The Business Independent - Hertfordshire - October '09

Michelle Dewberry on life after The Apprentice Planning the ideal Christmas party Checking your business costs Protecting your assets October 2009

The green shoots of recovery are sprouting

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This month 4

Managing Editor Richard Alvin - [email protected] Editor Tracy Light - [email protected] Online Editor Paul Jones [email protected] Contributors: [email protected] Jim Moore, Felicity Cousins, Gavin Porritt, Production Manager Stewart Hyde - [email protected] Designer James Conolly - [email protected] Sales Manager Terrry Sullivan [email protected]

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Copyright: 2009 Business Independent 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 any of the Business Independent series of regional magazines are not necessarily the views of the publishers Business Independent Ltd. 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.

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NEWS

Warren Weir opening Following a £20m investment, Luton Hoo Hotel, Golf and Spa has opened Warren Weir, its purpose built meeting and wedding venue. Key features include: 84 bedrooms and suites, with views over the lake, weir, private gardens or river. Five individually designed function rooms adaptable for conference or leisure use and licensed for weddings and civil ceremonies First floor hospitality lounge with balcony views over the water meadows Exclusive leisure facilities, including an indoor pool, fitness studio and snooker room Kitchen available for clients who want to bring in their own chefs to cater for special dietary requirements Warren Weir has already been used for various conferences, with events booked ahead into 2010. Elite Hotels Managing Director, Graeme Bateman, commented: “The latest stage in Luton Hoo’s development has been

designed to create the perfect complement to the mansion house’s more intimate conference and meeting facilities. The location also provides endless possibilities for event organisers as the courtyard, gardens and immediate

Big business changes ahead The next few months will see big changes in employment law which will have serious implications for SMEs as Clare Waller, a director of HRJ Law LLP, a legal firm with offices in Hitchin and Welwyn Garden City explains. Q: I am aware that there are quite a lot of changes in employment law coming up in the next few months. As an employer in the hotel business what do I need to know? Whilst as an employer it is important to have an understanding of employment law it is also important that you seek professional advice as this is a complex area and failure to comply risks heavy fines. However here are the headline details regarding the most significant changes:

i) National Minimum Wage (NMW) The annual increases to the various bands of NMW come into force on October 1. The relevant minimums will be: £5.80 per hour for adult workers, an increase from £5.73 £4.83 per hour for workers aged 18-21, an increase from £4.77 £3.57 per hour for workers above the compulsory school age, an increase from £3.53 Of particular importance to you is that, also with effect from October 1, tips and service charges, which are commonly used within the hospitality industry as a mechanism for discharging an employer’s liability to pay the NMW when paid through payroll and subject 4 | www.businessindependent.co.uk

to the relevant statutory deductions, will no longer count towards NMW. Therefore you will have to ensure that payment before the addition of tips or other gratuities is at or in excess of the relevant NMW level.

ii) Statutory Redundancy Payment The maximum weekly pay which will be taken into account when calculating a statutory redundancy payment will be increased in respect of redundancy dismissals taking effect on or after October 1 from £350 to £380 per week. The normal annual increase scheduled to come into effect on February 1 2010 will not occur, with the next increase scheduled for February 1 2011.

iii) New Rights for Families The Department for Business, Innovation and Skills has announced that it intends to implement the proposal to allow part of the maternity leave to be taken by fathers for children born on or after April 3 2011. This would enable the father to take up to six months off during the second six months of the child’s life, once the mother has returned to work. It appears likely that this period would be paid only to the extent that there was any of the 39 weeks paid leave entitlement remaining. Please note that the answers provided are for general guidance only. If you have any legal problems you should always ensure that you obtain specific legal advice.

areas are ideal for receptions, product launches and team building events. We are very proud of this exclusive and unique venue and delighted at the interest and number of bookings it has already attracted.”

Hatfield shortlisted for national award Hatfield town centre’s latest major housing development - The Forum has been short-listed for Best Development Partnership at the Affordable Home Ownership Awards, which took place in September. One of three finalists, the initiative was selected because it demonstrated effective partnership between the council, town centre developer St Modwen, English Partnerships (now part of the Homes and Communities Agency – HCA) and Metropolitan Housing Partnership to deliver an attractive and effective affordable housing development. The Forum contains 84 flats, in three blocks, of which a third were made available for affordable housing purchase by Metropolitan Housing Ownership. MHO completed 19 one-bedroom apartments and nine two-bedroom apartments in December 2008, each available to buy through New Build HomeBuy scheme. The development plays an integral part in meeting the vision for the town, which aims to provide a comprehensive and co-ordinated redevelopment, to regenerate and enhance and realise the area’s potential as a sustainable, safe, clean and lively place.

NEWS

Herts small business award 2010 launch The FSB Hertfordshire Small Business Awards enter their second year with the official launch this coming January. Once again the initiative, sponsored by companies throughout the county, is dedicated to the success of small businesses, significant since in the UK more than 90% of companies employ less than 50 people. As the FSB’s Helen Armstrong comments:

“This is an opportunity - make no mistake about it - to assess your business and its strengths and position it for public acknowledgement and the acclaim of your fellow entrepreneurs in Hertfordshire.” Entry forms should be on the FSB website www.fsb.org.uk from early January. The finals will be held on May 13, 2010 at Tewin Bury Farm near Welwyn Garden City.

New face at EEI Mercedes Benz showcase Mercedes-Benz Hertfordshire, which includes dealerships in Bishop’s Stortford, Hertford and Stevenage, is to showcase over 200 quality approved used cars at a series of special events to be held between October 10-18.

East of England International, the organisation which helps companies export, has appointed Michael Dunn as business development manager for Hertfordshire. Michael’s brief is to focus on both inward investment and investor development. To this end, he will be working closely with Hertfordshire County Council, where his role will be to

develop Hertfordshire as an exciting proposition for foreign investment. As EEI chief executive David Riches comments: “I am pleased to welcome Michael and his vast experience to the EEI team. This role is a first for EEI and we are delighted to be working in partnership with Hertfordshire County Council to ensure that its profile is raised and its reputation enhanced as a great county in which to do business.”

