bM173_cover 16/06/2009 00:04 Page 1

Business Matters
business Matters: June 2009

June 2009

The UK’s leading magazine for the SME business owner £3.00

DOiNG it
mY waY
Simon woodroffe talks about
deciding at 40 to be a
millionaire and succeeding
siMOn wOODrOFFe / bOOst saLes / teCHnOLOgy

wear it well
aDaPtiNG YOUr wOrKiNG warDrOBe

IN REVIEW
www.bmmagazine.co.uk

the latest gadgets to help

you work smarter

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

BM159_68 copy:Layout 1 27/8/08 16:22 Page 1

Are there times when you really

wish you had more back up?

Adaptable recruitment software

08712 501502 www.colleague-software.co.uk

email: [email protected]
BM164_04:Layout 1 1/9/08 01:47 Page 1
BM173_03 copy:Layout 1 16/06/2009 11:33 Page 1

Business Matters
September 2008

The UK’s leading magazine for the SME business owner £3.00

! !! "! $ # !%$
$ $!

This Month
! " #%
GETTING THE RIGHT
CANDIDATE FIRST TIME!

DONATING TIME IS JUST AS

GOOD AS MONEY!

I N R E V I EW

NORTH EAST FOCUS • IN BUSINESS • NEWS • MARKETING • TECHNOLOGY • MOTORING

" # $7 ! 7 # 7 7 $87

• • • • business strategy • • • ••regular features

• • • regular features
16 Graduate
22 Recruitment
Wearing it well 10 IN
8 Business
IN Business
Tking on graduates is no
We look atlonger
a studythe preserve
about whatof multi-
the colour of your shirt says What has been
Whathappening
has beeninhappening
business in
in the last month.
business in the last month.
national companies
about you
22 Interview
14 Interview
20 Managing
24 an MBO mediation
Workplace Diane Priestly talks to Mike
Paul Jones talksHarris aboutWoodoffe
to Simon his business
about how life
Advise on selling the company
Looking to your
at the new way management
to resolve workplace problems successes with Egg & First Direct
has changed since going into the Den.
26 Winning
28 awards
Technology on the move 36 Ask
Why winning awards brings much more than travel
just kudos 31 Brad
Networking
Paul Bray looks at how easier would be if we Brad Roser joins
Andyus to answer
Lopata looksyour all important
at why now is the right time to
when it comesharnessed
to beating technology
your rivals to get around
business questions
increasetoyour
helpnetworking
you grow your business

28 40 back
Giving Leadership Challenge 46 Finance
46 Sales Advice
Carmelina
Taking your CSR policy toLawton
a handslooks at managing transition in work
on level Financial Advisor Gavin Porritt explains how youtalks
can how to
Leading sales coach Andy Preston
place roles and promotion of staff use use pension
boosttoyour
better use.
sales even in a downturn
32 North East Focus
We spend some 42time on Teeside
Cost health
looking at check
the 58 Technology
61 Reviewed
Motoring
entrepreneurial skills taking shape ensure
The easiest was to that you keep your profit
in the city We take a look at the latest gadgets to help you work smarter
David Sumner Smith tests the new BMW X6 and
margins up is to reduce your cost base
remains as confused by the hybrid

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

We pr
We provide
ovide MAC & PC support and
IT coaching services.
servic
ces.

We ar
We e small business
are busin
ness specialists, technologists,
technolog gists,
geeks, gadget addicts
ad
ddicts and general
generral a lovers of
o
people and technology.
technnology.

call.
Give us a call

08456 447758
7758
447 [email protected]
helpme@theengine
eroom.co.uk

3 • issue 164 Business Matters

BM164_035.qxd:Layout 1 1/9/08 01:10 Page 1

Yh[Wj_l[l[djkh[ Venture Finance can help you 9HQWXUHFDQUHOHDVHXSWRRIWKH

^begdkZXVh][adl to relieve the pressure of YDOXHRI\RXURXWVWDQGLQJLQYRLFHV
DQGRXUIDQWDVWLFUDQJHRIVHUYLFHV
UHVWULFWHGFDVKÀRZ FRXOGXQORFNHYHQPRUH
We are a premier independent 2XUFUHDWLYH¿QDQFHVROXWLRQVDUH
ZUDSSHGLQDQDZDUGZLQQLQJVHUYLFH
Invoice and Asset Based Lender DQGRIIHUHGZLWK%DG'HEW3URWHFWLRQ
ZLWK\HDUVH[SHULHQFHKHOSLQJ
    IRUWRWDOSHDFHRIPLQG
thousands of businesses raise       
,I\RXUDQQXDOWXUQRYHULV…NRUPRUH
JUHDWHUIXQGLQJIDVWHU FDOORXUWHDPIRUDQLQIRUPDOFKDW

<79JEH?D=r?DLE?9;:?I9E
EKDJ?D=r7II;J87I;:B;D:?D=
DJ;;r87::;8JFHEJ;9J?EDr?CFE
IC7BB<?HCIBE7D=K7H7D EHJ<?D7D9; %-%%*&*%*(
%-%%*
*&*%*(
lll#kZcijgZ"ÒcVcXZ#Xd#j`
lll#kZcijgZ"
"ÒcVcXZ#Xd#j`
;NFEHJ<?D7D9;rFH;C?KC7:L7D9;r8BE9A:?I9EKDJ?D=
BM173_Editors note:Layout 1 16/06/2009 10:36 Page 1

EDITOR’S LETTER
hese are troubled times. How troubled depends on

T who you are, where you are based and what business
sector you operate in. The many candidates on the
‘most troubled role’ list is arguably topped by a Mr Gordon
Brown, based in Westminster, London SW1. Carmelina
Lawton Smith looks at how Mr Brown has made the classic
mistake, made by many owners of Small & Medium sized
businesses owners, when someone promoted into a new
role forgets to leave the role that they left behind him. We are
not sure that, the goverments new business advisor, Sir Alan
Sugar, who is still adding up the bar bill on the wrap party on
this seasons The Apprentice wont have that problem,
although the jury is still out if he can be an effective force for
change.
Many of you might be feeling the fierceness of the current The Pitch - 18
global chill hitting the economy, although following both
discussions up-and-down the country with many of you and
research carried out by Trends Research, it appears that not
all is as depressing as the mainstream media would have us
believe. Many of you suggested that you had either had
growth in turnover by between five and twenty per cent
during the last three months and many were anticipating the
same increase of the next three months.
Are you a regular on our website? BMmagazine.co.uk. The
site, updated weekly, provides you with the latest news,
views and advice on how to run your businesses better.

Richard Alvin
Managing Editor
[email protected] Recovering the fallout of the budget - 49

Managing Editor - Richard Alvin - [email protected] Published by - Capital Business Media Ltd
Editor - Bill Hilton - [email protected] Ensign House, Canary Wharf, London E14 9XQ
Online Editor - Paul Jones - [email protected]
Contributors: - [email protected] Copyright: (C) 2009 Capital Business Media Ltd. ISSN 1754-3096
Jim Moore, Felicity Cousins, Gavin Porritt, Donald Findley, 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
Mark Prigg, Louise Shaw, Derek Bedlow, Andrew Price, Sarah Bethell
consent of the publishers. The views expressed in Business Matters are not
Production Manager - Stewart Hyde - [email protected] necessarily the views of the publishers. Whilst Capital Business Media Ltd has
Designer - James Connolly - [email protected] made every effort to ensure the accuracy of the information contained in this
Head of Advertising - Tony Carty [email protected] 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
Tel: 020 7148 3861 particular, this publication is general and not a substitute for professional advice
and you should consult your own professional advisors where appropriate.
Email: [email protected]
Subscriptions - [email protected]

Capital
www.bmmagazine.co.uk Business Media
Business Matters issue 173 • 5
BM173_06_07_08:Layout 1 16/06/2009 00:06 Page 1

News
Live Longer: £1Million challenge launched
on your bike to boost youth enterprise
With petrol prices hitting new heights, Youth charity The Prince’s Trust is urging
more and more people are turning to businesses across the UK to compete in a
pedal power to get to work, and get £1 million national enterprise challenge.
fitter – research suggests cyclists “Million Makers” challenges employees to
could live two years longer. run their own mini-enterprises, raising thou-
According to Europe’s leading office sands to get young people into business.
and workplace equipment supplier, Nearly 70 companies – including Accenture,
Welco, orders for company cycle Yell.com and St Tropez – have signed up al-
sheds and ramps have never been ready and will be competing to raise the cash.
healthier- they have seen a 100% in- The money will go towards supporting young
crease in sales the last two months. entrepreneurs on The Trust’s Business Pro-
It has never been a better time to gramme.
ditch the car and start cycling to The battle commenced this week as the
work. challenge was launched at Go Ape High Wire
In fact, under the 1999 Finance Act, Forest Adventures across the country. Partici-
if employers sign up to the cycle-to- pants took to the trees for an action-packed
work scheme, it is a win –win situa- team building adventure of walking rope
tion – companies can provide bridges, crawling through wooden tunnels and
bicycles and accessories as a tax zipping to the ground in order to tighten their
free benefit, while gaining national in- team working skills and sharpen their senses
surance savings. for the national fundraising challenge.
Under the Government’s Green Teams will then strive to come up with the
Transport Plan, which promotes most lucrative business idea and run their own
healthier ways of getting to work businesses to raise money to change young
while reducing environmental pollu- lives.
tion, employees taking advantage of Raef Bjayou and Claire Young, stars of The
the scheme receive savings of up to Apprentice and Prince’s Trust ambassadors, at-
50% on the retail price of bikes and tended the launch.
accessories. Raef said: “The fantastic thing about Million
Birmingham-based Welco, has to makers is that participants are not only honing
date seen a significant increase in or- their own entrepreneurial skills, but raising
New ambassador Raef Bjayou
ders from local authorities, health de- funds for entrepreneurs of the future that don’t
partments, the police and companies have the financial means to get things off the to believe that money really can grow on trees
large and small – all looking to pro- ground. It really is a win-win situation” if you are creative enough.”
vide new or increased cycle facilities Julian Barrell, director of fundraising, The Stuart Watson is a partner at Ernst & Young
for their staff. Prince’s Trust said: “With Britain’s best busi- which has already signed up to Million Makers
As Welco’s chief executive, Adrian ness brains behind us, we can help more young 2009. He said: “The Million Makers challenge
Reeve maintains “Cycling to work people into business. Nurturing entrepreneurial provides personal development opportunities
benefits everyone. Its helps relieve talent is now more important than ever. We can- for our people including increased self confi-
traffic congestion; helps cut pollution; not let the Sir Alan Sugars of tomorrow be dence and motivation; developed communica-
helps people save money they would thwarted by the recession.” tion and teaming skills; and networking
have spent on petrol; helps reduce Rebecca Mayhew, Go Ape Communications opportunities.”
global warning; and often reduces Director, said: “Go Ape is delighted to be host- Last year’s Million Makers challenge raised
their travel time. And with the Tax in- ing the launch events of Million Makers for a more than £500,000 to help disadvantaged
centives, people should take up the second year. Go Ape Corporate Days have young people into business.
challenge. been running for a number of years now and Million Makers 2009 is the largest employee
“Cycling is no longer the reserve of have proved a brilliant way for the Million Mak- fundraising initiative in the history of The Trust.
lycra-man. It is now being regarded ers teams to get some team bonding in and The Business Programme has helped more
as a viable means of transport. With start to plan their strategy. Teams can look for- than 70,000 young people into business since
the prospect of the $200 barrel of oil, ward to some treetime swinging through the 1983 and needs £1million every month to con-
the bike should be viewed as a pri- canopy, wiping out at the bottom of zip wires tinue its vital work.
mary form or transformation – a free, and sharing in three hours of adventure. We To sign-up to Million Makers or for more
calorie-burning, mobile gym.” hope that Go Ape will inspire our million makers information, call 020 7543 7420.

6 • issue 173 Business Matters

BM173_06_07_08:Layout 1 16/06/2009 00:06 Page 2

News

Does your village need saving?

A major new initiative by the Big Lottery Six villages will receive Lottery Funding of She said: “Village SOS is an ambitious cam-
Fund and BBC One is offering six individu- between £100,000 and £400,000 to get their paign and one that I am really excited about. It
als with a proven track record in business businesses of the ground. To help them will help regenerate rural villages and will hope-
the chance to escape the rat race for a year achieve their ambitions, Village Champions are fully arouse the interest of a range of individu-
to help rejuvenate a rural village in the UK. being recruited through a nationwide search als who are eager to escape the rat race and
It may not be set in tropical Queensland, but run by the BBC and Make Your Mark, part of take on a new challenge. For them, this could
the six successful ‘Village Champions’ will get the charity Enterprise Insight. The Champions be the best job in UK!”
to live and work in one of six rural villages for could be anyone with a successful track record Sir Clive Booth, Chair of the Big Lottery
a whole year and use their expertise to support in business - banker, baker or builder - as long Fund, said: “While rural village life is in decline
the community in starting up a new business – as they have the drive and charisma to help we believe that many villages are sitting on a
with Big Lottery Fund backing of up to launch a new venture, and the desire to live range of untapped potential that, with the sup-
£400,000. and work in a rural village for a year. port and experience of a driven individual, can
The search is part of Village SOS, a new The BBC will be documenting the journey of be turned into thriving businesses.”
partnership between the BBC and the Big Lot- the six villages and their Village Champions for Alongside the series will be a major learning
tery Fund (BIG), which is challenging villages a major BBC1 series in winter 2010. campaign* to help other villages use the learn-
to come up with brilliant ideas for new busi- The documentaries will be presented by ing and enthusiasm from the programme to
nesses to help revive their communities, many Sarah Willingham, who previously presented take a bold step towards starting a new busi-
of which are seeing rural life eroded by eco- BBC2 show The Restaurant, who grew famed ness that will regenerate their own communi-
nomic pressures and the closure of local Indian catering chain The Bombay Bicycle ties.
amenities. Club into a hugely lucrative catering business. Both the BIG grant application process and
Village SOS is inviting rural communities She has also managed some of the biggest the BBC search for Village Champions are now
with a population of fewer than 3,000, lots of brands in the restaurant industry, from Planet open until 14 August 2009.
enthusiasm and a great business idea – from Hollywood in France to Pizza Express Interna- Info on how to apply can be found at
retailing to manufacturing, the arts to leisure – tional where she oversaw restaurant openings www.bbc.co.uk/villagesos
to apply. in 12 countries.

Become a book worm and boost your

marketing know-how at the Institute
The Chartered Institute of Marketing, the world’s largest general public has been tucked away for far too long. Easy access to
professional body for marketers, is opening up its extensive marketing information and knowledge has never been more important,
library catalogue to the public for the first time via its website. particularly in these difficult times, and I hope marketers, business own-
By opening access to the library catalogue up to the wider public, ers and people around the world make full use of our catalogue to gain
The Institute is fulfilling part of its obligations under its Royal Charter, to a greater understanding of marketing and its vital importance in im-
‘increase public awareness and understanding of marketing as a vital proving business performance.”
factor in business success and prosperity.’ All entries in the catalogue are indexed using a thesaurus that has
The catalogue has bibliographic reference to over 200,000 articles, been developed from the London Business Classification, enabling tai-
research papers, conference proceedings and other marketing material lored searches across different media types.
that has been built up over more than 25 years. To facilitate easy access, a range of pre-decided searches have been
David Thorp, director of research and professional development at placed on topic pages on www.cim.co.uk/marketingresources.
The Institute said, “This magnificent resource for marketers and the For further information please visit www.cim.co.uk/library

Business Matters issue 173 • 7

BM173_06_07_08:Layout 1 16/06/2009 00:06 Page 3

News
Does your business have
the X factor to succeed?
O2 have launched the 2009 O2 X Awards, the search for the
best of British entrepreneurs and small businesses. Now in their
sixth year, the awards are looking for something extra special in
the new generation of small businesses who are making an im-
pact in an increasingly competitive market-place and challeng-
ing economic climate. The O2 X Awards are now open for entry
via www.o2.co.uk/xawards and entrants have until 1st August to
apply.
This year, O2 is searching for the Male and Female En-
trepreneur of the Year, as well as a new category for 2009, the
O2 X Young Entrepreneur of the Year, to recognise emerging tal-
ent within the sector. The most original and innovative busi-
nesses in each category will receive a winners’ package of
£5,000 as well as mentoring from a business expert and mar-
keting support.
O2 X Female Entrepreneur of the Year - supported by Grazia talent in the business world, this new category will reward an
Rewarding the best in the business, the Female Entrepreneur exciting upcoming talent
of the Year will be someone who can demonstrate innovation As part of this year’s O2 X Awards, O2 is running a series of
and excellence in the small business world. Nicky Kinnaird, small business networking events at O2 Academies across the
founder of international beauty brand Space NK, will be guest country. The regional events will offer the opportunity to not only
judge for this category, looking for a female business woman find out more about the O2 X Awards and what they can do for
ready to set the business world alight your business, but also a chance to hear from a panel of small
O2 X Male Entrepreneur of the Year - supported by Shortlist business experts including last year’s O2 X Award winners and
This category is looking for a businessman who has started the opportunity to network with other small businesses in the
out on his own and built his business into a success story. The area.
overall winner will be someone who can demonstrate innova- Winners in all categories will be chosen from a regional short-
tion and best practice in running their business list before advancing to the O2 X Awards National Final in Lon-
O2 X Young Entrepreneur of the Year (Under 25) don in October 2009.
Under 25 and already a business success story? O2 wants To register for the place at the events go to:
to hear from you! As recognition of the ever-increasing young www.o2.co.uk/xawards

Buying local is the way forward says the North

MORE than three quarters of North cent, insurance by 75.6 per cent while legal Although the vast majority - 79.7 per cent of
West businesses 'buy local' but more services are sought by 63.8 per cent. respondents - stated procurement decisions
should be done to boost faith in The report showed 98.4 per cent of respon- were taken locally, some sectors were affected
regional services. dents purchase financial and professional ser- by decision-making out of the region. Almost
The Commission for Economic Develop- vices from within the region but a quarter of insurance and related services and
ment, Employment and Skills, on behalf of pro·manchester chairman Simon Oldfield is 11.3 per cent of advertising, for example,
pro·manchester and professionaliverpool, in- urging all businesses to support the expertise stated procurement decisions were not taken
terviewed a sample group of 434 businesses, on their doorstep. on a local level.
15 councils and 25 public authorities and pub- He said: "Networks and word-of-mouth Other reasons for procuring services outside
licly-owned companies in the region to deter- business is invaluable in the financial and pro- the region included historical reasons, disap-
mine where money is spent. fessional sector. We need to ensure people pointing performance, local prices not being
Banking was the most popular financial and have faith and trust in the region's suppliers. competitive and better lobbying in open ten-
professional service, with more than four fifths "We must encourage firms to adopt local ders for business from national or international
of respondents procuring this service. Ac- procurement as part of their corporate social competitors. Survey respondents also cited
countancy, book-keeping, auditing activities responsibility and emphasise the business accessibility, responsiveness and support as
and tax consultancy are procured by 81.1 per benefits of buying local." key factors for choosing local providers.

