born in Edinburgh in 1940 to a devout Catholic mother and father and growing up with six other brothers and sisters made Sir Tom Farmers early years comparable to thousands of others of his generation, and like many of his peers he left school at the tender age of 15, ending up sweeping the floor of a tyre company’s workshop, unaware that one day he would command an empire of similar establishments. He decided to take an apprenticeship in engineering, but did not complete the course, perhaps because he was a bubbling pot of ambition and drive and wanted a lot more from his life.

During one of his first jobs as a Van driver he was first confronted with the idea that the key to success in business is to make every single employee feel like a valued and important component of a team rather than an autonomous drone devoid of humanity or important. In 1964 he founded his first company, Tyres and Accessories Supplies, a firm which he quickly developed into a success and promptly sold off for nearly half a million pounds in 1969, an impressive amount of money at the time and an indication of the things to come. After this windfall he took some time out from the UK to travel and live in America in a kind of semi-retirement which, needless to say, he couldn’t stick at. It was here that he had the business epiphany that would be the earmark of the success of Kwik Fit. He noticed that in America customer service was a much higher priority than in any UK business of the time. Whether it was in the most expensive restaurant or the dirtiest diner, people would expect a certain level of cordiality, friendliness and interaction between employees and customers. He also noticed that more and more specialist garages were booming, dealing with specific problems rather than operating to serve all. Combining these factors, Sir Tom went on to found Kwik Fit in 1971.

The first branch of Kwik Fit opened in Edinburgh, specialising in tyres and exhausts and offering customers the opportunity to have the work done whilst they waited rather than having to leave their car in a garage for days on end. This initial branch was of course a success, and the expansion of Kwik Fit in the 70s was rapid, using acquisitions to spread the business model not just throughout the UK but around the world, with the first Kwik Fit to open on foreign soil appearing in the Netherlands in the mid 1970s. Although Sir Tom was by this point making millions, he was also not afraid to share the profits with his workers as well as with shareholders in the company, which caused criticism from some, but is something that he still believes has attributed greatly to the continued success of his business ventures. Working on the idea that ultimately, no matter how loyal an employee is, their happiness is rooted in their pay, and by rewarding their hard work with a share of the profits the structure and relationship that an employer shares with their employees is strengthened and consolidated.

Advertising also played an important part in the success of Kwik Fit, especially during the 1980s when the brand was strengthened and the association of the team atmosphere as well as speed and convenience was created in the public consciousness. Taking the stress out of car repair was also important, because for the average, uninitiated consumer, taking your car to get checked out was (and still can be) a frightening exercise with the obligatory peering under the bonnet followed by a good deal of head shaking, tutting, all followed by a vast quote and a still larger final bill. The Kwik Fit ethos was to address this fear head-on: building confidence and trust in Kwik Fit as a business and its workers was a master stroke that kept people returning again and again.

When Sir Tom Farmer sold the Kwik Fit chain in 1999 there were 18 countries around the world with a Kwik Fit. The business had 2300 sites, employing thousands of happy workers and most importantly consistently yielding a healthy profit. Still devoutly Catholic and now mostly concerned with charity work and supporting young business people within Scotland and the UK, Sir Tom Farmer is a great example of ethical business coming good.

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Written by Lammo · Filed Under How they made their fortune