As well as significant savings on every vehicle, Mercedes-Benz will be selling each vehicle with a couple of special extra features as standard – a complimentary, two-year service plan and a Mercedes-Benz approved used warranty. Virtually every model from the MercedesBenz range will be represented - from the popular A-Class hatchback to the flagship S-Class. As Andrew Gallacher, MercedesBenz Hertfordshire’s group sales manager pointed out: “There has been a shortage in supply of pre-owned cars due to companies delaying the replacement of their fleets and the success of the Government scrappage scheme. However September was a fantastic month for us in terms of new car sales as customers took advantage of the exceptional offers available and this has resulted in us taking some superb vehicles in part-exchange.” www.businessindependent.co.uk | 5

NEWS

Where Angels dare

A St Albans business duo who run an online service connecting entrepreneurs with successful business professionals have outperformed thousands of entrepreneurs to reach the national shortlist of the 2009 HSBC Start-Up Stars Awards. Bill Morrow and Lois Cook, who started Angels Den, are now hoping to scoop the title and a cheque for £25,000, courtesy of HSBC. The couple were inspired to start their own

company after experiencing great difficulty in accessing funding to start a business, and wasted £12K on traditional angel investment groups. Convinced that this process could be done more efficiently and effectively, Bill and Lois launched the Angels Den website in May 2007 – an online service dedicated to helping entrepreneurs find that much elusive and sought after business investor, in an affordable and simple way. To complement online activities, the company also runs monthly speed funding events,

St Albans accolade

Students boost local business opportunities

St Albans City and District Council has been awarded £88,740 by the Department of Communities and Local Government to pilot a new toolkit designed to help local authorities deliver a better customer service

Wenta, the Hertfordshire, Bedfordshire and Buckinghamshire agent for Shell Step, has held the first local area awards in Stevenage. Out of students representing 25 host companies, 31 were competing for the title of ‘Most Enterprising Student.’ The event took place at the Business and Technology Centre in Stevenage and was sponsored by the University of Hertfordshire in conjunction with Central Bedfordshire Council. Both the winner and runner-up go on to battle for the title within the eastern region and, if successful, will progress to the national finals in Bedford. Shell Step is a national scheme that every year places hundreds of motivated students with SMEs throughout the UK to undertake 6 | www.businessindependent.co.uk

where entrepreneurs can meet up to 20 angels in just one night. Angels Den is one of only 25 companies to secure a place on the national shortlist. Its entry will now be considered by the national judging panel which will select the top 10 start-up companies to come to London and convince them why they should be named the ‘Start-Up Star 2009’. There will also be £10,000 cheques for the best new business trading internationally, the best new green business putting the environment at the top of its agenda and the best new business set up by a graduate. Head of Business Banking for HSBC, Huw Morgan, said: “HSBC Start-Up Stars is about demonstrating by practical example that with the right help and support, there are still opportunities out there for people with the dedication and will to succeed. “We hope the success of Angels Den in this year’s awards will help it go from strength to strength, as well as prove to other budding entrepreneurs that business dreams really can be turned into reality.” Start-Up Stars supporter, Google, will be offering £11,000 worth of free advertising plus mentoring at Google’s UK headquarters, to be split between the four winners. Specialist Business Partner, Start Your Business, will also be offering a year’s free subscription to each of the category winners. The overall winner will be revealed at a black-tie gala dinner at London ’s InterContinental Hotel in November.

business projects during their summer breaks. The programme gives businesses the opportunity to add significant value to their bottom line. In 2009 alone a quarter of students added more than £300k worth of value to their host company’s business. Meanwhile, for the university students that participate the programme offers them the opportunity to experience the real world outside of their studies. This year 13 organisations across Hertfordshire took advantage of the scheme and included a wide range of projects from marketing and database development to website design.

It is one of only nine areas in the country to participate in the scheme. The council has already established an ethos of putting the customer first. Its customer services team has been rated highly by residents in a recent survey which showed that over 90% of those questioned were either very satisfied or satisfied with the service they received in the centre. As the Council’s chief executive Daniel Goodwin commented: “This award recognises the improvements that our customer services team have already delivered by using their skills to inform national developments. We are constantly seeking ways to learn from the feedback we get from our customers and to improve our performance.”

NEWS

Harpenden entrepreneur wins franchise award Harpenden TaxAssist accountant Mark Fordham has been named bronze winner of the 2009 British Franchise Association/HSBC Franchisee of the Year Awards. Mark impressed the judges by demonstrating how he had achieved success in spite of challenging times. In fact since acquiring the St Albans branch he has developed one of the largest and most successful practices in the network. To this end he has increased his product portfolio and expanded his franchise territory to include Hemel Hempstead and nearby areas. This has been backed by heavy investment in infrastructure and state-of-the-art facilities. As HSBC’s Head of Franchising, Cathryn Hayes, commented: “Judging these awards is always a difficult task but we felt Mark’s story is testament to the franchise model working at its best. He has demonstrated drive and commitment to make his business a success, working closely with the franchisor and investing in staff and premises.” The awards, sponsored by HSBC Bank and Express Newspapers, celebrate the UK ’s best performing franchisees in an industry now worth an annual £11.4bn to the economy.

Mark Fordham seen here receiving his prize at this month’s award ceremony held at the ICC in Birmingham. From l/r: Sir Bernard Ingham (BFA President), Cathryn Hayes (Head of Franchising HSBC), Mark Fordham (TaxAssist Accountants), Shelley Nadler (Field Fisher Waterhouse LLP), Kieron Summerhayes (Classified Advertising Controller, Express Newspapers) and Brian Smart (Director General BFA).

STANLEY REACHES FOR THE SKY

Harpenden-based materials handling specialist Stanley Handling Ltd has won a lucrative contract to supply equipment to leading missile systems company MBDA. The initiative involves the provision of five canister rotation units for use in the loading of Seawolf missiles onto the Royal Navy’s type 23 frigates.

www.businessindependent.co.uk | 7

NEWS

Training triumphs North Hertfordshire College and The Consortium for Business have been named as the East of England’s Train to Gain Provider of the Year. In spite of the recession they have continued to grow the number starting on the government’s Train to Gain scheme - up 75% on 2007/08 levels with success rates of 83%. Robust processes combined with support and development of consortium members and sharing best practice has enabled a growth in employees achieving qualifications of 62%. North Hertfordshire College is the lead partner in the Hertfordshire Train to Gain Consortium covering NVQ delivery in the workplace in Bedfordshire, Hertfordshire, Cambridgeshire and Essex. This allows the consortium to offer a huge range of qualifications covering most sectors. Caroline Neville, Regional Director for the Learning and Skills Council East of England recently presented the award to Fintan Donohue, chief executive and principal of North Hertfordshire College, and said: “The consortium has been chosen to receive this award in recognition of its outstanding performance and responsiveness to the needs of employers throughout the academic year. “Feedback from skills brokers has been consistently positive with the consortium praised for the responsive and dynamic way they manage enquiries and keep them updated.”

