Business Matters July '09 Issue

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business Matters: June 2009

Business Matters June 2009

The UK’s leading magazine for the SME business owner

£3.00

DOiNG it mY waY Simon woodroffe talks about deciding at 40 to be a millionaire and succeeding

siMOn wOODrOFFe / bOOst saLes / teCHnOLOgy

wear it well aDaPtiNG YOUr wOrKiNG warDrOBe

www.bmmagazine.co.uk

IN REVIEW the latest gadgets to help you work smarter

giving it away • in business • news • Marketing • teCHnOLOgy • MOtOring

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Business Matters September 2008

The UK’s leading magazine for the SME business owner

This Month

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Graduate Recruitment 22 Wearing it well

Managing an MBO mediation 24 Workplace

Advise on selling the company to your Looking at the new way management to resolve workplace problems

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Winning awards 28 Technology on the move

Why winning awards brings much more than travel just kudos Paul Bray looks at how easier would be if we when it comesharnessed to beating technology your rivals to get around

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40 back Leadership Challenge Giving

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North East Focus

Carmelina at managing transition in work Taking your CSR policy toLawton a handslooks on level place roles and promotion of staff

42time on Teeside Cost health We spend some looking at check the The easiest was to that you keep your profit entrepreneurial skills taking shape ensure in the city margins up is to reduce your cost base

Do y you ou u have the tool right to ool ffor or the jjob? ob have ave no 80% of small business owners ha idea if their ITT system fits their business. bu usin within 80% of small businesses fail with hin 5 years. Sources: Sour ces: census.gov census.gov,, Dun n & Bradstreet, Bradstreet, BERR

We pr We provide ovide MAC & PC support and IT coaching services. servic ces. W e ar e small business busin ness specialists, technologists, technolog gists, We are geeks, gadget addicts ad ddicts and general generral a lovers of o people and technology. techn nology. call. Give us a call

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Interview 14 Interview

Diane Priestly talks to Mike aboutWoodoffe his business Paul Jones talksHarris to Simon about how life successes with Egg & First Direct has changed since going into the Den.

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Ask 31 Brad Networking

Brad Roser joins to answer all important Andyus Lopata looksyour at why now is the right time to business questions helpnetworking you grow your business increasetoyour

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Finance 46 Sales Advice

Financial Advisor Gavin Porritt explains how youtalks can how to Leading sales coach Andy Preston use use pension better use. boosttoyour sales even in a downturn

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Technology Reviewed 61 Motoring

We take a look at the latest gadgets to help you work smarter David Sumner Smith tests the new BMW X6 and remains as confused by the hybrid

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EDITOR’S LETTER hese are troubled times. How troubled depends on who you are, where you are based and what business sector you operate in. The many candidates on the ‘most troubled role’ list is arguably topped by a Mr Gordon Brown, based in Westminster, London SW1. Carmelina Lawton Smith looks at how Mr Brown has made the classic mistake, made by many owners of Small & Medium sized businesses owners, when someone promoted into a new role forgets to leave the role that they left behind him. We are not sure that, the goverments new business advisor, Sir Alan Sugar, who is still adding up the bar bill on the wrap party on this seasons The Apprentice wont have that problem, although the jury is still out if he can be an effective force for change. Many of you might be feeling the fierceness of the current global chill hitting the economy, although following both discussions up-and-down the country with many of you and research carried out by Trends Research, it appears that not all is as depressing as the mainstream media would have us believe. Many of you suggested that you had either had growth in turnover by between five and twenty per cent during the last three months and many were anticipating the same increase of the next three months. Are you a regular on our website? BMmagazine.co.uk. The site, updated weekly, provides you with the latest news, views and advice on how to run your businesses better.

T

The Pitch - 18

Richard Alvin Managing Editor [email protected]

Managing Editor - Richard Alvin - [email protected] Editor - Bill Hilton - [email protected] Online Editor - Paul Jones - [email protected] Contributors: - [email protected] Jim Moore, Felicity Cousins, Gavin Porritt, Donald Findley, Mark Prigg, Louise Shaw, Derek Bedlow, Andrew Price, Sarah Bethell Production Manager - Stewart Hyde - [email protected] Designer - James Connolly - [email protected] Head of Advertising - Tony Carty [email protected] Tel: 020 7148 3861 Email: [email protected] Subscriptions - [email protected]

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Recovering the fallout of the budget - 49

Published by - Capital Business Media Ltd Ensign House, Canary Wharf, London E14 9XQ Copyright: (C) 2009 Capital Business Media Ltd. ISSN 1754-3096 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means without the prior consent of the publishers. The views expressed in Business Matters are not necessarily the views of the publishers. Whilst Capital Business Media Ltd has made every effort to ensure the accuracy of the information contained in this publication, neither they nor any contributing author can accept any legal responsibility for any consequences that may arise from errors or omissions contained in this publication or from acting on any opinions or advice given. In particular, this publication is general and not a substitute for professional advice and you should consult your own professional advisors where appropriate.

Capital

Business Media Business Matters issue 173 • 5

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News Live Longer: on your bike

£1Million challenge launched to boost youth enterprise

With petrol prices hitting new heights, more and more people are turning to pedal power to get to work, and get fitter – research suggests cyclists could live two years longer. According to Europe’s leading office and workplace equipment supplier, Welco, orders for company cycle sheds and ramps have never been healthier- they have seen a 100% increase in sales the last two months. It has never been a better time to ditch the car and start cycling to work. In fact, under the 1999 Finance Act, if employers sign up to the cycle-towork scheme, it is a win –win situation – companies can provide bicycles and accessories as a tax free benefit, while gaining national insurance savings. Under the Government’s Green Transport Plan, which promotes healthier ways of getting to work while reducing environmental pollution, employees taking advantage of the scheme receive savings of up to 50% on the retail price of bikes and accessories. Birmingham-based Welco, has to date seen a significant increase in orders from local authorities, health departments, the police and companies large and small – all looking to provide new or increased cycle facilities for their staff. As Welco’s chief executive, Adrian Reeve maintains “Cycling to work benefits everyone. Its helps relieve traffic congestion; helps cut pollution; helps people save money they would have spent on petrol; helps reduce global warning; and often reduces their travel time. And with the Tax incentives, people should take up the challenge. “Cycling is no longer the reserve of lycra-man. It is now being regarded as a viable means of transport. With the prospect of the $200 barrel of oil, the bike should be viewed as a primary form or transformation – a free, calorie-burning, mobile gym.”

Youth charity The Prince’s Trust is urging businesses across the UK to compete in a £1 million national enterprise challenge. “Million Makers” challenges employees to run their own mini-enterprises, raising thousands to get young people into business. Nearly 70 companies – including Accenture, Yell.com and St Tropez – have signed up already and will be competing to raise the cash. The money will go towards supporting young entrepreneurs on The Trust’s Business Programme. The battle commenced this week as the challenge was launched at Go Ape High Wire Forest Adventures across the country. Participants took to the trees for an action-packed team building adventure of walking rope bridges, crawling through wooden tunnels and zipping to the ground in order to tighten their team working skills and sharpen their senses for the national fundraising challenge. Teams will then strive to come up with the most lucrative business idea and run their own businesses to raise money to change young lives. Raef Bjayou and Claire Young, stars of The Apprentice and Prince’s Trust ambassadors, attended the launch. Raef said: “The fantastic thing about Million makers is that participants are not only honing their own entrepreneurial skills, but raising funds for entrepreneurs of the future that don’t have the financial means to get things off the ground. It really is a win-win situation” Julian Barrell, director of fundraising, The Prince’s Trust said: “With Britain’s best business brains behind us, we can help more young people into business. Nurturing entrepreneurial talent is now more important than ever. We cannot let the Sir Alan Sugars of tomorrow be thwarted by the recession.” Rebecca Mayhew, Go Ape Communications Director, said: “Go Ape is delighted to be hosting the launch events of Million Makers for a second year. Go Ape Corporate Days have been running for a number of years now and have proved a brilliant way for the Million Makers teams to get some team bonding in and start to plan their strategy. Teams can look forward to some treetime swinging through the canopy, wiping out at the bottom of zip wires and sharing in three hours of adventure. We hope that Go Ape will inspire our million makers

6 • issue 173 Business Matters

New ambassador Raef Bjayou

to believe that money really can grow on trees if you are creative enough.” Stuart Watson is a partner at Ernst & Young which has already signed up to Million Makers 2009. He said: “The Million Makers challenge provides personal development opportunities for our people including increased self confidence and motivation; developed communication and teaming skills; and networking opportunities.” Last year’s Million Makers challenge raised more than £500,000 to help disadvantaged young people into business. Million Makers 2009 is the largest employee fundraising initiative in the history of The Trust. The Business Programme has helped more than 70,000 young people into business since 1983 and needs £1million every month to continue its vital work. To sign-up to Million Makers or for more information, call 020 7543 7420.

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News Does your village need saving? A major new initiative by the Big Lottery Fund and BBC One is offering six individuals with a proven track record in business the chance to escape the rat race for a year to help rejuvenate a rural village in the UK. It may not be set in tropical Queensland, but the six successful ‘Village Champions’ will get to live and work in one of six rural villages for a whole year and use their expertise to support the community in starting up a new business – with Big Lottery Fund backing of up to £400,000. The search is part of Village SOS, a new partnership between the BBC and the Big Lottery Fund (BIG), which is challenging villages to come up with brilliant ideas for new businesses to help revive their communities, many of which are seeing rural life eroded by economic pressures and the closure of local amenities. Village SOS is inviting rural communities with a population of fewer than 3,000, lots of enthusiasm and a great business idea – from retailing to manufacturing, the arts to leisure – to apply.

Six villages will receive Lottery Funding of between £100,000 and £400,000 to get their businesses of the ground. To help them achieve their ambitions, Village Champions are being recruited through a nationwide search run by the BBC and Make Your Mark, part of the charity Enterprise Insight. The Champions could be anyone with a successful track record in business - banker, baker or builder - as long as they have the drive and charisma to help launch a new venture, and the desire to live and work in a rural village for a year. The BBC will be documenting the journey of the six villages and their Village Champions for a major BBC1 series in winter 2010. The documentaries will be presented by Sarah Willingham, who previously presented BBC2 show The Restaurant, who grew famed Indian catering chain The Bombay Bicycle Club into a hugely lucrative catering business. She has also managed some of the biggest brands in the restaurant industry, from Planet Hollywood in France to Pizza Express International where she oversaw restaurant openings in 12 countries.

She said: “Village SOS is an ambitious campaign and one that I am really excited about. It will help regenerate rural villages and will hopefully arouse the interest of a range of individuals who are eager to escape the rat race and take on a new challenge. For them, this could be the best job in UK!” Sir Clive Booth, Chair of the Big Lottery Fund, said: “While rural village life is in decline we believe that many villages are sitting on a range of untapped potential that, with the support and experience of a driven individual, can be turned into thriving businesses.” Alongside the series will be a major learning campaign* to help other villages use the learning and enthusiasm from the programme to take a bold step towards starting a new business that will regenerate their own communities. Both the BIG grant application process and the BBC search for Village Champions are now open until 14 August 2009. Info on how to apply can be found at www.bbc.co.uk/villagesos

Become a book worm and boost your marketing know-how at the Institute The Chartered Institute of Marketing, the world’s largest professional body for marketers, is opening up its extensive library catalogue to the public for the first time via its website. By opening access to the library catalogue up to the wider public, The Institute is fulfilling part of its obligations under its Royal Charter, to ‘increase public awareness and understanding of marketing as a vital factor in business success and prosperity.’ The catalogue has bibliographic reference to over 200,000 articles, research papers, conference proceedings and other marketing material that has been built up over more than 25 years. David Thorp, director of research and professional development at The Institute said, “This magnificent resource for marketers and the

general public has been tucked away for far too long. Easy access to marketing information and knowledge has never been more important, particularly in these difficult times, and I hope marketers, business owners and people around the world make full use of our catalogue to gain a greater understanding of marketing and its vital importance in improving business performance.” All entries in the catalogue are indexed using a thesaurus that has been developed from the London Business Classification, enabling tailored searches across different media types. To facilitate easy access, a range of pre-decided searches have been placed on topic pages on www.cim.co.uk/marketingresources. For further information please visit www.cim.co.uk/library

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News Does your business have the X factor to succeed? O2 have launched the 2009 O2 X Awards, the search for the best of British entrepreneurs and small businesses. Now in their sixth year, the awards are looking for something extra special in the new generation of small businesses who are making an impact in an increasingly competitive market-place and challenging economic climate. The O2 X Awards are now open for entry via www.o2.co.uk/xawards and entrants have until 1st August to apply. This year, O2 is searching for the Male and Female Entrepreneur of the Year, as well as a new category for 2009, the O2 X Young Entrepreneur of the Year, to recognise emerging talent within the sector. The most original and innovative businesses in each category will receive a winners’ package of £5,000 as well as mentoring from a business expert and marketing support. O2 X Female Entrepreneur of the Year - supported by Grazia

Rewarding the best in the business, the Female Entrepreneur of the Year will be someone who can demonstrate innovation and excellence in the small business world. Nicky Kinnaird, founder of international beauty brand Space NK, will be guest judge for this category, looking for a female business woman ready to set the business world alight O2 X Male Entrepreneur of the Year - supported by Shortlist

This category is looking for a businessman who has started out on his own and built his business into a success story. The overall winner will be someone who can demonstrate innovation and best practice in running their business O2 X Young Entrepreneur of the Year (Under 25) Under 25 and already a business success story? O2 wants to hear from you! As recognition of the ever-increasing young

talent in the business world, this new category will reward an exciting upcoming talent As part of this year’s O2 X Awards, O2 is running a series of small business networking events at O2 Academies across the country. The regional events will offer the opportunity to not only find out more about the O2 X Awards and what they can do for your business, but also a chance to hear from a panel of small business experts including last year’s O2 X Award winners and the opportunity to network with other small businesses in the area. Winners in all categories will be chosen from a regional shortlist before advancing to the O2 X Awards National Final in London in October 2009. To register for the place at the events go to: www.o2.co.uk/xawards

Buying local is the way forward says the North MORE than three quarters of North West businesses 'buy local' but more should be done to boost faith in regional services. The Commission for Economic Development, Employment and Skills, on behalf of pro·manchester and professionaliverpool, interviewed a sample group of 434 businesses, 15 councils and 25 public authorities and publicly-owned companies in the region to determine where money is spent. Banking was the most popular financial and professional service, with more than four fifths of respondents procuring this service. Accountancy, book-keeping, auditing activities and tax consultancy are procured by 81.1 per

8 • issue 173 Business Matters

cent, insurance by 75.6 per cent while legal services are sought by 63.8 per cent. The report showed 98.4 per cent of respondents purchase financial and professional services from within the region but pro·manchester chairman Simon Oldfield is urging all businesses to support the expertise on their doorstep. He said: "Networks and word-of-mouth business is invaluable in the financial and professional sector. We need to ensure people have faith and trust in the region's suppliers. "We must encourage firms to adopt local procurement as part of their corporate social responsibility and emphasise the business benefits of buying local."

Although the vast majority - 79.7 per cent of respondents - stated procurement decisions were taken locally, some sectors were affected by decision-making out of the region. Almost a quarter of insurance and related services and 11.3 per cent of advertising, for example, stated procurement decisions were not taken on a local level. Other reasons for procuring services outside the region included historical reasons, disappointing performance, local prices not being competitive and better lobbying in open tenders for business from national or international competitors. Survey respondents also cited accessibility, responsiveness and support as key factors for choosing local providers.