8 • issue 173 Business Matters

BM164_009.qxd:Layout 1 1/9/08 01:06 Page 1

Still paying high agency fees

and advertising costs in advance
of filling your position?

No Upfront Costs - No Candidate No Fee!

Using a network of the UK’s largest job boards, candidate databases and
networking sites, RecruitmentRevolution.com will source you relevant talent; supply you
with over 400 complimentary assessment tools; schedule your interview diary; and only
levy a £575 fee when you successfully secure your new candidate - That’s Refreshing!
BM173_10_11_13:Layout 1 16/06/2009 00:09 Page 1

IN B U S I N E S S
T-Mobile launches new calling plans
plans and a plug-and-play SIM card that
meets their real needs. We know our busi-
ness customers have other priorities,
which is why we continue to launch busi-
ness products that keep it simple and
help them control costs without compro-
mising on service and reliability.”
With free voicemail, itemised billing
and account health checks coming as
standard, Business SIM-Plan customers
can also expect the same dedicated sup-
port of T-Mobile’s business customer ser-
vice team as its Business 1-Plan contract
customers. In addition, all Business SIM-
Plan connections can opt to take our Mo-
T-Mobile has announced its new SIM only plan currently available offers bile Office add-on, giving unlimited
Business SIM-Plan that has been built such great value with 2,000 inclusive min- mobile email and internet for just £5 per
specifically for UK small businesses, utes and unlimited texts for only £30. month. This is compatible with Windows
offering a flexible mobile solution for Using existing phones and numbers, Mobile Email and BlackBerry Instant
companies wanting up to 30 users. businesses can simply decide whether Email, offering constant email and inter-
Each user receives 2,000 minutes of in- they want a 30 day rolling, six month or net access for business users away from
clusive calls to UK landlines and mobile 12 month plan, insert the SIM(s) and then the office.
phones, unlimited UK texts as standard, get on with what they do best. Business SIM-Plan has been created
as well as the option of unlimited mobile Oliver Chivers, Head of Business Mar- to compliment T-Mobile’s existing busi-
email and internet access* for just £5 keting for T-Mobile UK, comments, “In ness tariff, Business 1-Plan. The suc-
extra per month. The new SIM-plan for today’s tough market conditions small cessful refresh of Business 1-Plan in
business offers competitive value and businesses need all the features that January 2009, which culminated in a T-
flexibility for users that don’t want to be come with long-term mobile plans but Mobile Business advertising campaign in
tied to lengthy contracts. often don’t need to upgrade their phones March and April, has lead to record sales
Recognising that real businesses in or want to lock themselves into lengthy of BlackBerry devices this year.
today’s economic climate need flexible, contracts as they’re unsure of what their Both business tariffs are available
reliable and above all, cost effective com- exact future needs will be. The T-Mobile through T-Mobile’s business channels.
munication plans, T-Mobile is giving small Business SIM-Plan has been built with For more information visit www.t-mo-
businesses access to all the tools needed small businesses in mind – offering unri- bile.co.uk/business
to work on the move. No other business valled value for money, with short-term

Top Scottish firm crowned ‘Customer King’

Leading outsourced IT services plains: “At Conosco we are determined to proach will be the ultimate winners: "As
provider, Conosco has been honoured revolutionise the delivery of solutions to soon as Lehman Brothers fell, we visited
with a top award for its commitment growing businesses, and offer them the all of our customers and asked them how
to delivering first class customer level of commitment, technology and at- we could help cut costs – whether that
service. tention to detail that larger companies get was to reduce their IT usage or move
Conosco was one of only eight UK from their suppliers. Smaller businesses them to cheaper platforms. That 'Blitz
companies to be awarded the title of still need reliable and innovative support, spirit' helped us work creatively with cus-
‘Customer King’ in the competition run by but ultimately good customer service is tomers, rather than them saying 'we need
Cisco. the glue that binds us to our customers. a 50 per cent discount'."
Highly praised for being able to ‘step We offer a very personal service where As part of its ongoing commitment,
into customers’ shoes’, Conosco offers we are able to put ourselves in their shoes the firm has also launched its new web
London’s small and growing businesses, and consider the serious impact of IT site www.conosco.com to make it easier
including Lombok and Anya Hindmarch, downtime from their perspective.” for customers to see and understand its
the type of IT solutions and services that Gladstone believes that during the range of IT services, and appreciate how
previously only large companies enjoyed. current economic climate, companies like good use of technology can release the
Ben Gladstone, CEO at Conosco, ex- Conosco that offer a personalised ap- talent in an organisation.

10 • issue 173 Business Matters

BM173_10_11_13:Layout 1 16/06/2009 00:09 Page 2

IN B U S I N E S S
Keeping on top of travel expenses
Vice President and General Manager, Business
Travel UK & Ireland and Global Foreign Ex-
change Services, American Express Travel.
“Pre –Trip Auditor is an important innovation
and best in class service in the travel manage-
ment industry, and we are delighted to be
launching it in the UK marketplace.”
Pre-Trip Auditor is one part of a total com-
pliance solution designed to assist companies
to gain control over expenses by requiring em-
ployees to book travel within the guidelines of
the corporate travel policy. The tool enables
authorised employees to easily review and ap-
prove or decline trips. If a booking is out of
policy and requires approval, Pre-Trip Auditor
generates an email to the designated autho-
riser within the company with trip details, in-
cluding the reason for travel and specific policy
breached. The authoriser then has the option
to approve, decline or hold the booking in
order to look into it further. Highly customis-
able, Pre-Trip Auditor allows companies to
choose the level of control for individual trav-
eller groups and companies as a whole.
American Express Business Travel has an- Express, ensuring policy compliance across all Pre-Trip Auditor allows for review of all
nounced the launch of Pre-Trip Auditor, a new booking channels. travel categories, including but not limited to
automated solution that can provide improved “With an increased focus on preventing air, hotel, total trip cost, form of payment, pre-
control of travel policies and expenses by al- costs at the point of sale, clients are looking for ferred vendor, and security risk.
lowing companies to review out of policy busi- an end-to-end solution that allows them to For more information on Pre-Trip Auditor,
ness travel prior to ticketing. quickly implement new travel polices as well as and other Business Travel products and ser-
The customisable solution audits all online giving them maximum control over their travel vices visit www.americanexpress.co.uk/busi-
and offline bookings processed by American and drive cost savings,” said Paul Hargreaves, nesstravel

Move to a cheaper & greaner postal option

A fast growing company is dows application and their document is Many businesses already using the
transforming the way businesses sorted electronically, printed remotely, en- unique service and experiencing signifi-
send post providing them with a veloped, and handed to Royal Mail for de- cant savings.
cheaper and greener alternative. livery the final few miles, with an all-in Simon Campbell, ViaPost’s Chief Ex-
ViaPost is pioneering a ‘hybrid mail’ cost for each letter of 27p, including print- ecutive Officer, said: “ViaPost is simple to
service which allows individuals and busi- ing, stationery and delivery. setup and use and saves businesses sig-
nesses to send physical letters via the in- It is estimated that the average cost to nificant amounts of money and time,
ternet - almost halving the cost of doing send a letter by traditional means, includ- while also being greener. It’s a no brainer.
so through more traditional routes. ing the purchase of the paper, envelope I mean, we haven’t yet had anyone take a
The system, which operates through a and stamp, is at least 52p. look at the service and decide, ‘No, we
free downloadable Windows print driver, This means that a company can save don’t want to save that kind of money,
was established last year by a group of more than £1000 a year for every 100 let- that’s not for us’.
entrepreneurs and industry experts, and ters per week that they send. Rather than competing with Royal Mail,
the company is on course to achieve a £5 The ViaPost system also reduces the ViaPost is working in partnership with the
million turnover this year. physical distance required, as each letter UK’s national postal service, and is also
The process is simple, highly effective is encrypted and transmitted to a print involved in an ongoing relationship with
and user-friendly. The user simply selects hub near its final destination, making it a Microsoft that could see ViaPost included
ViaPost from the printer list in any Win- far more environmentally friendly option. in its software.

Business Matters issue 173 • 11

AM_26:Layout 1 24/03/2009 23:57 Page 26
BM173_10_11_13:Layout 1 16/06/2009 00:09 Page 3

IN B U S I N E S S
Don’t give in to the copy & paste temptation
Fasthosts Internet, a leading web hosting competitor. 1 in 10 businesses surveyed ported to its in-house Abuse Department
provider, has warned UK businesses not had at least one item of their own website from April 2008 to April 2009. The com-
to be tempted to copy material from other copied during the past year. The data pany reports that in many cases, busi-
companies’ websites. lends weight to the theory that the chal- nesses did not realise that copying items
The web host has seen an 89 per cent lenging economy and increasingly com- of online material could land them in trou-
rise in the number of content disputes in- petitive online marketplace is perhaps ble. A survey of 152 UK businesses(1)
volving websites over the past year, most leading more small firms to cut corners commissioned by Fasthosts finds that
commonly where businesses have re- and plagiarise online. ‘web envy’ can be a real temptation for
ported that website material has been Nowadays, a company website is time-stretched business owners. 39 per
replicated without permission. The com- viewed by most enterprises as an integral cent of owners surveyed admit that they
pany recommends that users always part of its brand and public profile. How- are presently envious of the website of a
seek permission to use online material, ever, it appears that an alarming number closely competing business. At the same
however small, from the relevant website of UK firms are finding that material (such time, 1 in 4 are considering reducing their
owner. Fasthosts also released the re- as artwork, descriptive text or product im- use of external website design services in
sults of a survey of 152 UK businesses ages) has been copied from their website order to cut costs. A recent study by
which finds that more than one third (39 and published elsewhere. The problem Fasthosts underlined the pressure on
per cent) admit to currently varies from the occasional image being small business owners to maximise their
feeling envious of a used to entire website designs being use of the web – the average company
website be- replicated. The practice can lead rates their website at 6 out of 10 for ef-
longing to to consumers becoming con- fectiveness, whilst it also aims to treble its
a fused, or even being misled into online revenue in 2009.
buying from the wrong company. Replicating material for commercial
According to Fasthosts, there use often breaches copyright. Always
has been an 89 per cent increase obtain permission before using anybody’s
in the number of content disputes re- website material".

Recession fraud can tip you over the edge

There are big risks in treating fraud as a low creases the potential for businesses to fall vic- including locks, keypads and alarms.
priority in the recession, small businesses are tim to new frauds committed by opportunistic Try to minimise cash transactions.
being warned by the Fraud Advisory Panel criminals or previously honest people and Conduct checks on your suppliers, con-
(FAP). companies under economic pressure. And it tractors and biggest customers to make sure
“On the contrary, the threat is at its worst often brings to light existing frauds as credit they are who they say they are and that you are
during hard times. Big companies can be lines run out and financial manipulation can no getting value for money.
badly shaken by fraud but small ones can be longer be concealed’.” Check invoices against original purchase
destroyed” says Ros Wright, Chairman of the The Panel has put together advice on how orders and the goods supplied.
Panel and a former Director of the Serious to protect your business: Make sure your staff are aware of the risks
Fraud Office. Identify the areas of your business that from theft and fraud and how to report it.
“Recession brings enormous pressures and might be most vulnerable to loss from theft or Communicate staff expense policies/proce-
it’s tempting for small firms to treat fraud as the fraud, such as sales, stock, purchasing, ex- dures and monitor compliance.
least of their worries. But coping with the con- penses and record keeping. Check references for all new staff; full-time,
sequences of even a small fraud can consume Strengthen any obvious weaknesses you part-time, temporary, and casual. Further
huge amounts of time and resources which are have identified. This might include introducing checks may be needed as employees are pro-
already at a premium. Fraud prevention is an additional checks for signing off payments or moted or require access to more confidential
essential part of any downturn survival strat- authorising purchases. information.
egy.” If possible, designate a senior member of Adequately protect your IT systems and
The Panel, a registered charity established staff with responsibility for managing these business information from the cybercrime risks
by the Institute of Chartered Accountants in risks. posed by phishing, viruses, hacking and
England and Wales, notes reported fraud Monitor your bank and credit card state- scams.
against British businesses has increased sig- ments for unusual transactions. Don’t Forget that severe economic pres-
nificantly over the last year. Ensure that your business premises have sures can cause previously honest people to
Ros Wright explains that “recession in- adequate physical security protection become dishonest.

Business Matters issue 173 • 13

BM174_Simon_Woodfoffe:Layout 1 16/06/2009 00:25 Page 1

Advice

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

Are you very active as a stock market lio last year, but at least I got it out before the re- destiny. One of my fears is I don't understand the
investor? ally big crash so I congratulated myself on not stock market properly, so I will face up to that
When I sold a stake in Yo! Sushi in 2003 I losing another 20pc. I think now the only way and find out more about it. In my experience
wanted to invest around £1m and I looked for me to make money in stocks is if I find out when you do that you find things are simpler
around to find an adviser. I've got a good ac- more about it. In the past I have always felt out than they appear.
countant but I didn't have anyone to invest of my depth.
wisely for me. Eventually I put it into mutual Can you give me an example of when you
funds with Sterling Assurance but then, when ev- Why are you going to try again? have done it before?
erything started to dive this year, I realised that Because I think it makes sense to spread my I used to be very afraid of the law because I
wasn't working. I now see my dream of an ideal money across asset classes and the stock market was busted for drugs when I was 17 and spent a
adviser doesn't exist – you have to take respon- must rise again. And, with interest rates coming few months in jail. When I divorced my ex-wife
sibility for your own decisions. down, the money I have on deposit won't keep 20 years ago I realised I was very scared of the
In early September last year I decided to take pace with inflation. But, when I do it, I'll do it law, so I handled the divorce myself rather than
my money out of funds and into a deposit ac- with enthusiasm, taking an interest and assum- go through lawyers. It took two years and it
count with Sterling. I was very late doing it and ing responsibility. meant I had to read every letter myself and do
I lost about £200,000 on the value of my portfo- I live to this motto – follow your fear to find your all the filing, but I realised the courts are funda-

14 • issue 173 Business Matters

BM174_Simon_Woodfoffe:Layout 1 16/06/2009 00:25 Page 2

Advice

mentally fair. I effectively won the case and did Kentucky Fried Chicken at an early stage and What about pensions?
really well and since then I've been through var- made hardly any money from it I thought a roy- I've got a SIPP and I have been putting money
ious legal battles and I don't get scared anymore. alty would be the best solution because I had into that over the last seven years. I'm at the
How did your childhood influence your seen it in the entertainment industry. maximum fund size of £1.6m, but I am holding
attitude to money? I'll admit it's always been a bone of con- most of that in cash at the moment.
My father was a fairly senior army officer (he tention.
reached the rank of brigadier), but we never had Anyone who has ever bought a large stake in What's been your best buy?
as much money as the rest of our extended fam- the business has scrutinised the contract to see if I bought a few hundred thousand dollars
ily. I think my parents felt like poorer relations – it is attackable. Fortunately, my lawyer, John when they were $2 to the pound, pretty close to
the rest of my family lived in vast country Pratt, had tidied it up nicely. It means my grand- the top of the market. I thought that was shrewd
houses, whereas we lived in a five-bedroom de- children will always benefit from what I have of me given the dollar is now so low. The ex-
tached farmhouse in Essex. My father felt inse- achieved. change rate hit $2 last year and again in spring
cure about this and would always be terribly this year and having spent most of my life with it
worried. I remember being told not to mention at $1.5 I thought it can't go much further up. I've
we only buy gin one bottle at a time, for exam- always followed the dollar because I use it when
ple. I travel to America.
All this made a deep impact on me – from a
very young age I wanted to join the wealthy And your worst buy?
club. When I was 16 I used to tell everybody I Every time somebody has tipped me
was going to be a millionaire by the time I was off about a stock. I can't remember them
20 but when I reached the 1970s I was having because I put them out of my mind. If
such a good time I decided to put it off until I somebody gives me a tip now I'm
was 30. Then when I got to the end of my 30s going to ignore it.
I started pulling my hair out because I'd
completely forgotten to be a millionaire.