OPTIMAX OPENS IN MILTON KEYNES Optimax, the UK's leading laser eye surgery provider, is to open a new million pound treatment clinic in Milton Keynes. Situated close to local rail links, this will feature the latest IntraLase laser platforms as standard, offering the most advanced procedures currently available. This is combined with state-of-the art Wavefront diagnostic techniques and a high-speed OPD Iris Recognition system. Scheduled for an official launch in late October, Optimax Milton Keynes is the latest in a succession of recent developments for the laser provider which has recently introduced consultation clinics in Liverpool Street, Cardiff, and Nottingham. As Chairman Russell Ambrose commented: "The credit crunch hasn't affected our customers. Quite the reverse: they like saving money on glasses and contact lenses in ever increasing numbers." 8 | www.businessindependent.co.uk

From l/r: Karen Kelly (LSC), Jayne Henderson (HRC), David Neal (The Consortium for Business), Caroline Neville (Regional Director for the LSC East of England), Fintan Donohue (Chief Executive and Principal of North Hertfordshire College), Gail Brench (LSC), Bev Jones (The Consortium for Business), Signe Sutherland (North Hertfordshire College) AND Mark Pike (Ridgemond Training).

Fintan, accepting the award added: “This award means a lot to North Hertfordshire College and its excellent partners. Two years ago, with support from the LSC, we committed to major investment in our employer responsive capacity, which has paid off. “Our Goldsmith Centre for Business has be-

SHENDISH MANOR UNDER NEW MANAGEMENT Shendish Manor in Hemel Hempstead, which was placed into administration back in May, has been sold by administrators KPMG to Planned Holding Limited, operator of the Manor of Groves Hotel based in East Hertfordshire. As KPMG’s David Crawshaw commented: “Trading has not been easy in these difficult times but I’m pleased that the quality of the hotel’s service has been maintained, occupancy rates have increased and that we were able to honour all deposits and wedding bookings. I’d like to take this opportunity to thank the customers and suppliers for their ongoing support in this difficult time which has helped to ensure that this historic site will continue for many years to come.” The sale completed on September 30.

come a recognised Centre of Excellence for training and the outstanding success rates are a testimony to the quality of providers that make up the Consortium. This award will give all consortium members a strong incentive to do even better in the future. We hope to welcome more employers as their training partner.

CASTLE HALL £600,000 MAKEOVER

Castle Hall in Hertford is to undergo a £600,000 face lift - its biggest revamp since it opened in the ‘70s. This will include new gallery space, a cafe and a dance studio and the purchase of high quality film projection equipment. As Linda Haysey, executive member for community development, leisure and culture, said: "This is not about tinkering around the edges, changing the colours of the seating. This investment is about putting the show on the road." The hall will close for around six months next year and will reopen in time for Castle Hall’s inaugural in-house pantomime, which would cost about £70,000 a year to stage and could eventually bring in a profit of £35,000 annually. East Herts Council also wants the makeover to lead to greater use of the building in an attempt to reduce its subsidy by £700,000 over 10 years.

NEWS

New appointment at CMC to move forward

Enter the dragon This month will see the official launch of the Entrepreneurs Board, a learning forum where like-minded business leaders can meet up to test ideas and investigate opportunities. The event, to be held in Watford, will also highlight the findings of new research which examines public attitudes to entrepreneurs. As successful businessman Peter Cordery, who will be heading up the new organisation explains: “The survey shows that Britain’s entrepreneurs have the business x-factor needed to kick start the economy and pull the country out of recession.” The study showed that 28% of those questioned think entrepreneurs are most likely to have the most positive effect on bringing Britain out of recession over the next year, in comparison with 24% voting for the Government. Large businesses were chosen by 13% of respondents and trades unions by just 3%. Meanwhile some 45% of people surveyed feel that funding should be given to start-up companies instead of supporting failing businesses. Nearly half of people (47%) agree

that private sector businesses that fail should not be bailed out and 48% want remuneration to be capped for all public sector workers (including those in majority-owned businesses such as banks). And in another ringing endorsement of the perceived power of the entrepreneur, more than seven in 10 people definitely (41%) or maybe (34%) want tax cuts to be given to start-ups and entrepreneurial businesses to further stimulate the economy. As Brian Chernett, Founder of The Entrepreneurs Board, added: “Entrepreneurs are vital to recovery in the UK and the public understands this. We should do everything possible to help entrepreneurs make their businesses more successful, whether it’s tax cuts or providing business support and guidance. The Entrepreneurs Board is an extension of proven leadership programmes that help leaders learn from each other. Experiential business learning helps business owners learn by ‘doing’ and inspires them to achieve their ultimate dreams while creating economic value for the country.”

Wayne Dobson has joined the CMC Partnership as a partner. His remit is to deliver the CMC brand in Hertfordshire from his base in Harpenden. As Wayne commented: "When I ran my own business, there were tough times when I looked around for business advice. All that was available to me were professional advisers who were not entrepreneurs, were very expensive and couldn't run a business themselves! If I'd found CMC at the time, I'd have chosen them to help me. Working with CMC is a great way to make sure other entrepreneurs don't make the same mistakes I did." While the main focus of Wayne's business will be to help and advise SMEs in Watford and St Albans, he will also cover Hatfield, Hemel Hempstead, Luton, Stevenage and Welwyn. He is currently organising a series of events in the region for March and April 2010.

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01923 894600 Or email: [email protected] www.businessindependent.co.uk | 9

INTERVIEW

Life after

The Apprentice Hannah Prevett talks to Apprentice winner Michelle Dewberry about life post-Apprentice and founding lifestyle portal, Chiconomise

N

o sooner have I stepped foot through Michelle Dewberry’s front door I’m ordered to take off my shoes. Naturally, I abide and gingerly follow the 2006 Apprentice winner through her impeccably decorated apartment and into the lounge.

Now I understand the ‘no shoes’ rule. This room, like the others, is kitted out art deco style, with loud, yet stylish, pink and black wallpaper. Surfaces are scattered with pictures of friends and family. Above, the book shelves are crammed with spare copies of her autobiography Anything is Possible, poetry books and business bibles.