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IN B U S I N E S S T-Mobile launches new calling plans

T-Mobile has announced its new Business SIM-Plan that has been built specifically for UK small businesses, offering a flexible mobile solution for companies wanting up to 30 users. Each user receives 2,000 minutes of inclusive calls to UK landlines and mobile phones, unlimited UK texts as standard, as well as the option of unlimited mobile email and internet access* for just £5 extra per month. The new SIM-plan for business offers competitive value and flexibility for users that don’t want to be tied to lengthy contracts. Recognising that real businesses in today’s economic climate need flexible, reliable and above all, cost effective communication plans, T-Mobile is giving small businesses access to all the tools needed to work on the move. No other business

SIM only plan currently available offers such great value with 2,000 inclusive minutes and unlimited texts for only £30. Using existing phones and numbers, businesses can simply decide whether they want a 30 day rolling, six month or 12 month plan, insert the SIM(s) and then get on with what they do best. Oliver Chivers, Head of Business Marketing for T-Mobile UK, comments, “In today’s tough market conditions small businesses need all the features that come with long-term mobile plans but often don’t need to upgrade their phones or want to lock themselves into lengthy contracts as they’re unsure of what their exact future needs will be. The T-Mobile Business SIM-Plan has been built with small businesses in mind – offering unrivalled value for money, with short-term

plans and a plug-and-play SIM card that meets their real needs. We know our business customers have other priorities, which is why we continue to launch business products that keep it simple and help them control costs without compromising on service and reliability.” With free voicemail, itemised billing and account health checks coming as standard, Business SIM-Plan customers can also expect the same dedicated support of T-Mobile’s business customer service team as its Business 1-Plan contract customers. In addition, all Business SIMPlan connections can opt to take our Mobile Office add-on, giving unlimited mobile email and internet for just £5 per month. This is compatible with Windows Mobile Email and BlackBerry Instant Email, offering constant email and internet access for business users away from the office. Business SIM-Plan has been created to compliment T-Mobile’s existing business tariff, Business 1-Plan. The successful refresh of Business 1-Plan in January 2009, which culminated in a TMobile Business advertising campaign in March and April, has lead to record sales of BlackBerry devices this year. Both business tariffs are available through T-Mobile’s business channels. For more information visit www.t-mobile.co.uk/business

Top Scottish firm crowned ‘Customer King’ Leading outsourced IT services provider, Conosco has been honoured with a top award for its commitment to delivering first class customer service. Conosco was one of only eight UK companies to be awarded the title of ‘Customer King’ in the competition run by Cisco. Highly praised for being able to ‘step into customers’ shoes’, Conosco offers London’s small and growing businesses, including Lombok and Anya Hindmarch, the type of IT solutions and services that previously only large companies enjoyed. Ben Gladstone, CEO at Conosco, ex-

10 • issue 173 Business Matters

plains: “At Conosco we are determined to revolutionise the delivery of solutions to growing businesses, and offer them the level of commitment, technology and attention to detail that larger companies get from their suppliers. Smaller businesses still need reliable and innovative support, but ultimately good customer service is the glue that binds us to our customers. We offer a very personal service where we are able to put ourselves in their shoes and consider the serious impact of IT downtime from their perspective.” Gladstone believes that during the current economic climate, companies like Conosco that offer a personalised ap-

proach will be the ultimate winners: "As soon as Lehman Brothers fell, we visited all of our customers and asked them how we could help cut costs – whether that was to reduce their IT usage or move them to cheaper platforms. That 'Blitz spirit' helped us work creatively with customers, rather than them saying 'we need a 50 per cent discount'." As part of its ongoing commitment, the firm has also launched its new web site www.conosco.com to make it easier for customers to see and understand its range of IT services, and appreciate how good use of technology can release the talent in an organisation.

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IN B U S I N E S S Keeping on top of travel expenses

American Express Business Travel has announced the launch of Pre-Trip Auditor, a new automated solution that can provide improved control of travel policies and expenses by allowing companies to review out of policy business travel prior to ticketing. The customisable solution audits all online and offline bookings processed by American

Express, ensuring policy compliance across all booking channels. “With an increased focus on preventing costs at the point of sale, clients are looking for an end-to-end solution that allows them to quickly implement new travel polices as well as giving them maximum control over their travel and drive cost savings,” said Paul Hargreaves,

Vice President and General Manager, Business Travel UK & Ireland and Global Foreign Exchange Services, American Express Travel. “Pre –Trip Auditor is an important innovation and best in class service in the travel management industry, and we are delighted to be launching it in the UK marketplace.” Pre-Trip Auditor is one part of a total compliance solution designed to assist companies to gain control over expenses by requiring employees to book travel within the guidelines of the corporate travel policy. The tool enables authorised employees to easily review and approve or decline trips. If a booking is out of policy and requires approval, Pre-Trip Auditor generates an email to the designated authoriser within the company with trip details, including the reason for travel and specific policy breached. The authoriser then has the option to approve, decline or hold the booking in order to look into it further. Highly customisable, Pre-Trip Auditor allows companies to choose the level of control for individual traveller groups and companies as a whole. Pre-Trip Auditor allows for review of all travel categories, including but not limited to air, hotel, total trip cost, form of payment, preferred vendor, and security risk. For more information on Pre-Trip Auditor, and other Business Travel products and services visit www.americanexpress.co.uk/businesstravel

Move to a cheaper & greaner postal option A fast growing company is transforming the way businesses send post providing them with a cheaper and greener alternative. ViaPost is pioneering a ‘hybrid mail’ service which allows individuals and businesses to send physical letters via the internet - almost halving the cost of doing so through more traditional routes. The system, which operates through a free downloadable Windows print driver, was established last year by a group of entrepreneurs and industry experts, and the company is on course to achieve a £5 million turnover this year. The process is simple, highly effective and user-friendly. The user simply selects ViaPost from the printer list in any Win-

dows application and their document is sorted electronically, printed remotely, enveloped, and handed to Royal Mail for delivery the final few miles, with an all-in cost for each letter of 27p, including printing, stationery and delivery. It is estimated that the average cost to send a letter by traditional means, including the purchase of the paper, envelope and stamp, is at least 52p. This means that a company can save more than £1000 a year for every 100 letters per week that they send. The ViaPost system also reduces the physical distance required, as each letter is encrypted and transmitted to a print hub near its final destination, making it a far more environmentally friendly option.

Many businesses already using the unique service and experiencing significant savings. Simon Campbell, ViaPost’s Chief Executive Officer, said: “ViaPost is simple to setup and use and saves businesses significant amounts of money and time, while also being greener. It’s a no brainer. I mean, we haven’t yet had anyone take a look at the service and decide, ‘No, we don’t want to save that kind of money, that’s not for us’. Rather than competing with Royal Mail, ViaPost is working in partnership with the UK’s national postal service, and is also involved in an ongoing relationship with Microsoft that could see ViaPost included in its software.

Business Matters issue 173 • 11

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IN B U S I N E S S Don’t give in to the copy & paste temptation Fasthosts Internet, a leading web hosting provider, has warned UK businesses not to be tempted to copy material from other companies’ websites. The web host has seen an 89 per cent rise in the number of content disputes involving websites over the past year, most commonly where businesses have reported that website material has been replicated without permission. The company recommends that users always seek permission to use online material, however small, from the relevant website owner. Fasthosts also released the results of a survey of 152 UK businesses which finds that more than one third (39 per cent) admit to currently feeling envious of a website belonging to a

competitor. 1 in 10 businesses surveyed had at least one item of their own website copied during the past year. The data lends weight to the theory that the challenging economy and increasingly competitive online marketplace is perhaps leading more small firms to cut corners and plagiarise online. Nowadays, a company website is viewed by most enterprises as an integral part of its brand and public profile. However, it appears that an alarming number of UK firms are finding that material (such as artwork, descriptive text or product images) has been copied from their website and published elsewhere. The problem varies from the occasional image being used to entire website designs being replicated. The practice can lead to consumers becoming confused, or even being misled into buying from the wrong company. According to Fasthosts, there has been an 89 per cent increase in the number of content disputes re-

ported to its in-house Abuse Department from April 2008 to April 2009. The company reports that in many cases, businesses did not realise that copying items of online material could land them in trouble. A survey of 152 UK businesses(1) commissioned by Fasthosts finds that ‘web envy’ can be a real temptation for time-stretched business owners. 39 per cent of owners surveyed admit that they are presently envious of the website of a closely competing business. At the same time, 1 in 4 are considering reducing their use of external website design services in order to cut costs. A recent study by Fasthosts underlined the pressure on small business owners to maximise their use of the web – the average company rates their website at 6 out of 10 for effectiveness, whilst it also aims to treble its online revenue in 2009. Replicating material for commercial use often breaches copyright. Always obtain permission before using anybody’s website material".

Recession fraud can tip you over the edge There are big risks in treating fraud as a low priority in the recession, small businesses are being warned by the Fraud Advisory Panel (FAP). “On the contrary, the threat is at its worst during hard times. Big companies can be badly shaken by fraud but small ones can be destroyed” says Ros Wright, Chairman of the Panel and a former Director of the Serious Fraud Office. “Recession brings enormous pressures and it’s tempting for small firms to treat fraud as the least of their worries. But coping with the consequences of even a small fraud can consume huge amounts of time and resources which are already at a premium. Fraud prevention is an essential part of any downturn survival strategy.” The Panel, a registered charity established by the Institute of Chartered Accountants in England and Wales, notes reported fraud against British businesses has increased significantly over the last year. Ros Wright explains that “recession in-

creases the potential for businesses to fall victim to new frauds committed by opportunistic criminals or previously honest people and companies under economic pressure. And it often brings to light existing frauds as credit lines run out and financial manipulation can no longer be concealed’.” The Panel has put together advice on how to protect your business: Identify the areas of your business that might be most vulnerable to loss from theft or fraud, such as sales, stock, purchasing, expenses and record keeping. Strengthen any obvious weaknesses you have identified. This might include introducing additional checks for signing off payments or authorising purchases. If possible, designate a senior member of staff with responsibility for managing these risks. Monitor your bank and credit card statements for unusual transactions. Ensure that your business premises have adequate physical security protection

including locks, keypads and alarms. Try to minimise cash transactions. Conduct checks on your suppliers, contractors and biggest customers to make sure they are who they say they are and that you are getting value for money. Check invoices against original purchase orders and the goods supplied. Make sure your staff are aware of the risks from theft and fraud and how to report it. Communicate staff expense policies/procedures and monitor compliance. Check references for all new staff; full-time, part-time, temporary, and casual. Further checks may be needed as employees are promoted or require access to more confidential information. Adequately protect your IT systems and business information from the cybercrime risks posed by phishing, viruses, hacking and scams. Don’t Forget that severe economic pressures can cause previously honest people to become dishonest.

Business Matters issue 173 • 13

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Advice

Doing it as Simon says... Paul Jones chats to Simon Woodroffe about why he decided to start Yo! Sushi, his brush with the law, why having money makes him happy and what his investment plans are for the future in these difficult times.

Are you very active as a stock market investor? When I sold a stake in Yo! Sushi in 2003 I wanted to invest around £1m and I looked around to find an adviser. I've got a good accountant but I didn't have anyone to invest wisely for me. Eventually I put it into mutual funds with Sterling Assurance but then, when everything started to dive this year, I realised that wasn't working. I now see my dream of an ideal adviser doesn't exist – you have to take responsibility for your own decisions. In early September last year I decided to take my money out of funds and into a deposit account with Sterling. I was very late doing it and I lost about £200,000 on the value of my portfo-

14 • issue 173 Business Matters

lio last year, but at least I got it out before the really big crash so I congratulated myself on not losing another 20pc. I think now the only way for me to make money in stocks is if I find out more about it. In the past I have always felt out of my depth.

destiny. One of my fears is I don't understand the stock market properly, so I will face up to that and find out more about it. In my experience when you do that you find things are simpler than they appear.

Why are you going to try again?

Can you give me an example of when you have done it before?

Because I think it makes sense to spread my money across asset classes and the stock market must rise again. And, with interest rates coming down, the money I have on deposit won't keep pace with inflation. But, when I do it, I'll do it with enthusiasm, taking an interest and assuming responsibility. I live to this motto – follow your fear to find your

I used to be very afraid of the law because I was busted for drugs when I was 17 and spent a few months in jail. When I divorced my ex-wife 20 years ago I realised I was very scared of the law, so I handled the divorce myself rather than go through lawyers. It took two years and it meant I had to read every letter myself and do all the filing, but I realised the courts are funda-

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Advice mentally fair. I effectively won the case and did really well and since then I've been through various legal battles and I don't get scared anymore.

How did your childhood influence your attitude to money? My father was a fairly senior army officer (he reached the rank of brigadier), but we never had as much money as the rest of our extended family. I think my parents felt like poorer relations – the rest of my family lived in vast country houses, whereas we lived in a five-bedroom detached farmhouse in Essex. My father felt insecure about this and would always be terribly worried. I remember being told not to mention we only buy gin one bottle at a time, for example. All this made a deep impact on me – from a very young age I wanted to join the wealthy club. When I was 16 I used to tell everybody I was going to be a millionaire by the time I was 20 but when I reached the 1970s I was having such a good time I decided to put it off until I was 30. Then when I got to the end of my 30s I started pulling my hair out because I'd completely forgotten to be a millionaire.

Kentucky Fried Chicken at an early stage and made hardly any money from it I thought a royalty would be the best solution because I had seen it in the entertainment industry. I'll admit it's always been a bone of contention. Anyone who has ever bought a large stake in the business has scrutinised the contract to see if it is attackable. Fortunately, my lawyer, John Pratt, had tidied it up nicely. It means my grandchildren will always benefit from what I have achieved.

What about pensions? I've got a SIPP and I have been putting money into that over the last seven years. I'm at the maximum fund size of £1.6m, but I am holding most of that in cash at the moment.

What's been your best buy? I bought a few hundred thousand dollars when they were $2 to the pound, pretty close to the top of the market. I thought that was shrewd of me given the dollar is now so low. The exchange rate hit $2 last year and again in spring this year and having spent most of my life with it at $1.5 I thought it can't go much further up. I've always followed the dollar because I use it when I travel to America.

And your worst buy? Every time somebody has tipped me off about a stock. I can't remember them because I put them out of my mind. If somebody gives me a tip now I'm going to ignore it.

Has having money made you happier? I think it's made me a nicer person. That probably sounds like a strange thing to say but I used to be anxious, driven and insecure. I left school with just two O-levels, no real qualifications to fall back on. Achieving success has always been an important part of my self-esteem. At some level I was always quite angry. I was angry with my childhood, with my father not having what he wanted and with myself for being angry. My success has made me more comfortable with myself and a lot more relaxed.

I have read you enjoy a 1pc royalty from Yo! Sushi sales… Yes, I have kept an interest in that business in perpetuity – 1pc of gross sales come like a royalty on a book or a record. When I read that C o l o n e l Sanders sold his stake in

Business Matters issue 173 •15

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Advice How do you prefer to pay – cash, card or cheque?

What's been your greatest extravagance?

I have a NatWest Black card but I prefer to use my Maestro because I know the money is in my account and I am an anti-snob – I rather like it when I'm in a smart restaurant and people expect me to pull out an exclusive card but I just get the Maestro out instead. I like to have a couple of hundred quid in my pocket for tipping.

My Bentley Continental, which I bought five months ago for £147,000. I've never really been a car lover but I love my Bentley. It's a green with a brown stitched convertible roof.

Do you always tip large? Quite often but, if the service hasn't been good, I can look a waiter straight in the eye and withhold it without being rude. I find the best way is to engage in conversation – I might say I would love to tip when I come back but not this time. I would explain what went wrong without irritation and add that it might not be their fault (it could have been the kitchen). I'd then promise that if they correct it for next time they can count on a good tip from me. The trick is to be nice.

Is the current economic downturn affecting you? My Yotel business is constructing buildings at the moment and in some instances we've been delaying contracts because we think we will get better prices next year. We haven't suffered ourselves yet – hotel sales are up because we are a low-cost product. I spoke to Yo! Sushi today (I was thinking of my royalty) and they've had some big successes in Liverpool and Bristol. London has been flat for years, but sushi is not a luxury item so I'm confident those outlets will survive.

What's been your favourite holiday? I don't take many holidays, but there's one I will always remember. In my early 30s I was designing rock stages for concerts. I flew down to Australia to win a contract for a Fleetwood Mac tour and on my way back I took a light aircraft to Western Samoa. On the flight I met a girl who lived on the island. She took me to her village to meet her family. Her father was village chief and I remember going back to my hotel afterwards thinking: "I could be the head of the village 20 years from now". I was there for two weeks, swam in the South Pacific, dived off waterfalls and returned completely chilled. In many ways, Woodroffe’s career has come full circle. From being involved with some of the biggest bands of the eighties, to the cold, hard world of business, and then back to rock and roll as respected and admired entrepreneur. “People say to me all the time “don’t you miss rock and roll”,” he muses. “I just reply “I’m still in it”.”

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Advice

Government must help us Subsidies for companies recruiting and training extra staff will not go far enough to protect employees and small businesses hit by the recession, the Forum of Private Business (FPB) is warning. In addition to a new £2,500 subsidy for taking on and training workers unemployed for at least six months, the FPB believes the Government should provide help to businesses struggling to retain their existing staff. Modifying the Working Tax Credit scheme to support shorter working hours and freezing planned increases in employment costs would allow businesses to limit the redundancies they are forced to make. While the FPB’s Chief Executive, Phil Orford, welcomed the measures to get the long-

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term unemployed back into work, and boost their skills to help businesses and the economy to grow, he called for a more sustained programme to better protect employment. “It is important to remember that recruitment is still taking place, and for these employers this scheme is very welcome, but many small businesses are concentrating on trying to keep hold of their skilled employees. This should also form a central pillar of the Government’s support strategy,” said Mr Orford. “The administrative structures are already in place to modify Working Tax Credits to allow for the retention of key and skilled staff on shorter working hours,” he continued. “This process should be based upon the actual hours worked, with income validated by the

employer, rather than the current scheme’s method of basing calculations on the previous year’s earnings.” He added: “Further, in protecting jobs and boosting recruitment, the Government must ensure that its initiatives, including those designed to benefit employees, do not in themselves become new barriers to employment.” The FPB is against the proposed Statutory Redundancy Pay (Amendment) Bill, which would increase maximum redundancy payments from £350 to £500 per week. The additional costs would force many more businesses to close rather than attempt to reverse their fortunes, adding to unemployment and leaving the taxpayer to foot the bill.

