Can you tell us a bit about your background and what led to you opening the business?
An accountant and professional trainer by trade, I have spent the past few years at home bringing up my three children. During that time, I did a lot of sewing and knitting, and quickly developed a passion for the latter. Frustrated that there were no good-quality yarn shops in the area I lived, I decided to set up Moss Stitch and launched my own company.

What do you presently offer?
I currently specialise in selling high-quality, exquisite yarn, such as hand-dyed and fair-traded merino wool from Urugauy and Alpaca wools from Peru, as well as designing and stocking my own knitted items like scarves, bags and felted items.

I also have a market stall in my local town market once a week – something which has allowed me to start my own business, without the risks associated with opening a shop, and enabled me to test the market – and sell my goods at craft fairs and from my home via mail order. I have also just employed a web designer to create a website which should go live within the next month and hope this will help me expand the mail order side of the company.

What have been the greatest difficulties you have faced?
There have been a number of challenges. The main obstacle for me has been finding suppliers who are willing to allow me to purchase their yarn. Unfortunately, as a small retailer, it is often very hard for me to meet the minimum order quantities required by many of the larger companies, which has certainly not been easy.

I have also financed the start-up costs of the business myself and avoided funding the company through borrowing – something which has inevitably affected how much yarn I can purchase at any one time. However, I have overcome this by specialising in products that are a little bit different to the mainstream and have been really lucky to work with some really fantastic suppliers.

What advice would you give to other people thinking of doing the same?
Research the market thoroughly before you put together your business plan and decide what you want to sell. The yarn market in the UK is very diverse; you can’t stock everything, so think about whether you want to offer well-known brands, where you will have to commit to large, regular purchases of stock, or specialise in more niche products, such as hand-dyed yarns, from small artisan producers.

Of course, this doesn’t mean you can’t change direction in the future or expand into different areas, but it will give you a clear identity when setting up your business and help differentiate your offering in what is an ever-growing marketplace.

How do you think the market is performing at the moment?
There has been a definite resurgence in knitting and I have certainly noticed an increase in new retail outlets and internet-based businesses selling yarn and knitting accessories over the past eighteen months. New yarn publications have also been appearing and local knitting groups are also starting up everywhere.

How has business been for you this year?
I have only been up and running for three months, but it has definitely been better than I expected. I now have a regular customer base and have also seen huge benefits arising from the targeted advertising I have undertaken.

Has the economic climate affected your business?
I certainly haven’t seen any evidence to suggest it has. In fact, January was a very good trading month for me, which is great given that it's traditionally a very slow time for retail sales.

What are the biggest challenges you currently face as a small retailer?
Deciding how to grow the business and keep it fresh and interesting. It is important to stay on top of knitwear trends in the wider fashion world and ensure that the patterns, yarn and colours I sell reflect this. I also find it difficult to juggle the company with bringing up three young children and making sure I dedicate enough time to both.

How do you think the knitting industry will perform over the next year?
Based on its current performance, I predict it will continue to grow. However, it will be interesting to see whether the current rise in VAT and worldwide wool prices will dampen demand for the high-quality natural yarns in favour of cheaper acrylic ones.

What do you think are the secrets to beating the recession?
Offering something unique and a little bit different is really working for me. Providing excellent customer service is also vital as it ensures shoppers come back and buy from you again. I also try to add value to everything I do, whether that be offering free delivery, a pattern advice service for when people have problems, or through running promotions.

What are your plans for the future?
My long-term goal, when the children are older, is to have a high-street shop. However, for now my aim is to do more design work and expand into providing classes from my garden studio.