Staying grounded Across the room, Dewberry nestles herself on a cream chaise longue, looking effortlessly chic in a black Diane von Furstenberg wrap dress. “When I got this chaise it was a real wreck,” she admits. “I had to re-cover it, put the legs on and I put all these studs at the arm,” she says proudly. Surprising that she has

10 | www.businessindependent.co.uk

time for such DIY pursuits given the recent launch of her new venture, Chiconomise, but it’s good to see her practising what she preaches. “Chiconomise is my baby,” she smiles, at the mere mention of the start-up. “I came up with the idea when I was living and working in New York last year. I was reading daily lifestyle email, Daily Candy and they suggested a fabulous hair salon to go to but it was $100. I asked myself if I’d be able to afford a $100 blow dry once a fortnight. Probably not. So I started thinking, ‘wouldn’t it be nice if I could have the blow dry at a discount’,” she recalls. And so Chiconomise was born. “I want to be able to keep up the nice lifestyle, but without it necessarily costing a lot of money.” The timing of the project is no coincidence. Dewberry, known as the ‘Steel Pixie’ during her time on the BBC show, is tuning into the needs of an increasingly cost-conscious society. “I am massively aware of the current economic climate and while people are impacted and people are cautious about what they’re spending, girls will be girls and we want to

INTERVIEW

“Sir Alan Sugar taught me that the most important thing you can give yourself, and it is a gift to yourself, is self-confidence and self-belief” Chiconomise as becoming a crucial portal in the way women lead their lives.” Dewberry is certainly passionate about her latest project, which is the most high-profile since she parted ways with Sir Alan after 11 months, a fact which is commonly misrepresented in the media. While the partnership wasn’t as long-term as many would have envisaged (she left for professional reasons after the project she was working on was deemed unviable and was subsequently shelved), the petite blonde says she learnt valuable lessons from her mentor. “Sir Alan Sugar taught me that the most important thing you can give yourself, and it is a gift to yourself, is self-confidence and self-belief,” she recalls. “Because when Sir Alan Sugar has an opinion, wild horses can’t drag him back from what he believes in. And that’s a very good trait,” she says emphatically.

Not the best of starts

look good, we want to feel good, we want to socialise: Chiconomise can help girls to do that.” That said, the use of the Chiconomise portal needn’t only be limited to during the downturn, she says. “Chiconomise isn’t just for bargain hunters; it’s all about intelligent spending,” she explains. “The economic climate bears no relevance when it comes to intelligent spending. It’s about helping people get the best deals on whatever it is they want to buy, which I think is a sensible way of shopping.” And there is more to come – over the next 18 months Dewberry plans to put Chiconomise on the map as “the number on site for women to check out before they do anything. I see

Certainly, starting a business requires a large dose of self-confidence, as setting up in a recession is even more difficult – Chiconomise found itself homeless a couple of months ago after the landlords of their Covent Garden office went bust. Added to this, an initially tricky round of funding meant Dewberry had to take the decision to go it alone and fund the business herself. “I originally went for funding and I had to take the decision not to take the money on because of the amount of equity they wanted due to the economic climate,” she recollects. “I’m now seriously considering angel investment and I’m having some good solid meetings about that at the moment.” The business is currently making its money through affiliate deals and eventually revenue will be driven through advertising on the site. “Anyone who says setting up a business is easy is lying,” she admits. “But that’s part of the joy. I absolutely thrive on it.”

www.businessindependent.co.uk | 11

THE FESTIVE SEASON AHEAD

Planning the ideal corporate Christmas party Simon Clark looks at how to make sure your companies festive season celebrations go with the right sort of bang this year I've seen many a company Christmas party that was planned with the best of intentions but executed with inadvertent blunders. Here are a few points to consider before you begin to plan a company Christmas party: Goodwill. Remember that the company Christmas party is all about generating goodwill. Before you even begin planning, consider what will generate the most

goodwill. Whatever you do, you do not want your good intentions to backfire. For example, let's say that your company relies on a blend of regular and contract employees. Chances are that your contract employees may be more appreciative of a Christmas bonus or some paid holiday days off than a lavish holiday party (or in a perfect world, all of the above). While you could well be thinking, "Everyone will feel pampered if I buy only top shelf scotch," they might be thinking,

"Wow, x number of pounds on booze and not even a bonus for us." In the old days, when everyone was an employee, companies did not need to tread quite as carefully as they do now. Consider the point of view of everyone who is a part of the company-full-time, part-time, contract and otherwise-as you decide on your office Christmas party plans so that it generates goodwill for all, as intended. There is no worse feeling than having your good intentions mis-

interpreted—you certainly don't want your company Christmas party to backfire. Inclusiveness. You won't believe this story but it's true. I once worked at an establishment where only select members of a team were invited for Christmas lunch. Worse, the head of the company would go through the department, and tap those chosen on the shoulder while everyone else looked at one another out of the corners of their eyes in disbelief. If you're having a party,

Festive Season Lunch Make time to enjoy a Merry Christmas with us. Why not bring your family and friends and celebrate in sumptuous surroundings?

Christmas Menu £14.95 two courses £18.95 three courses Including crackers and a welcome drink, prosecco! ******** Salad of smoked chicken with cherry tomato, cucumber and crispy bacon Goat’s cheese and pear puree with a walnut dressing Roasted tomato soup with basil pesto croutons ******** Traditional turkey with all the trimmings Fillet of sea bass with new potatoes and seasonal vegetables Aubergine compote with cous cous and a tomato sauce ******** Christmas pudding with brandy sauce HATFIELD HEATH NR. BISHOP’S STORTFORD HERTFORDSHIRE CM22 7AS T: 01279 731 441 F: 01279 730 416 E: [email protected] www.downhall.co.uk 12 | www.businessindependent.co.uk

Orange and walnut tart with caramel ice cream Chocolate mousse

THE FESTIVE SEASON AHEAD make sure that it's a party for everyone, not just the A-team. Keep this point in mind if your company has satellite offices, as well—the satellite offices deserve Christmas parties that are on par with the parent company's celebration. Company Tradition. There's a lot to be said for the camaraderie that develops among employees. Camaraderie, and the positive good feelings that come from it, can help propel a workplace beyond the ordinary. How you treat your staff becomes a part of the company's self-definition and tradition, and the company Christmas party is a piece of that. I always think it's a good idea for employers to err on the side of seeing employees at their best and treating them accordingly. If you think that you employ stars, they're going to want to live up to your assessment. People like to be appreciated and acknowledged; find a way to incorporate these values into your company Christmas party,

AFTER HOURS

whether this involves public accolades or a handwritten note acknowledging an individual employee's unique contribution (tucked into a gift basket, perhaps?). Remember, too, that Christmas party details become a part of the office lore and company tradition. Generosity. Since this is an opportunity for the company to show its appreciation, err on the side of generous and not cheap. A few extra pounds spent here go a long way toward buying you some goodwill with your employees. I still think fondly of the bashes that Mr Murdoch and Company would put on back in my early days of employment— granted it was a city-based publishing company so the standards may be different than say, a recycling facility in Peoria, but the point is that a good party is noticed and appreciated by employees, and makes you feel that you are a part of something special. Alcohol. This is always such a dicey topic: Everywhere you look,

you are reminded to watch your Ps and Qs at Christmas parties and in particular, to refrain from drinking too much. Just to play devil's advocate for a moment....The whole point of a Christmas party is not to see people's usual buttoned-up selves but to see them with their hair down for a change. What better agent for achieving this objective than alcohol? When you think of any large, festive celebration over the course of human history, alcohol (or another intoxicating agent) was almost always involved. Now while I'm not saying that you want to encourage employees to tie one on, remem-

