In 1985, Mala Salakas, aka Patches the Clown, started her own clowning business, The Party People. Initially designed to provide performers for local kids’ parties, Mala soon found herself inspired by a revolutionary idea: what if, instead of sending clowns to the parties, they brought the parties to the clowns?

So it was that she launched a party venue. The concept was ahead of its time, so the company struggled, but Mala found success selling party supplies through The Party People’s retail arm. Eventually she closed the venue and shifted entirely into retail.

From its early days, The Party People was a family business. Since the age of two, Mala’s sons – Dean (right in the above image) and Peter – have been involved in creating products, with Dean eventually building the company’s website, making it the first online party store in Australia.

The brothers took over the business in 2007. At the time, it had two employees. Today, it has over 40.

We talked to Dean about the company’s success, and how it can maintain it in the future.

EXPANDING THE BUSINESS

What makes The Party People so unique in the industry?

There are many small differences (e.g. we offer decorating services where most other party stores do not), however the main point of difference is our range. The Party People’s Drummoyne Megastore is a 1700sqm party store, and the biggest party store in Australia. We have the largest range of party supplies and offer customers extensive options for their party. For example, consider a Hollywood theme party: most party stores have a dozen or so products specific to this theme. The Party People has a 10-metre isle. Other themes are similar with very extensive options for customers.

When you and your brother took over the business, did you do so with the intention of becoming the largest supplier of party supplies in the country?

Yes; we wouldn’t have left our high paying careers for less. We left a very comfortable lifestyle in order to pursue our vision of The Party People as a national, top-of-mind retailer of choice for consumers.

What were the toughest challenges you faced when first starting out?

The biggest issue we expected was growth, but it exceeded our expectations. We were seeing triple-digit growth, and could not keep up with capacity. We constantly hit capactity issues whether it was in regards to employees, space, computers, checkouts etc. The list was never ending.

What do you wish you’d known when first starting out that you had to learn the hard way?

I wish I learnt to plan better. Too often we got caught out not being well prepared for seasonal fluctuations and growth. We now plan much better and our operation works.

LOOKING TO THE FUTURE

What do you believe is the most important element that keeps you at the top of the industry?

Staying ahead. I attend retail conferences, seminars, and other types of events regularly to try to hear what people are doing that’s new and be in front of change rather than reacting to competition.

How do you see the industry changing over the next 5-10 years?

I believe many retail industries like mine are headed for major change in the mix between purely online retailers, bricks and mortar retailers, and multichannel retailers. I think there is a place for all, however the market leaders in retail will be the multichannel retailers that can be strong in both areas.

How will The Party People adapt to that change?

We are currently the market leader online, and are currently researching financing options to rapidly grow our network of stores.

What is your vision of ultimate success?

I would say we have succeeded when we are top of mind for Australian consumers when it comes to having a party. I often hear people say “I have heard of you before”, so we are on track, but we have a long way to go before we’re the first business people think about when planning an event.

Do you have any advice for entrepreneurs who want to follow in you and your family’s footsteps?

I would say, don’t do it! Its hard work and you have a 2% chance of success. If they don’t take my advice, they might actually have what it takes to succeed.

For more information on The Party People, visit their official site, www.thepartypeople.com.au, or Facebook page.

Our thanks go to Dean Salakas for taking the time to take part in this interview.