Has having money made you

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

I have read you enjoy

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

Business Matters issue 173 •15

BM174_Simon_Woodfoffe:Layout 1 16/06/2009 00:25 Page 3

Advice

How do you prefer to pay – cash, card What's been your greatest extrava- What's been your favourite holiday?
or cheque? gance? I don't take many holidays, but there's one I
I have a NatWest Black card but I prefer to use My Bentley Continental, which I bought five will always remember. In my early 30s I was de-
my Maestro because I know the money is in my months ago for £147,000. I've never really been signing rock stages for concerts. I flew down to
account and I am an anti-snob – I rather like it a car lover but I love my Bentley. It's a green with Australia to win a contract for a Fleetwood Mac
when I'm in a smart restaurant and people ex- a brown stitched convertible roof. tour and on my way back I took a light aircraft to
pect me to pull out an exclusive card but I just Western Samoa. On the flight I met a girl who
get the Maestro out instead. Is the current economic downturn af- lived on the island. She took me to her village to
I like to have a couple of hundred quid in my fecting you? meet her family. Her father was village chief and
pocket for tipping. My Yotel business is constructing buildings at I remember going back to my hotel afterwards
the moment and in some instances we've been thinking: "I could be the head of the village 20
Do you always tip large? delaying contracts because we think we will get years from now". I was there for two weeks,
Quite often but, if the service hasn't been better prices next year. We haven't suffered our- swam in the South Pacific, dived off waterfalls
good, I can look a waiter straight in the eye and selves yet – hotel sales are up because we are a and returned completely chilled.
withhold it without being rude. I find the best low-cost product. In many ways, Woodroffe’s career has come
way is to engage in conversation – I might say I I spoke to Yo! Sushi today (I was thinking of full circle. From being involved with some of the
would love to tip when I come back but not this my royalty) and they've had some big successes biggest bands of the eighties, to the cold, hard
time. I would explain what went wrong without in Liverpool and Bristol. London has been flat for world of business, and then back to rock and roll
irritation and add that it might not be their fault years, but sushi is not a luxury item so I'm con- as respected and admired entrepreneur. “People
(it could have been the kitchen). I'd then promise fident those outlets will survive. say to me all the time “don’t you miss rock and
that if they correct it for next time they can count roll”,” he muses. “I just reply “I’m still in it”.”
on a good tip from me. The trick is to be nice.

Are you a professional,small business,

sole trader or large group?

Benefit from VAT

Samsung NC1

free payment! £258.70 exc. VAT

1024 MB 512 KB L2 cach
Intel Atom N270, clocked
Ref. 01696983

Use our using the following code

3%
reduction
Business03
on your first order

PIXmania-PRO offers low prices, dropshipping and a dedicated customer service for professionals
Payment Methods: Credit card, Paypal and Bank Transfer. Offer lasts from the 01/03/2009 within the limits of availble stocks – photos are not contractual. *Get a discount code of 3% using the following code: Business03 for your first order
over £100 on the site www.pixmania-pro.co.uk This promotional code is valid until 31/03/2009. RCS Paris B 352 236 244. Pixmania-pro.com is part of the group Fotovista.
 BM174_Simon_Woodfoffe:Layout 1 16/06/2009 00:25 Page 4

Advice

Government must help us

Subsidies for companies recruiting and term unemployed back into work, and boost employer, rather than the current scheme’s
training extra staff will not go far enough their skills to help businesses and the economy method of basing calculations on the previous
to protect employees and small to grow, he called for a more sustained pro- year’s earnings.”
businesses hit by the recession, the Forum gramme to better protect employment. He added: “Further, in protecting jobs and
of Private Business (FPB) is warning. “It is important to remember that recruit- boosting recruitment, the Government must
In addition to a new £2,500 subsidy for tak- ment is still taking place, and for these em- ensure that its initiatives, including those de-
ing on and training workers unemployed for at ployers this scheme is very welcome, but many signed to benefit employees, do not in them-
least six months, the FPB believes the Gov- small businesses are concentrating on trying selves become new barriers to employment.”
ernment should provide help to businesses to keep hold of their skilled employees. This The FPB is against the proposed Statutory
struggling to retain their existing staff. Modify- should also form a central pillar of the Govern- Redundancy Pay (Amendment) Bill, which
ing the Working Tax Credit scheme to support ment’s support strategy,” said Mr Orford. would increase maximum redundancy pay-
shorter working hours and freezing planned in- “The administrative structures are already ments from £350 to £500 per week. The addi-
creases in employment costs would allow in place to modify Working Tax Credits to allow tional costs would force many more
businesses to limit the redundancies they are for the retention of key and skilled staff on businesses to close rather than attempt to re-
forced to make. shorter working hours,” he continued. “This verse their fortunes, adding to unemployment
While the FPB’s Chief Executive, Phil Or- process should be based upon the actual and leaving the taxpayer to foot the bill.
ford, welcomed the measures to get the long- hours worked, with income validated by the

NC10 - black Samsung SyncMaster T220 Wacom Bamboo graphics tablet

c. VAT 22" wide TFT Screen (2ms) £35.30 exc. VAT
KB L2 cache 160 GB £155.65 exc. VAT 147.6 x 92.3 mm 512 pressure levels
0, clocked at 1.60 GHz 16.7 million colours 1680 x 1050 160 GB Ref. 00448900
Ref. 00429682
BM173_The Pitch:Layout 1 16/06/2009 00:37 Page 1

The Pitch 2009

Is your pitch perfect?

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

E
ven the best entrepreneurs lucky winner will walk home with a prize package. This year however Emerging Leaders Awards and
in history have needed a massive package of business we’ve got one step further and John Peperrell, operations direc-
leg up at some point. support products and services. boosted the value by £48,000! In- tor of Lovington’s Ice Cream who
Speak to the likes of Bill Gates Nicki Stewart is someone who cluded are website consultancy has also appeared on Dragons’
and Richard Branson and they will knows exactly what it’s like to services worth £8,000, a six- Den! Each panel will also include
admit to turning to all sorts of ex- claim The Pitch title as she won month national and regional PR a real life business angel.
perts for help on the road to mak- the contest in 2008. Since her vic- campaign and market research Despite the current economic
ing millions. tory, the founder of Diverse Ham- services worth £3,000. doom and gloom, I believe this
But the opportunities to receive pers has seen an uplift in sales competition couldn’t come at a
The benefits
genuine and practical assistance and a couple of other award wins. better time. Like recessions of the
which makes a real difference to "As well as giving me valuable But not just the overall winner past, it is small business en-
your business are few and far be- experience of how to pitch to in- will benefit. We’ll make sure every trepreneurs who will lead us out of
tween so when they do come vestors and practical advice on finalist gets access to some of the downturn. Many are imple-
along it’s important that you grab building business success, the best business brains in the coun- menting good old fashioned cre-
them with both hands. amount of publicity I've received try while each one will also get to ativity and innovation but they
One such opportunity is The has been huge,” she says. “Sev- upload their business plan to the need a helping hand to make it to
Pitch, a competition organised by eral newspapers covered my win website of Angels Den, which the big time. That’s where The
my website BusinessZone.co.uk as did many websites and blogs. connects entrepreneurs and busi- Pitch comes in.
which is going on the road this ness angels, and get it seen by For your chance to take part in
Global publicity
summer to track down Britain’s 2,000 investors! This service alone The Pitch 2009, visit:
best small businesses. "I've had text after text from normally costs £499. www.thepitch2009.com
Company owners in five cities people saying they've seen the We’ve also secured an impres-
– Bristol, Birmingham, Manch- coverage and we have experi- sive line-up of judges, many of
ester, London and Glasgow – will enced a definite rise in company whom are local to the event in
pitch their business or idea to a awareness. I even had a call from which they are taking part. Among
panel of individuals who know ex- someone in New Zealand who them are green business legend
actly what it takes to make it big saw the video of my pitch on and founder of Ecotricity Dale
as an entrepreneur. From each YouTube!" Vince OBE; Nicola Fleet-Milne,
event, one will make it through to As well as the glory of winning, founder of lettings company Fleet-
a grand final in London where a Stewart also secured a £2,000 Milne and winner of the IoD’s

18 • issue 173 Business Matters

BM173_Selling for high growth:Layout 1 16/06/2009 00:39 Page 1

Advice

Selling for
high growth
A
fast-track programme to help us in sales techniques, so that we are now Growth programme is an ideal opportunity for
ambitious companies out of much better equipped,” Paul commented. companies to power their way out of recession:
recession has doubled quarterly “Prospective clients in a sales meeting “This programme could be the most valuable
sales for a video production company. might be enthusiastic, but they may not have priority for companies to ensure they stay on
Paul Drew, managing director of award-win- the budget, or they may not be the decision course for growth. They can benefit from the
ning production company The Communicator makers. The client might have his own in- experience of a coach who has already
Ltd has enjoyed one of his best sales quarter house video unit, in which case we would offer survived a recession.”
ever, despite being in a highly competitive to take elements of the production, where we The High Growth programme has space for
business during a recession. could add the gloss that is our hallmark – up to 35 companies, and GLE, like its clients, is
The company is one of 14 on the High something that they would not have the skills keen to attract new business.
Growth programme run by GLE Growth Capi- to do.” Companies interested in the High
tal, designed to put SME companies on the Following the sales training, Communica- Growth programme should contact Jenny
fast track. The London Development Agency is tor’s new video product quickly outstripped Tooth at GLE Growth Capital.
funding the programme, which was launched sales of the traditional video service the com- 020 7089 2331 [email protected]
by Gordon Brown when he was Chancellor. pany had been producing since it started 21
London Companies with at least £1m years ago, doubling sales from the previous
turnover that intend to expand can receive quarter.
nine-months’ support from a coach who has Zubair Aleem, managing director of IT Top sales tips:
been a chief executive of a growing and suc- provider Quadnet Ltd had an altogether differ-
cessful business. The course includes regular ent problem. The company was losing £30,000 · Re-focus the team’s culture to support
workshops on performing for high growth. per month during the final quarter of last year, the sales processes.
Paul Drew bonded immediately with his new when High Growth coach Permjot Valia · Learn how to generate leads, leads
coach, sales guru Juliette Denny, who set stepped in to help. and more leads.
about turning the company’s focus from sell- “I never managed my staff before,” admit- · Price for margin, volumes can come
ing high quality glossy corporate videos to a ted Zubair. “Sales is all about motivation, and later. Don’t be a busy fool.
sales pipeline that was product-led. if the team are demotivated they are not going · Think, try, track response, think again.
The production team began an aggressive to sell. We had to set clear and realistic sales Evolve, learn, don’t stand still.
sales drive offering short, sharp videos that de- objectives, and we had to make decisions · Measure leads, suspects, prospects,
livered tightly targeted messages. It was a quickly.” sales. To measure is to manage.
campaign that struck a chord with many cor- The company has now stopped burning · Put the metrics on a whiteboard for all
porate clients who might otherwise have shied cash and is back in profit. The business is ex- to see. Then all will know what needs
away from the prospect of expensive and time- pecting to increase profits by 20 per cent, de- to be done.
consuming productions. spite a £1 million drop in turnover to £6 million. · Work your customers. Up-sell, Cross-
“Our coach Juliette stopped us selling a ser- Jenny Tooth, GLE Growth Capital’s Busi- sell, hunt for pain. Pain = profits.
vice and treated it like a product. She coached ness Development Director believes the High

Business Matters issue 173 • 19

BM Website DPS Ad:Layout 1 22/4/08 20:46 Page 1

going weekly
more news, more opinion, more advice - more often
 BM Website DPS Ad:Layout 1 22/4/08 20:46 Page 2

Business Matters
Keep up with Business Matters as they
happen. Visit www.bmmagazine.co.uk to
register for the free Weekly News update,
RSS feeds and exclusive videos

y
n

www.bmmagazine.co.uk
BM173_22:Layout 1 16/06/2009 01:27 Page 1

Advice

Telling who you are by

the shirt on your back
G
reen and Jack’s a custom shirt maker
claims to be able to read human per-
sonality from their choice of shirts.
There have been lots of studies linking colour
to personality. Especially the research by Dr.
Max Lûscher during the early 1900's is very in-
teresting. He studied the relationship between
choices of colour to human behaviour. Dr
Lûscher’s study has been used by large com-
panies, doctors and psychologists to analyse
human personality.
Green and Jack’s a London based custom
shirt maker has applied colour research to help
their customers project the right image. The
colour and fit of the shirt that one chooses gives
an insight into one’s personality.

What does your shirt say about you?

Crimson – high energy, confident, passionate,

sensual and brave leader

White – honest, practical and natural..

Pink - confident, naughty and unconventional.

Black – powerful, elegant and mysterious.

Blue – organised, warm, caring and intuitive

personality.

Yellow – original, happy and helpful.

Gray – a balanced and elegant thinker.

Brown – A conventional person who loves the

outdoors.

A well fitting shirt often conveys a structured

mind and an organised personality. Choose the
fit and colour that projects and compliments
ones personality by visiting the custom shirt
store.
Green and Jack’s custom shirt maker offer
free colour consultations. The perfect fit guar-
antee makes ordering custom made shirts risk
free to customers since alterations are free of
charge.

22 • issue 173 Business Matters

BM173_ philanthropy:Layout 1 16/06/2009 00:58 Page 1

Finance

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

W
hat do Bill Gates, Warren Buffet, do nothing." Worried about stifling their off- to the causes you support can ensure that your
Sir Tom Hunter and Duncan springs' ambitions by giving them everything money and expertise are having the greatest
Bannatyne all have in common? on a plate, entrepreneurs in particular are in- impact. This can often become a career in it-
The answer, apart from considerable suc- creasingly leaving the majority of their wealth self, with similar rewards and the same sense
cess, is that they're all committed philan- to good causes or charitable foundations that of achievement. When the late Anita Roddick
thropists, who have pledged to give away the they have created. sold The Body Shop, it wasn't so that she
bulk of their fortunes to good causes. And Dragon's Den star Peter Jones has estab- could sit back and enjoy the fruits of her
they're not alone as with every month that lished a trust fund to reward his children for the labours, it was so she could devote the rest of
passes, more and more of the world's wealthy good they do, their yearly allowance dictated her life to her charity foundation.
announce their intention to devote their time by their choice of future career. He hopes it will In addition to making an impact during your
and their money to making the world a better encourage them to consider professions that lifetime, philanthropy is also a way of support-
place. make a difference to others, such as nursing or ing a cause for the long term and creating a
So, what's driving them? Though there are teaching, rather than focusing purely on those lasting legacy. Setting up a trust that will fund
many reasons for giving, the most often cited is jobs with the best salaries. Likewise, his co- organisations or charities in perpetuity will en-
that it's an enjoyable and rewarding experi- star, Duncan Bannatyne intends to leave his sure that your work will always make a differ-
ence. Victor Hugo once said that "as the purse entire fortune to his Bannatyne Foundation. He ence and will remind others of how strongly
is emptied, so the heart is filled", and for many, fears that leaving his children hundreds of mil- you felt about a particular cause. For an exam-
philanthropy does just that. It gives people lions of pounds would rob their lives of any ple look no further than Bill Gates. At the mo-
pleasure and life enrichment by knowing that purpose. ment he's famous for founding Microsoft, but
they're making a difference. It also allows them he hopes that after he's gone, he'll be remem-
A family affair
to achieve a spend/give balance. For instance, bered for his commitment to eradicating dis-
while he has had no problem in amassing his But as well as allowing children to follow ease and ending social inequality in Africa
fortune, the hedge fund manager Arpad Bus- their own path, we have found amongst our through the Bill & Melinda Gates Foundation.
son said in a recent Guardian interview that his clients that philanthropy can also bring families But whatever your initial motivation to start
decision to embrace philanthropy was because closer together. If you own a successful family giving, knowing how, where and when can
he found it impossible to enjoy his wealth, business, setting up a charitable foundation prove challenging. With so many deserving
knowing there are people out there who were can allow those relatives not involved in the causes, choosing the right one is always going
much less fortunate than himself. day-to-day running of the company to work to- to be a tough decision. And once that choice is
For others, philanthropy can be the ideal gether for a common goal or purpose. made there are further difficulties. How much
way of instilling family values and educating For those that have sold their business or to give; whether to make a single donation or
their children, as showing the next generation are beginning to take a step back from their regular payments; how to gauge a specific
what a difference wealth can make to others profession, but are not quite ready to sit back charity's performance before supporting it and
can help prepare them for the responsibilities totally, philanthropy is an opportunity to apply how to monitor the impact your support is hav-
of inheritance. When asked what he would both financial capital and life experience in ing. It may become hard work, and there are
leave his children, Warren Buffet famously re- order to solve social problems. Rather than many companies who offer to assist, but the
marked: "A very rich person would leave his simply writing out a cheque, creating your own time spent could be more rewarding than mak-
kids enough to do anything, but not enough to dedicated fund or taking a hands-on approach ing the money in the first place.