AFTER HOURS

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T I V W SR

Then why not complete your Christmas celebrations and enjoy a good night’s sleep that won’t cost a fortune.

with red mustard frills and rocket salad,

cherry tomatoes and a hollandaise sauce with black olives, bell pepper and Parmesan shavings Plaice stuffed with Crayfish with a herb infused olive oil with a lemon chervil sauce

Traditional Roast Turkey

Chicken, Asparagus and Apricot Terrine with sausagement and morello cherry stuffing and all the festive trimmings

with red mustard frills and rocket salad, A Selection of Seasonal Vegetables and Roast Potatoes cherry tomatoes and a hollandaise sauce Christmas Pudding with a dark fruit medley

Raspberry and White Chocolate Mousse filled Profiteroles with a dark chocolate sauce

Plaice stuffed with Crayfish Bavarian Vanilla Cream with a blueberry compote

with a lemon chervil sauce

B OOK

BEFORE

18 TH S EPTEMBER 2009

TO BE IN WITH A CHANCE OF WINNING

£250

WORTH OF

H IGH S TREET

VOUCHERS

Freshly Brewed Tea or Coffee with petits fours

If you have any special dietary needs please do let us know

Traditional Roast Turkey

Quality Hotel St Albans

234 London Road, St Albans, Herts. AL1 1JQ

01727 857858 Fax: 01727 855 666 with sausagement and morello cherryTelephone: stuffing Email: [email protected] www.stalbans-hotels.co.uk and all the festive trimmings

A Selection of Seasonal Vegetables and Roast Potatoes Christmas Pudding

with a dark fruit medley

Raspberry and White Chocolate Mousse filled Profiteroles with a dark chocolate sauce

Bavarian Vanilla Cream with a blueberry compote

Premier Inn London Elstree/Borehamwood is the perfect location for your Christmas Party, contact a member B OOK BEFORE 18 TH S EPTEMBER 2009 of our team on TO BE IN WITH A CHANCE OF WINNING 0870 990 6616 to book.

Quality Hotel

St Albans

£250

WORTH OF

H IGH S TREET

VOUCHERS

Freshly Brewed Tea or Coffee with petits fours

If you have any special dietary needs please do let us know

Quality Hotel St Albans

234 London Road, St Albans, Herts. AL1 1JQ Telephone: 01727 857858 Fax: 01727 855 666 Email: [email protected] www.stalbans-hotels.co.uk

www.businessindependent.co.uk | 13

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years, some incredibly successful and some not. Before you get into the specifics of who, what, where and when, consider these general themes to be sure that your company Christmas party is a success and not an inadvertent blunder.




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Celebrate the Festive Season at Hanbury Manor Hanbury Manor provides a unique and truly memorable experience in a timeless and enchanting haven of tranquillity. This breathtaking historic retreat promises storybook charm with gracious service and defines the essence of a quintessentially English setting. • Party Nights (private or join a parties) • Corporate Christmas lunches • Christmas Day Dining • Accommodation throughout the season

To make your reservation please call 01920 487722. www.MarriottHanburyManor.co.uk 14 | www.businessindependent.co.uk

BUSINESS ADVICE

Directors & corporate insolvency In this economic climate, even well run companies can find themselves in difficulties, and insolvency proceedings can be the end result. Chris Maylin, Partner at WKH Chartered Accountants & Business Advisors, briefly discusses those circumstances. Whilst the concept of limited liability status affords strong protection to directors and shareholders when their company is forced into liquidation, there are circumstances where the “corporate veil” can be lifted and company directors, in particular, can be exposed to the considerable powers of the liquidator. Personal Guarantees (PGs) These are increasingly an issue for Owner Managed Businesses. Where creditors had been content to secure their lending with a charge over the company’s assets, concerns over the realisation value of those assets in this economic climate have led creditors (usually banks & landlords) to seek Personal Guarantees from

directors. These guarantees are often expressed in monetary limit terms and may also be supported by a charge over the director(s) home(s). Banks will hold directors to these guarantees and you should think extremely carefully before providing a Personal Guarantee – ideally you should talk it through with your accountant or solicitor.

Wrongful Trading This concept is explained by s214 of the Insolvency Act 1986. Broadly, if a company goes into an insolvent liquidation and it can be demonstrated that, at some time before the commencement of winding up, the directors knew, or ought to have known, that there was no reasonable prospect of the insolvent liquidation being avoided, then the Court can require the directors to make a personal contribution to satisfy creditors.

What a director “ought to have known” will vary on a case by case basis, but by way of an example, company directors who trained as accountants will have a higher expectation placed upon them than, say, civil engineers. Essentially, the better qualified you are to judge whether your company is in dire straits, the earlier you are expected to take action such as seeking professional advice.

Fraudulent Trading A higher burden of proof is needed here so these cases are not heard as often. s213 of the Insolvency Act 1986 tells us that where it appears that the directors have been carrying on the business with the intent to defraud creditors, the Court may require a personal contribution from the directors. This is a more serious offence and, consequently, the sanctions are stiffer.

Misfeasance There are some wide ranging definitions in s212 of the Insolvency Act. The gist is that where directors have failed to properly apply the assets of the company, they are in breach of their fiduciary duty, and potentially liable to make

a contribution to the creditors. Examples of breaches of duty held by the Courts include: • Payment of illegal dividends (dividends paid out where there are insufficient retained profits). • Taking excessive drawings from the company. • A failure to be involved with the management of the company. This could be a particular problem for “sleeping directors”. In uncertain times for companies, it is always a good idea to document decision making processes. You should keep minutes of management meetings and board meetings and ensure that all stakeholders of the company (that includes employees, creditors, customers as well as the shareholders) are considered when decisions are taken. Having a full and contemporary record of events will be a big help if a liquidator does undertake a review of the period leading up to the company’s insolvency. If you are experiencing difficulties and have concerns about any of these issues, you can contact Chris Maylin for a free consultation on 01462 687 333 or at [email protected]

Enhanced corporate finance expertise at WKH

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Registered to carry on audit work and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales WKH Financial Services Limited is authorised and regulated by the Financial Services Authority (FSA).

