Richard Harpin, the founder of HomeServe, has long been a familiar name in British entrepreneurship. Having built his home emergency repairs business from a modest startup into a FTSE 100 company valued at around £4 billion, Harpin’s journey is nothing short of inspirational. Now, he has shifted his focus towards nurturing the UK’s small and medium-sized enterprises, aiming to double the number of large companies by providing them with investment, guidance, and networking opportunities to scale successfully.

Harpin’s success story began in 1993 with HomeServe, initially a joint venture with South Staffordshire Water, offering plumbing and drainage cover for a small annual fee. Over three decades, the company evolved into a global entity operating in eight countries and serving more than 8.5 million customers. It has steadily expanded its offerings to cover heating, electrical repairs, and more, growing revenues beyond £1.5 billion and employing around 7,000 people. In 2023, HomeServe was acquired by the Canadian buyout group Brookfield Infrastructure for £4.1 billion, marking a significant milestone in Harpin’s career.

One of Harpin’s key philosophies, which he shares in his new book How to Make a Billion in Nine Steps, is the importance of adopting a “second-mover advantage.” He argues that success does not necessarily require innovation but rather the smart adaptation and improvement of proven business models. As he points out, streaming giant Netflix didn’t invent video rental but copied and improved on Blockbuster’s model, which ultimately led to Blockbuster’s demise and Netflix’s dominance.

Harpin applies this approach to his investment strategy, using a large portion of his personal wealth—believed to be around £500 million from the sale of HomeServe—to back ventures that replicate successful models but add unique twists. Examples include funding Easy Bathrooms, modelled similarly to the popular kitchen and bathroom retailer Howdens; a fitness club chain in Spain comparable to the UK’s PureGym; and Passenger, a British outdoor clothing company inspired by the US-based Patagonia.

His practical application of this principle was highlighted when he rescued his local village pub, The Alice Hawthorn, in Nun Monkton, North Yorkshire, in 2013. Set in a picturesque Grade II-listed building, the pub was struggling to survive, serving only ready meals and languishing in poor condition. Harpin injected £525,000 into its revival but initially faced challenges finding the right management to turn things around. After a series of trials, he eventually partnered with a proven leadership team, offering them equity and autonomy—conditions Harpin emphasises in his business ethos. Borrowing inspiration from successful establishments like The Wild Rabbit in the Cotswolds, they transformed the pub with renovation, a boutique hotel extension, and a restaurant offering high-quality food. The pub is now featured in the Michelin Guide 2025 as one of Yorkshire’s best, though Harpin humorously insists he is not seeking a Michelin star to avoid the disappointment of losing one.

Financially, The Alice Hawthorn generates monthly revenues of £30,000 to £40,000, which Harpin admits is not a sound commercial return on the £5.5 million invested overall. Nonetheless, he views the venture as a meaningful community contribution, reflecting his belief that those who have prospered financially should reinvest in their localities. He also subsidises the beer prices to keep the pub accessible and welcomes local farmers and residents without the barrier of inflated costs.

This ethos aligns with a growing trend among wealthy entrepreneurs who seek to combine business acumen with community support. Other prominent figures, such as Jeremy Clarkson, have similarly revitalised local pubs, blending business with public service.

As Harpin recently stepped down as chairman from HomeServe after over 30 years, his entrepreneurial energy now channels into mentoring and investing in medium-sized businesses through his venture, Growth Partner. His journey illustrates the transformative power of smart copying, calculated investment, and the commitment to giving back to the community—a blueprint he hopes others will follow to drive UK business growth and innovation.

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Source: Noah Wire Services