Business Matters issue 173 • 23

BM173_Mediation:Layout 1 16/06/2009 01:01 Page 1

O
n 6th April 2009, employers and This is great news for businesses. Re- the last 20 years. It is a future focussed pro-
employees were given greater search shows that in some cases, managers cess that is less concerned about who might
flexibility to deal with workplace spend up to 25% of their time dealing with is- be right or wrong. It is more concerned about
discipline and grievance issues in a way sues associated with conflict. Although the solving problems so that they don’t occur
which suits them best. principles managing grievance and disci- again. In mediation responsibility for finding a
The government repealed the 2004 statu- plinary issues should still be applied, the en- workable solution for the dispute rests firmly
tory grievance and disciplinary process. A couragement to solve difficulties at an earlier with the parties. The mediator facilitates the
new framework for resolving employment dis- stage will help companies save money. The process. The 5 main planks on which media-
putes in Great Britain emphasises the impor- Chartered Institute of Personnel and Devel- tion is based are:
tance of the early resolution of workplace opment estimates the cost of conflict to UK • It is voluntary
matters in the workplace. business as £24bn per year. In a time of eco- • It is confidential
The legislative measures are based on the nomic uncertainty, this could be a good time • It is without prejudice
Employment Act 2008. The Act paved the to embrace new thinking that will help in- • The mediator is neutral and impartial
way for the Acas statutory Code of Practice crease efficiencies. • It is non-binding
on discipline and grievance, which sets out Organisations that fail to pursue options for (until agreement is reached)
the principles that employers and employees early resolution may be penalised in the event One of the strengths of the mediation
should follow when dealing with disputes at that a case goes to Tribunal. processes that it can be applied to individual,
work. team, departmental, functional or organisa-
What is Mediation?
The foreword to the Code highlights that tional disputes. A further strength of media-
employers and employees should always The new Code states “Where it is not pos- tion is that it is quick. For example a dispute
seek to resolve disciplinary and grievance is- sible to resolve disciplinary and grievance is- that has been rumbling on for years can often
sues informally. However, where an issue can- sues in the workplace employers and be resolved in one day through mediation. In
not be resolved informally, then it may be employees should consider using an inde- the UK, mediation has a success rate of 93%
pursued formally. According to the Code, em- pendent third party to help resolve the prob- Whether you run a small, medium or large
ployers and employees should behave fairly lem. In some cases, an external mediator business there is likely to be a risk of this type
and reasonably when taking formal action to might be appropriate”. of scenario happening within your
resolve their dispute. Mediation has been practised in the UK for organisation.
BM173_Mediation:Layout 1 16/06/2009 01:02 Page 2

Advice

Mediation - the new

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

What should you do now? Case study

For your organisation to also benefit from engaging with A team of around ten consultants from one department in the
conflict resolution principles here are 5 steps I recom- NHS had fallen out. The dispute had been running on for
mend that you follow. about 3 years. Part of the impact of it was that they had
1. Consider training some colleagues to become accred- formed disparate groups. Team meetings stopped happening
ited mediators. This could be done on an in-house basis. because they didn’t want to be in the same room as each
2. Partner with an external mediation provider. This will en- other. Basic job functions such as being on call or providing
sure that in cases where there may be a conflict of interest additional coverage when needed were also affected. A
to appoint an internal mediator you can call on the services calculation was undertaken to indicate the likely costs of the
of an external organisation dispute. The figure was in the region of £1/2m.
3. Review your organisations policies and procedures to The HR director and Chief Executive commissioned
incorporate clauses that promote and encourage early res- mediation. The mediation process forced the team of
olution of disputes and mediation consultants to get into one room and talk to each other. The
4. Review other parts of the HR framework. For example session lasted one day and successfully achieved settlement.
consider offering training for line manages on topics The return on investment for this exercise was huge. For a
such as ‘how to manage difficult conversations’ and relatively small fee, the mediation helped to unlock a dispute
equality/diversity training that had been tying up highly valued expertise and allowed
5. Link any success from mediation back to the busi- focus on patient and customer care to become the number
ness case. Identify savings made and ensure the ben- one priority again.
efits of mediation are publicised within the business.

Business Matters issue 173 • 25

BM164_030.qxd:Layout 1 1/9/08 01:16 Page 1
BM173_Bill Morrow:Layout 1 16/06/2009 01:05 Page 1

Finance

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

I
t’s official: we’re in the midst of a small
business funding crisis in this country.
Banks aren’t lending, seemingly frozen
in fear of going the way of so many of their fallen
peers, unwilling to relinquish the £billions that
the government has given them specifically to
stimulate business lending. What are we to do
in the face of such illogical hoarding that is only
likely to deepen and prolong the economic
doom and gloom that we are now submerged
in?
President Obama, In a similar business fund- try, and US unemployment figures rising to failed attempts at stimulating bank landing,
ing crisis in the US, may have struck on a great their highest since 1983, something drastic there has been one ray of light for new enter-
idea. He has decided to place ownership of the had to be done. prises and small businesses: the growth of
solution squarely in the laps of the banking sec- Angel investing as a viable alternative for small
Dealing with it
tor where the problem began. He has an- business funding. Angels Den has seen record
nounced that the 21 largest banks that have Here in the UK our unemployment figures numbers of entrepreneurs and small business
received state funding to keep them afloat now are the worst since 1997, and while I have to investors signing up for an opportunity to
must report monthly on how much money they admit Gordon has been trying to resolve the meet one another and discuss the potential of
are lending to small businesses. Every other business funding crisis, he has been using the a partnership. Exciting things have been hap-
bank that gets state money has also been tactics of a wealthy parent attempting to buy pening, and because of the sheer volume of
asked to report on small business funding, but the love of an unruly over-privileged child. interest in what we are doing and the suc-
on a quarterly basis. Wonderful, forcing the Merely throwing money at the problem has cesses we have witnessed at many of our re-
banks who have sucked up so many $billions had little real effect on business funding as yet cent speedfunding events, we are confident
of tax-payers money to do something in return, and is unlikely to do so. Requiring the banks that even when the banking sector gets its act
a task that has so far eluded our government as that have so readily drained the taxpayer’s together the rise of Angels investment for
the banks have seemingly said: ‘thanks a lot for generosity cup dry to do something positive small business funding will not be curbed. We
the generous donation to our coffers – now go to help us out of this crisis is an excellent step are creating business success stories every
away and let us sit on our gold until we feel like forward. It is agreed by most economists that week through building strong and profitable
doing something banking-related in our own helping new ventures to launch and grow is partnerships.
good time.’ the most effective way of us repairing the
Obama appreciates that small businesses problems in our economy, and getting the If you would like to find out how we are
are major contributors to the economy and to banking sector back into the business-fund- doing this or when our next speedfunding
employment. With the $billions invested so far ing game is the way to go. or pitching training sessions are, then
to stimulate business lending having had about While the papers have been full of the prob- come to our website at
the same effect as similar attempts in this coun- lems that the UK economy is facing and the www.angelsden.co.uk

Business Matters issue 173 • 27

iBM175_IBM.qxd:Layout 1 16/06/2009 01:07 Page 1

Joined up travel
info could make
commuting a joy

Paul Bray looks at how easier travel would be if we

harnessed technology to get around
"The train now standing at platform 4 will call A personalised information portal will likely to be congested and when, either from
at several stations and then X. At X, Mr present us with the various options and past experience or by intuition (so it won't
Jones, turn left out of the station and catch routes, via public and private transport, with route us past a school gate at 3.30pm). And
the number 17 bus towards Y (there's no predicted timings and costs (financial and it will take account of known variations to the
need to hurry as it's running four minutes environmental), leaving us to make an regular pattern - rail engineering works, say,
late). Alight at the seventh stop, cross at the informed choice. When we've decided, the or a big soccer match - rather than slavishly
zebra and go down Z Street..." route information will be transmitted to our following published timetables.
Wouldn't travelling be easier if all the phone, satnav or other mobile device. There’s no need to worry about disrup-
announcements were so detailed, person- tions on the day, says Howard Wilson,
Avoid congestion
alised and up to the minute? In future they business development director for transport
will be - not over the station Tannoy, of The system won't always suggest the at Mastek, a software company that works
course, but direct to our mobile phones, same route for the same journey. If we're with Transport for London. "Travel informa-
satnav systems or public information kiosks. travelling on business it may assume we tion will become your information about your
"Information will be more joined up, so want to travel quickly rather than cheaply, particular journey. So the system will contact
that when we plan a journey we shan't have and be sure of getting a seat on the train and you if there's a problem that affects you and
to worry about how we're going to travel, a WiFi connection so we can do some work. suggest an alternative route, whether it's
only where we want to go, when and why," Or it may know that our firm has a strict your regular commute or a one-off trip."
says Nick Illsley, chief executive of Transport environmental policy and that we'd prefer the "Part of the intelligence will be in making
Direct, the Department for Transport's online lowest-carbon route. sense of the data and filtering out what's not
travel planning website. The system will know which roads are important," says Illsley. "If my train is two
iBM175_IBM.qxd:Layout 1 16/06/2009 01:08 Page 2

Advice

minutes late I don't want to know. If it's 10 Much of this information is already in The benefits of better, more personalised
minutes late I do, and I want to know what existence or being created. Transport Direct travel information will be wide ranging. Many
that means for my connections." has mapped all of the UK's 350,000 train of us use cars because we're nervous of
Ultimately, says Robin Mannings, resident stations, bus stops, ferry crossings etc. Sat- taking public transport on unfamiliar routes;
futurologist at BT, pre-booked individual nav and mobile phone companies are with reliable information and a real-time,
journeys could become part of a master plan recording millions of pieces of data from in- electronic guide we might take the bus
that deliberately divides travellers between dividual journeys to calculate typical speeds instead of driving, or walk instead of hailing a
different routes or even different modes of on individual roads at different times of day. taxi. Joined up data about the movements of
transport in an attempt to reduce congestion. In downtown Singapore, IBM has developed vehicles and passengers, both in advance
If there's an unforeseen problem, the system software that can predict traffic jams up to and in real time, will enable public transport
could automatically re-book us onto a later 45 minutes ahead of time with 90% accu- operators to respond better to demand, so
flight if it knows we'll be delayed, or advise racy. that a bus driver could wait a few minutes for
us to park and continue by train if our road The next big step will be fusing all these a delayed train, or a larger vehicle could be
becomes jammed. disparate pieces of data to create a unified provided when more passengers are
picture spanning multiple modes of trans- expected.
Joined up data
port. In the meantime, collecting and sharing Creating the information infrastructure to
For joined up travel and personal journey travel information doesn't always require ex- make all this a reality won't be cheap, and it
planning to function, says Mannings, they pensive technology. A taxi firm in Cannock will require a good deal of co-operation and
must be supported by several kinds of data. sends customers a text message when their political willpower. But as the number of
This will include detailed digital maps, cab is 10 minutes away, based on real-time travellers continues to grow, and the number
accurate timetables, historical information ETAs from its TomTom satnav system. And in of roads and rail tracks doesn't, the question
about usage and congestion patterns, details rural Hampshire IBM has a 'tweeting' staff is not whether we can afford to make the
of planned but temporary factors like road minibus that uses Twitter to inform would-be investment and effort, but whether we can
works or major events, and real-time infor- passengers of its precise whereabouts and afford not to.
mation on current congestion. whether it has seats available.

Business Matters issue 173 • 29

BM164_035.qxd:Layout 1 1/9/08 01:08 Page 1

WANT TO START YOUR OWN BUSINESS?

BESTSELLER NEW

‘Covers everything that an • Getting off the ground

entrepreneur could want to know’ • Managing your money
Independent on Sunday
• Getting paid on time
• Over 140 easy-to-read articles
• Company admin, tax & payroll
• Viewpoints from small business owners
• Coping in a crisis
RRP £19.99 • Online Offer £15.99
RRP £14.99 • Online Offer £11.99

BUSINESS ON A SHOESTRING SERIES

Aimed at entrepreneurs with plenty of vision

but not a lot of cash
• Ideas that really work
• Step-by-step advice
• Written by small business owners
RRP £8.99 each • Online Offer £7.19 each

For full details of all our books and to order online, visit:
www.acblack.com/smallbusiness
BM173_Lopata:Layout 1 16/06/2009 01:11 Page 1

Marketing

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

W
e may be facing tough times, with A lack of profile will not help any business HR? Wherever you need the word spread,
businesses going to the wall, bud- succeed. Whether that profile is widespread or understand who those people will be talking
gets being slashed and thousands among a very closely defined group of people, to, where they are most likely to hear about
of jobs being lost. There are things we can do, your reputation counts. you and network accordingly.
however, to give ourselves the best chance of The most traditional way of raising profile, The growth of online networks has made it
surviving, and even thriving in this crisis. particularly for bigger companies, is through even easier to raise your profile and spread the
The ‘dog-eat-dog’ world of business advertising and sponsorship. Yet for so many word. Clearly, online networks are a much eas-
painted by TV programmes such as The Ap- people, particularly in the current economic cli- ier way to reach a wider audience and grow a
prentice is not necessarily the way forward in mate, such opportunities are out of reach. In- global reputation, but there are also a large
business today. Instead businesses are more stead, networking plays a key role. number of niche networks on the internet,
likely to achieve positive results through col- serving different industries, interest groups and
The value
laboration. Sharing experiences, expertise, locations.
ideas and contacts is essential to business Successful businesses recognise the value A word of warning here, it is one thing to
success. of having a team of people talking about them spread the word about your business, online
In short, networking is vital. It helps busi- and associating them with excellence in their or off. It is quite another to manage what is
nesses become better known, better equipped field. More than ever we are inclined to listen to being said about you. It is important that you
and achieve better market penetration than our peers when making buying decisions, and have a clearly defined view of what your
they could manage on their own. a strong reputation can prove to be the right message is and what you want people to say
So, how can networking help you get the foundation for building a business. about you.
edge you need to succeed and overcome the Understand where you want that profile to Attending networking events and continu-
current recession? go and pick your networks accordingly. Are ally moaning, whether about the state of the
First of all, networks can help you to build your potential clients based in a geographic economy, other people in your network or even
your profile and your reputation. We all know area, within one or more industries? Do the the quality of the food on offer, is not going to
the phrase ‘It’s not what you know, it’s who you people who decide to use your services tend endear you to others. Nor is it likely to encour-
know’. Well, more important is who knows to be from one or two key roles within organi- age them to talk about you positively.
you….. and what they are saying about you. sations, such as Sales Directors or Heads of In a similar vein, simply being seen is not

Business Matters issue 173 • 31

BM173_Lopata:Layout 1 16/06/2009 01:11 Page 2

Marketing

enough. Sure, the more people you connect

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

The dangers
Naturally there are other dangers, much
talked about elsewhere, to your reputation
from social networks such as Facebook. It can
be easy to be drawn into arguments or banter
with other people in your network and forget
that this is a window to the World. Have fun,
show your personal side by all means, but it is
important to ensure that you have your profes-
sional image in mind at all times.
Apart from profile building, networks also
act as a very powerful self-development tool.
As John Donne said, ‘No Man is an Island’ and
this is particularly true now. We need to learn
from others, benefit from their experiences and
expertise and open ourselves out to new ideas
if we are to achieve as much as is possible. Attending networking functions isn’t just a business card gathering exercise
Our networks can provide a lot of that sup-
port, both formally and informally. There is a the events with speakers who address those of membership of the Professional Speakers
good chance that you already have a network issues. Set out a list of questions in advance Association (PSA). I only did so by attending a
of people who want you to succeed and have that you would like answered and listen care- large number of meetings and conventions,
already been through the challenges you are fully for the answers to those questions during listening to the speakers at those events and
facing. Have you asked for their advice? Have the talk. You’ll be amazed at how much more interacting with many fellow members.
you sought their support? you can get from such an event when you have The third way in which networking is a key
a greater degree of focus. activity in difficult times is probably the most
Look for support
In addition to listening to talks from experts obvious, and that is as a referral-generation
If you don’t have the relevant experience in in their field, there is much you can learn from tool.
your immediate network, or if you don’t feel other people in similar positions to you. One You need to be patient if you are to build a
comfortable asking the question, there are growth area in networking is peer-support, or referral network. People refer others who they
many networks set up specifically to provide ‘Mastermind’, groups. These range from for- know, like and trust and that doesn’t happen
those resources. From the blogs and clubs on mally organized membership groups to many overnight. During tough times though, those
social networks to events with speakers, the independent meetings, business people at a referrals are invaluable, opening doors that
support is there, you simply have to seek it out. similar level to each other meet regularly, share have been slammed shut on vendors generally
Many people attend networking events with their challenges and offer their feedback, ad- and bringing your business to the top of the
speakers without any concept of what they vice and suggestions. In the best groups they pile.
want to gain from the talk. Next time you go to will also hold each other to account for their
such an event have a look around the room actions.
Andy Lopata is Vice President of the UK
and see how many people are not taking notes Additionally, you can gain a lot of the knowl-
Professional Speakers Association and
and obviously disinterested. edge and skills you need from industry associ-
co-author of two networking books.
Instead, outline your key self-development ations and networks. I developed my speaking
Read more at: www.lopata.co.uk
or business-development needs and seek out business through lessons learnt over six years