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The Pitch 2009

Is your pitch perfect? Dan Martin, editor of BusinessZone.co.uk, introduces The Pitch 2009, an exciting competition, which Business Matters is proud to be a sponsor, offers UK entrepreneurs the chance to win a package of business goods and services worth £50,000

E

ven the best entrepreneurs in history have needed a leg up at some point. Speak to the likes of Bill Gates and Richard Branson and they will admit to turning to all sorts of experts for help on the road to making millions. But the opportunities to receive genuine and practical assistance which makes a real difference to your business are few and far between so when they do come along it’s important that you grab them with both hands. One such opportunity is The Pitch, a competition organised by my website BusinessZone.co.uk which is going on the road this summer to track down Britain’s best small businesses. Company owners in five cities – Bristol, Birmingham, Manchester, London and Glasgow – will pitch their business or idea to a panel of individuals who know exactly what it takes to make it big as an entrepreneur. From each event, one will make it through to a grand final in London where a

18 • issue 173 Business Matters

lucky winner will walk home with a massive package of business support products and services. Nicki Stewart is someone who knows exactly what it’s like to claim The Pitch title as she won the contest in 2008. Since her victory, the founder of Diverse Hampers has seen an uplift in sales and a couple of other award wins. "As well as giving me valuable experience of how to pitch to investors and practical advice on building business success, the amount of publicity I've received has been huge,” she says. “Several newspapers covered my win as did many websites and blogs.

Global publicity "I've had text after text from people saying they've seen the coverage and we have experienced a definite rise in company awareness. I even had a call from someone in New Zealand who saw the video of my pitch on YouTube!" As well as the glory of winning, Stewart also secured a £2,000

prize package. This year however we’ve got one step further and boosted the value by £48,000! Included are website consultancy services worth £8,000, a sixmonth national and regional PR campaign and market research services worth £3,000.

The benefits But not just the overall winner will benefit. We’ll make sure every finalist gets access to some of best business brains in the country while each one will also get to upload their business plan to the website of Angels Den, which connects entrepreneurs and business angels, and get it seen by 2,000 investors! This service alone normally costs £499. We’ve also secured an impressive line-up of judges, many of whom are local to the event in which they are taking part. Among them are green business legend and founder of Ecotricity Dale Vince OBE; Nicola Fleet-Milne, founder of lettings company FleetMilne and winner of the IoD’s

Emerging Leaders Awards and John Peperrell, operations director of Lovington’s Ice Cream who has also appeared on Dragons’ Den! Each panel will also include a real life business angel. Despite the current economic doom and gloom, I believe this competition couldn’t come at a better time. Like recessions of the past, it is small business entrepreneurs who will lead us out of the downturn. Many are implementing good old fashioned creativity and innovation but they need a helping hand to make it to the big time. That’s where The Pitch comes in. For your chance to take part in The Pitch 2009, visit: www.thepitch2009.com

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Advice

Selling for high growth A

fast-track programme to help ambitious companies out of recession has doubled quarterly sales for a video production company. Paul Drew, managing director of award-winning production company The Communicator Ltd has enjoyed one of his best sales quarter ever, despite being in a highly competitive business during a recession. The company is one of 14 on the High Growth programme run by GLE Growth Capital, designed to put SME companies on the fast track. The London Development Agency is funding the programme, which was launched by Gordon Brown when he was Chancellor. London Companies with at least £1m turnover that intend to expand can receive nine-months’ support from a coach who has been a chief executive of a growing and successful business. The course includes regular workshops on performing for high growth. Paul Drew bonded immediately with his new coach, sales guru Juliette Denny, who set about turning the company’s focus from selling high quality glossy corporate videos to a sales pipeline that was product-led. The production team began an aggressive sales drive offering short, sharp videos that delivered tightly targeted messages. It was a campaign that struck a chord with many corporate clients who might otherwise have shied away from the prospect of expensive and timeconsuming productions. “Our coach Juliette stopped us selling a service and treated it like a product. She coached

us in sales techniques, so that we are now much better equipped,” Paul commented. “Prospective clients in a sales meeting might be enthusiastic, but they may not have the budget, or they may not be the decision makers. The client might have his own inhouse video unit, in which case we would offer to take elements of the production, where we could add the gloss that is our hallmark – something that they would not have the skills to do.” Following the sales training, Communicator’s new video product quickly outstripped sales of the traditional video service the company had been producing since it started 21 years ago, doubling sales from the previous quarter. Zubair Aleem, managing director of IT provider Quadnet Ltd had an altogether different problem. The company was losing £30,000 per month during the final quarter of last year, when High Growth coach Permjot Valia stepped in to help. “I never managed my staff before,” admitted Zubair. “Sales is all about motivation, and if the team are demotivated they are not going to sell. We had to set clear and realistic sales objectives, and we had to make decisions quickly.” The company has now stopped burning cash and is back in profit. The business is expecting to increase profits by 20 per cent, despite a £1 million drop in turnover to £6 million. Jenny Tooth, GLE Growth Capital’s Business Development Director believes the High

Growth programme is an ideal opportunity for companies to power their way out of recession: “This programme could be the most valuable priority for companies to ensure they stay on course for growth. They can benefit from the experience of a coach who has already survived a recession.” The High Growth programme has space for up to 35 companies, and GLE, like its clients, is keen to attract new business. Companies interested in the High Growth programme should contact Jenny Tooth at GLE Growth Capital. 020 7089 2331 [email protected]

Top sales tips: · Re-focus the team’s culture to support the sales processes. · Learn how to generate leads, leads and more leads. · Price for margin, volumes can come later. Don’t be a busy fool. · Think, try, track response, think again. Evolve, learn, don’t stand still. · Measure leads, suspects, prospects, sales. To measure is to manage. · Put the metrics on a whiteboard for all to see. Then all will know what needs to be done. · Work your customers. Up-sell, Crosssell, hunt for pain. Pain = profits.

Business Matters issue 173 • 19

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Advice

Telling who you are by the shirt on your back G

reen and Jack’s a custom shirt maker claims to be able to read human personality from their choice of shirts. There have been lots of studies linking colour to personality. Especially the research by Dr. Max Lûscher during the early 1900's is very interesting. He studied the relationship between choices of colour to human behaviour. Dr Lûscher’s study has been used by large companies, doctors and psychologists to analyse human personality. Green and Jack’s a London based custom shirt maker has applied colour research to help their customers project the right image. The colour and fit of the shirt that one chooses gives an insight into one’s personality. What does your shirt say about you? Crimson – high energy, confident, passionate, sensual and brave leader White – honest, practical and natural.. Pink - confident, naughty and unconventional. Black – powerful, elegant and mysterious. Blue – organised, warm, caring and intuitive personality. Yellow – original, happy and helpful. Gray – a balanced and elegant thinker. Brown – A conventional person who loves the outdoors. A well fitting shirt often conveys a structured mind and an organised personality. Choose the fit and colour that projects and compliments ones personality by visiting the custom shirt store. Green and Jack’s custom shirt maker offer free colour consultations. The perfect fit guarantee makes ordering custom made shirts risk free to customers since alterations are free of charge.

22 • issue 173 Business Matters

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Finance

Giving it all away We look at the growing trend amongst the ubber wealthy to give their accumulated fortune away

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hat do Bill Gates, Warren Buffet, Sir Tom Hunter and Duncan Bannatyne all have in common? The answer, apart from considerable success, is that they're all committed philanthropists, who have pledged to give away the bulk of their fortunes to good causes. And they're not alone as with every month that passes, more and more of the world's wealthy announce their intention to devote their time and their money to making the world a better place. So, what's driving them? Though there are many reasons for giving, the most often cited is that it's an enjoyable and rewarding experience. Victor Hugo once said that "as the purse is emptied, so the heart is filled", and for many, philanthropy does just that. It gives people pleasure and life enrichment by knowing that they're making a difference. It also allows them to achieve a spend/give balance. For instance, while he has had no problem in amassing his fortune, the hedge fund manager Arpad Busson said in a recent Guardian interview that his decision to embrace philanthropy was because he found it impossible to enjoy his wealth, knowing there are people out there who were much less fortunate than himself. For others, philanthropy can be the ideal way of instilling family values and educating their children, as showing the next generation what a difference wealth can make to others can help prepare them for the responsibilities of inheritance. When asked what he would leave his children, Warren Buffet famously remarked: "A very rich person would leave his kids enough to do anything, but not enough to

do nothing." Worried about stifling their offsprings' ambitions by giving them everything on a plate, entrepreneurs in particular are increasingly leaving the majority of their wealth to good causes or charitable foundations that they have created. Dragon's Den star Peter Jones has established a trust fund to reward his children for the good they do, their yearly allowance dictated by their choice of future career. He hopes it will encourage them to consider professions that make a difference to others, such as nursing or teaching, rather than focusing purely on those jobs with the best salaries. Likewise, his costar, Duncan Bannatyne intends to leave his entire fortune to his Bannatyne Foundation. He fears that leaving his children hundreds of millions of pounds would rob their lives of any purpose.

A family affair But as well as allowing children to follow their own path, we have found amongst our clients that philanthropy can also bring families closer together. If you own a successful family business, setting up a charitable foundation can allow those relatives not involved in the day-to-day running of the company to work together for a common goal or purpose. For those that have sold their business or are beginning to take a step back from their profession, but are not quite ready to sit back totally, philanthropy is an opportunity to apply both financial capital and life experience in order to solve social problems. Rather than simply writing out a cheque, creating your own dedicated fund or taking a hands-on approach

to the causes you support can ensure that your money and expertise are having the greatest impact. This can often become a career in itself, with similar rewards and the same sense of achievement. When the late Anita Roddick sold The Body Shop, it wasn't so that she could sit back and enjoy the fruits of her labours, it was so she could devote the rest of her life to her charity foundation. In addition to making an impact during your lifetime, philanthropy is also a way of supporting a cause for the long term and creating a lasting legacy. Setting up a trust that will fund organisations or charities in perpetuity will ensure that your work will always make a difference and will remind others of how strongly you felt about a particular cause. For an example look no further than Bill Gates. At the moment he's famous for founding Microsoft, but he hopes that after he's gone, he'll be remembered for his commitment to eradicating disease and ending social inequality in Africa through the Bill & Melinda Gates Foundation. But whatever your initial motivation to start giving, knowing how, where and when can prove challenging. With so many deserving causes, choosing the right one is always going to be a tough decision. And once that choice is made there are further difficulties. How much to give; whether to make a single donation or regular payments; how to gauge a specific charity's performance before supporting it and how to monitor the impact your support is having. It may become hard work, and there are many companies who offer to assist, but the time spent could be more rewarding than making the money in the first place.

Business Matters issue 173 • 23

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n 6th April 2009, employers and employees were given greater flexibility to deal with workplace discipline and grievance issues in a way which suits them best. The government repealed the 2004 statutory grievance and disciplinary process. A new framework for resolving employment disputes in Great Britain emphasises the importance of the early resolution of workplace matters in the workplace. The legislative measures are based on the Employment Act 2008. The Act paved the way for the Acas statutory Code of Practice on discipline and grievance, which sets out the principles that employers and employees should follow when dealing with disputes at work. The foreword to the Code highlights that employers and employees should always seek to resolve disciplinary and grievance issues informally. However, where an issue cannot be resolved informally, then it may be pursued formally. According to the Code, employers and employees should behave fairly and reasonably when taking formal action to resolve their dispute.

This is great news for businesses. Research shows that in some cases, managers spend up to 25% of their time dealing with issues associated with conflict. Although the principles managing grievance and disciplinary issues should still be applied, the encouragement to solve difficulties at an earlier stage will help companies save money. The Chartered Institute of Personnel and Development estimates the cost of conflict to UK business as £24bn per year. In a time of economic uncertainty, this could be a good time to embrace new thinking that will help increase efficiencies. Organisations that fail to pursue options for early resolution may be penalised in the event that a case goes to Tribunal.

What is Mediation? The new Code states “Where it is not possible to resolve disciplinary and grievance issues in the workplace employers and employees should consider using an independent third party to help resolve the problem. In some cases, an external mediator might be appropriate”. Mediation has been practised in the UK for

the last 20 years. It is a future focussed process that is less concerned about who might be right or wrong. It is more concerned about solving problems so that they don’t occur again. In mediation responsibility for finding a workable solution for the dispute rests firmly with the parties. The mediator facilitates the process. The 5 main planks on which mediation is based are: • It is voluntary • It is confidential • It is without prejudice • The mediator is neutral and impartial • It is non-binding (until agreement is reached) One of the strengths of the mediation processes that it can be applied to individual, team, departmental, functional or organisational disputes. A further strength of mediation is that it is quick. For example a dispute that has been rumbling on for years can often be resolved in one day through mediation. In the UK, mediation has a success rate of 93% Whether you run a small, medium or large business there is likely to be a risk of this type of scenario happening within your organisation.

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Advice

Mediation - the new tool for business Clive Lewis author of ‘The definitive guide to workplace mediation and managing conflict at work’ looks at recent changes to help resolve office conflict

What should you do now? For your organisation to also benefit from engaging with conflict resolution principles here are 5 steps I recommend that you follow. 1. Consider training some colleagues to become accredited mediators. This could be done on an in-house basis. 2. Partner with an external mediation provider. This will ensure that in cases where there may be a conflict of interest to appoint an internal mediator you can call on the services of an external organisation 3. Review your organisations policies and procedures to incorporate clauses that promote and encourage early resolution of disputes and mediation 4. Review other parts of the HR framework. For example consider offering training for line manages on topics such as ‘how to manage difficult conversations’ and equality/diversity training 5. Link any success from mediation back to the business case. Identify savings made and ensure the benefits of mediation are publicised within the business.

Case study

A team of around ten consultants from one department in the NHS had fallen out. The dispute had been running on for about 3 years. Part of the impact of it was that they had formed disparate groups. Team meetings stopped happening because they didn’t want to be in the same room as each other. Basic job functions such as being on call or providing additional coverage when needed were also affected. A calculation was undertaken to indicate the likely costs of the dispute. The figure was in the region of £1/2m. The HR director and Chief Executive commissioned mediation. The mediation process forced the team of consultants to get into one room and talk to each other. The session lasted one day and successfully achieved settlement. The return on investment for this exercise was huge. For a relatively small fee, the mediation helped to unlock a dispute that had been tying up highly valued expertise and allowed focus on patient and customer care to become the number one priority again.

Business Matters issue 173 • 25

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Finance

State solutions to small business funding Bill Morrow looks at what businesses are looking for government help with when it comes to lending

I

t’s official: we’re in the midst of a small business funding crisis in this country. Banks aren’t lending, seemingly frozen in fear of going the way of so many of their fallen peers, unwilling to relinquish the £billions that the government has given them specifically to stimulate business lending. What are we to do in the face of such illogical hoarding that is only likely to deepen and prolong the economic doom and gloom that we are now submerged in? President Obama, In a similar business funding crisis in the US, may have struck on a great idea. He has decided to place ownership of the solution squarely in the laps of the banking sector where the problem began. He has announced that the 21 largest banks that have received state funding to keep them afloat now must report monthly on how much money they are lending to small businesses. Every other bank that gets state money has also been asked to report on small business funding, but on a quarterly basis. Wonderful, forcing the banks who have sucked up so many $billions of tax-payers money to do something in return, a task that has so far eluded our government as the banks have seemingly said: ‘thanks a lot for the generous donation to our coffers – now go away and let us sit on our gold until we feel like doing something banking-related in our own good time.’ Obama appreciates that small businesses are major contributors to the economy and to employment. With the $billions invested so far to stimulate business lending having had about the same effect as similar attempts in this coun-

try, and US unemployment figures rising to their highest since 1983, something drastic had to be done.

Dealing with it Here in the UK our unemployment figures are the worst since 1997, and while I have to admit Gordon has been trying to resolve the business funding crisis, he has been using the tactics of a wealthy parent attempting to buy the love of an unruly over-privileged child. Merely throwing money at the problem has had little real effect on business funding as yet and is unlikely to do so. Requiring the banks that have so readily drained the taxpayer’s generosity cup dry to do something positive to help us out of this crisis is an excellent step forward. It is agreed by most economists that helping new ventures to launch and grow is the most effective way of us repairing the problems in our economy, and getting the banking sector back into the business-funding game is the way to go. While the papers have been full of the problems that the UK economy is facing and the

failed attempts at stimulating bank landing, there has been one ray of light for new enterprises and small businesses: the growth of Angel investing as a viable alternative for small business funding. Angels Den has seen record numbers of entrepreneurs and small business investors signing up for an opportunity to meet one another and discuss the potential of a partnership. Exciting things have been happening, and because of the sheer volume of interest in what we are doing and the successes we have witnessed at many of our recent speedfunding events, we are confident that even when the banking sector gets its act together the rise of Angels investment for small business funding will not be curbed. We are creating business success stories every week through building strong and profitable partnerships. If you would like to find out how we are doing this or when our next speedfunding or pitching training sessions are, then come to our website at www.angelsden.co.uk

Business Matters issue 173 • 27

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Joined up travel info could make commuting a joy

Paul Bray looks at how easier travel would be if we harnessed technology to get around "The train now standing at platform 4 will call at several stations and then X. At X, Mr Jones, turn left out of the station and catch the number 17 bus towards Y (there's no need to hurry as it's running four minutes late). Alight at the seventh stop, cross at the zebra and go down Z Street..." Wouldn't travelling be easier if all the announcements were so detailed, personalised and up to the minute? In future they will be - not over the station Tannoy, of course, but direct to our mobile phones, satnav systems or public information kiosks. "Information will be more joined up, so that when we plan a journey we shan't have to worry about how we're going to travel, only where we want to go, when and why," says Nick Illsley, chief executive of Transport Direct, the Department for Transport's online travel planning website.

