Nick Rutter: Why boring is good for a small business

Ever thought how an everyday item could be improved? Nick Rutter did. He modified the humble fire alarm and now his company Sprue Aegis is turning over millions. Here's how he did it.

After a couple of years working as a plastics and design engineer for a large firm in Hong Kong, Nick Rutter decided that being an employee just didn't suit him. So he returned to Coventry University to finish an electronics course he had started years earlier. There he met Sam Tate and the pair decided to go into business together. Rutter's experiences in Hong Kong made him wary of competing with big brands, so they decided to target a cheap, mass-produced item where advertising budgets were less important. In short, they wanted a "boring" product.

"We picked household safety products because the technology was mature and a lot of the incumbent manufacturers were not being very innovative." They searched their own homes for products that could be improved and eventually settled on the fire alarm. "When we saw it, badly fixed to the ceiling with wires sticking out, we realised it was the one." They analysed its faults "it goes off when you burn toast, it's a pain to reset when it is going off and it's difficult to change the batteries" and set about designing an improvement.

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James McKeigue

James graduated from Keele University with a BA (Hons) in English literature and history, and has a certificate in journalism from the NCTJ. James has worked as a freelance journalist in various Latin American countries.He also had a spell at ITV, as welll as wring for Television Business International and covering the European equity markets for the Forbes.com London bureau. James has travelled extensively in emerging markets, reporting for international energy magazines such as Oil and Gas Investor, and institutional publications such as the Commonwealth Business Environment Report. He is currently the managing editor of LatAm INVESTOR, the UK's only Latin American finance magazine.