33 • issue 173 Business Matters

BM173_Jeremy Nicholas:Layout 1 16/06/2009 01:15 Page 1

Finance

Getting the message

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

I
have spent 23 years working as a broad-
caster watching open-mouthed as people
waste opportunities to generate good pub-
licity on TV and radio.
If it’s a live interview they can damage their
brand reputation. If it is pre-recorded, chances
are they’ll be edited out of the feature.
Why does this happen? It’s only talking. We
can all do that, can’t we?
Many people don’t understand the needs of
us media types. We don’t care about your firm,
your product and your statistics. We don’t want
tons of information. All we care about is sto-
ries. If you don’t give us a good story we’ll say
‘so what?’
A trip to a TV studio is like visiting another
country. If you are travelling abroad, you’ll prob-
ably invest in a guidebook, to discover the local
customs, how they tip, which side of the road
they drive on, that sort of thing. You might learn
a bit of the language, just in case talking loudly
in English doesn’t work.
Yet I watch in horror as people gambol into
TV studios, like lambs towards that pretty look-
ing slaughter house. Full of the confidence that
comes from not fully understanding the situa- Jeremy Nicholas with Michael Parkinson
tion, they laugh off suggestions of media train-
ing. The higher up the food chain they are, the
more they scoff at the idea.
Here’s ten top tips on how to communicate brilliantly
“I didn’t get where I am today by having When on TV imagine you are talking to a Treat every journalist with respect, even if
media coaching, Reggie.” family member or friend. you’ve done twenty interviews in a row. A
Learning a language takes weeks of evening Michael Parkinson- chat show host bad interview can come back to bite you.
classes. You can learn everything you need to You are usually asked the same old ques- Gail Emms-Olympic badminton star
know about being interviewed, in just one in- tions time and time again. Practise your an- Never lose you cool with an interviewer, no
tensive day with my team at Talking Toolbox. swers and you’ll get better. matter how difficult they are being. It is you
My good friend Alan Stevens runs excellent Tanni Grey-Thompson- Paralympian that will look bad.
sessions at his firm Media Coach. Like it or not the media is important. If it’s Iain Dale- political blogger
We’ve just written a book together called Me- part of your job to deal with them play it Remember to breathe. It makes everything
diaMasters. We’ve interviewed 25 of the big straight and try to be interesting. so much easier.
names of broadcasting, print and social media, Will Carling- rugby star Michael Aspel- TV presenter
to discover their insider secrets. Always be yourself, there’s no point trying to Don’t let on if you are nervous. It’s natural.
be anyone else. Dee Caffari- round the world sailor
Jeremy Nicholas is the director of Talking Rebecca Adlington To get your story in the papers you need to
Toolbox, a communications consultancy. Double Olympic gold medallist find the human element. One person’s story
www.talkingtoolbox.com,. Don’t be diverted by inconveniences like in- is always more interesting than a corpora-
MediaMasters by Alan Stevens and Jeremy terviewer’s questions. Say what you want to tion’s.
Nicholas is published by BookShaker and is say. If it’s good, repeat it! Phil Hall- PR guru
available now on Amazon. George Galloway MP

Business Matters issue 173 • 33

BM164_030.qxd:Layout 1 1/9/08 01:21 Page 1

“We started making and selling wormeries for composting on our farm. Now, to reach a
much wider audience, we advertise on Google using AdWords. Nearly a third of our sales
come via the internet – from all over the UK. It’s a bit like a marketing worm farm!”

Visit www.google.co.uk/ads-freetest
for more info about advertising on Google
and a FREE £30 voucher to get you started.

Terms and Conditions: The promotional code can only be used for AdWords accounts that are less than 14 days old. Voucher can be redeemed for AdWords advertising. Only one promotional code per
customer. Customers must be from the UK or Ireland. A £5 account activation fee or equivalent credit deduction required depending on your preferred billing options. For full terms and conditions
please visit http://www.google.co.uk/adwords-voucherterms
BM173_Grant Leboff:Layout 1 16/06/2009 01:17 Page 1

Advice

Guaranteeing your
reputation

I
n this digital age it is easier for us to dis- ning the customer’s heart and mind is all about tion; “What story will they tell if I send them the
seminate and obtain information than ever how they perceive you. standard calendar or diary branded with our
before. The Web means we have informa- Let me give you an example: There is a story company logo? There is a good chance they
tion constantly at our fingertips. Meanwhile we of an airline that launched a brand new long won’t tell any story at all. Therefore, what value
are communicating with each other all the time distance route. On their maiden voyage the have you obtained? The answer is none.
via email, mobiles and text messaging.” Word plane was stuck on the runway for fourteen
of Mouth” has always been powerful, yet as hours. At that point what story would the cus- So think of the story.
the opportunities to voice our opinions in- tomers tell? They would probably tell their Find out what they like during the course of
crease, its importance is growing rapidly. friends and colleagues of a hellish journey that working together. Then, for example, if you
Reputation, therefore, is more essential for would infer that they would never fly that air- know they like milk chocolate, send them a box
companies than it ever has been. It doesn’t line again. with a note. The impact will be huge and the
matter whether you are a global enterprise or a The next day, however, the owner of that air- story they will tell will be very positive.
small local outfit. Retaining customers, keep- line called every passenger personally to apol- Managing customers does not have to be
ing them happy and, therefore, ensuring you ogize and offer them a discount on a future difficult. Always think about the story they will
have a good reputation is not easy. flight. The story was managed brilliantly. be repeating to their friends and colleagues. If
There are a many myths spoken about man- You see, the story was now about receiving you think it may be negative, think about how
aging customers. There is, however, a simple a personal call from such a well known and you can turn that around.
and effective way for ensuring you are always busy person and the delay became incidental. You don’t have to spend a lot of money but
mindful of your reputation. In any situation, ask Instead of the airline being criticised for a poor you do have to give it a lot of thought. Having
yourself one question, service, the story was all about their excellent customers talking about you in a positive light
customer service and how much they care. and ensuring you have a good reputation in
“What story will my customer tell?” If you want to ensure you manage your cus- today’s market place is invaluable. Quite sim-
tomers successfully; you need to be constantly ply, you cannot afford not to.
It is this question that enables you to decide thinking about the story they are likely to tell.
how to handle any situation effectively. The Just sending them a thank you note when they Grant Leboff is Principal of The Intelligent Sales
story the customer will tell is how you are per- decide to use you, will mean they will be telling Club working with companies on effective sales
ceived by them and, therefore, how you will be a good story. How many companies do that and marketing strategies and lead generation;
perceived by others. It is this perception that is and yet it is so simple? creating a steady stream of sales opportunities
all that matters. During the time they are engaged with you, for businesses. For more information visit
The customer’s perception is their reality. ask the same question. For example, If you are www.intelligentsalesclub.com or call:
Whether it is right or wrong is irrelevant. Win- going to send a Christmas gift, ask the ques- 0844 478 0044.

Business Matters issue 173 • 35

BM173_Brad:Layout 1 16/06/2009 01:18 Page 1

Advice

The business
builder
One of the UK’s most successful business builders Brad Rosser answers your
questions to help you grow your business and maximise your potential
My Marketing Manager has just sent me a of this specific project. No complex made up feign interest. Be enthusiastic about what they
proposal for a major promotion for our allocations please! are doing. Their business may not be exactly
product. He claims it will generate a large 3. List all fixed costs: Be thorough. Get out what you need right now, but it may be in the
volume of additional sales, but it will require your pen and paper and make an exhaustive future or they may know someone who is per-
a significant investment. How do you typi- list. Learn to loathe fixed costs! The higher the fect for you.
cally approach making decisions such as fixed costs the project entails, the higher the Always arrive at these events with a con-
these? costs you incur regardless of whether you sell cise “pitch” about your own business. You
anything or not. need to communicate simply, clearly, and
Every time I am faced with a decision such as 4. Calculate your profit margin: Estimate the quickly what it is your business does and also
this, I ask a very simple question: ‘If I spend incremental revenue from the sale of a single to convey a sense of solidity and capability. No
this, what will I get back? and how fast will I product and then subtract the variable costs one wants to hear a long winded boast. Be-
get it?’ associated with the sale of that product. Only careful what you try and sell on the day. Nor-
Im always worries that either the natural en- include revenues that are directly measurable, mally the best you can do is a contact address
thusiasm of the people involved or time con- no incidentals or knock-on benefits. and the ability to follow up later. You can eas-
straints will get the better of me. So asking this 5. Find out exactly how many items do you ily destroy any chance of a sale by pushing too
question ensures that you avoid becoming need to sell to recoup all your costs. This is hard at the first time of meeting.
flustered or sidetracked amid all the noise. It your breakeven. This is calculated by dividing In addition ensure you have the best sales
will also ensure that your decisions are objec- your fixed costs by the profit margin per sale. team available. I often see stands manned with
tive and that you don’t procrastinate. This ap- 6. Compare breakeven with other points of ref- staff looking bored or worse. It takes energy
proach is so powerful because you can apply erence: To assess how realistic the breakeven and genuine interest in people. I always let it
to every single decision you have to make. is, look for data points or other evidence that is be known I will come by at some point. This
Asking this question will also tell you what in- comparable e.g. perhaps the idea has been tri- should keep them on their toes. As mentioned
formation you need to make an accurate as- alled previously or a competitor might have above have an easily understood pitch.
sessment accurate and will ensure that you launched a similar promotion. Depending on the type of business flyers,
don’t need reams and reams of paper! You 7. Don’t look back: move on! Don’t waste time hand outs that do not need to cost a great deal
only need the minimum amount of information second guessing your decision and fret- are important. However if possible creating a
that will enable you to make the decision at ting. You have done all you can to tip the reason to contact them post the event is criti-
hand. This should rarely be more than one or odds in your favour. cal.
two pages. For an event try and provide a reason for
Sounds simple doesn’t it? But unfortu- What tips do you have for maximising the them to want to give them your details. I will
nately it’s not quite that easy. It is the imple- effectiveness of networking and business often speak at an event and then offer to email
mentation that is critical and there are some events? the presentation to them post event.
important rules that you need to follow when Once the event is over, make sure you fol-
you are making your analysis: The most important thing to remember low up everyone you made contact with
1. Do everything on a cash basis: Only cash, when you attend events like this is that your promptly. For some people you meet, this
no promises! This means you must estimate goal is to build relationships with people, and might simply be a quick one line email saying
the timing of your cash payments and cash re- not simply to ram down people’s throats what you enjoyed meeting them and providing your
ceipts only when they actually hit your bank a brilliant business you run. People will always contact details, for others it might involve shar-
account. A sale is not a sale until the cash ap- prefer to do business with those people that ing further information or setting up a meeting.
pears in your bank account. they like and instinctively trust. Always seek to help others if you can, even
2. Only consider incremental costs and rev- So make sure you listen to people. Ask if it doesn’t directly benefit you at this exact
enues: You are only interested in those costs questions about other peoples’ business and moment. You never know how you might ben-
and revenues that you incur solely as a result actually listen to their answers. Don’t simply efit in the future.

36 • issue 173 Business Matters

BM173_37:Layout 1 16/06/2009 09:41 Page 1

Advice

The value of a
brand
A
s new businesses are being estab- iest (and cheapest) way to increase revenue An effective brand strategy should deliver
lished by entrepreneurs across the and it is these customers who are most likely to results to the bottom line and therefore should
country, to suit the market looking for bring you new referrals. always have targets to meet and be measured
more individual service, SMEs must focus on Customers form emotional alliances with for performance. It should tie into your wider
creating a brand that can leverage their busi- strong brands, ultimately these brands are able marketing strategy and flow consistently within
ness financially. Branding is affecting business to command a higher price in the marketplace, an organisation's internal and external com-
more and more everyday, so much so that it is providing much stronger financial returns munications. This makes the brand a more
taking over larger shares of a business' value throughout a business’ life cycle. powerful tool.
and becoming an increasingly important factor
Attracting new customers
when it comes to differentiating yourselves
Old
from competitors. The current climate means that new cus-
Brand is worth the investment – successful tomers are much more cautious when entering
brands command premium positions, cus- into new business relationships. They will be
tomers will pay more and economic value will on the lookout for a brand that they can relate
be added to your organisation. A powerful to, one that matches the needs and values of
business asset, branding can be used to their business.
strengthen customer retention and win new This is where brand works most effectively.
clients and, maybe more importantly for the Creating differentiation is one of the most im-
future of business, good brands attract the portant attributes to a brand. A valuable per-
right calibre of employee – something that is ception of quality in the mind of the customer
often overlooked. It’s estimated that 50% of will guarantee you are competing based on
Coca Cola's worth lies in its trademark and your credentials rather than on price.
we’ve also found this with SME clients who The current climate offers great opportuni-
New
have honed in on creating a brand, not just a ties for SMEs – larger firms that sub-contract to
business. smaller independents are looking to cut costs.
SMEs need a good brand behind them to
Xiros
leverage credibility for bigger contracts.
Let's take a look at an example. Xiros, a
Interior Surfaces
Yorkshire based medical devices manufacturer,
Branding affects business
found that potential customers weren’t seeing Interior Surfaces, bespoke manufacturers of
the business for what it truly was, an innova- solid and laminate surface products, decided Brand equity is turning into a corporate
tive medical design house – effectively missing to invest in their brand as a way of attracting asset that provides financial return and long
out on business they knew was right for them. larger contractors. They invested in a re-brand term profits, whilst also adding value to the
After evolving their existing brand and dissect- because their existing image was not repre- customer. From multinational companies to
ing the product offer, the business recorded a sentative of their capabilities and they wanted SMEs the principles are the same - good
700% increase in new business generation to appeal to a larger commercial customer brands will be reflected in a stronger balance
within 12 months. This has kick-started a pe- base. They had a 5 year plan in place to dou- sheet with a higher level of profitability for a
riod of significant growth over the last two ble their turnover, but achieved this in 2 after given cost of sales – a very attractive proposi-
years. Brand plays a significant part in how the repositioning the business as a complete solu- tion to build a business around.
company is perceived and how it approaches tions provider. Turnover rose from £1.2m to But what must be remembered first and
new business. £2.4m. foremost is that a brand is not just a logo, it is
The existing customer's relationship with a This was put down to the new brand and paying attention to detail to every aspect of
brand strong design ideas bringing a sense of what communication within an organisation, from
As well as attracting new business, a re- they were able to achieve to the company, both stationary to staff. If that is mastered then the
brand lets existing customers know that you within the business and externally, and have reputation of your company should prevail over
are evolving with the times and are able to since gone on to successfully win contracts the competitors', and by word of mouth, you
meet their changing needs in the business with larger clients, and entered new markets. should find yourself with a successful
world. Selling to existing customers is the eas- Design with targets to meet business.

Business Matters issue 173 • 37

BM173_Leadership:Layout 1 16/06/2009 01:21 Page 1

The leadership
challenge

W
orking life presents many situations for
people where their job must change from
an involved, hands-on role to a very
different leadership position.
It’s a challenge which can present real difficulties if
those involved don’t take the right steps to cope with
the effect on themselves and their colleagues.
The situations can be many and varied, but roles and
relationships can change most radically when there is a
promotion from ‘within the ranks’. People who used to
work on a level playing field not just as colleagues but
as friends must suddenly try to reconcile a change
where, for the majority, one of their own is suddenly
their new boss.
This ‘Peer-to-Power’ situation is confusing and com-
plicated on both sides of the equation – how should re-
lationships change? Can colleagues who used to be
equal have the same conversations as they did before?
It can present the most awkward circumstances, espe-
cially when the leader has to deal with performance is-
sues for colleagues who first and foremost see their
new leader as a friend.
More familiar to most will be when a new leader ar-
rives fresh to a team and an organisation from outside.
Often, a new leader’s instinct is to start to assess the
behaviour and capabilities of his or her team members,
but forget to deal with their own fears or their vision for
the new team.
Then there is the owner-manager who needs to let
go. People who have established and developed a
business from scratch often reach a stage where the
BM173_Leadership:Layout 1 16/06/2009 01:22 Page 2

Advice

Sue Powell explains what to do when your management role

changes and everyone is looking to you for guidance
growth in their business forces a change in their tool, is so much more effective than guesswork. mittee instead which could even involve clients.
role. Many owner/managers find this very diffi- Successful leadership starts from within so Both new and experienced leaders often feel
cult, often citing the belief that they have to stay new leaders need to think carefully about they that they “should” just be able to lead and are ei-
very heavily involved just to maintain efficiency. feel about taking on a new, more senior role and ther too nervous or too proud to ask for help.
Failing to hand over even a limited measure of how this might impact others. As a new leader, People promoted to leadership positions are
control and relinquish a hands-on role ends up be open and honest with colleagues – work out often recognised because of their technical
being millstone around the neck of a growing together how to manage this new situation. It’s rather than leadership capabilities. But leader-
company. a big shift and relationships can take on a dif- ship skills can be learned, so asking for help is
ferent significance, so start by taking the time to key. Support can be in the form of a mentor who
Letting go
have an open and honest conversation with is a current colleague, an experienced friend or
Key to ensuring an effective transition in any each of the key individuals. contact from elsewhere, or a process which in-
of these situations is a mixture of thorough The challenge for the ‘owner-turned-leader’ volves professional development and coaching.
preparation, self-awareness and ongoing sup- is to trust the people they are giving more re- The choice will very much depend on individual
port. sponsibility to. This kind of self management circumstances.
Being a leader is not just about “doing” – it’s means moving from being the ‘doer’ and know- Both individual and team coaching can help
about being. It is critical that a leader is aware ing everything which is going on in the organi- everyone adapt to new circumstances. Often,
of his or her own emotions, reactions and im- sation, to working on the vision and strategy the fresh view and expertise that a third party
pact on others in order to self-manage and de- rather than the detail. In practical terms start can bring can help people not just deal with the
velop. slowly by assessing the areas of greatest gain day-to-day difficulties of leadership, but allow
Though it’s vital to use the expertise of those for the business but lower risk. them the breathing space to develop new skills
colleagues, resist the temptation to try and un- Look for the people in your team who have to make sureeverything works out over the
derstand absolutely everything from day one. competency in those key areas area or who can longer term.
Those coming in as a leader from the outside will be quickly and cost-effectively trained. Be hon- What these options all have in common is a
benefit from being genuinely curious about their est in designing your relationship with them, so practical approach to leadership Typically up to
new colleagues – asking plenty of open ques- as you hand over work they know what you ex- the first 100 days of new leadership set the tone
tions without assuming to know what the an- pect from them. Get as much training as you for for the future and often determine the success
swers will be. your own benefit to improve areas such as com- or failure of the whole project, team or even
Leaders also need to be aware of how they munication. company, so it’s vital to work out how support is
communicate themselves and how they are per- Being open to support is key too. Even if going to be delivered as soon as possible.
ceived. Asking for regular and specific feedback, your business is so small that you don’t think its For further information visit
either in person or in the form of a 360 feedback worth having a Board, set up an advisory com- www.leadershipandteamcoaching.com