A personalised information portal will present us with the various options and routes, via public and private transport, with predicted timings and costs (financial and environmental), leaving us to make an informed choice. When we've decided, the route information will be transmitted to our phone, satnav or other mobile device.

Avoid congestion The system won't always suggest the same route for the same journey. If we're travelling on business it may assume we want to travel quickly rather than cheaply, and be sure of getting a seat on the train and a WiFi connection so we can do some work. Or it may know that our firm has a strict environmental policy and that we'd prefer the lowest-carbon route. The system will know which roads are

likely to be congested and when, either from past experience or by intuition (so it won't route us past a school gate at 3.30pm). And it will take account of known variations to the regular pattern - rail engineering works, say, or a big soccer match - rather than slavishly following published timetables. There’s no need to worry about disruptions on the day, says Howard Wilson, business development director for transport at Mastek, a software company that works with Transport for London. "Travel information will become your information about your particular journey. So the system will contact you if there's a problem that affects you and suggest an alternative route, whether it's your regular commute or a one-off trip." "Part of the intelligence will be in making sense of the data and filtering out what's not important," says Illsley. "If my train is two

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Advice

minutes late I don't want to know. If it's 10 minutes late I do, and I want to know what that means for my connections." Ultimately, says Robin Mannings, resident futurologist at BT, pre-booked individual journeys could become part of a master plan that deliberately divides travellers between different routes or even different modes of transport in an attempt to reduce congestion. If there's an unforeseen problem, the system could automatically re-book us onto a later flight if it knows we'll be delayed, or advise us to park and continue by train if our road becomes jammed.

Joined up data For joined up travel and personal journey planning to function, says Mannings, they must be supported by several kinds of data. This will include detailed digital maps, accurate timetables, historical information about usage and congestion patterns, details of planned but temporary factors like road works or major events, and real-time information on current congestion.

Much of this information is already in existence or being created. Transport Direct has mapped all of the UK's 350,000 train stations, bus stops, ferry crossings etc. Satnav and mobile phone companies are recording millions of pieces of data from individual journeys to calculate typical speeds on individual roads at different times of day. In downtown Singapore, IBM has developed software that can predict traffic jams up to 45 minutes ahead of time with 90% accuracy. The next big step will be fusing all these disparate pieces of data to create a unified picture spanning multiple modes of transport. In the meantime, collecting and sharing travel information doesn't always require expensive technology. A taxi firm in Cannock sends customers a text message when their cab is 10 minutes away, based on real-time ETAs from its TomTom satnav system. And in rural Hampshire IBM has a 'tweeting' staff minibus that uses Twitter to inform would-be passengers of its precise whereabouts and whether it has seats available.

The benefits of better, more personalised travel information will be wide ranging. Many of us use cars because we're nervous of taking public transport on unfamiliar routes; with reliable information and a real-time, electronic guide we might take the bus instead of driving, or walk instead of hailing a taxi. Joined up data about the movements of vehicles and passengers, both in advance and in real time, will enable public transport operators to respond better to demand, so that a bus driver could wait a few minutes for a delayed train, or a larger vehicle could be provided when more passengers are expected. Creating the information infrastructure to make all this a reality won't be cheap, and it will require a good deal of co-operation and political willpower. But as the number of travellers continues to grow, and the number of roads and rail tracks doesn't, the question is not whether we can afford to make the investment and effort, but whether we can afford not to.

Business Matters issue 173 • 29

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Marketing

The importance of networking in a recession Networking expert Andy Lopata looks at why now is the right time to increase your networking

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e may be facing tough times, with businesses going to the wall, budgets being slashed and thousands of jobs being lost. There are things we can do, however, to give ourselves the best chance of surviving, and even thriving in this crisis. The ‘dog-eat-dog’ world of business painted by TV programmes such as The Apprentice is not necessarily the way forward in business today. Instead businesses are more likely to achieve positive results through collaboration. Sharing experiences, expertise, ideas and contacts is essential to business success. In short, networking is vital. It helps businesses become better known, better equipped and achieve better market penetration than they could manage on their own. So, how can networking help you get the edge you need to succeed and overcome the current recession? First of all, networks can help you to build your profile and your reputation. We all know the phrase ‘It’s not what you know, it’s who you know’. Well, more important is who knows you….. and what they are saying about you.

A lack of profile will not help any business succeed. Whether that profile is widespread or among a very closely defined group of people, your reputation counts. The most traditional way of raising profile, particularly for bigger companies, is through advertising and sponsorship. Yet for so many people, particularly in the current economic climate, such opportunities are out of reach. Instead, networking plays a key role.

The value Successful businesses recognise the value of having a team of people talking about them and associating them with excellence in their field. More than ever we are inclined to listen to our peers when making buying decisions, and a strong reputation can prove to be the right foundation for building a business. Understand where you want that profile to go and pick your networks accordingly. Are your potential clients based in a geographic area, within one or more industries? Do the people who decide to use your services tend to be from one or two key roles within organisations, such as Sales Directors or Heads of

HR? Wherever you need the word spread, understand who those people will be talking to, where they are most likely to hear about you and network accordingly. The growth of online networks has made it even easier to raise your profile and spread the word. Clearly, online networks are a much easier way to reach a wider audience and grow a global reputation, but there are also a large number of niche networks on the internet, serving different industries, interest groups and locations. A word of warning here, it is one thing to spread the word about your business, online or off. It is quite another to manage what is being said about you. It is important that you have a clearly defined view of what your message is and what you want people to say about you. Attending networking events and continually moaning, whether about the state of the economy, other people in your network or even the quality of the food on offer, is not going to endear you to others. Nor is it likely to encourage them to talk about you positively. In a similar vein, simply being seen is not

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Marketing enough. Sure, the more people you connect with, the more will be aware of you. What will they think of you though? What will they be saying to others? Managing the message that others communicate on your behalf is the key to developing a strong reputation networking strategy. Ask yourself the question before you connect with anyone else as part of your business strategy, ‘After someone has met me, how would I want them to describe me to someone else?’ You can be in control of what others say about you, the key is to think about it in advance. Picture the impact you have on others, does it reflect how you would like to be seen? Do people understand what you do, who you do it for and why others would want to know about you?

The dangers Naturally there are other dangers, much talked about elsewhere, to your reputation from social networks such as Facebook. It can be easy to be drawn into arguments or banter with other people in your network and forget that this is a window to the World. Have fun, show your personal side by all means, but it is important to ensure that you have your professional image in mind at all times. Apart from profile building, networks also act as a very powerful self-development tool. As John Donne said, ‘No Man is an Island’ and this is particularly true now. We need to learn from others, benefit from their experiences and expertise and open ourselves out to new ideas if we are to achieve as much as is possible. Our networks can provide a lot of that support, both formally and informally. There is a good chance that you already have a network of people who want you to succeed and have already been through the challenges you are facing. Have you asked for their advice? Have you sought their support?

Look for support If you don’t have the relevant experience in your immediate network, or if you don’t feel comfortable asking the question, there are many networks set up specifically to provide those resources. From the blogs and clubs on social networks to events with speakers, the support is there, you simply have to seek it out. Many people attend networking events with speakers without any concept of what they want to gain from the talk. Next time you go to such an event have a look around the room and see how many people are not taking notes and obviously disinterested. Instead, outline your key self-development or business-development needs and seek out

33 • issue 173 Business Matters

Attending networking functions isn’t just a business card gathering exercise

the events with speakers who address those issues. Set out a list of questions in advance that you would like answered and listen carefully for the answers to those questions during the talk. You’ll be amazed at how much more you can get from such an event when you have a greater degree of focus. In addition to listening to talks from experts in their field, there is much you can learn from other people in similar positions to you. One growth area in networking is peer-support, or ‘Mastermind’, groups. These range from formally organized membership groups to many independent meetings, business people at a similar level to each other meet regularly, share their challenges and offer their feedback, advice and suggestions. In the best groups they will also hold each other to account for their actions. Additionally, you can gain a lot of the knowledge and skills you need from industry associations and networks. I developed my speaking business through lessons learnt over six years

of membership of the Professional Speakers Association (PSA). I only did so by attending a large number of meetings and conventions, listening to the speakers at those events and interacting with many fellow members. The third way in which networking is a key activity in difficult times is probably the most obvious, and that is as a referral-generation tool. You need to be patient if you are to build a referral network. People refer others who they know, like and trust and that doesn’t happen overnight. During tough times though, those referrals are invaluable, opening doors that have been slammed shut on vendors generally and bringing your business to the top of the pile.

Andy Lopata is Vice President of the UK Professional Speakers Association and co-author of two networking books. Read more at: www.lopata.co.uk

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Finance

Getting the message Leading broadcaster Jeremy Nicholas talks to us about when times are hard and advertising budgets are being cut. If you can get publicity for nothing, don’t blow it.

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have spent 23 years working as a broadcaster watching open-mouthed as people waste opportunities to generate good publicity on TV and radio. If it’s a live interview they can damage their brand reputation. If it is pre-recorded, chances are they’ll be edited out of the feature. Why does this happen? It’s only talking. We can all do that, can’t we? Many people don’t understand the needs of us media types. We don’t care about your firm, your product and your statistics. We don’t want tons of information. All we care about is stories. If you don’t give us a good story we’ll say ‘so what?’ A trip to a TV studio is like visiting another country. If you are travelling abroad, you’ll probably invest in a guidebook, to discover the local customs, how they tip, which side of the road they drive on, that sort of thing. You might learn a bit of the language, just in case talking loudly in English doesn’t work. Yet I watch in horror as people gambol into TV studios, like lambs towards that pretty looking slaughter house. Full of the confidence that comes from not fully understanding the situation, they laugh off suggestions of media training. The higher up the food chain they are, the more they scoff at the idea. “I didn’t get where I am today by having media coaching, Reggie.” Learning a language takes weeks of evening classes. You can learn everything you need to know about being interviewed, in just one intensive day with my team at Talking Toolbox. My good friend Alan Stevens runs excellent sessions at his firm Media Coach. We’ve just written a book together called MediaMasters. We’ve interviewed 25 of the big names of broadcasting, print and social media, to discover their insider secrets. Jeremy Nicholas is the director of Talking Toolbox, a communications consultancy. www.talkingtoolbox.com,. MediaMasters by Alan Stevens and Jeremy Nicholas is published by BookShaker and is available now on Amazon.

Jeremy Nicholas with Michael Parkinson

Here’s ten top tips on how to communicate brilliantly When on TV imagine you are talking to a family member or friend. Michael Parkinson- chat show host You are usually asked the same old questions time and time again. Practise your answers and you’ll get better. Tanni Grey-Thompson- Paralympian Like it or not the media is important. If it’s part of your job to deal with them play it straight and try to be interesting. Will Carling- rugby star Always be yourself, there’s no point trying to be anyone else. Rebecca Adlington Double Olympic gold medallist Don’t be diverted by inconveniences like interviewer’s questions. Say what you want to say. If it’s good, repeat it! George Galloway MP

Treat every journalist with respect, even if you’ve done twenty interviews in a row. A bad interview can come back to bite you. Gail Emms-Olympic badminton star Never lose you cool with an interviewer, no matter how difficult they are being. It is you that will look bad. Iain Dale- political blogger Remember to breathe. It makes everything so much easier. Michael Aspel- TV presenter Don’t let on if you are nervous. It’s natural. Dee Caffari- round the world sailor To get your story in the papers you need to find the human element. One person’s story is always more interesting than a corporation’s. Phil Hall- PR guru

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Advice

Guaranteeing your reputation

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n this digital age it is easier for us to disseminate and obtain information than ever before. The Web means we have information constantly at our fingertips. Meanwhile we are communicating with each other all the time via email, mobiles and text messaging.” Word of Mouth” has always been powerful, yet as the opportunities to voice our opinions increase, its importance is growing rapidly. Reputation, therefore, is more essential for companies than it ever has been. It doesn’t matter whether you are a global enterprise or a small local outfit. Retaining customers, keeping them happy and, therefore, ensuring you have a good reputation is not easy. There are a many myths spoken about managing customers. There is, however, a simple and effective way for ensuring you are always mindful of your reputation. In any situation, ask yourself one question, “What story will my customer tell?” It is this question that enables you to decide how to handle any situation effectively. The story the customer will tell is how you are perceived by them and, therefore, how you will be perceived by others. It is this perception that is all that matters. The customer’s perception is their reality. Whether it is right or wrong is irrelevant. Win-

ning the customer’s heart and mind is all about how they perceive you. Let me give you an example: There is a story of an airline that launched a brand new long distance route. On their maiden voyage the plane was stuck on the runway for fourteen hours. At that point what story would the customers tell? They would probably tell their friends and colleagues of a hellish journey that would infer that they would never fly that airline again. The next day, however, the owner of that airline called every passenger personally to apologize and offer them a discount on a future flight. The story was managed brilliantly. You see, the story was now about receiving a personal call from such a well known and busy person and the delay became incidental. Instead of the airline being criticised for a poor service, the story was all about their excellent customer service and how much they care. If you want to ensure you manage your customers successfully; you need to be constantly thinking about the story they are likely to tell. Just sending them a thank you note when they decide to use you, will mean they will be telling a good story. How many companies do that and yet it is so simple? During the time they are engaged with you, ask the same question. For example, If you are going to send a Christmas gift, ask the ques-

tion; “What story will they tell if I send them the standard calendar or diary branded with our company logo? There is a good chance they won’t tell any story at all. Therefore, what value have you obtained? The answer is none. So think of the story. Find out what they like during the course of working together. Then, for example, if you know they like milk chocolate, send them a box with a note. The impact will be huge and the story they will tell will be very positive. Managing customers does not have to be difficult. Always think about the story they will be repeating to their friends and colleagues. If you think it may be negative, think about how you can turn that around. You don’t have to spend a lot of money but you do have to give it a lot of thought. Having customers talking about you in a positive light and ensuring you have a good reputation in today’s market place is invaluable. Quite simply, you cannot afford not to. Grant Leboff is Principal of The Intelligent Sales Club working with companies on effective sales and marketing strategies and lead generation; creating a steady stream of sales opportunities for businesses. For more information visit www.intelligentsalesclub.com or call: 0844 478 0044.

Business Matters issue 173 • 35

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Advice

The business builder One of the UK’s most successful business builders Brad Rosser answers your questions to help you grow your business and maximise your potential My Marketing Manager has just sent me a proposal for a major promotion for our product. He claims it will generate a large volume of additional sales, but it will require a significant investment. How do you typically approach making decisions such as these? Every time I am faced with a decision such as this, I ask a very simple question: ‘If I spend this, what will I get back? and how fast will I get it?’ Im always worries that either the natural enthusiasm of the people involved or time constraints will get the better of me. So asking this question ensures that you avoid becoming flustered or sidetracked amid all the noise. It will also ensure that your decisions are objective and that you don’t procrastinate. This approach is so powerful because you can apply to every single decision you have to make. Asking this question will also tell you what information you need to make an accurate assessment accurate and will ensure that you don’t need reams and reams of paper! You only need the minimum amount of information that will enable you to make the decision at hand. This should rarely be more than one or two pages. Sounds simple doesn’t it? But unfortunately it’s not quite that easy. It is the implementation that is critical and there are some important rules that you need to follow when you are making your analysis: 1. Do everything on a cash basis: Only cash, no promises! This means you must estimate the timing of your cash payments and cash receipts only when they actually hit your bank account. A sale is not a sale until the cash appears in your bank account. 2. Only consider incremental costs and revenues: You are only interested in those costs and revenues that you incur solely as a result

36 • issue 173 Business Matters

of this specific project. No complex made up allocations please! 3. List all fixed costs: Be thorough. Get out your pen and paper and make an exhaustive list. Learn to loathe fixed costs! The higher the fixed costs the project entails, the higher the costs you incur regardless of whether you sell anything or not. 4. Calculate your profit margin: Estimate the incremental revenue from the sale of a single product and then subtract the variable costs associated with the sale of that product. Only include revenues that are directly measurable, no incidentals or knock-on benefits. 5. Find out exactly how many items do you need to sell to recoup all your costs. This is your breakeven. This is calculated by dividing your fixed costs by the profit margin per sale. 6. Compare breakeven with other points of reference: To assess how realistic the breakeven is, look for data points or other evidence that is comparable e.g. perhaps the idea has been trialled previously or a competitor might have launched a similar promotion. 7. Don’t look back: move on! Don’t waste time

second guessing your decision and fretting. You have done all you can to tip the odds in your favour. What tips do you have for maximising the effectiveness of networking and business events? The most important thing to remember when you attend events like this is that your goal is to build relationships with people, and not simply to ram down people’s throats what a brilliant business you run. People will always prefer to do business with those people that they like and instinctively trust. So make sure you listen to people. Ask questions about other peoples’ business and actually listen to their answers. Don’t simply

feign interest. Be enthusiastic about what they are doing. Their business may not be exactly what you need right now, but it may be in the future or they may know someone who is perfect for you. Always arrive at these events with a concise “pitch” about your own business. You need to communicate simply, clearly, and quickly what it is your business does and also to convey a sense of solidity and capability. No one wants to hear a long winded boast. Becareful what you try and sell on the day. Normally the best you can do is a contact address and the ability to follow up later. You can easily destroy any chance of a sale by pushing too hard at the first time of meeting. In addition ensure you have the best sales team available. I often see stands manned with staff looking bored or worse. It takes energy and genuine interest in people. I always let it be known I will come by at some point. This should keep them on their toes. As mentioned above have an easily understood pitch. Depending on the type of business flyers, hand outs that do not need to cost a great deal are important. However if possible creating a reason to contact them post the event is critical. For an event try and provide a reason for them to want to give them your details. I will often speak at an event and then offer to email the presentation to them post event. Once the event is over, make sure you follow up everyone you made contact with promptly. For some people you meet, this might simply be a quick one line email saying you enjoyed meeting them and providing your contact details, for others it might involve sharing further information or setting up a meeting. Always seek to help others if you can, even if it doesn’t directly benefit you at this exact moment. You never know how you might benefit in the future.