WKH are delighted to announce that they have purchased a strategic equity stake in the Precision Group, comprising Precision One and Precision Corporate Finance. The Precision Group is led by Neil Ackroyd and Don Woodward who each bring a wealth of experience, contacts and expertise in the fields of corporate finance, company turnaround and change management. Neil has worked for ten years within the financial services marketplace specialising in corporate finance, private equity, due diligence and audit assurance with experience gained from at both KPMG Corporate Finance and Tenon Livingstone Guarantee. Don is an experienced professional Interim with immense Inter-

national Experience at Board level especially in buying Industrial products. He has planned, organised and fully implemented several multi million projects from inception to turn key. Both Neil and Don will add significantly to the pool of skilled professionals already at your disposal at WKH. More good news comes with WKH manager Dave Hailey being awarded the Certificate of Proficiency in Insolvency (CPI). The CPI examines the administration of corporate and personal insolvency matters and will enable Dave to go on to study for the full insolvency practitioner exams in the future. For more information contact James Price at their on 01462 687333 or [email protected] www.businessindependent.co.uk | 15

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LEGAL

Shareholder Blues Recessions encourage business tension. This encourages investors and managers to see if they are getting value for money. Shareholders sometimes disagree about the running of the business. If you are a director, are you satisfied that you are running the business in such a way as to not prejudice the shareholder's interest? We are seeing an increase in situations of deadlock between shareholders, or complaints of unfair prejudice, as a result of a decline in profits and dividends and tougher bank lending conditions. Are you confident you are: • running the business in such a way that does not prejudice anyone's interest? •acting in the best interests of the company and its shareholders? •aware of the rights that shareholders have in relation to protecting their own investments? Also, have you reviewed the terms of your Shareholders Agreement recently – always assuming you have one? A lot of businesses start with trust and goodwill but no one anticipates trading situations which put personal and business relationships under pressure. In these difficult times there are three common and potential dispute-related scenarios: • A minority shareholder claims his interests are being prejudiced • Majority shareholders want to get out of the business and take the good bits of it for themselves elsewhere • Directors who run or manage the business on a daily basis see opportunities but without the distractions of fellow shareholders or directors who play little or no part in the business. In any of these situations a dispute, or worse litigation, may be a possibility. These disputes are to be avoided at all costs. They are time consuming, costly and a major distraction from the main task of growing and managing the business. We have also recently seen an increasing number of disputes which mirror these tough economic business conditions. Almost invariably the motives for this increased litigious activity comes from a shareholder wanting to realise their investment, dispense with poor performing directors or simply part company with former investors with whom an harmonious relationship is now no longer possible. Typically, the situations we are seeing more of are either:

Deadlocked companies: this is a classic situation where investors (most commonly two individuals or two families) go into business together each having representation on the Board and each holding the same number of shares. Matters are fine in good economic times when there is plenty of harmony amongst the shareholders and directors. However, if the investors and directors fall out about how the company is being run, often about the direction of the business, where one party thinks they can do a better job than the other, it is not uncommon for tensions to quickly rise and for parties to reach a stage where they simply cannot work together. Status of shareholders: the affairs of private limited companies are often dealt with in a slightly less sophisticated way than might otherwise be expected. Family businesses or businesses that grow up amongst a small number of investors often get along more by the spirit of co-operation and understanding of those involved than necessarily giving the right corporate and fiscal treatment to the internal affairs of the company e.g. making sure that the company's statutory books are up to date. Often there is a genuine doubt as to whether or not Party A is in fact a shareholder! Or one or more investors may have “dropped out” after the initial honeymoon period of the company's launch, having agreed at the outset that a group of, say, five individuals would take shares in the company. That may not be a problem in itself, but what if the company then turns out over a longer term to be extremely successful and profitable?

business dealings. In times of harmony between investors, people never think there can be times of discord. In matters of discord as between investors, our aim is to bring harmony. If we can assist in resolving disputes like this, it is to the good of all concerned. If you see this sort of dispute brewing on the horizon in the business that you are a part of, whether you are a minority shareholder, a major investor or a director and you want advice on the position that you find yourself in then please do not hesitate to contact us. Andrew Knight is a Partner in the Commercial Litigation and Dispute Resolution department of Taylor Walton LLP, which has offices in Luton, Harpenden and St Albans and provides effective legal solutions to businesses and individuals across Bedfordshire, Hertfordshire and the South East. Andrew can be contacted on tel. 01582 731161 or email [email protected]

Disputes like these are cumbersome, messy and generally expensive. They can all be avoided if the correct paper trail is in place as and when the investors come to the arrangement between themselves and regulate their www.businessindependent.co.uk | 17

18 | www.businessindependent.co.uk

BUSINESS ADVICE

Guaranteeing your reputation

I

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 question; “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 Watford based 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.

www.businessindependent.co.uk | 19

SECTION

What does recovery look like? The dramatic collapse in UK output seems to have run its course and activity is now stabilising, but what sort of recovery can we expect? Recent evidence on the economy has been mixed. On the positive side, the latest KPMG/REC Report on Jobs found that permanent and temporary staff appointments rose for the first time in 17 months, while the number of vacancies declined but at a slower pace. On the other hand, the KPMG/BRC Retail Sales Monitor for the same month, showed weaker results on the High Street, with like-for-like sales down 0.1 percent on the same period last year – reversing an earlier improvement. In fact, these apparently contradictory indicators give a flavour of the likely shape of the recovery. After a long period of unbalanced, consumer-led growth, the economy is in for a re-balancing as the debt-laden personal sector repairs its balance sheet and takes a back seat. In contrast, manufacturing should ultimately benefit from the weaker pound and a recovering global economy, resulting in more even growth with both exports and business invest-

ment outpacing subdued consumption. Nevertheless, we are not out of the woods yet. How sustainable the recovery proves to be depends on three main factors. • the speed with which the personal sector reduces its debt and increases savings. Too abrupt an adjustment would precipitate another down-leg to the recession • how quickly the authorities withdraw the various stimulus measures and start to tighten policy again. The car scrappage scheme, for example, contributed to the bounce in manufacturing output by boosting the demand for new cars but, even though this has been extended by £100 million, it is a one-off with a limited life. More generally, whoever wins next year’s election will be looking to tighten fiscal policy by cutting spending, and probably raising taxes too. The trick will be to wait until the recovery has gained sufficient momentum to withstand the withdrawal of the current fiscal boost and the reversal of the current loose monetary stance. • how quickly bank lending recovers. We have seen positive signs that the banks in our region are starting to lend again. Clearly it would be a mistake to return to the lax lending policies which contributed to the boom and bust, but equally a continued contraction in lending to the (non-financial) private sector is incompatible with a sustained economic recovery.