Business Matters issue 173 • 39

BM173_40:Layout 1 16/06/2009 01:25 Page 1

Advice

You know you need a

business coach when...
You’re facing
a transition

Carmelina Lawton Smith is a Senior Lecturer & consultant with Oxford Brookes University
Business School and an Independent Executive Coach & development specialist
Gordon Brown reputedly waited many years sponsibilities, a broader strategic focus and skills will prove invaluable to achieving results.
to step into the top job, yet when he even- the need to consider every uttered word that Only then can the leader begin to shape the
tually did he made the mistake that so many may be unpicked and analysed for hidden new role and appreciate which tasks they
other leaders have made before him. Gor- meaning. Exhausting as it may seem, every de- should take on, and which should be dele-
don forgot to leave his old job behind. cision, every smile and every handshake must gated to better suited or more charismatic lieu-
It is no accident that the only major success be considered. The water-coolers and corri- tenants.
of Gordon Brown’s premiership so far has been dors of offices can spurn discussions just as Ultimately coaching is about taking action.
on the world financial stage. This is a world in toxic as those in the corridors of power. Priorities and awareness can only yield results
which he feels at home and so can use his if acted on. A coach can provide the support
Define priorities
strengths and experience to full effect. He has needed by leaders to define appropriate strate-
had somewhat less success however on the It is in this transition that an Executive gies to move forward. As sounding board or
media stage, promoting himself and his gov- Coach can prove invaluable. A coach can help confidante the coach provides a unique think-
ernment. So many leaders move into a new the new leader define the priorities of the new ing space which frees the mind from the
role and fail to assess and define the priorities job and to distinguish between ‘what I like shackles of fear and indecision. Helping to
of the new job, trying instead to use the skills doing, and what I should be doing’. By chal- build concrete action plans to enable the
of old that have served them so well on the up- lenging the rationale, the coach can bring a leader to travel to the edges of their comfort
ward climb. unique honesty to task prioritisation, helping to zone but not beyond their realm of compe-
It is this transition that can prove to be the clarify the needs of the new role in the broader tence.
undoing of many a talented star who has risen organisational context. As a neutral party the
through the ranks delivering targets and coach can also help raise awareness of the To contact Carmelina Lawton Smith:
achieving goals. The move into a more senior strengths and weaknesses that the leader [email protected]
leadership role often brings with it new re- brings to the role. An authentic appraisal of

40 • issue 173 Business Matters

 D
FFR
ODG
HV

W
KW 
S W
ZZZ V
KLV
L\ V
RXU F
KRSRP

H
YHU
\W
KL
QJ
\RX
QH
HG
I
RU
M
XVW
7U
\
RXW

RXU

IU
HH
RQO
L
QH
GHPR
DW



ZZZ
HNPSRZHU
VKRS
FR
XN
…
BM173_Cost heathcheck:Layout 1 16/06/2009 01:29 Page 1

Advice

Give your business a

‘cost healthcheck’

A
recent study by the Chartered Insti- cost control. Develop a culture where every- about saving money, even on the smallest
tute of Personnel & Development body within the organisation is responsible for items. Don’t book the most expensive flights
concluded that making job cuts challenging costs, from the receptionist book- and hotels when you are asking your own
should be the last resort in the current eco- ing a courier to senior management reviewing management teams to take the budget option
nomic downturn, after revealing that the cost their nationwide logistics provision. in both cases.
of laying off an employee could be more than Celebrate cost reductions as you do busi- As a business leader you will need to open
£16,000. ness wins. Even create an internal awards your organisation to scrutiny and examine
Against this another study revealed that scheme for cost reductions made by employ- every cost.
69% of Financial Directors feel under pressure ees.
from board colleagues to find more ways to cut Make staff aware that savings go straight on Be marketwise
costs. With Britain now officially in recession, the bottom line. Also use powerful and simple
how does a business keep costs in check to monetary examples to educate your workforce It is critical that you are aware of the constantly
maintain a healthy bottom line without neces- regarding the quick and significant impact that changing supplier market for the costs you are
sarily making redundancies? Robert Allison, cost savings can have on profitability. For ex- examining and any developments that you
Managing Director of Expense Reduction An- ample, based on a typical 8% profit margin, for may be able to capitalise on. For example the
alysts, the world’s largest cost reduction con- £50,000 of savings a company would have to fact that energy prices are currently going
sultancy, believes that organisations can make increase sales by £625,000 to have the same down and paper costs are on the up. Establish
savings in the region of 20% on average positive impact on the bottom line. a supplier market intelligence system and up-
through putting the spotlight on a range of It is critical to start caring about cost man- date that system at regular intervals.
non-core operating costs. agement before the situation becomes critical To have any chance of negotiating
Here Allison provides 10 top tips to trim and hasty decisions have to be made. Also get favourable arrangements with suppliers, you
business expenditure: your suppliers involved during the implemen- must have knowledge of the prevailing market
tation of the cost reduction programme. prices and practices. Do not rely on your
Create a cost supplier for this information.

conscious culture Lead by example Also don’t waste time and energy on looking
at individual item costs from different suppli-
The economic boom over the last ten years Business leaders need to set an example by ers. By enhancing your knowledge of the
may have affected your employees’ focus on demonstrating to employees that they care supplier market place you will increase your

42 • issue 173 Business Matters

BM173_Cost heathcheck:Layout 1 16/06/2009 01:29 Page 2

Advice

confidence of using one supplier for a number

of items and gaining from a ‘basket’ cost rate.

Don’t purchase things you

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

Establish your costs

You may believe your costs are under control
but your perceived ‘well kept ship’ may not be
as leak proof as you thought. Forensically ex-
amine and benchmark your costs line by line.
It is often our experience that this is where the
barrier to making cost improvements lies as
Jettisoning suppliers should
this demands significant resource. Therefore it prices cannot be beaten” – remember it is a
could reap significant dividends to look at buyers market and you will be amazed how
be the last consideration
using outside agencies, consultants and many suppliers will back down to retain the Reducing costs is not just about going to a
benchmarking services to establish your costs business. cheaper supplier. Indeed good relationships in
by getting comparisons against competitors As highlighted above do your research and any line of business are fundamental and the
and other suppliers. comparison-shopping before approaching one with your supplier is no exception. By
In doing so you will highlight areas that have suppliers so that you are able to negotiate from following the tips above and working in
the most potential for improvement and will a position of strength. During negotiations pre- partnership with your suppliers to identify cost
help you set cost saving priorities. sent the value of your business to the supplier. cutting strategies you can in the majority of
cases generate savings without affecting or
Keep the green Establish key supplier disrupting standards of service through

light flashing performance changing suppliers.

Instil a sense of urgency and create a culture of In addition to reviewing prices look at Create a long-term cost-
cost consciousness where employees act im- establishing key performance indicators, which
management programme
mediately to reduce costs and maximise prof- are appropriate for your business. Set them
itability. If it does not remain high on the higher than required and this will add to the Potential savings are great, but they don’t
boardroom agenda, employees will see the di- cost base. Conversely set them too low and mean anything unless they are realised. After
rectors’ crusades as ‘the flavour of the month’ this could affect the quality of your service to implementing a culture of cost consciousness,
and the drive to cut costs will fall to the bot- your clients and business relationships in the appoint cost champions to drive the
tom of everyone’s in tray. longer term. programme forward. Constantly monitor the
Make sure you obtain management situation to ensure staff are not slipping into
Let suppliers know about information from suppliers relating to any cost old habits; suppliers are charging correct

your cost review increases/decreases, otherwise these could be prices; and that service standards match the
easily be hidden, and therefore missed, in an agreed specification. Also remember to
Rarely will a supplier volunteer a price review. invoice incorporating a large number of frequently review each business cost category
Let your suppliers know that you are under- supplied items. This both helps avoid over- whether it be logistics, property, banking,
taking a review of all overhead costs. Also charging and ensures a transparent relation- telecommunications, property costs and many
refuse to accept price increases during these ship with the supplier. Finally constantly more.
challenging times as well as suppliers’ state- monitor the performance levels and adherence By following these ten steps you should be
ments that ‘our prices are higher because we to the contract. able to guarantee return on your cost
provide superior quality and service’ or “our reduction programme.

Business Matters issue 173 • 43

BM173_FPB:Layout 1 16/06/2009 01:30 Page 1

Forum of Private Business

Growing by
multiplying

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

M
ost people associate franchising with because at times like these businesses up and Five tips to help business owners decide if
large brands, but it can also be an ef- down the UK need to know all the options that franchising is the future are:
fective way for some smaller busi- are available to them," said Mr Urwin. Is there a product or service that the mar-
nesses, struggling to raise finance in order to "The FPB holds a lot of sway with business ket needs and wants in the long-term?
expand in the present economic climate, to owners and it's one of the ways our industry There is no point in trying to franchise some-
grow at minimal cost. The Forum of Private can clarify a lot of the misconceptions about thing that no one will want, so if a business is
Business is campaigning to raise awareness of franchising and offer the right information and in an industry that is struggling, it is unwise to
franchising as a way forward for many viable advice to businesses, as a significant propor- franchise.
businesses. tion of them could use franchising as a route Has a proven business system been estab-
"There is no doubt that businesses in cer- to expansion, even in the current economic cli- lished demonstrating practical success?
tain sectors are being hit hardest by recession mate." Franchising an idea is impossible – any poten-
and restrictions in the availability of credit," Essentially, franchising can be described as tial franchisee will want to see that it works in
said Nick Palin, the FPB's Director of Finance. a 'business marriage' between the franchisor the real world. The best franchisors use their
"However, others are still capable of expand- (the small business wanting to expand their own business as a model or develop a pilot
ing because they are in less susceptible mar- brand) and the franchisee (who wants to take product to make sure they get the process
kets. It's our responsibility to tell them about on the license). right before they launch a franchise operation.
all of the options that are available to take their In effect, it allows for a business to be Is the business profitable?
businesses forward." ‘cloned’. Budding entrepreneurs bear the brunt People who buy franchises invest thousands
The FPB has launched an awareness cam- of the costs for the privilege of opening and of pounds and are looking for a return on that
paign to spread the word, following its part- operating new locations of the established investment. They are unlikely to settle for re-
nership with Franchise Development Services business, paying the franchisor an initial fee, as turns they could earn by working full-time in a
(FDS), which has six offices throughout the UK well as ongoing management service fees, in salaried post.
including one in Altrincham, Cheshire, run by return for the training, manuals, and a launch Is the brand suited to national expansion?
Tony Urwin. package to help get them started. The brand must be strong and exclusive. It is
Mr Urwin had been instrumental in develop- Franchising can be a win-win proposition for important to first invest in brand development
ing awareness of franchising, including an un- both parties. Franchisees enjoy the opportu- in order to create something which people will
derstanding of the size and scale of the nity to own and operate a proven business and want to buy into.
industry and how franchises operate. The part- enjoy training, support and other benefits that Is there commitment to franchising as a
nership has enabled the FPB to put together are often not available to other entrepreneurs. separate business which will demand con-
comprehensive information about franchising. While is not a process suitable for every stant support and development?
This is now being made available to through business, for those that have proven to be Franchising isn't a ‘get rich quick’ option. The
the FPB’s website, www.fpb.org, and to mem- workable and profitable with sound medium to franchise network will need ongoing support,
bers via its weekly eNewsletter. long term prospects, franchising can mean the investment and may demand a completely dif-
"The FPB's campaign to provide more in- beginnings of a nationwide network. ferent set of skills. It is essential to make the
formation to its members is to be applauded commitment before you start the process.

44 • issue 173 Business Matters

AM_26:Layout 1 24/03/2009 23:57 Page 26
BM173_Andy Preston:Layout 1 16/06/2009 01:33 Page 1

Hitting the phone

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

W
henever I’m talking to business sions’, with no interruptions. That means no the calls – so is it any wonder that cold calling
owners or their sales teams, the emails, no incoming phone calls, no interrup- isn’t working for you at the moment?!!
topic of new business development tions from colleagues, no going to get a drink
and cold calling in particular always evokes etc – do all of that before the session starts.
Inability To Deal With
interesting reactions. And if the session is meant to start at 10.00,
Cold calling is one of those topics that ev- then the first phone call should be at 10.00 - Rejection
eryone has an opinion on – even those that not 10.05, 10.10, or 10.20!
don’t do it! And the salespeople and business This is always an interesting subject. This can
owners that do it normally fall into one of the
camps – love it, loathe it, or tolerate it!
Lack Of Belief affect anyone, particularly if you’re new to
sales, new to cold calling, or only do it as part
However, no matter which of those camps A number of business owners and salespeople of your role. For example, if your role consists
you or your team fall into, most people don’t I meet still aren’t convinced that cold calling of mainly account management, if your boss
get the results that they want from cold calling, actually works, or could work for them and has just told you that you need to start making
so below are some reasons why that is the their company. And those people are usually cold calls, or you’ve started up your own busi-
case, and also some ideas on what to do about the ones who have tried it (or are currently ness and need to start cold calling, then this
it! doing it) and aren’t getting the results that they could be affecting you right now!
So why isn’t your cold calling working as could, or they haven’t tried it but have already Let’s face it - if you’re cold calling you’re
well as it could be?..... decided that it won’t work! going to face some rejection. Some of you will
I always find it interesting when I talk to peo- have to deal with the fact that people will give

Lack Of Preparation ple who have this belief as they often say that
‘cold calling just won’t work in my industry’.
you objections. Some of you will have to deal
with the fact that people will say ‘no’ directly
If this is you, you’re not alone! Most people fail Then, when I ask them what they do, they are to you. And some of you will have to deal with
to prepare for their cold calling sessions prop- in the same industry as someone that I have the fact that people will put the phone down on
erly. You’d be astounded how many times I trained that is getting great results from cold you fairly regularly.
see people ‘start’ a cold calling session by calling! Perhaps what the people with the neg- When you’re cold calling, the majority of
looking for their list of people to call, trying to ative beliefs really mean is – I’m not sure of the people you speak to are going to be hesitant,
find their diary, finishing off an email, taking a right approach that would make it work for resistant and say no to you at some level. The
call from an existing client, tidying their desk, me? point is, you’re not expecting to get a ‘yes’ on
going to get a drink or have a quick Whatever the reason, if you or your team is every call. You’re expecting that 90%, 95%
cigarette…pretty much anything but start mak- making cold calls with the belief that cold call- sometimes even 97.5% of people are going to
ing the calls! ing doesn’t work, do you think that might stand say no. The reason you’re calling is to get the
Often, this means that the calling session in the way of the potential success of your calls smaller percentage of people that are going to
that was due to start at 10.00 now really starts a little? Of course it will! say yes to you – yes I’ll consider you, yes I’ll
at about 10.40. Then, by the time the sales- In my experience of making and listening to meet with you, yes I’ll look at buying from you.
person has made a few calls, the session is tens of thousands of cold calls in all sorts of in- However if you can’t deal with (or learn to
over! The salesperson might have achieved dustries, if you start with that sort of belief, your deal with) the rejection that you’re going to
their objective of ‘avoiding’ the session, but activity levels will be lower, your voice tone will face, do you think that might stop you making
has the session really contributed to the suc- be monotone and boring (instead of bright and the calls, or do your best to avoid it? Of course
cess of the business? Hardly! enthusiastic), you’ll accept the first objection it will!
Cold calling is best done in focussed ‘ses- too easily and you’ll do anything to avoid doing
BM173_Andy Preston:Layout 1 16/06/2009 01:34 Page 2

Advice

Failure To Stay Motivated

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

Andy Preston is a leading expert on Sales and selling for

small businesses. You can see more about Andy at
www.andy-preston.com You can also see more about
Andy’s bite-sized training for small businesses at
www.salesbreakfast.net

Business Matters issue 173 • 47

 D
FFR
ODG
HV

W
KW 
S W
ZZZ V
KLV
L\ V
RXU F
KRSRP

H
YHU
\W
KL
QJ
\RX
QH
HG
I
RU
M
XVW
7U
\
RXW

RXU

IU
HH
RQO
L
QH
GHPR
DW



ZZZ
HNPSRZHU
VKRS
FR
XN
…
BM173_Grant Leboff:Layout 1 16/06/2009 01:35 Page 1

Advice

Guaranteeing your
reputation

I
n this digital age it is easier for us to dis- ning the customer’s heart and mind is all about tion; “What story will they tell if I send them the
seminate and obtain information than ever how they perceive you. standard calendar or diary branded with our
before. The Web means we have informa- Let me give you an example: There is a story company logo? There is a good chance they
tion constantly at our fingertips. Meanwhile we of an airline that launched a brand new long won’t tell any story at all. Therefore, what value
are communicating with each other all the time distance route. On their maiden voyage the have you obtained? The answer is none.
via email, mobiles and text messaging.” Word plane was stuck on the runway for fourteen
of Mouth” has always been powerful, yet as hours. At that point what story would the cus- So think of the story.
the opportunities to voice our opinions in- tomers tell? They would probably tell their Find out what they like during the course of
crease, its importance is growing rapidly. friends and colleagues of a hellish journey that working together. Then, for example, if you
Reputation, therefore, is more essential for would infer that they would never fly that air- know they like milk chocolate, send them a box
companies than it ever has been. It doesn’t line again. with a note. The impact will be huge and the
matter whether you are a global enterprise or a The next day, however, the owner of that air- story they will tell will be very positive.
small local outfit. Retaining customers, keep- line called every passenger personally to apol- Managing customers does not have to be
ing them happy and, therefore, ensuring you ogize and offer them a discount on a future difficult. Always think about the story they will
have a good reputation is not easy. flight. The story was managed brilliantly. be repeating to their friends and colleagues. If
There are a many myths spoken about man- You see, the story was now about receiving you think it may be negative, think about how
aging customers. There is, however, a simple a personal call from such a well known and you can turn that around.
and effective way for ensuring you are always busy person and the delay became incidental. You don’t have to spend a lot of money but
mindful of your reputation. In any situation, ask Instead of the airline being criticised for a poor you do have to give it a lot of thought. Having
yourself one question, service, the story was all about their excellent customers talking about you in a positive light
customer service and how much they care. and ensuring you have a good reputation in
“What story will my customer tell?” If you want to ensure you manage your cus- today’s market place is invaluable. Quite sim-
tomers successfully; you need to be constantly ply, you cannot afford not to.
It is this question that enables you to decide thinking about the story they are likely to tell.
how to handle any situation effectively. The Just sending them a thank you note when they Grant Leboff is Principal of The Intelligent Sales
story the customer will tell is how you are per- decide to use you, will mean they will be telling Club working with companies on effective sales
ceived by them and, therefore, how you will be a good story. How many companies do that and marketing strategies and lead generation;
perceived by others. It is this perception that is and yet it is so simple? creating a steady stream of sales opportunities
all that matters. During the time they are engaged with you, for businesses. For more information visit
The customer’s perception is their reality. ask the same question. For example, If you are www.intelligentsalesclub.com or call:
Whether it is right or wrong is irrelevant. Win- going to send a Christmas gift, ask the ques- 0844 478 0044.