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Advice

The value of a brand A

s new businesses are being established by entrepreneurs across the country, to suit the market looking for more individual service, SMEs must focus on creating a brand that can leverage their business financially. Branding is affecting business more and more everyday, so much so that it is taking over larger shares of a business' value and becoming an increasingly important factor when it comes to differentiating yourselves from competitors. Brand is worth the investment – successful brands command premium positions, customers will pay more and economic value will be added to your organisation. A powerful business asset, branding can be used to strengthen customer retention and win new clients and, maybe more importantly for the future of business, good brands attract the right calibre of employee – something that is often overlooked. It’s estimated that 50% of Coca Cola's worth lies in its trademark and we’ve also found this with SME clients who have honed in on creating a brand, not just a business.

Xiros Let's take a look at an example. Xiros, a Yorkshire based medical devices manufacturer, found that potential customers weren’t seeing the business for what it truly was, an innovative medical design house – effectively missing out on business they knew was right for them. After evolving their existing brand and dissecting the product offer, the business recorded a 700% increase in new business generation within 12 months. This has kick-started a period of significant growth over the last two years. Brand plays a significant part in how the company is perceived and how it approaches new business. The existing customer's relationship with a brand As well as attracting new business, a rebrand lets existing customers know that you are evolving with the times and are able to meet their changing needs in the business world. Selling to existing customers is the eas-

iest (and cheapest) way to increase revenue and it is these customers who are most likely to bring you new referrals. Customers form emotional alliances with strong brands, ultimately these brands are able to command a higher price in the marketplace, providing much stronger financial returns throughout a business’ life cycle.

An effective brand strategy should deliver results to the bottom line and therefore should always have targets to meet and be measured for performance. It should tie into your wider marketing strategy and flow consistently within an organisation's internal and external communications. This makes the brand a more powerful tool.

Attracting new customers The current climate means that new customers are much more cautious when entering into new business relationships. They will be on the lookout for a brand that they can relate to, one that matches the needs and values of their business. This is where brand works most effectively. Creating differentiation is one of the most important attributes to a brand. A valuable perception of quality in the mind of the customer will guarantee you are competing based on your credentials rather than on price. The current climate offers great opportunities for SMEs – larger firms that sub-contract to smaller independents are looking to cut costs. SMEs need a good brand behind them to leverage credibility for bigger contracts.

Old

New

Interior Surfaces Interior Surfaces, bespoke manufacturers of solid and laminate surface products, decided to invest in their brand as a way of attracting larger contractors. They invested in a re-brand because their existing image was not representative of their capabilities and they wanted to appeal to a larger commercial customer base. They had a 5 year plan in place to double their turnover, but achieved this in 2 after repositioning the business as a complete solutions provider. Turnover rose from £1.2m to £2.4m. This was put down to the new brand and strong design ideas bringing a sense of what they were able to achieve to the company, both within the business and externally, and have since gone on to successfully win contracts with larger clients, and entered new markets. Design with targets to meet

Branding affects business Brand equity is turning into a corporate asset that provides financial return and long term profits, whilst also adding value to the customer. From multinational companies to SMEs the principles are the same - good brands will be reflected in a stronger balance sheet with a higher level of profitability for a given cost of sales – a very attractive proposition to build a business around. But what must be remembered first and foremost is that a brand is not just a logo, it is paying attention to detail to every aspect of communication within an organisation, from stationary to staff. If that is mastered then the reputation of your company should prevail over the competitors', and by word of mouth, you should find yourself with a successful business.

Business Matters issue 173 • 37

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The leadership challenge W

orking life presents many situations for people where their job must change from an involved, hands-on role to a very different leadership position. It’s a challenge which can present real difficulties if those involved don’t take the right steps to cope with the effect on themselves and their colleagues. The situations can be many and varied, but roles and relationships can change most radically when there is a promotion from ‘within the ranks’. People who used to work on a level playing field not just as colleagues but as friends must suddenly try to reconcile a change where, for the majority, one of their own is suddenly their new boss. This ‘Peer-to-Power’ situation is confusing and complicated on both sides of the equation – how should relationships change? Can colleagues who used to be equal have the same conversations as they did before? It can present the most awkward circumstances, especially when the leader has to deal with performance issues for colleagues who first and foremost see their new leader as a friend. More familiar to most will be when a new leader arrives fresh to a team and an organisation from outside. Often, a new leader’s instinct is to start to assess the behaviour and capabilities of his or her team members, but forget to deal with their own fears or their vision for the new team. Then there is the owner-manager who needs to let go. People who have established and developed a business from scratch often reach a stage where the

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Advice

Sue Powell explains what to do when your management role changes and everyone is looking to you for guidance growth in their business forces a change in their role. Many owner/managers find this very difficult, often citing the belief that they have to stay very heavily involved just to maintain efficiency. Failing to hand over even a limited measure of control and relinquish a hands-on role ends up being millstone around the neck of a growing company.

Letting go Key to ensuring an effective transition in any of these situations is a mixture of thorough preparation, self-awareness and ongoing support. Being a leader is not just about “doing” – it’s about being. It is critical that a leader is aware of his or her own emotions, reactions and impact on others in order to self-manage and develop. Though it’s vital to use the expertise of those colleagues, resist the temptation to try and understand absolutely everything from day one. Those coming in as a leader from the outside will benefit from being genuinely curious about their new colleagues – asking plenty of open questions without assuming to know what the answers will be. Leaders also need to be aware of how they communicate themselves and how they are perceived. Asking for regular and specific feedback, either in person or in the form of a 360 feedback

tool, is so much more effective than guesswork. Successful leadership starts from within so new leaders need to think carefully about they feel about taking on a new, more senior role and how this might impact others. As a new leader, be open and honest with colleagues – work out together how to manage this new situation. It’s a big shift and relationships can take on a different significance, so start by taking the time to have an open and honest conversation with each of the key individuals. The challenge for the ‘owner-turned-leader’ is to trust the people they are giving more responsibility to. This kind of self management means moving from being the ‘doer’ and knowing everything which is going on in the organisation, to working on the vision and strategy rather than the detail. In practical terms start slowly by assessing the areas of greatest gain for the business but lower risk. Look for the people in your team who have competency in those key areas area or who can be quickly and cost-effectively trained. Be honest in designing your relationship with them, so as you hand over work they know what you expect from them. Get as much training as you for your own benefit to improve areas such as communication. Being open to support is key too. Even if your business is so small that you don’t think its worth having a Board, set up an advisory com-

mittee instead which could even involve clients. Both new and experienced leaders often feel that they “should” just be able to lead and are either too nervous or too proud to ask for help. People promoted to leadership positions are often recognised because of their technical rather than leadership capabilities. But leadership skills can be learned, so asking for help is key. Support can be in the form of a mentor who is a current colleague, an experienced friend or contact from elsewhere, or a process which involves professional development and coaching. The choice will very much depend on individual circumstances. Both individual and team coaching can help everyone adapt to new circumstances. Often, the fresh view and expertise that a third party can bring can help people not just deal with the day-to-day difficulties of leadership, but allow them the breathing space to develop new skills to make sureeverything works out over the longer term. What these options all have in common is a practical approach to leadership Typically up to the first 100 days of new leadership set the tone for the future and often determine the success or failure of the whole project, team or even company, so it’s vital to work out how support is going to be delivered as soon as possible. For further information visit www.leadershipandteamcoaching.com

Business Matters issue 173 • 39

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Advice

You know you need a business coach when... You’re facing a transition

Carmelina Lawton Smith is a Senior Lecturer & consultant with Oxford Brookes University Business School and an Independent Executive Coach & development specialist Gordon Brown reputedly waited many years to step into the top job, yet when he eventually did he made the mistake that so many other leaders have made before him. Gordon forgot to leave his old job behind. It is no accident that the only major success of Gordon Brown’s premiership so far has been on the world financial stage. This is a world in which he feels at home and so can use his strengths and experience to full effect. He has had somewhat less success however on the media stage, promoting himself and his government. So many leaders move into a new role and fail to assess and define the priorities of the new job, trying instead to use the skills of old that have served them so well on the upward climb. It is this transition that can prove to be the undoing of many a talented star who has risen through the ranks delivering targets and achieving goals. The move into a more senior leadership role often brings with it new re-

40 • issue 173 Business Matters

sponsibilities, a broader strategic focus and the need to consider every uttered word that may be unpicked and analysed for hidden meaning. Exhausting as it may seem, every decision, every smile and every handshake must be considered. The water-coolers and corridors of offices can spurn discussions just as toxic as those in the corridors of power.

Define priorities It is in this transition that an Executive Coach can prove invaluable. A coach can help the new leader define the priorities of the new job and to distinguish between ‘what I like doing, and what I should be doing’. By challenging the rationale, the coach can bring a unique honesty to task prioritisation, helping to clarify the needs of the new role in the broader organisational context. As a neutral party the coach can also help raise awareness of the strengths and weaknesses that the leader brings to the role. An authentic appraisal of

skills will prove invaluable to achieving results. Only then can the leader begin to shape the new role and appreciate which tasks they should take on, and which should be delegated to better suited or more charismatic lieutenants. Ultimately coaching is about taking action. Priorities and awareness can only yield results if acted on. A coach can provide the support needed by leaders to define appropriate strategies to move forward. As sounding board or confidante the coach provides a unique thinking space which frees the mind from the shackles of fear and indecision. Helping to build concrete action plans to enable the leader to travel to the edges of their comfort zone but not beyond their realm of competence. To contact Carmelina Lawton Smith: [email protected]

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Advice

Give your business a ‘cost healthcheck’

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recent study by the Chartered Institute of Personnel & Development concluded that making job cuts should be the last resort in the current economic downturn, after revealing that the cost of laying off an employee could be more than £16,000. Against this another study revealed that 69% of Financial Directors feel under pressure from board colleagues to find more ways to cut costs. With Britain now officially in recession, how does a business keep costs in check to maintain a healthy bottom line without necessarily making redundancies? Robert Allison, Managing Director of Expense Reduction Analysts, the world’s largest cost reduction consultancy, believes that organisations can make savings in the region of 20% on average through putting the spotlight on a range of non-core operating costs. Here Allison provides 10 top tips to trim business expenditure:

cost control. Develop a culture where everybody within the organisation is responsible for challenging costs, from the receptionist booking a courier to senior management reviewing their nationwide logistics provision. Celebrate cost reductions as you do business wins. Even create an internal awards scheme for cost reductions made by employees. Make staff aware that savings go straight on the bottom line. Also use powerful and simple monetary examples to educate your workforce regarding the quick and significant impact that cost savings can have on profitability. For example, based on a typical 8% profit margin, for £50,000 of savings a company would have to increase sales by £625,000 to have the same positive impact on the bottom line. It is critical to start caring about cost management before the situation becomes critical and hasty decisions have to be made. Also get your suppliers involved during the implementation of the cost reduction programme.

Create a cost conscious culture

Lead by example

The economic boom over the last ten years may have affected your employees’ focus on

Business leaders need to set an example by demonstrating to employees that they care

42 • issue 173 Business Matters

about saving money, even on the smallest items. Don’t book the most expensive flights and hotels when you are asking your own management teams to take the budget option in both cases. As a business leader you will need to open your organisation to scrutiny and examine every cost.

Be marketwise It is critical that you are aware of the constantly changing supplier market for the costs you are examining and any developments that you may be able to capitalise on. For example the fact that energy prices are currently going down and paper costs are on the up. Establish a supplier market intelligence system and update that system at regular intervals. To have any chance of negotiating favourable arrangements with suppliers, you must have knowledge of the prevailing market prices and practices. Do not rely on your supplier for this information. Also don’t waste time and energy on looking at individual item costs from different suppliers. By enhancing your knowledge of the supplier market place you will increase your

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Advice confidence of using one supplier for a number of items and gaining from a ‘basket’ cost rate.

Don’t purchase things you don’t need Buy what you need and not what your suppliers would like to sell you. Suppliers will often use bait-and-switch tactics to move you onto their higher margin items or will try their version of the fast food pitch “would you like fries with that?” Many suppliers make much more money from supplementary services or add-on services such as service or maintenance agreements. Be sure you understand what you are buying and whether you really need it. For example, do not purchase premium services unless they are necessary, such as a 10am courier delivery if 5pm is acceptable.

Establish your costs You may believe your costs are under control but your perceived ‘well kept ship’ may not be as leak proof as you thought. Forensically examine and benchmark your costs line by line. It is often our experience that this is where the barrier to making cost improvements lies as this demands significant resource. Therefore it could reap significant dividends to look at using outside agencies, consultants and benchmarking services to establish your costs by getting comparisons against competitors and other suppliers. In doing so you will highlight areas that have the most potential for improvement and will help you set cost saving priorities.

prices cannot be beaten” – remember it is a buyers market and you will be amazed how many suppliers will back down to retain the business. As highlighted above do your research and comparison-shopping before approaching suppliers so that you are able to negotiate from a position of strength. During negotiations present the value of your business to the supplier.

Keep the green light flashing

Establish key supplier performance

Instil a sense of urgency and create a culture of cost consciousness where employees act immediately to reduce costs and maximise profitability. If it does not remain high on the boardroom agenda, employees will see the directors’ crusades as ‘the flavour of the month’ and the drive to cut costs will fall to the bottom of everyone’s in tray.

In addition to reviewing prices look at establishing key performance indicators, which are appropriate for your business. Set them higher than required and this will add to the cost base. Conversely set them too low and this could affect the quality of your service to your clients and business relationships in the longer term. Make sure you obtain management information from suppliers relating to any cost increases/decreases, otherwise these could be easily be hidden, and therefore missed, in an invoice incorporating a large number of supplied items. This both helps avoid overcharging and ensures a transparent relationship with the supplier. Finally constantly monitor the performance levels and adherence to the contract.

Let suppliers know about your cost review Rarely will a supplier volunteer a price review. Let your suppliers know that you are undertaking a review of all overhead costs. Also refuse to accept price increases during these challenging times as well as suppliers’ statements that ‘our prices are higher because we provide superior quality and service’ or “our

Jettisoning suppliers should be the last consideration Reducing costs is not just about going to a cheaper supplier. Indeed good relationships in any line of business are fundamental and the one with your supplier is no exception. By following the tips above and working in partnership with your suppliers to identify cost cutting strategies you can in the majority of cases generate savings without affecting or disrupting standards of service through changing suppliers.

Create a long-term costmanagement programme Potential savings are great, but they don’t mean anything unless they are realised. After implementing a culture of cost consciousness, appoint cost champions to drive the programme forward. Constantly monitor the situation to ensure staff are not slipping into old habits; suppliers are charging correct prices; and that service standards match the agreed specification. Also remember to frequently review each business cost category whether it be logistics, property, banking, telecommunications, property costs and many more. By following these ten steps you should be able to guarantee return on your cost reduction programme.