We can take encouragement from the fact that the authorities have done the right things so far – stepping in to stabilise the financial system, boosting the economy via fiscal policy and reducing interest rates to near zero – but the patient will remain in intensive care for a while yet and in its early stages recovery may be a case of two steps forward, one step back. The authorities must also take care not to introduce policies that inhibit business growth or deter entrepreneurial wealth creation. Mike Coughtrey is senior partner at KPMG in St Albans ([email protected])

© 2007 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

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www.businessindependent.co.uk | 21

SECTION

Making those connections In a global market, making the right connections can be the key to success. This is where UK Trade & Investment (UKTI) can provide real value to business with their Overseas Market Introduction Service (OMIS), delivered in the East by East of England International (EEI). OMIS can literally open doors and make the right connections between UK firms and the key people to do business with overseas. The service provides access to UKTI staff located in 99 overseas embassies who can broker the right introductions, ensure the correct business etiquette is followed, and set up meetings. It is delivered online, giving you a direct link to the embassies irrespective of the time zone or location, and allowing you to keep in touch wherever you are. Whether you're a first timer or a very experienced exporter, a broad range of elements can be combined to suit your individual needs. OMIS can provide help at any stage from initial research to identifying potential distributors and agents and arranging a mar-

ket visit. Businesses can also use our contacts and impressive Embassy or Consular facilities to help close a major deal, or launch a new product or service. Noel Harvey, EEI International Trade Advisor for Hertfordshire explains: “Even the larger, more experienced companies can struggle to make the right connections, but with OMIS and the on-the-ground support it provides, tailored advice and assistance is available to make those connections. We have a worldwide network of UKTI staff who are based at the British Embassies and Consulates and are usually locally engaged, therefore they speak the language and are extremely well connected in their specific sector. UK companies can tap into this wealth of knowledge and save a great deal of time and effort in gaining access to an overseas market.” Hertfordshire based RSA is a leading life science executive company involved in helping major organisations find key senior staff, including pharmaceutical executives, professors of medicine and directors to run research institutes. The company commissioned an OMIS to

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identify potential overseas clients and local support agencies in Singapore, which they had earmarked as a destination for a new office. They were provided with a great deal of assistance by the British Embassy in Singapore, who helped and supported RSA with everything they needed to facilitate the successful creation of the new premises. Nick Stephens, Chief Executive Officer of RSA commented: “The OMIS scheme gave us a local insight into the Singapore Market which we would never have had otherwise. It allowed us to reduce the risk of moving our business there, whilst speeding up our access to the market, and enabling us to hit the ground running and make immediate inroads. It was great value for money, and our contacts in Singapore coordinated the move for us, meaning we didn’t have to shift our everyday focus away from running the business in England. The service we received was second to none.” For further information on the Overseas Market Introduction Service (OMIS) please call East of England International on 08456 419955 or visit www.eei-online.com.

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

W

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 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 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.

IT ADVICE

So 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 appli24 | www.businessindependent.co.uk

cations, 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

IT ADVICE 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 e-commerce to CRM, stock management and so on – online in a single ‘dashboard’ display in your web

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, or a WiFi hotspot or 3G 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

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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.

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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

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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.

26 | www.businessindependent.co.uk

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

SECTION 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

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.

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Warm, intimate and restrained? Extravagant, glamorous and glitzy? Or something in-between? Whichever you choose, your Christmas event will be elegant, memorable and above all – unique and special to you and your guests. That’s because The Auction House delivers quality bespoke events where attention to detail is paramount to us. Create your ideal party at The Auction House with dancing and a traditional sit down Dinner. The Auction House will ensure that you have the right ingredients for an exceptional christmas party. Bespoke packages are also available.

www.businessindependent.co.uk | 27

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Big headlines, small spend PR activities don‘t have to break the bank - as local marketing guru Julia Girling of JGC outlines. I often meet directors of small or medium-sized businesses who tell me they would love to employ a PR agency but could not afford the hefty fees. There is definitely a misconception that PR and marketing campaigns automatically equate to big bucks and this does not have to be the case. There is also a myth that bringing a PR agency on board involves signing up to a long-term commitment and, again, this is far from the truth. I have many clients that I work for on an ad hoc or project basis. There are numerous ways that your business could benefit from PR expertise that does not have to break the bank. It is really dependent on your specific market-

ing objectives and who you need to reach and influence. Your target audience might be people living within the local area, in which case a media relations campaign aimed at local media will make a real difference; or maybe you need to communicate with professionals within a specific industry, in which case you can launch a trade press campaign. I use one of two approaches when contacting the target media - reactive and proactive media relations. Reactive is when you are responding to the media’s agenda e.g. trade publications produce forward feature lists that chart their forthcoming scheduled features – if one of them is relevant to your business to give comment and/or be interviewed for the feature; in some cases the

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journalist will let me draft the feature which they will go on to edit; or the media might be contacting you with regards to a story they are researching, again a PR will use this opportunity to generate maximum coverage for your company or brand. The majority of my time is dedicated to proactive media relations – this is where I contact the journalist and ‘sell in’ a story that will generate positive coverage for my client e.g. a new contract win; a particularly successful case study; product or service launches and promotions; staff initiatives, such as, raising money for local charities.

Budgeted A media relations campaign is budgeted on the hours incurred by the PR; and so can be as small or large as you wish. Another cost effective PR tactic is media promotions, this might be in the form of a product competition or reader giveaway; a media sponsorship or advertorial. Many local newspapers and trade or consumer magazines regularly give their readers the chance to win product prizes and if you provide these free of charge you are given substantial copy space to promote your business. The PR negotiates the competition with the publication; sources visuals and drafts the competition copy, which will promote your business and communicate your key brand messages. A competition will take up a half or full page and costs you no more than the products you are giving away plus your PRs fee, considerably less than it would cost to buy the space at the advertising rate and doing an equally good job of promoting your products. Cause-related PR campaigns range from a specific regional ‘call to action’ by the brand to its local public, to a national aware-

ness campaign which could involve a national newspaper partner - and the budgets will vary in accorance. Local cause-related campaigns offer excellent value for money as they can have a huge impact by generating coverage and support from local papers, businesses and organisations, but can be organised on a limited budget.

A cause Firstly the PR needs to find a cause that is relevant to your business and its culture e.g. a local car insurance company might run a ‘Driving towards a Safer City’ campaign. Your PR will compile a case for the campaign by using research data e.g. statistics showing that road accidents are rising across the city; highlighting particular danger spots; listing the regions safest roads etc. The company then needs to be seen to do something to support the cause e.g. commissioning an expert to provide hints and tips on safe driving habits; sponsoring and providing free local road safety classes and producing ‘Be Safe’ branded stickers for car windows, motorbike helmets and bicycles. All this information would be compiled into a press release, which will launch the campaign to the media. The campaign launch and its ongoing success provides news hooks for local coverage, plus an opportunity for your company representative to be interviewed by the regions’ print and broadcast media. Bearing in mind that research has proved that the public are three times more likely to be influenced by editorial media coverage than they are to be influenced by advertisements, it is definitely worth investigating the different ways you could generate great publicity for your brand, without spending a fortune.