Business Matters issue 173 • 49

BM173_50_51_52:Layout 1 16/06/2009 09:57 Page 1

Going it alone

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

A t the end of the ‘90’s the air was thick

with revolution. Offices, newspapers
and gastropubs across the land were
going freelance include being your own boss,
making more money, having freedom and
variety and striking the work/life balance.
understand where you fit in that marketplace,
how many freelancers already work in your
area, who’s the competition, how much do
alive with rumours that the end of the work- The pitfalls include less security, they charge? You can then position yourself
place as we knew it was nigh. With just a uncertainty, hassle in running your own accordingly and decide what you can offer in
mobile phone and a laptop, people could work business with forms and legislation, working terms of price, customer service and terms of
from anywhere, anytime. For some, tomorrow’s on your own and being 100% accountable. business.
working world was a freelancer’s haven. To One thing that is certain is that as a Stephen Sharp has been self-employed for
others, it was all hype. freelancer you will be faced with some new 16 years. After ten years working for BAe
Whichever way you look at it, the UK’s challenges. Having set up and chosen the Military Aircraft as an engineer, Stephen
freelance community is growing and it right structure that works for you - you will wanted to expand his experience. He has
includes some of the country’s most hopefully have your accounting, banking and certainly achieved that and his work has
experienced and talented workers who make insurance issues as well as tax matters in taken him all over the world. Stephen is keen
up a highly skilled, highly mobile and flexible place - you can focus on your core business, to stress that Rome wasn’t built in a day and
21st century workforce. securing the work and handling clients. perseverance, enthusiasm and a positive
outlook is key if you want to be successful,
Your own boss Devising a plan even when things are not going to plan.
Marketing yourself is important. As you
Some of the common reasons cited for You need to research your market – move from role to role, your portfolio will

50 • issue 173 Business Matters

BM173_50_51_52:Layout 1 16/06/2009 09:58 Page 2

Gong it alone

probably be hired as an employee on a fixed

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

‘As a freelancer, you will

quickly come to realise that
cash flow is extremely
important.’
Most freelance consultants use time as the
basis for determining fees, because it can
flex according to the variations in the scope
and delivery of a project. The time is usually
sold on a daily rate, weekly rate or an hourly
rate. Most common is a day rate and prepare
to set it according to the market rate.
Some freelancers choose to charge a fixed
price to complete a specific project. This
option is arguably only viable if you have
control over the scope of the project and the
become your strongest selling tool. It can discuss how you will work with the client. It process involved. Without control, you could
demonstrate your successes and highlight is important that time is taken to review and run the risk of undercharging and short-
your experience and expertise, giving your provide feedback on the project itself which changing yourself as the brief often changes
prospective clients confidence in your work. presents a good opportunity to build the and the business environment shifts.
Look on yourself as a product that is client-consultant relationship. This can be As a freelancer, you will quickly come to
continually developing and evolving. You done at any stage of the assignment and realise that cash flow is extremely important.
may want to invest in some PR, advertising or helps to prevent any misunderstandings. Every year businesses become insolvent
a website, all sound marketing because of cash flow problems. One of the
communications tools which, if executed Contracts best ways to improve cash flow is to get
properly, should bring rewards in the form of clients to pay their bills more quickly. Some
new business. The importance of contracts is an essential tactics to adopt include – don’t assume you
Stephen believes that preparation is part of every freelancer’s toolkit and should have to offer 30 day payment terms, try 14
crucial: “It is worth honing your presentation not be underestimated. Not only do they days; you could offer early discount settling,
skills and identifying your unique selling outline the expectations of both parties, but send out invoices promptly with clear and
points so that you can convince potential they also provide a legal framework within detailed information so that the client has no
clients that they really do need your services. which these will be achieved, and a back up reason to query the invoice and delay
You need to differentiate yourself by should legal intervention be required. payment. Chase payment tenaciously.
demonstrating a good track record, solid Contracts provide a formal definition of the
experience and impressive references that business relationship between the freelancer Facing the Competition
show where you have added real value to a and agency or direct client.
project.” You need to agree with your client whether Consultants can sometimes find
Managing good client relations are vital you are being taken on as a temporary themselves in a difficult situation – when their
and building an open and honest relationship employee or a contractor. If your client will expertise wants to be used by two
with the client is the foundation of any control you closely, guarantee to pay you companies competing in the same
assignment. It is important to show that you whether or not there is work to do and not marketplace. Richard Robson believes the
understand the assignment’s objectives, allow you to send a substitute if you are ill or issue is an ethical one. As director of Project
needs, challenges and constraints and unable to come in to work, then you will be Pilots and a former director of PCG, he

Business Matters issue 173 • 51

BM173_50_51_52:Layout 1 16/06/2009 09:58 Page 3

Going it alone

played an important role in designing PCG

(QS), a UKAS-approved ISO9001
certification tailor-made for small businesses.
He would advise any consultant to get their
contract reviewed by a professional so that it
doesn’t restrain you from trading with others.
If the contract is not explicit it is not
contractually binding and a consultant is free
to work for any client.
If client A is not happy, then he may
terminate your contract. As a matter of
delicate commercial sensitivity, it should be
handled accordingly. A consultant should
weigh up the losses if faced with this
situation – both financially and professionally.
If taking the second contract will cost you
the first, can you afford to damage your
reputation? Under no circumstances should
you start a contract with client B until you’ve
told client A and made a responsible
decision. Don’t be greedy and rush for the
increased rewards. Such a short-sighted
decision could cost you dearly!
Without an explicit contract a consultant
is free to seek further engagements with any
client he chooses but as a matter of
professional ethics, bring it to client A’s
attention – it gives them an opportunity to
convince you not to but it also allows you to
highlight the benefits because you’re
developing your sector skills.
Paul Worrall runs Interition and has been a
freelance IT consultant for sixteen years. He
said: “Interition won a contract to implement
a content management system for an online
mapping company. In the contract they
inserted a clause that prevented us from
working with almost all direct and indirect
competitors for a significant period of time Freelancers are part of a Freelancers are part of a growing trend
after our engagement had finished. We towards “the alternative to the status quo” -
already had a client in the pipeline so we had growing trend towards neither employer nor employee - that is
a conflict of interest. “the alternative to the increasingly being recognised as an
“We brought it to the client’s attention immensely important, contributing sector by
quickly and explained that the exclusivity
status quo” - neither em- major organisations and crucial to the
would mean that they would have to ployer nor employee success of UK plc. Businesses are scaling
compensate us for any loss of opportunity – back on their expensive benefit-heavy
through a combination of higher rates or a or taking the time to break down the clause workforce more and more, recognising the
longer contractual agreement. We were more specifically, they conceded.” benefits of tapping into an alternative and
objective about it and worked with them to Paul believes it is important to give clients knowledgeable workforce when they need to.
identify what they wanted to protect from choices and act as a facilitator. He is keen Those freelancers with the skills and tools to
their competition. We ring fenced the work to point out that whilst you can never run and develop their businesses will find
that fell under the clause and explained to all completely avoid a conflict of interest you themselves in a win win situation.
parties how to handle it. We explained the should have quality management processes
situation to the new client who, whilst they in place that serve to identify potential John Brazier is MD of The Professional
had not considered there may be a conflict problems before they arise. Paul added: Contractors Group (PCG),
of interest, was impressed that we were “The client could have gone to another www.pcg.org.uk, a not-for-profit organi-
taking the initiative. contractor who may have ignored the clause sation that was established in 1999 to
“At first, the client that wanted the in the hope that the issue never arose. provide representation, support, and
exclusivity clause was dogmatic but when Fortunately, we were able to negotiate a advice to freelance consultants. Today,
presented with a choice between extra cost solution.” PCG boasts 15,000 members.

52 • issue 173 Business Matters

BM173_Mac:Layout 1 16/06/2009 01:43 Page 1

Te c h n o l o g y

The Mac alternative

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

24” LED Cinema Display iPod Touch 8GB

Apple’s 24” features new advanced Apples funnest iPod ever! Download
LED technology, for brighter more Games, Apps, Music, Films, TV
accurate images. Connect your Mac Programmes, surf the web, and
to the LED Cinema Display and take much much more with one touch!
advantage of the built-in iSight
camera and charge your MacBook
with integrated Mag-Safe adapter, all
iWork ‘09
in the greenest-display ever. Apples productivity suite is the easiest way to create stunning
documents, spreadsheets and presentations with flair! Introducing brand

Mac OS X 10.5.6 Leopard new features in Pages ’09, improved functionality in Numbers ’09 and
even more beautiful templates in Keynote ’09.
The worlds most advanced Operating System, with 300 new features
like Time Machine, back-up quickly and efficiently, Stacks to keep all
your files organised, Finder and Cover Flow to flip through and preview
MacBook White 2.0GHz
your files and much much more. Enclosed in a durable white-polycarbonate shell, MacBook has some-
thing for everyone. Built-in iSight Camera, mic, speakers, Wi-Fi and a

Wireless Keyboard 13.3” glossy widescreen display all in a compact design to carry with
you anywhere.
Featuring a low-profile, anodised alu-
minium frame that will match any
Mac. Apple Wireless Keyboard con-
24” iMac 2.66GHz
nects via Bluetooth, allowing you With a fast Intel Core 2 Duo processor, up to 4GB of memory and pow-
freedom to move around. erful NVIDIA graphics – all as standard – iMac brings you more perfor-
mance than ever. Not to mention iMac is beautiful, with its anodised

G-Tech G Speed eS aluminium and glass enclosure and stunningly thin design, why choose
between brains and beauty when you can have both?
G-Techs high speed RAID solution, designed for Video Editors can
support up to 6TB of hot-swappable drives. Connect up to four G Speed
eS units to your Mac Desktop for up to 24TB of storage, with access
15.4” MacBook Pro 2.4GHz
speeds up to 600MB/second! The new 15-inch MacBook Pro is thinner, more
powerful and years ahead of its time. The

Final Cut Studio stunning, ultra-thin LED-backlit display gives

you instant full-screen brightness. NVIDIA
Final Cut Studio brings together six post-production suites to work graphics provide even faster
together seamlessly, including Final Cut Pro 6, Motion 3, Soundtrack 3 performance. The all-new,
and DVD Studio pro 4. Allowing you to Move intuitively from editing to smooth glass Multi-Touch trackpad
colour grading to creating motion graphics to sculpting audio to is clickable everywhere, so you have more control and more room for
multi-format encoding to DVD authoring. new gestures.

WIN YOUR OWN iPod Touch

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

Business Matters issue 173 • 53

BM173_54_55:Layout 1 16/06/2009 01:45 Page 1

Advice

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

Freecom Hard Drive XS Gyration Air Mouse

£179 £69.99
www.freecom.com gyration.com

Portable, compact, lightweight

The world’s smallest design with laser precision sensor
3.5” desktop hard drive is perfect for the traveling note-
offering storage capac- book user. The Air Mouse enables
ity of up to 1TB. This you to navigate your desktop and
makes it perfect for take complete control of your con-
both home users and tent from the comfort of your desk
professionals who want
to back up their data or The Air Mouse features in-air control
carry it on the move. with MotionSense technology providing the freedom to unleash
yourself from strain-inducing surfaces.Incorporates 2.4 GHz RF
Designed in collabora- technology without line-of-sight limitations and a range of up to
tion with acclaimed Belgian designer Sylvain Willenz, the sleek 100 feet (30m)
new Hard Drive XS is covered in a form-fitting rubber enclosure
that ensures optimal grip and reduced vibration, combining func- The Gyration Air Mouse is simple to use and easy to install - If
tionality with refinement. The fanless system means the drive is you have a PC (There are no obvious Mac drivers available). Just
almost silent and weighing in at just 860 grams, it is easy to trans- plug in the USB receiver into an available USB port, slide the Air
port and makes sharing data more convenient than ever. In addi- Mouse switch to on, press the connect button on the USB re-
tion, the Turbo USB 2.0 connection offers transfer speeds of up ceiver and Air Mouse, and your computer will automatically de-
to 30 percent faster than competing solutions for downloading or tect and configure the Air Mouse – there are no drivers to
uploading data. manually install. Place the Air Mouse on your desktop for use as
a traditional mouse.
With the explosion of Web 2.0 applications and new media – from
digital photos and ‘home videos’ to downloaded music and TV The mouse features ambidextrous design with right and left but-
programmes, computer users are running out of places to store tons and 3 assignable buttons for customer control of applica-
their data tion commands and if you are a rehular:
Corporate business users
There is very little that you can say about this device apart from Frequent traveling notebook users
it does what it is supposed to, in silence and looks nice. Corporate presenters
Professional lecturers
Trainers and instructors
PROS: Small and the rubberised casing
CONS: THe outer casing can look a bit tatty after a while PROS: Good solid tower PC
CONS: Not a cost-effective process to upgrade the RAM

54 • issue 173 Business Matters

BM173_54_55:Layout 1 16/06/2009 01:45 Page 2

Advice

Apple mac iMac 24” Freecom Media Player II

£1,149 £219.99
apple.com freecom.com

We tested the fastest-available, 2.8GHz The MediaPlayer II holds up

version with the optional 750GB hard to 1TB of data – it can store
disk, which added about another £100 and play back up to 220
to the price tag, bringing the total cost full DVD movies, 200,000
of our configuration to £1,559. For MP3s and 668,000 digital
more on the design, features, and ser- photos* – and is also
vice and support of the fourth-gener- ideal for those who need
ation iMac, check out our in-depth extra storage space on their home net-
review of the 20-inch, 2.4GHz iMac. work, doubling as a fast USB 2.0 external hard
drive. With HDMI video capabilities (up to 1080i), the Medi-
When we tested the 20-inch, 2.4GHz aPlayer II also supports open source format mkv files and includes
iMac, we came away impressed by a BitTorrent client for managing downloads trouble-free.
its application performance, with it For around £320, it's intended for businesses that want to lower their
more than holding its energy costs, or for energy-conscious users who want to be kinder
own against competing to the environment.
Windows-based, main-
stream desktops. The With a fast hard drive, JPEG viewer, and video and music player all-
same can easily be said for in-one, Freecom’s portable MediaPlayer II system is designed to
the 24-inch, 2.8GHz iMac. make data-sharing with friends and family fun and simple. Further-
more, its small size (203 mm x 160 mm x 46 mm), noise-free oper-
With its faster processor, the 24-inch, 2.8GHz iMac is expectedly faster ation and handy remote control make it the perfect addition to any
than the 20-inch, 2.4GHz iMac on all of our application benchmarks - home.
- as well as many similarly priced Windows machines.
By connecting the MediaPlayer II to a PC or network router, users
The test performs simultaneous video and audio encoding, which typ- can simply drag and drop their desired content onto the drive and
ically taxes the resources of most systems. then directly connect to the audio or visual medium of their choice,
making audio and video playback effortless.
Serious multitaskers and some prosumers can definitely gain addi-
tional screen area to support more open applications on the desktop, Furthermore, the Media Player II comes with an optional Wireless
and the modest performance bump can make a difference during LAN (WLAN) adapter, enabling consumers to move their content
longer video or audio renders. Perhaps the ideal user is someone who around easily and to stream movies and music without having to
needs as much processing power as possible from a Mac but can't leave the couch.
justify the much costlier Mac Pro.