Business Matters issue 173 • 43

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Forum of Private Business

Growing by multiplying

Phil McCabe from the Forum of Private Business looks at whether you can turn your business model into a franchise model

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ost people associate franchising with large brands, but it can also be an effective way for some smaller businesses, struggling to raise finance in order to expand in the present economic climate, to grow at minimal cost. The Forum of Private Business is campaigning to raise awareness of franchising as a way forward for many viable businesses. "There is no doubt that businesses in certain sectors are being hit hardest by recession and restrictions in the availability of credit," said Nick Palin, the FPB's Director of Finance. "However, others are still capable of expanding because they are in less susceptible markets. It's our responsibility to tell them about all of the options that are available to take their businesses forward." The FPB has launched an awareness campaign to spread the word, following its partnership with Franchise Development Services (FDS), which has six offices throughout the UK including one in Altrincham, Cheshire, run by Tony Urwin. Mr Urwin had been instrumental in developing awareness of franchising, including an understanding of the size and scale of the industry and how franchises operate. The partnership has enabled the FPB to put together comprehensive information about franchising. This is now being made available to through the FPB’s website, www.fpb.org, and to members via its weekly eNewsletter. "The FPB's campaign to provide more information to its members is to be applauded

44 • issue 173 Business Matters

because at times like these businesses up and down the UK need to know all the options that are available to them," said Mr Urwin. "The FPB holds a lot of sway with business owners and it's one of the ways our industry can clarify a lot of the misconceptions about franchising and offer the right information and advice to businesses, as a significant proportion of them could use franchising as a route to expansion, even in the current economic climate." Essentially, franchising can be described as a 'business marriage' between the franchisor (the small business wanting to expand their brand) and the franchisee (who wants to take on the license). In effect, it allows for a business to be ‘cloned’. Budding entrepreneurs bear the brunt of the costs for the privilege of opening and operating new locations of the established business, paying the franchisor an initial fee, as well as ongoing management service fees, in return for the training, manuals, and a launch package to help get them started. Franchising can be a win-win proposition for both parties. Franchisees enjoy the opportunity to own and operate a proven business and enjoy training, support and other benefits that are often not available to other entrepreneurs. While is not a process suitable for every business, for those that have proven to be workable and profitable with sound medium to long term prospects, franchising can mean the beginnings of a nationwide network.

Five tips to help business owners decide if franchising is the future are: Is there a product or service that the market needs and wants in the long-term? There is no point in trying to franchise something that no one will want, so if a business is in an industry that is struggling, it is unwise to franchise. Has a proven business system been established demonstrating practical success? Franchising an idea is impossible – any potential franchisee will want to see that it works in the real world. The best franchisors use their own business as a model or develop a pilot product to make sure they get the process right before they launch a franchise operation. Is the business profitable? People who buy franchises invest thousands of pounds and are looking for a return on that investment. They are unlikely to settle for returns they could earn by working full-time in a salaried post. Is the brand suited to national expansion? The brand must be strong and exclusive. It is important to first invest in brand development in order to create something which people will want to buy into. Is there commitment to franchising as a separate business which will demand constant support and development? Franchising isn't a ‘get rich quick’ option. The franchise network will need ongoing support, investment and may demand a completely different set of skills. It is essential to make the commitment before you start the process.

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Hitting the phone & getting results Andy Preston explains why you’re not currently getting the results from your cold calling that you could be….. and what you can do about it to get the results you deserve……..

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henever I’m talking to business owners or their sales teams, the topic of new business development and cold calling in particular always evokes interesting reactions. Cold calling is one of those topics that everyone has an opinion on – even those that don’t do it! And the salespeople and business owners that do it normally fall into one of the camps – love it, loathe it, or tolerate it! However, no matter which of those camps you or your team fall into, most people don’t get the results that they want from cold calling, so below are some reasons why that is the case, and also some ideas on what to do about it! So why isn’t your cold calling working as well as it could be?.....

Lack Of Preparation If this is you, you’re not alone! Most people fail to prepare for their cold calling sessions properly. You’d be astounded how many times I see people ‘start’ a cold calling session by looking for their list of people to call, trying to find their diary, finishing off an email, taking a call from an existing client, tidying their desk, going to get a drink or have a quick cigarette…pretty much anything but start making the calls! Often, this means that the calling session that was due to start at 10.00 now really starts at about 10.40. Then, by the time the salesperson has made a few calls, the session is over! The salesperson might have achieved their objective of ‘avoiding’ the session, but has the session really contributed to the success of the business? Hardly! Cold calling is best done in focussed ‘ses-

sions’, with no interruptions. That means no emails, no incoming phone calls, no interruptions from colleagues, no going to get a drink etc – do all of that before the session starts. And if the session is meant to start at 10.00, then the first phone call should be at 10.00 not 10.05, 10.10, or 10.20!

Lack Of Belief A number of business owners and salespeople I meet still aren’t convinced that cold calling actually works, or could work for them and their company. And those people are usually the ones who have tried it (or are currently doing it) and aren’t getting the results that they could, or they haven’t tried it but have already decided that it won’t work! I always find it interesting when I talk to people who have this belief as they often say that ‘cold calling just won’t work in my industry’. Then, when I ask them what they do, they are in the same industry as someone that I have trained that is getting great results from cold calling! Perhaps what the people with the negative beliefs really mean is – I’m not sure of the right approach that would make it work for me? Whatever the reason, if you or your team is making cold calls with the belief that cold calling doesn’t work, do you think that might stand in the way of the potential success of your calls a little? Of course it will! In my experience of making and listening to tens of thousands of cold calls in all sorts of industries, if you start with that sort of belief, your activity levels will be lower, your voice tone will be monotone and boring (instead of bright and enthusiastic), you’ll accept the first objection too easily and you’ll do anything to avoid doing

the calls – so is it any wonder that cold calling isn’t working for you at the moment?!!

Inability To Deal With Rejection This is always an interesting subject. This can affect anyone, particularly if you’re new to sales, new to cold calling, or only do it as part of your role. For example, if your role consists of mainly account management, if your boss has just told you that you need to start making cold calls, or you’ve started up your own business and need to start cold calling, then this could be affecting you right now! Let’s face it - if you’re cold calling you’re going to face some rejection. Some of you will have to deal with the fact that people will give you objections. Some of you will have to deal with the fact that people will say ‘no’ directly to you. And some of you will have to deal with the fact that people will put the phone down on you fairly regularly. When you’re cold calling, the majority of people you speak to are going to be hesitant, resistant and say no to you at some level. The point is, you’re not expecting to get a ‘yes’ on every call. You’re expecting that 90%, 95% sometimes even 97.5% of people are going to say no. The reason you’re calling is to get the smaller percentage of people that are going to say yes to you – yes I’ll consider you, yes I’ll meet with you, yes I’ll look at buying from you. However if you can’t deal with (or learn to deal with) the rejection that you’re going to face, do you think that might stop you making the calls, or do your best to avoid it? Of course it will!

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Advice

Failure To Stay Motivated Cold calling can be difficult. And because of the amount of objections and rejection you face it can sometimes be difficult to stay motivated. However your failure to stay motivated could actually be causing you problems on your cold calls. Many people I talk to find selling over the phone difficult. Particularly if your role involves selling face-to-face, or has done in the past. This is because when you sell face-to-face, you can read the other person’s body language, build rapport faster and watch their reaction when you deliver your price. However when you’re selling over the phone, all you have is your voice and delivery. If your role involves a lot of cold calling, it’s very easy for your motivation levels to drop later in the day if you’re not careful! For many people cold calling is about sounding bright, enthusiastic, confident and certain and all these traits can be heard in your voice tone. However, I’ve lost count of the amount of calls that have been made when the salesperson or business owner isn’t motivated. Their voice tone has gone from being bright and enthusiastic to bored, tired and disinterested. They might as well be saying ‘Hi it’s Andy from XYZ company…..you probably won’t be interested in what we have to offer…..you’ve probably happy with your existing supplier, so please put me out of my misery and tell me to go away, so I can ring someone else and hit my call target to get my boss off my back….’. Now, you don’t have to be a genius to work out that making that sort of call is going to produce pretty much zero results, do you?!

Andy Preston is a leading expert on Sales and selling for small businesses. You can see more about Andy at www.andy-preston.com You can also see more about Andy’s bite-sized training for small businesses at www.salesbreakfast.net

Business Matters issue 173 • 47

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Advice

Guaranteeing your reputation

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n this digital age it is easier for us to disseminate and obtain information than ever before. The Web means we have information constantly at our fingertips. Meanwhile we are communicating with each other all the time via email, mobiles and text messaging.” Word of Mouth” has always been powerful, yet as the opportunities to voice our opinions increase, its importance is growing rapidly. Reputation, therefore, is more essential for companies than it ever has been. It doesn’t matter whether you are a global enterprise or a small local outfit. Retaining customers, keeping them happy and, therefore, ensuring you have a good reputation is not easy. There are a many myths spoken about managing customers. There is, however, a simple and effective way for ensuring you are always mindful of your reputation. In any situation, ask yourself one question, “What story will my customer tell?” It is this question that enables you to decide how to handle any situation effectively. The story the customer will tell is how you are perceived by them and, therefore, how you will be perceived by others. It is this perception that is all that matters. The customer’s perception is their reality. Whether it is right or wrong is irrelevant. Win-

ning the customer’s heart and mind is all about how they perceive you. Let me give you an example: There is a story of an airline that launched a brand new long distance route. On their maiden voyage the plane was stuck on the runway for fourteen hours. At that point what story would the customers tell? They would probably tell their friends and colleagues of a hellish journey that would infer that they would never fly that airline again. The next day, however, the owner of that airline called every passenger personally to apologize and offer them a discount on a future flight. The story was managed brilliantly. You see, the story was now about receiving a personal call from such a well known and busy person and the delay became incidental. Instead of the airline being criticised for a poor service, the story was all about their excellent customer service and how much they care. If you want to ensure you manage your customers successfully; you need to be constantly thinking about the story they are likely to tell. Just sending them a thank you note when they decide to use you, will mean they will be telling a good story. How many companies do that and yet it is so simple? During the time they are engaged with you, ask the same question. For example, If you are going to send a Christmas gift, ask the ques-

tion; “What story will they tell if I send them the standard calendar or diary branded with our company logo? There is a good chance they won’t tell any story at all. Therefore, what value have you obtained? The answer is none. So think of the story. Find out what they like during the course of working together. Then, for example, if you know they like milk chocolate, send them a box with a note. The impact will be huge and the story they will tell will be very positive. Managing customers does not have to be difficult. Always think about the story they will be repeating to their friends and colleagues. If you think it may be negative, think about how you can turn that around. You don’t have to spend a lot of money but you do have to give it a lot of thought. Having customers talking about you in a positive light and ensuring you have a good reputation in today’s market place is invaluable. Quite simply, you cannot afford not to. Grant Leboff is Principal of The Intelligent Sales Club working with companies on effective sales and marketing strategies and lead generation; creating a steady stream of sales opportunities for businesses. For more information visit www.intelligentsalesclub.com or call: 0844 478 0044.

Business Matters issue 173 • 49

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Going it alone

Going it

alone

John Brazier looks at the growing trend of staff going it on their own

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t the end of the ‘90’s the air was thick with revolution. Offices, newspapers and gastropubs across the land were alive with rumours that the end of the workplace as we knew it was nigh. With just a mobile phone and a laptop, people could work from anywhere, anytime. For some, tomorrow’s working world was a freelancer’s haven. To others, it was all hype. Whichever way you look at it, the UK’s freelance community is growing and it includes some of the country’s most experienced and talented workers who make up a highly skilled, highly mobile and flexible 21st century workforce.

going freelance include being your own boss, making more money, having freedom and variety and striking the work/life balance. The pitfalls include less security, uncertainty, hassle in running your own business with forms and legislation, working on your own and being 100% accountable. One thing that is certain is that as a freelancer you will be faced with some new challenges. Having set up and chosen the right structure that works for you - you will hopefully have your accounting, banking and insurance issues as well as tax matters in place - you can focus on your core business, securing the work and handling clients.

Your own boss

Devising a plan

Some of the common reasons cited for

50 • issue 173 Business Matters

You need to research your market –

understand where you fit in that marketplace, how many freelancers already work in your area, who’s the competition, how much do they charge? You can then position yourself accordingly and decide what you can offer in terms of price, customer service and terms of business. Stephen Sharp has been self-employed for 16 years. After ten years working for BAe Military Aircraft as an engineer, Stephen wanted to expand his experience. He has certainly achieved that and his work has taken him all over the world. Stephen is keen to stress that Rome wasn’t built in a day and perseverance, enthusiasm and a positive outlook is key if you want to be successful, even when things are not going to plan. Marketing yourself is important. As you move from role to role, your portfolio will

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Gong it alone probably be hired as an employee on a fixed or short-term contract of employment. You can then accrue employment rights from day one. However, if you are allowed to use your professional judgement to work out how to perform tasks, can go home if there is no work to do or can send a suitable alternative if you are unavailable then you are a contractor with no employment rights. Just as importantly, agree the objectives and outcomes of the project you are undertaking – define deliverables, set timescales, agree a start date and negotiate costs.

‘As a freelancer, you will quickly come to realise that cash flow is extremely important.’

become your strongest selling tool. It can demonstrate your successes and highlight your experience and expertise, giving your prospective clients confidence in your work. Look on yourself as a product that is continually developing and evolving. You may want to invest in some PR, advertising or a website, all sound marketing communications tools which, if executed properly, should bring rewards in the form of new business. Stephen believes that preparation is crucial: “It is worth honing your presentation skills and identifying your unique selling points so that you can convince potential clients that they really do need your services. You need to differentiate yourself by demonstrating a good track record, solid experience and impressive references that show where you have added real value to a project.” Managing good client relations are vital and building an open and honest relationship with the client is the foundation of any assignment. It is important to show that you understand the assignment’s objectives, needs, challenges and constraints and

discuss how you will work with the client. It is important that time is taken to review and provide feedback on the project itself which presents a good opportunity to build the client-consultant relationship. This can be done at any stage of the assignment and helps to prevent any misunderstandings.

Contracts The importance of contracts is an essential part of every freelancer’s toolkit and should not be underestimated. Not only do they outline the expectations of both parties, but they also provide a legal framework within which these will be achieved, and a back up should legal intervention be required. Contracts provide a formal definition of the business relationship between the freelancer and agency or direct client. You need to agree with your client whether you are being taken on as a temporary employee or a contractor. If your client will control you closely, guarantee to pay you whether or not there is work to do and not allow you to send a substitute if you are ill or unable to come in to work, then you will be

Most freelance consultants use time as the basis for determining fees, because it can flex according to the variations in the scope and delivery of a project. The time is usually sold on a daily rate, weekly rate or an hourly rate. Most common is a day rate and prepare to set it according to the market rate. Some freelancers choose to charge a fixed price to complete a specific project. This option is arguably only viable if you have control over the scope of the project and the process involved. Without control, you could run the risk of undercharging and shortchanging yourself as the brief often changes and the business environment shifts. As a freelancer, you will quickly come to realise that cash flow is extremely important. Every year businesses become insolvent because of cash flow problems. One of the best ways to improve cash flow is to get clients to pay their bills more quickly. Some tactics to adopt include – don’t assume you have to offer 30 day payment terms, try 14 days; you could offer early discount settling, send out invoices promptly with clear and detailed information so that the client has no reason to query the invoice and delay payment. Chase payment tenaciously.

Facing the Competition Consultants can sometimes find themselves in a difficult situation – when their expertise wants to be used by two companies competing in the same marketplace. Richard Robson believes the issue is an ethical one. As director of Project Pilots and a former director of PCG, he

Business Matters issue 173 • 51

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Going it alone played an important role in designing PCG (QS), a UKAS-approved ISO9001 certification tailor-made for small businesses. He would advise any consultant to get their contract reviewed by a professional so that it doesn’t restrain you from trading with others. If the contract is not explicit it is not contractually binding and a consultant is free to work for any client. If client A is not happy, then he may terminate your contract. As a matter of delicate commercial sensitivity, it should be handled accordingly. A consultant should weigh up the losses if faced with this situation – both financially and professionally. If taking the second contract will cost you the first, can you afford to damage your reputation? Under no circumstances should you start a contract with client B until you’ve told client A and made a responsible decision. Don’t be greedy and rush for the increased rewards. Such a short-sighted decision could cost you dearly! Without an explicit contract a consultant is free to seek further engagements with any client he chooses but as a matter of professional ethics, bring it to client A’s attention – it gives them an opportunity to convince you not to but it also allows you to highlight the benefits because you’re developing your sector skills. Paul Worrall runs Interition and has been a freelance IT consultant for sixteen years. He said: “Interition won a contract to implement a content management system for an online mapping company. In the contract they inserted a clause that prevented us from working with almost all direct and indirect competitors for a significant period of time after our engagement had finished. We already had a client in the pipeline so we had a conflict of interest. “We brought it to the client’s attention quickly and explained that the exclusivity would mean that they would have to compensate us for any loss of opportunity – through a combination of higher rates or a longer contractual agreement. We were objective about it and worked with them to identify what they wanted to protect from their competition. We ring fenced the work that fell under the clause and explained to all parties how to handle it. We explained the situation to the new client who, whilst they had not considered there may be a conflict of interest, was impressed that we were taking the initiative. “At first, the client that wanted the exclusivity clause was dogmatic but when presented with a choice between extra cost 52 • issue 173 Business Matters

Freelancers are part of a growing trend towards “the alternative to the status quo” - neither employer nor employee or taking the time to break down the clause more specifically, they conceded.” Paul believes it is important to give clients choices and act as a facilitator. He is keen to point out that whilst you can never completely avoid a conflict of interest you should have quality management processes in place that serve to identify potential problems before they arise. Paul added: “The client could have gone to another contractor who may have ignored the clause in the hope that the issue never arose. Fortunately, we were able to negotiate a solution.”