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The value of a brand As new businesses are being established by entrepreneurs across the country, to suit the market looking for more individual service, businesses 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. 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 re-brand 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 easiest (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.

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

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costs. SMEs need a good brand behind them to leverage credibility for bigger contracts.

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

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.

Branding affects business Brand equity is turning into a corporate asset that provides financial return and long term prof-

its, 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 every aspect of communication within an organisation, from stationary to staff.

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30 | www.businessindependent.co.uk

BUSINESS ADVICE

Learning to lead is like learning to walk: you need support Have you ever just sat back and thought ‘how did I end up being a manager and leading a team?’ Typically this question arises when the situation is challenging. If you look back to the start of your career whatever sector you are in, didn’t it seem that you had all the encouragement, support and training you needed to get you started on your career path, ensuring you had the right level of skills and knowledge to do your job? Then one day, particularly if you are in the smaller business arena, you are thrust into a position of leadership, people management or you decide to start your own business: so where, how and what do you do to ensure you and your team now have the right skills and knowledge to step into the unknown?

Can you believe it? The Government Skills Agenda sets out to ensure all businesses have the right skills available to support them to succeed; however, achieving success requires more than just words: Our challenge as a training and development company has been to get organisations to believe:

• That funding is available to support their staff development • That developing their organisation’s most valuable resource, their people, is critical to their success • That a specialist management development organisation has been on their doorstep for over 10 years.

Yes, you can We have worked with over 700 organisations and supported over 12,000 learners in the last 10 years, enabling them to harness their business expertise using improved leadership and management skills. We have also assisted hundreds of businesses and individuals in accessing Government funding to support this. From in-company strategic brainstorming workshops to leadership courses for women in the land-based and environmental sector, all have benefited from subsidies for development and training from us at the People Development Team. If you are a business that has 5 – 249 employees, you can access current leadership &

management funding for senior managers. The first £500 can be accessed with no contribution from your company and a further £500 is available when matched £ for £ by your business.

Support through change In these challenging times, you might also be dealing with the prospect of having to release people from your organisation. Individuals at risk or redundant can access funding to enhance skills that they may need to secure a new role. For more information about all our funding opportunities or how we can support you with leadership and management development programmes, please do get in touch: Heather Butler, Managing Director People Development Team, 01920 485569 [email protected] www.people-development-team.com

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Business Advice

Give your business a ‘cost healthcheck’ A

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.

32 | www.businessindependent.co.uk

Here Allison provides 10 top tips to trim business expenditure: Create a cost conscious culture The economic boom over the last ten years may have affected your employees’ focus on 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.

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

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

Be marketwise

Don’t purchase things you don’t need

It is critical that you are aware of the constantly changing supplier market for the costs you are

Buy what you need and not what your suppliers would like to sell you. Suppliers will often use

Business Advice 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 addon 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.

Keep the green light flashing 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.

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 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.

Establish key supplier performance 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.

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.

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.

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SECURITY

Protecting your assets In the current economic climate, protecting your business is essential. Every sale, purchase and decision you make, will ensure the continuing success of your company, large or small. What would happen if you were to suffer a burglary or a fire? Even if you are insured against the loss or damage, there are consequential losses that need to be considered. Not being able to provide your goods or services to a cus-

tomer if it’s been stolen or you not being able to trade if your office or computer system is out of action due to fire can have serious consequences to your ability to trade. Your customers may go elsewhere and find another supplier if you can’t help them and it could take months to win them back once they have found someone else. Burglary is on the increase with the economic downturn and businesses are being targeted. Newsagents and off licenses are

having cigarettes and alcohol stolen, offices are having PC’s and laptops taken and contractors are losing power tools from sites, offices and stores. By reviewing your security measures, this can reduce the risk of becoming a victim to crime. Adding some more protection to your office, installing an extra CCTV camera or having a simple door entry system fitted can all help reduce your attractiveness to an intruder. Walk in thefts during office hours are be-

coming more common. Your alarm secures your building when you are not there, but what keeps your staff, their possessions and your assets secure? Locking your doors and preventing walk ins can stop you losing a laptop with business critical information. For further advice and information, or for a free audit of your security arrangements, please contact us at Detection Security Systems in confidence. “For your Security Protection – call Detection”.

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MOTORING

The pride of the fleet Citroen is reviving the iconic DS badge for a range of luxurious, 'near-premium' models. But their most recent attempt at luxury motoring – the fast-depreciating C6 saloon – has fallen as flat as a stale crepe, says Dave Sumner Smith.

How comfortable is it? For sheer spaciousness, the C6 takes some beating. The interior dimensions are huge, the design theme uncluttered and the atmosphere borders on the opulent – particularly in the V6 Exclusive model, which boasts electrically adjustable seats in the rear as well as the front. Impressive.

What is it like to drive? The 4.9 metre Citroen differs from the norm in having a head-up speed display on the windscreen and an unconventional Hydractive suspension system. But while it is extremely comfortable on the motorway, the variable levels of power assistance for the steering, front wheel drive transmission and sheer bulk mean it struggles to rise above the ranks of comfy cruiser.

Does it make financial sense? In financial terms the C6 is as appetising as gritty snails in garlic. The all-diesel, all-auto range stretches from a 173bhp 2.2-litre at £28,645 to the 208bhp 2.7-litre at £35,245, but all depreciate at a ruinous pace. Substantial trade discounts result in surprisingly low leasing costs, however, from as little as £245 pcm for the entry model, as you will see on contracthireandleasing.com .

What else should I consider? If you are after a spacious, slightly quirky saloon and you’re not a brand-snob, then consider a Chrysler 300C, Hyundai Sonata, Volvo S80 or Skoda Superb. If brand is key, then it’s back to low-priced versions of the usual suspects: Audi A6, BMW 5-series, Jaguar XF and Mercedes E-class: Safe, but predictable.

Will it impress? The Citroen brand is best known for smaller, cheaper cars, so in the office pecking order the C6 has all the kudos of a Marks & Spencer cardigan. It may look shapely and elegant from some angles, but the C6 feels like an asyet incomplete design project and will impress no-one other than its passengers.

Any toys and gadgets? The C6’s gadgets range from the electric parking brake and speed-sensitive rear spoiler to front and rear parking sensors and a telematics system that will even read back text messages. Specification levels are generous and trim standards are high – though the iPod

connection is poorly programmed to prevent shuffle settings.

What does it say about me? Anyone who leases a C6 could be viewed as a bold individualist with a love of comfort and a self-confident character. But anyone who is thinking of purchasing a new C6 at anything approaching list price needs to take a firm lecture in depreciation from a their accountant – followed by a brutal flogging with birches to persuade them to think again.

www.businessindependent.co.uk | 35

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