Freelancers are part of a growing trend towards “the alternative to the status quo” neither employer nor employee - that is increasingly being recognised as an immensely important, contributing sector by major organisations and crucial to the success of UK plc. Businesses are scaling back on their expensive benefit-heavy workforce more and more, recognising the benefits of tapping into an alternative and knowledgeable workforce when they need to. Those freelancers with the skills and tools to run and develop their businesses will find themselves in a win win situation. John Brazier is MD of The Professional Contractors Group (PCG), www.pcg.org.uk, a not-for-profit organisation that was established in 1999 to provide representation, support, and advice to freelance consultants. Today, PCG boasts 15,000 members.

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Te c h n o l o g y

The Mac alternative Apple Macintosh computers used to the preserve of media businesses like graphic designers and architects but over the past 10 years they have become not only a credible alternative to PC’s. They are now many businesses chosen option given their lower ongoing costs, easy of use and stylish design. Here we look at the top 10 Mac products to help you manage your business IT in a better and more stylish way.

24” LED Cinema Display

iPod Touch 8GB

Apple’s 24” features new advanced LED technology, for brighter more accurate images. Connect your Mac to the LED Cinema Display and take advantage of the built-in iSight camera and charge your MacBook with integrated Mag-Safe adapter, all in the greenest-display ever.

Mac OS X 10.5.6 Leopard The worlds most advanced Operating System, with 300 new features like Time Machine, back-up quickly and efficiently, Stacks to keep all your files organised, Finder and Cover Flow to flip through and preview your files and much much more.

Wireless Keyboard Featuring a low-profile, anodised aluminium frame that will match any Mac. Apple Wireless Keyboard connects via Bluetooth, allowing you freedom to move around.

Apples funnest iPod ever! Download Games, Apps, Music, Films, TV Programmes, surf the web, and much much more with one touch!

iWork ‘09 Apples productivity suite is the easiest way to create stunning documents, spreadsheets and presentations with flair! Introducing brand new features in Pages ’09, improved functionality in Numbers ’09 and even more beautiful templates in Keynote ’09.

MacBook White 2.0GHz Enclosed in a durable white-polycarbonate shell, MacBook has something for everyone. Built-in iSight Camera, mic, speakers, Wi-Fi and a 13.3” glossy widescreen display all in a compact design to carry with you anywhere.

24” iMac 2.66GHz With a fast Intel Core 2 Duo processor, up to 4GB of memory and powerful NVIDIA graphics – all as standard – iMac brings you more performance than ever. Not to mention iMac is beautiful, with its anodised aluminium and glass enclosure and stunningly thin design, why choose between brains and beauty when you can have both?

G-Tech G Speed eS G-Techs high speed RAID solution, designed for Video Editors can support up to 6TB of hot-swappable drives. Connect up to four G Speed eS units to your Mac Desktop for up to 24TB of storage, with access speeds up to 600MB/second!

Final Cut Studio Final Cut Studio brings together six post-production suites to work together seamlessly, including Final Cut Pro 6, Motion 3, Soundtrack 3 and DVD Studio pro 4. Allowing you to Move intuitively from editing to colour grading to creating motion graphics to sculpting audio to multi-format encoding to DVD authoring.

15.4” MacBook Pro 2.4GHz The new 15-inch MacBook Pro is thinner, more powerful and years ahead of its time. The stunning, ultra-thin LED-backlit display gives you instant full-screen brightness. NVIDIA graphics provide even faster performance. The all-new, smooth glass Multi-Touch trackpad is clickable everywhere, so you have more control and more room for new gestures.

WIN YOUR OWN iPod Touch Equanet, the leading specialist provider of IT products & solutions for small businesses and the public sector and the largest Apple Authorised service provider in UK is giving away an iPod Touch to one lucky reader. To be in with a chance of winning simply tell us why you should be the proud owner of the iPod by email to: [email protected]

Business Matters issue 173 • 53

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Advice

Under the

Microscope

We look at some of the latest business related gadgets designed to make yourself or your business more efficient. Our man who strives for power plug led efficiency Mark Prigg investigates...

Freecom Hard Drive XS £179 www.freecom.com

The world’s smallest 3.5” desktop hard drive offering storage capacity of up to 1TB. This makes it perfect for both home users and professionals who want to back up their data or carry it on the move. Designed in collaboration with acclaimed Belgian designer Sylvain Willenz, the sleek new Hard Drive XS is covered in a form-fitting rubber enclosure that ensures optimal grip and reduced vibration, combining functionality with refinement. The fanless system means the drive is almost silent and weighing in at just 860 grams, it is easy to transport and makes sharing data more convenient than ever. In addition, the Turbo USB 2.0 connection offers transfer speeds of up to 30 percent faster than competing solutions for downloading or uploading data. With the explosion of Web 2.0 applications and new media – from digital photos and ‘home videos’ to downloaded music and TV programmes, computer users are running out of places to store their data There is very little that you can say about this device apart from it does what it is supposed to, in silence and looks nice. PROS: Small and the rubberised casing CONS: THe outer casing can look a bit tatty after a while

54 • issue 173 Business Matters

Gyration Air Mouse £69.99 gyration.com

Portable, compact, lightweight design with laser precision sensor is perfect for the traveling notebook user. The Air Mouse enables you to navigate your desktop and take complete control of your content from the comfort of your desk The Air Mouse features in-air control with MotionSense technology providing the freedom to unleash yourself from strain-inducing surfaces.Incorporates 2.4 GHz RF technology without line-of-sight limitations and a range of up to 100 feet (30m) The Gyration Air Mouse is simple to use and easy to install - If you have a PC (There are no obvious Mac drivers available). Just plug in the USB receiver into an available USB port, slide the Air Mouse switch to on, press the connect button on the USB receiver and Air Mouse, and your computer will automatically detect and configure the Air Mouse – there are no drivers to manually install. Place the Air Mouse on your desktop for use as a traditional mouse. The mouse features ambidextrous design with right and left buttons and 3 assignable buttons for customer control of application commands and if you are a rehular: Corporate business users Frequent traveling notebook users Corporate presenters Professional lecturers Trainers and instructors PROS: Good solid tower PC CONS: Not a cost-effective process to upgrade the RAM

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Advice

Apple mac iMac 24” £1,149 apple.com

We tested the fastest-available, 2.8GHz version with the optional 750GB hard disk, which added about another £100 to the price tag, bringing the total cost of our configuration to £1,559. For more on the design, features, and service and support of the fourth-generation iMac, check out our in-depth review of the 20-inch, 2.4GHz iMac. When we tested the 20-inch, 2.4GHz iMac, we came away impressed by its application performance, with it more than holding its own against competing Windows-based, mainstream desktops. The same can easily be said for the 24-inch, 2.8GHz iMac. With its faster processor, the 24-inch, 2.8GHz iMac is expectedly faster than the 20-inch, 2.4GHz iMac on all of our application benchmarks - as well as many similarly priced Windows machines.

Freecom Media Player II £219.99 freecom.com

The MediaPlayer II holds up to 1TB of data – it can store and play back up to 220 full DVD movies, 200,000 MP3s and 668,000 digital photos* – and is also ideal for those who need extra storage space on their home network, doubling as a fast USB 2.0 external hard drive. With HDMI video capabilities (up to 1080i), the MediaPlayer II also supports open source format mkv files and includes a BitTorrent client for managing downloads trouble-free. For around £320, it's intended for businesses that want to lower their energy costs, or for energy-conscious users who want to be kinder to the environment. With a fast hard drive, JPEG viewer, and video and music player allin-one, Freecom’s portable MediaPlayer II system is designed to make data-sharing with friends and family fun and simple. Furthermore, its small size (203 mm x 160 mm x 46 mm), noise-free operation and handy remote control make it the perfect addition to any home.

The test performs simultaneous video and audio encoding, which typically taxes the resources of most systems.

By connecting the MediaPlayer II to a PC or network router, users can simply drag and drop their desired content onto the drive and then directly connect to the audio or visual medium of their choice, making audio and video playback effortless.

Serious multitaskers and some prosumers can definitely gain additional screen area to support more open applications on the desktop, and the modest performance bump can make a difference during longer video or audio renders. Perhaps the ideal user is someone who needs as much processing power as possible from a Mac but can't justify the much costlier Mac Pro.

Furthermore, the Media Player II comes with an optional Wireless LAN (WLAN) adapter, enabling consumers to move their content around easily and to stream movies and music without having to leave the couch.

PROS: Very stylish,very fast & virus free CONS: Will not be 100% compatible

PROS: Cheap & Better than having to watch video on PC’s CONS: Not that easy to integrate and use painlessly

IRISCard 4 £180 iris.com

So you go to a trade show and collect 300 business cards. Now that activity really seemed to be great idea when you were doing it, but now back at the office the rubber band bound piles of business cards need to be dealt with. The device is small, fast and very accurate. It has good OCR capabilities which connect directly into Outlook, Word and most leading PC and Mac software. There is very little to do apart from feed it your business cards and then click on the scanned image to tell the sotfware which is the company name, address, phone number, email etc. PROS: Good, fast, quality scanning CONS: Could struggle with really demanding tasks

To be in with a chance to win these & other business gadgets log-on to: www.bmmagazine.co.uk

Business Matters issue 173 • 55

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Advice

What would you do if your IT system crashed, burned or got stolen? Get a free professional audit of your IT disaster plan... if you have one. Call now and quote BM0808 We’ll make your IT work for you...

T 01923 654 900 E [email protected] www.fwcs.co.uk

56 • issue 173 Business Matters

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Advice

Will cloud computing lift your business? What is cloud computing and what can it do to help your business cut costs and grow? Dean Miles helps us as we look to the sky for the future

W

hy do larger companies get the benefits of new software first? When productivity-enhancing applications like CRM, sales management and even accounting software are introduced, they’re typically aimed at big organisations with big IT budgets. These applications trickle down to smaller businesses eventually. But even then, costs are still high: the software has to be purchased, licensed, maintained and supported. Hardware often needs to be upgraded. And it all serves to distract you from running your business. However, there are new types of software application that offer even larger benefits to smaller organisations than to larger ones. These are cloud computing applications, which can level the playing field and make powerful business software available to any business – from a one-person start-up to an organisation with a turnover of £20m or more.

Cloud formations How do cloud applications do this? Put simply, instead of purchasing the software applications you want, and installing them on your own computers (with all the associated upfront costs), the applications are hosted on secure servers that you access over the Internet – that is, in the cloud. You use the applications, and input or extract data and files, via your web browser. This works in the same way as web-based services such as Hotmail, Google Mail and Amazon. These are all methods of storing and

accessing data via a web browser, making them classical cloud applications. And in the same way, a major advantage of cloud applications is that someone else is taking care of all the awkward, costly parts of business computing – buying and running servers, maintaining the software, handling upgrades and so on. With the upfront and ongoing costs of software removed in this way, you just pay to use the applications as you go along – typically a low monthly fee (around £25 per user). And you have the ability to add functions and users, as you need to. You pay for cloud computing services just like you pay for electricity or water – as you use them.

Clear benefits So you access the business applications you want to use – from accounting, and ecommerce to CRM, stock management and so on – online in a single ‘dashboard’ display in your web browser, with their files and data securely backed up on servers in the cloud. This has several key advantages, quite apart from the obvious low costs and avoidance of upfront investment in new software. First, you’re no longer dependent on one particular computer to access and work on business data. As long as you have a connection to the Internet, you can retrieve files and access or manipulate business data anywhere – whether at your desk, at home, via a WiFi hotspot or 3G on a laptop or web-enabled handheld device. So you can take your business wherever you go. Second, the headaches of managing and

maintaining the applications are removed – you simply use the applications, without the need to dedicate resources and manpower to support them. Let’s take a look at a case study of an established business that’s benefiting from using cloud computing applications. Allgas is a Yorkshire-based specialist supplier and maintainer of gas and electrical appliances and accessories. Allgas carries a large stock of appliances, accessories and spares, totalling some 30,000 items across its two sites, and is building an e-commerce site to enable customers to order parts online nationally. In particular, stock management was becoming an issue for the growing company. Managing director Elaine Whylde said: “We were looking for a cost-effective solution to provide a single, real time view of our central stock position, both internally to the business and externally to our customers through our e-commerce web site. Allgas chose an application, which gives access to stock information, purchases and transaction records, so stock levels can be managed efficiently. It gives a constantly updated, real-time view of the company’s current position, and can be accessed securely from any web-enabled device at any time, helping with planning and decision-making. Put simply, cloud computing gives a way for smaller companies to access enterprise-class business software applications, and get the same benefits, without the enterprise price-tag or maintenance costs.

Business Matters issue 173 • 57

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Legal Advice

Are you covered? David Greaves, Director of Deals & Small Businesses at RSA gives up some practical tips on ensuring that cutting back on insurance costs doesn’t mean you find yourself uninsured if you need to make a claim

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ith over 200,000 SMEs expected to go bust in 2009 those that will succeed are companies that understand the changing nature of risk and are willing to adapt. As many businesses are trying to reduce costs cutting their cover can often be tempting. However, without it the consequences could be far reaching and potentially devastating for a company’s future.

Consult a professional While your needs may seem simple and small the most important thing for any small business is to take on board professional advice such as a broker. As your business changes so will the needs of your cover and a good broker will be able to tailor your cover specifically to your needs. More importantly, they will also be able to keep you informed of any legislation changes and HR updates, and

58 • issue 173 Business Matters

therefore help you avoid any future fines or costs. With the growth of comparison websites, many are tempted to choose the cheapest option that ticks the most number of boxes. However, as a result of insurance providers wanting to appear as high up the list as possible and so often have to hide costs that come into play later on. Many will charge high interest rates on monthly direct debit payments or have high excesses on claims. So before making any purchase decisions ask someone to take you through the details so that you are aware of any further costs down the line.

Make sure you forecast properly When deciding on the right package for your business it is important to ensure you forecast for your needs over the time it is due to run. If you take on more staff, increase stock or change your premises then you may

find you’re not covered. It is however possible with many companies to update your policy but you must ensure they are notified of any changes at the earliest possible opportunity.

Business continuity insurance Another common mistake made by SMEs is the failure to take out business continuity insurance or instead a very cheap package. However, before making this decision you must think through the possible consequences of a worst case scenario. If your premises suffered a fire, would you be able to keep trading? How important is another office to you? If your IT failed would you be able to operate elsewhere? Do your customers expect you to maintain a service at all times? Could you afford to not trade? It would be wise to talk through this issue with your professional advisor and try to find a package that offers the right support.

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Advice

Business Matters issue 173 • 51

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Dining Out

Reviewed: Babington House

The difference between a good restaurant and a good hotel is that in a good restaurant you expect to find high standards of service and product, decent value, and then also originality, flair, wit and sophistication, whereas in a good hotel you just cling to the dream that it won’t be utterly dismal. I go to hotels quite a lot, overnighting after an evening function somewherer and, honestly, it is so dispiriting. It goes without saying that provincial citycentre chain hotels (called things like CheapSleep and Bog’n’Bed), and those slightly cheaper versions of them that cluster on ring-road roundabouts (called CheapSleepQuick and Bog’n’Bed-Budget) are too depressing even to commit suicide in (“A doorknob strong enough to hang yourself from? That’ll be a £10 supplement, I’m afraid”). A couple of steps up from there you arrive at those ones with a restaurant-of-sorts (open from 7pm till 8pm), where regional sales managers can eat a £17 fish cake made of pipe-lagging and pilchard with two pints of warm lager, and then retire to a polyester cubicle for feats of lonely onanism with husband-of-the-Home-Secretary-level cable pornography for £6/hour. And then, if you start paying £100 a night or more, you might get a restaurant which carries the name of a chef you’ve seen on telly but is equally awful, a gym containing one broken exercise bike and a yoga mat with a terrifying sticky patch in the middle, and one or two staff who don’t have visible boils. There’s a weeny kettle all clogged with limescale in a drawer, which can just about make enough hot water to fill a cup and a

60 • issue 173 Business Matters

half, and some old, stale sachets of Lipton’s with an invitation to call reception for fresh milk, which you do, and then wait while your stale, weak tea goes cold, and then another half an hour, and then they bring you an ironing board. But I’m not talking about those. I’m talking about the places where rooms start at £200/night and head up into the stratosphere. The ones with Michelin-starred restaurants and beautiful photos on their websites of Palladian architecture and rolling fields, and lakes, and beautiful maids, and a vast swimming pool.

Sleep - pah These always turn out to be bang on an A-road carrying trans-national freight all day and night, above whose rumble you struggle to make your complaints about the whining, not-cold fridge and armpit-smelling pillows heard, and in the presence of which sleep is no more than a tasteless joke. They always appear to have only three staff (two mute Slavs and a hunchbacked, drooling thing that was no doubt drummed out of its village with broom handles and saucepans when one too many cats went missing in the dead of night), so that if someone is checking in a new arrival at the front desk there will be nobody to man the bar on the other side of the house, and you have to prowl the corridors looking for someone to mix you a bad gin and tonic, poking your head into empty kitchens and terrifying, “staff only” store cupboards in the search for life. The Palladian architecture turns out to typify only the small main hotel, with four lovely rooms available to honeymooners who book three years in advance, but not the vast, freezing, 100-room annexe they’ve put you in. The rolling fields and lake are an hour’s drive away, the swimming pool is only eight feet long and is closed for maintenance, and the maids turn out to be downloaded stills from Youporn (which cannot,

incidentally, be accessed from your room because the broadband connection is down until October!).

Atmosphere It’s true the restaurant has a Michelin star, but the room is a morgue. The place where pelmets go to die. In the gloomy light sit three dozen of the wealthiest local reptiles, coughing. You are forced to drink a bad cocktail (“Sorry, we only have Beefeater”) in a terrifying lounge and order from the sofa, then proceed through to where your fancily stacked mousseline of something is developing the texture of elderly human skin, and the whole place has the carrion whiff of truffle oil. At least, you hope it’s truffle oil. Which is why it is so extraordinary what they’ve done at Babington House. I’m just back from my first ever weekend there – it celebrates its tenth anniversary this year so that’s quite speedy journalism from me – and I am stunned. Stunned. This, I now realise, is what I have been looking for. This is why I kept on trying. And this is where I will now always go. Always. I booked late, on a whim, and they had only one room left, a small one, they said, and apologised for its size. It was under the eaves in the lovely big Georgian house itself (a miracle!) and there was a little bit of stooping to do at times, but there was a huge, soft, white bed and dinky attic windows and loads of light and a big flat-screen TV, and then a sitting room with another telly, and a big, freestanding iron bath, and the best rain shower ever, and free mineral water (free, do you hear me, free!) and views out over the rolling lawns, which actually roll out from the actual house, down to an actual lake. Would i go again, arguably, yes. Would it be my second or third choice, quite possibly, which is a shame. Location: Near Frome, Somerset Tel: (01373 812266) Hotel: 10 Restaurant: 9 Score: 9 Price: the food is reasonable, the rooms are very expensive. The smallest room and a sausage roll, will set you back £304.

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Motoring

Under the bonnet: BMW X6

What do you get when you cross a coupé with a 4X4? An X6 ‘Sports Activity Coupé’. The rarity of this BMW suggests, however, this untimely crossbreed is the answer to a question nobody wanted to ask, says Dave Sumner Smith How comfortable is it?

The interior is similar to the smaller and more familiar X5 but with one big difference. BMW has given it 4 seats rather than 5 to provide a more coupé-like feel. The seats are big and comfortable, with plenty of legroom too, but the sloping roofline restricts rear headroom for the tallest adults.

What is it like to drive? The low centre of gravity combines well with BMW’s xDrive technology which distributes the power between the axles according to traction available. There is plenty of power on tap too, with even the 3.5-litre diesel powering from 0-60mph in 6.9 seconds. The X6 is better to drive than other premium SUVs, but several more conventional vehicles at similar price levels leave it trailing.

Will it impress? The X6 is big, fast, expensive and wears BMW badging. That used to impress, but no longer. SUVs have lost many fans, high performance is coming under increasing fire and brash ‘loadsamoney motors’ are out of tune with a punch-drunk economy. So a boldly styled performance SUV will only impress the most gauche.

Does it make financial sense? The range extends from a 235bhp 3-litre turbo-diesel at £42,355 to a 299bhp 4.4-litre petrol at £53,770. From October you can even opt for a 555bhp twin-turbo V8 X6 M. Leasing costs around £750 pcm for the most basic models, with rates that are 5-10% higher than an X5.

What else should I consider? If you want a BMW, then a 5-series estate makes more sense. It it’s got to be an SUV, then go for the X5. If you want to stay German, then a top model Audi A6 Avant is a more practical alternative, while a Mercedes CLS four-door coupé is more stylish. The Jaguar XF saloon is tempting, too, as is the facelifted Range Rover Sport.

Any toys and gadgets? Lots of goodies are standard, and right at the moment BMW is offering a complimentary Dynamic and Media package upgrade including satnav, sports seats, 19” alloys, electric, memory seats and Bluetooth phone connection. This could have something to do with less than buoyant X6 sales.

What does it say about me? On the plus side, it emphasises a drive for high performance, wealth and a willingness to stand out from the crowd. At the same time, it suggests a rather impractical, attention-seeking tendency – and a blinkered loyalty to the BMW brand exceeding the boundaries of common sense.

Business Matters issue 173 • 61

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It’s not all doom & Keeping organised The Aspinal luxury leather desk set is handmade in a a range of beautiful vegetable dyed leathers and each piece simply oozes quality and handmade luxury from a bygone era. The bases are all hand crafted in fruit wood and then over bound and finished in sumptuous Mock Croc or English Bridle calf leather to an exceptional hand finished standard. pencil and pen pot.

Aspinal of London £495 www.aspinaloflondon.com

Hand made carriage Handmade by Master Craftsmen and meticulously crafted from solid wood, then hand bound in the most beautiful Black English Bridle Leather.

Aspinal of London £750 www.aspinaloslondon.com

Stylish desk Fine piano lacquered wood, from sustainable sources, and precision engineered stainless steel commbine to produce the ultimate in office style

Bureau hole punch £91 www.dalvey.com

62 • issue 173 Business Matters

Passport Holder Today's global professional needs accessories that can take them anywhere at a moments notice. The Densworth passport case, in sturdy saddle-stitched calf leather, is hard wearing and style-savvy for today's modern professional on the move. The fresh pumkin colour cover, is classic in looks and functional in design for when organisation, safety and security is your highest priority and style is unquestionable.

Links of London £50 www.linksoflondon.co.uk

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gloom, so... Ultimate grooming Luxurious gift for a special man. This is the ultimate shaving set. From the Diffussion Range of Edwin Jagger, we bring a Classic Horn shaving set, pair it with a rich scented sandlewood shaving soap for a rich lather and complete the set with DR Harris lightly scented Aftershave Milk.

Edwin Jagger £198 www.kuati.com

Bags of style The Grosvenor satchel brings creative design and effortless style to the season. The perfect accessory to compliment the smart preppy look, this spacious bag is part of the London Collection, Radley's premium collection of uniquely designed bags and unmatched quality and is owned by Lily Cole, Erin O'Connor and Anna Friel.

Radleys £300 www.radleys.co.uk

Keeping in together Recognised as one of the ten best briefcases by The Independent newspaper, this is one the largest and most beautiful in our range. It is ideally suited for business people who need to carry plenty of paperwork (plus the option of a large 17 inch laptop).

Traveller Clock Stylish in design, the Greenwich Alarm Clock is an ideal travelling companion for all those short and long-haul trips. This portable alarm clock is perfect for your office desk or for travel. Easy to read and complete with alarm, this clock puts time on your side. Ideal as a gift for the busy professional.

Links of London £110 www.linksoflondon.co.uk

Maxwell Scott £315 www.maxwellscottbags.com

Reflect upon a reflection When water is calm, the reflection becomes clear. Upper elements meet lower elements in a state of perfect balance. This idea is at the heart of hydrohealing, a unique spa and wellness centre where you can escape to rediscover your centre. Each experience is therapeutic and yet luxurious. It’s not rocket science, but it is science. It’s good for you, but it feels so good you’ll forget the science

Hydro Healing £45 www.hydrohealing.com Business Matters issue 173 • 63

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B B oo oo kk ss

The business

book shelf In forWriting a penny The on the Wall

Seduced Seduced by by Success Success Bill Bill Gates Gatesonce oncesaid, said,“Suc“Success lousyteacher. teacher.It seIt cess is aalousy seduces smart people duces smart people into into thinking thinking they they can’t can’t lose”. lose”. Successful Successful individuals individualsand and organizations organizationsoften oftenfeel feelthat that they they are are entitled entitled to to contincontinual ual success success in the future. As beAs aa result, they risk becoming comcoming complacent, complacent, comfortable, fortable, and and mediocre. mediocre. Instead, conInstead, they they should continue searching for fresh aptinue searching for fresh approaches to improve proaches to improve products and services, and prodfocus ucts and services, and focus on staying lean and agile. on staying lean and agile. In In Seduced Seduced by by Success, Success, author author Robert Robert J. J. Herbold Herbold demonstrates demonstrateshow howsuccessful successfulcompanies companiescan canlose losetheir their way way as as the the world world changes changes and and as as they they become become comcomplacent placent about about building building on on their their best best business business practices. practices. He He uses uses instructive instructive case case studies studies to to show show how how certain certain top top companies companies were were seduced seduced by by their their success, success, and and he he provides provides insight insight as as to to how how to to put put success success into into perperspective spectiveby byoutlining outliningnine ninetraps trapsevery everyorganization organizationmust must avoid. avoid.

64 issue 173 Business Matters 64 •For further information on how to advertise Tel: 0870 116 2854

Plain has In Thespeaking Writing on thenever Wall, held Hargreaves back. Will Peter Hutton traces the hisIn this candid and outspotoric development of ken book,economy the multi-millionChina’s from the aire founder of investment Imperial Dynasties to the company Hargreaves current “socialist market” Lansdown tellsquestion the story economy. The of behind extraordinary whetheritsChina can besuccess and gives his come a great economic forthright views ondemocwhat it power without takes to begenuine successful as racy and capitalism is an entrepreneur andalso as an investor.whether Startingthe from his examined. Hutton ponders West, spare bedroom single phone and borrowed office particularly the with U.S.,awill be wise enough to continue its equipment, Peter and business partner Stephen free market policies withhis China. Lansdown out to build a business that would China can set dominate the twenty first century if itconemsciously beeconomic different from that of all their competitors. braces the and political pluralism of the West. They have heldisfast to their unconventional ever This pluralism defined to include the rule ofways law, indesince, regularly turning the acompanyâ strategy and pendent legal institutions, free press,TMs independent scibusiness model upside down in theirgovernment. relentless effort to entific research, and representative China give their clients the best information, the best prices currently lacks these ideals and institutions, whichand will the bestthe service. Widely recognised as the and number one make country’s current economic political firm in their business, Hargreaves Lansdown was floated models unsustainable. Hutton argues it is imperative for on London stock market in 2007, valued at £800 milthethe West to continue to engage China in international lion. For idea A Penny is a must for anyone who wants tradeInand exchange andread believes the world’s future to understand how the investment business specifically hangs on whether China and the U.S. works, can rewhat's with conventional wisdom sist thewrong temptations of rivalry and management find constructive ways and what'sbusiness right about the other. true meaning of ento conduct with each trepreneurship.

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Books A book about innocence Dan Germain joined Innocent in 1999, shortly after his three college buddies began the London beverage company. His role is head of creative, which covers things like copywriting, design, adverts, web stuff and generally making sure that the company looks, sounds and feels just right. In this book he talks about how Innocent becoming the company that it is today and really is a good book for anyone who is thinking of starting their own business which involves fresh thinking and for anyone who has been told that their business model will not work, when everything inside of them tells them that it will. The book is a very easy read and you could come away from it with some really great ideas.

My Way - Duncan Bannatyne At 30, Duncan Bannatyne had no money and was enjoying life on the beaches of Jersey. He saw a story of someone who had made himself a millionaire, and decided to do the same. Five years later he had done it, and now he is worth 168 million. In this remarkable book, Bannatyne relives his colourful path to riches, from ice cream salesman to multi-millionaire, explaining how anyone could take the same route as he did - if they really want to. Hugely articulate, and with numerous fascinating and revealing stories to tell, this is an autobiography and a business book unlike any other - but then Bannatyne isn't like any other businessman

Negotiation - An A-Z Guide (The Economist) There couldn't be a better time for these business guides from The Economist - They're a handy guide, with some dry humour and stern disapproval thrown it to stop things getting too dull - These are interesting and excellent reference guides to those interested in the markets, or who own shares. Anybody who thinks they have nothing to learn from these is asking for trouble, or raised eyebrows at the very least. Almost every access of business - and indeed human life - involves negotiating skills, whether you are striking a deal, organising a team working on a project, seeking a pay rise or a pay-off, or simply settling such important matters as who is going to do the shopping or the household chores. This witty and intelligent guide looks at the theory and practice of negotiating and provides a wealth of illuminating insights into the skills and psychology of negotiation that can make all the difference to how successful you are. Following an introductory essay on how negotiation has developed, the A-Z covers everything from Adduon and Assumptive close, through Lifeboat clause and Manipulative ploys, all the way to Yesable proposition and Zeuthen's conflict avoidance model. Appendices include information on training resources and suggestions for further reading. Gavin Kennedy is Emeritus Professor at Heriot-Watt University, Scotland, and the author of several successful books on negotiation, including Everything is Negotiable and The Perfect Negotiation.

Business Matters issue 173 • 65

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Getting to know you...

Nat Hardwick

What do you currently do? I'm Managing Director of SFEDI Enterprises Ltd. We're the enterprise arm of SFEDI, the Small Firms Enterprise Development Initiative. SFEDI are the UK national standards setting body for business enterprise and also carry out research into the needs and issues of small business. Originally government funded we're now an independent organisation run by entrepreneurs for entrepreneurs. In terms of how we work together, SFEDI does the thinking, we do the doing! With my background in psychology and technology my interests lie in providing support systems for small business based on current and emerging technologies. My philosophy is based around the online open-source movement, in that access to best practice tools, resources and support should be based on principles of sharing, peer review and should be free for all. By exchanging knowledge and experience the small business community can only become stronger. My circle of friends include a number of other small business owners and I know that if I have an issue, it's highly likely I'm not the first. Ask around and find out how other people solved it, what they used and where they got it. Small businesses helping other small businesses. By pooling our expertise we make the whole community stronger than its composite parts. That's what SFEDI aims to make happen. A national, collaborative small business movement.

Who is your inspiration in business? I think it's a close call between, Steve Jobs, co-founder of Apple and Pixar Studios, and Bill Gates, Microsoft's former CEO. Starting out in computing in the 70s when it was all unknown

66 • issue 173 Business Matters

territory and creating hardware and software systems that changed the face of the way we do business today is no small undertaking. Bill Gates' dream of having 'A computer on every desk and in every home, all running Microsoft software' is one of the most aspirational statements I think you can make, and made inspirational by the fact that he went on to achieve this seemingly impossible goal. Against todays technological backdrop such a claim would be bold but not unbelievable, but it was originally made at a time when computers filled rooms! The idea of home computing was unheard of. Steve Jobs has created, in my opinion, the worlds greatest brand. He's influenced not only the world of technology but their brand and design has crossed into so many other arenas, not least music.

Whom do you admire? My admiration is for anyone who is able to take new paths and exert a positive influence on those around them. Passionate people, from whatever walk of life, who are able to take their passion and enthuse others are key to a progressive society. If I had to pick one person it would have to be Berry Gordy, founder of Motown Records. He was passionate about music and its power to forge social change. He understood his own abilities as a businessman and was able to recognise talent and abilities in others. He went on to form not only a business but a musical genre and through that a social movement. He knew that in order to achieve his goals he would have to collaborate with others with the skills he didn't have and develop networks. From the back room of a studio in Detroit he went on to create a global phenomenon that still influences the industry today. He was one of a number of pioneers in music at the time but he stands out in my mind as a formidable businessman who took a structured, well thought out approach at a time when an industry was in its 'Wild West' phase.

Looking back, are there things you would do differently? I try not to look back with any sense of regret. Of course, there are things that perhaps I wish I hadn't done and things I wish I had but the art of the entrepreneur is to continually look to the future. How can I make things better? How can I use the experiences of the past to

positively influence what I'm doing now? These are better questions to ask than to wish you'd done things differently.

What defines your way of doing business? I think freedom of expression and a sense of community are key to my work philosophy and way of doing business. As a sometime musician I experience such a strong sense of community and collaboration, where the final output can only be created by working together and utilising each persons own specialism, that it cannot fail to influence the way I do business. Each and every on of us has our own unique skill and knowledge base. There's no way I can assume to be the best at everything, and it would be arrogant to think otherwise. By working together with my colleagues, partners and clients then we draw on the best that each individual has to offer. I'm lucky in that the majority of my working life I've been my own boss. This has afforded me the freedom to think and do what I want. I find that I thrive in these conditions and try to nurture this same environment for those I work with. Do as you would be done by.

What would you say to businesses who are worried about tough times ahead? Tough times for small businesses can come at any time. Successful small companies must be prepared for tough times at all times. Disaster can be just around the corner. It's when you get complacent that problems can arise. In terms of the current economic situation it provides an opportunity to focus on areas of your business where improvements can be made. Necessity is the mother of invention and difficult times can focus your mind. By viewing the current situation as an opportunity to be more efficient and innovate small businesses can come out of the other side as stronger, leaner more effective organisations. The small business actually has an advantage over big business in that they are more agile and can move quickly to take advantage of change to improve the way they do business. Don't get bogged down by worry and allow it to lead to inaction. Pro-active businesses can and will prosper in tougher times. If you can maintain your success in harder times it makes it that much easier to prosper when things take a turn for the better.

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