PROS: Very stylish,very fast & virus free PROS: Cheap & Better than having to watch video on PC’s
CONS: Will not be 100% compatible CONS: Not that easy to integrate and use painlessly

IRISCard 4
£180
iris.com

So you go to a trade show and collect 300 business cards. Now that
activity really seemed to be great idea when you were doing it, but
now back at the office the rubber band bound piles of business cards
need to be dealt with.

The device is small, fast and very accurate. It has good OCR capa-
bilities which connect directly into Outlook, Word and most leading
PC and Mac software.

There is very little to do apart from feed it your business cards and
then click on the scanned image to tell the sotfware which is the
company name, address, phone number, email etc.
To be in with a chance to win
these & other business gadgets
PROS: Good, fast, quality scanning
CONS: Could struggle with really demanding tasks log-on to: www.bmmagazine.co.uk

Business Matters issue 173 • 55

BM173_40:Layout 1 16/06/2009 01:53 Page 1

Advice

What would you do if your IT system crashed, burned

or got stolen? Get a free professional audit of your IT
disaster plan... if you have one. Call now and quote BM0808
We’ll make your IT work for you...
T 01923 654 900 E [email protected] www.fwcs.co.uk

56 • issue 173 Business Matters

BM173_clouds:Layout 1 16/06/2009 01:54 Page 1

Advice

Will cloud computing

lift your business?

What is cloud computing and what can it do to help

your business cut costs and grow? Dean Miles
helps us as we look to the sky for the future

W
hy do larger companies get the accessing data via a web browser, making maintaining the applications are removed – you
benefits of new software first? them classical cloud applications. And in the simply use the applications, without the need
When productivity-enhancing appli- same way, a major advantage of cloud appli- to dedicate resources and manpower to sup-
cations like CRM, sales management and even cations is that someone else is taking care of port them.
accounting software are introduced, they’re all the awkward, costly parts of business com- Let’s take a look at a case study of an
typically aimed at big organisations with big IT puting – buying and running servers, maintain- established business that’s benefiting from
budgets. ing the software, handling upgrades and so on. using cloud computing applications.
These applications trickle down to smaller With the upfront and ongoing costs of soft- Allgas is a Yorkshire-based specialist
businesses eventually. But even then, costs ware removed in this way, you just pay to use supplier and maintainer of gas and electrical
are still high: the software has to be pur- the applications as you go along – typically a appliances and accessories. Allgas carries a
chased, licensed, maintained and supported. low monthly fee (around £25 per user). And large stock of appliances, accessories and
Hardware often needs to be upgraded. And it you have the ability to add functions and users, spares, totalling some 30,000 items across its
all serves to distract you from running your as you need to. You pay for cloud computing two sites, and is building an e-commerce site
business. services just like you pay for electricity or water to enable customers to order parts online
However, there are new types of software – as you use them. nationally.
application that offer even larger benefits to In particular, stock management was
Clear benefits
smaller organisations than to larger ones. becoming an issue for the growing company.
These are cloud computing applications, which So you access the business applications Managing director Elaine Whylde said: “We
can level the playing field and make powerful you want to use – from accounting, and e- were looking for a cost-effective solution to
business software available to any business – commerce to CRM, stock management and so provide a single, real time view of our central
from a one-person start-up to an organisation on – online in a single ‘dashboard’ display in stock position, both internally to the business
with a turnover of £20m or more. your web browser, with their files and data se- and externally to our customers through our
curely backed up on servers in the cloud. e-commerce web site.
Cloud formations
This has several key advantages, quite apart Allgas chose an application, which gives
How do cloud applications do this? Put from the obvious low costs and avoidance of access to stock information, purchases and
simply, instead of purchasing the software ap- upfront investment in new software. First, transaction records, so stock levels can be
plications you want, and installing them on you’re no longer dependent on one particular managed efficiently. It gives a constantly
your own computers (with all the associated computer to access and work on business updated, real-time view of the company’s
upfront costs), the applications are hosted on data. As long as you have a connection to the current position, and can be accessed securely
secure servers that you access over the Inter- Internet, you can retrieve files and access or from any web-enabled device at any time,
net – that is, in the cloud. You use the appli- manipulate business data anywhere – whether helping with planning and decision-making.
cations, and input or extract data and files, via at your desk, at home, via a WiFi hotspot or 3G Put simply, cloud computing gives a way for
your web browser. on a laptop or web-enabled handheld device. smaller companies to access enterprise-class
This works in the same way as web-based So you can take your business wherever you business software applications, and get the
services such as Hotmail, Google Mail and go. same benefits, without the enterprise price-tag
Amazon. These are all methods of storing and Second, the headaches of managing and or maintenance costs.

Business Matters issue 173 • 57

BM173_insured:Layout 1 16/06/2009 10:06 Page 1

Legal Advice

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

W
ith over 200,000 SMEs expected to therefore help you avoid any future fines or find you’re not covered. It is however possible
go bust in 2009 those that will costs. with many companies to update your policy
succeed are companies that With the growth of comparison websites, but you must ensure they are notified of any
understand the changing nature of risk and many are tempted to choose the cheapest changes at the earliest possible opportunity.
are willing to adapt. option that ticks the most number of boxes.
Business continuity insurance
As many businesses are trying to reduce However, as a result of insurance providers
costs cutting their cover can often be wanting to appear as high up the list as Another common mistake made by SMEs
tempting. However, without it the possible and so often have to hide costs that is the failure to take out business continuity
consequences could be far reaching and come into play later on. insurance or instead a very cheap package.
potentially devastating for a company’s Many will charge high interest rates on However, before making this decision you
future. monthly direct debit payments or have high must think through the possible
excesses on claims. So before making any consequences of a worst case scenario. If
Consult a professional
purchase decisions ask someone to take you your premises suffered a fire, would you be
While your needs may seem simple and through the details so that you are aware of able to keep trading? How important is
small the most important thing for any small any further costs down the line. another office to you? If your IT failed
business is to take on board professional would you be able to operate elsewhere? Do
Make sure you forecast properly
advice such as a broker. As your business your customers expect you to maintain a
changes so will the needs of your cover and a When deciding on the right package for service at all times? Could you afford to not
good broker will be able to tailor your cover your business it is important to ensure you trade? It would be wise to talk through this
specifically to your needs. More importantly, forecast for your needs over the time it is due issue with your professional advisor and try to
they will also be able to keep you informed of to run. If you take on more staff, increase find a package that offers the right support.
any legislation changes and HR updates, and stock or change your premises then you may

58 • issue 173 Business Matters

BM173_37:Layout 1 16/06/2009 10:41 Page 1

Advice

Business Matters issue 173 • 51

BM173_dining_motoring:Layout 1 16/06/2009 08:38 Page 1

Dining Out

Reviewed: Babington House

half, and some old, incidentally, be accessed from your room
stale sachets of Lip- because the broadband connection is down
ton’s with an invitation until October!).
to call reception for
Atmosphere
fresh milk, which you
do, and then wait while It’s true the restaurant has a Michelin star,
your stale, weak tea but the room is a morgue. The place where
goes cold, and then pelmets go to die. In the gloomy light sit
another half an hour, three dozen of the wealthiest local reptiles,
and then they bring coughing. You are forced to drink a bad
you an ironing board. cocktail (“Sorry, we only have Beefeater”) in
But I’m not talking a terrifying lounge and order from the sofa,
about those. I’m talk- then proceed through to where your fancily
The difference between a good ing about the places where rooms start at stacked mousseline of something is devel-
restaurant and a good hotel is that in a £200/night and head up into the strato- oping the texture of elderly human skin, and
good restaurant you expect to find high sphere. The ones with Michelin-starred the whole place has the carrion whiff of truf-
standards of service and product, restaurants and beautiful photos on their fle oil. At least, you hope it’s truffle oil.
decent value, and then also originality, websites of Palladian architecture and rolling Which is why it is so extraordinary what
flair, wit and sophistication, whereas in a fields, and lakes, and beautiful maids, and a they’ve done at Babington House. I’m just
good hotel you just cling to the dream vast swimming pool. back from my first ever weekend there – it
that it won’t be utterly dismal. celebrates its tenth anniversary this year so
Sleep - pah
I go to hotels quite a lot, overnighting that’s quite speedy journalism from me – and
after an evening function somewherer and, These always turn out to be bang on an I am stunned. Stunned.
honestly, it is so dispiriting. A-road carrying trans-national freight all day This, I now realise, is what I have been
It goes without saying that provincial city- and night, above whose rumble you strug- looking for. This is why I kept on trying. And
centre chain hotels (called things like Cheap- gle to make your complaints about the whin- this is where I will now always go. Always.
Sleep and Bog’n’Bed), and those slightly ing, not-cold fridge and armpit-smelling I booked late, on a whim, and they had
cheaper versions of them that cluster on pillows heard, and in the presence of which only one room left, a small one, they said,
ring-road roundabouts (called CheapSleep- sleep is no more than a tasteless joke. and apologised for its size. It was under the
Quick and Bog’n’Bed-Budget) are too de- They always appear to have only three eaves in the lovely big Georgian house itself
pressing even to commit suicide in (“A staff (two mute Slavs and a hunchbacked, (a miracle!) and there was a little bit of stoop-
doorknob strong enough to hang yourself drooling thing that was no doubt drummed ing to do at times, but there was a huge,
from? That’ll be a £10 supplement, I’m out of its village with broom handles and soft, white bed and dinky attic windows and
afraid”). saucepans when one too many cats went loads of light and a big flat-screen TV, and
A couple of steps up from there you ar- missing in the dead of night), so that if some- then a sitting room with another telly, and a
rive at those ones with a restaurant-of-sorts one is checking in a new arrival at the front big, freestanding iron bath, and the best rain
(open from 7pm till 8pm), where regional desk there will be nobody to man the bar on shower ever, and free mineral water (free, do
sales managers can eat a £17 fish cake the other side of the house, and you have to you hear me, free!) and views out over the
made of pipe-lagging and pilchard with two prowl the corridors looking for someone to rolling lawns, which actually roll out from the
pints of warm lager, and then retire to a mix you a bad gin and tonic, poking your actual house, down to an actual lake. Would
polyester cubicle for feats of lonely onanism head into empty kitchens and terrifying, i go again, arguably, yes. Would it be my
with husband-of-the-Home-Secretary-level “staff only” store cupboards in the search for second or third choice, quite possibly, which
cable pornography for £6/hour. life. is a shame.
And then, if you start paying £100 a night The Palladian architecture turns out to
or more, you might get a restaurant which typify only the small main hotel, with four Location: Near Frome, Somerset
carries the name of a chef you’ve seen on lovely rooms available to honeymooners Tel: (01373 812266)
telly but is equally awful, a gym containing who book three years in advance, but not Hotel: 10
one broken exercise bike and a yoga mat the vast, freezing, 100-room annexe they’ve Restaurant: 9
with a terrifying sticky patch in the middle, put you in. The rolling fields and lake are an Score: 9
and one or two staff who don’t have visible hour’s drive away, the swimming pool is only Price: the food is reasonable, the rooms are
boils. There’s a weeny kettle all clogged with eight feet long and is closed for mainte- very expensive. The smallest room and a
limescale in a drawer, which can just about nance, and the maids turn out to be down- sausage roll, will set you back £304.
make enough hot water to fill a cup and a loaded stills from Youporn (which cannot,

60 • issue 173 Business Matters

BM173_dining_motoring:Layout 1 16/06/2009 08:38 Page 2

Motoring

Under the bonnet:

BMW X6

What do you get when you cross a coupé

with a 4X4? An X6 ‘Sports Activity
Coupé’. The rarity of this BMW suggests,
however, this untimely crossbreed is the
Does it make financial sense?
answer to a question nobody wanted to The range extends from a 235bhp 3-litre turbo-diesel at £42,355 to a
ask, says Dave Sumner Smith 299bhp 4.4-litre petrol at £53,770. From October you can even opt for
a 555bhp twin-turbo V8 X6 M. Leasing costs around £750 pcm for the
How comfortable is it? most basic models, with rates that are 5-10% higher than an X5.
The interior is similar to the smaller and more familiar X5 but with one big
What else should I consider?
difference. BMW has given it 4 seats rather than 5 to provide a more
coupé-like feel. The seats are big and comfortable, with plenty of If you want a BMW, then a 5-series estate makes more sense. It it’s got
legroom too, but the sloping roofline restricts rear headroom for the to be an SUV, then go for the X5. If you want to stay German, then a top
tallest adults. model Audi A6 Avant is a more practical alternative, while a Mercedes
CLS four-door coupé is more stylish. The Jaguar XF saloon is tempting,
What is it like to drive?
too, as is the facelifted Range Rover Sport.
The low centre of gravity combines well with BMW’s xDrive technology
Any toys and gadgets?
which distributes the power between the axles according to traction
available. There is plenty of power on tap too, with even the 3.5-litre Lots of goodies are standard, and right at the moment BMW is offering
diesel powering from 0-60mph in 6.9 seconds. The X6 is better to drive a complimentary Dynamic and Media package upgrade including sat-
than other premium SUVs, but several more conventional vehicles at nav, sports seats, 19” alloys, electric, memory seats and Bluetooth
similar price levels leave it trailing. phone connection. This could have something to do with less than buoy-
ant X6 sales.
Will it impress?
What does it say about me?
The X6 is big, fast, expensive and wears BMW badging. That used to im-
press, but no longer. SUVs have lost many fans, high performance is On the plus side, it emphasises a drive for high performance, wealth and
coming under increasing fire and brash ‘loadsamoney motors’ are out of a willingness to stand out from the crowd. At the same time, it suggests
tune with a punch-drunk economy. So a boldly styled performance SUV a rather impractical, attention-seeking tendency – and a blinkered loy-
will only impress the most gauche. alty to the BMW brand exceeding the boundaries of common sense.

Business Matters issue 173 • 61

AM_24_25:Layout 1 16/06/2009 10:27 Page 24

It’s not all doom &

Keeping organised
The Aspinal luxury leather desk set is handmade in a a range
of beautiful vegetable dyed leathers and each piece simply
oozes quality and handmade luxury from a bygone era. The
bases are all hand crafted in fruit wood and then over bound
and finished in sumptuous Mock Croc or English Bridle calf
leather to an exceptional hand finished standard. pencil and
pen pot.

Aspinal of London £495

www.aspinaloflondon.com

Hand made carriage Passport Holder

Today's global professional needs accessories that can take
Handmade by Master them anywhere at a moments notice. The Densworth
Craftsmen and meticu- passport case, in sturdy saddle-stitched calf leather, is hard
lously crafted from solid wearing and style-savvy for today's modern professional on
wood, then hand bound in the move. The fresh pumkin colour cover, is classic in looks
the most beautiful Black and functional in design for when organisation, safety and se-
English Bridle Leather. curity is your highest priority and style is unquestionable.

Links of London £50

Aspinal of www.linksoflondon.co.uk
London
£750

www.aspinaloslondon.com

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

Bureau hole punch £91

www.dalvey.com

62 • issue 173 Business Matters

AM_24_25:Layout 1 16/06/2009 10:28 Page 25

gloom, so...
Ultimate grooming
Luxurious gift for a special man. This
is the ultimate shaving set.
Bags of style
From the Diffussion Range of Edwin
Jagger, we bring a Classic Horn shav- The Grosvenor satchel brings
ing set, pair it with a rich scented creative design and effortless style
sandlewood shaving soap to the season. The perfect accessory
for a rich lather and com- to compliment the smart preppy
plete the set with DR Har- look, this spacious bag is part of
ris lightly scented the London Collection, Radley's
Aftershave Milk. premium collection of uniquely
Edwin Jagger £198 designed bags and unmatched
www.kuati.com quality and is owned by Lily Cole,
Erin O'Connor and Anna Friel.

Radleys £300
www.radleys.co.uk

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

Traveller Clock
Stylish in design, the Greenwich Alarm Clock is an ideal travel-
ling companion for all those short and long-haul trips.
This portable alarm clock is perfect for your office desk or for
travel. Easy to read and complete with alarm, this clock puts
time on your side. Ideal as a gift for the busy professional.
Links of London £110 Maxwell Scott £315
www.linksoflondon.co.uk www.maxwellscottbags.com

Reflect upon a reflection

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

Hydro Healing £45

www.hydrohealing.com

Business Matters issue 173 • 63

BM157_64_65:Layout 1 27/1/08 23:45 Page 1
BM173_64_65:Layout 1 16/06/2009 01:59 Page 1

B
B oo oo kk ss

The business
book shelf
In
TheforWriting
a pennyon the Wall
Plain
In Thespeaking
Writing on has
thenever
Wall,
held
Will Peter
Hutton Hargreaves
traces the back.
his-
In this candid
toric and outspo-
development of
Seduced
Seduced by
by Success
Success ken book,economy
China’s the multi-million-
from the
aire founder
Imperial of investment
Dynasties to the
Bill
Bill Gates
Gatesonceoncesaid,
said,“Suc-
“Suc- company
current “socialist Hargreaves
market”
cess
cess is aalousy
lousyteacher.
teacher.It se-
It Lansdown
economy. The tellsquestion
the story of
seduces
duces smartsmart people
people into into behind
whetheritsChina extraordinary
can be-
thinking
thinking they
they can’t
can’t lose”.
lose”. success
come a greatand giveseconomic his
Successful
Successful individuals
individualsand and forthright views ondemoc-
power without what it
organizations
organizationsoften
oftenfeel
feelthat
that takes to begenuine
racy and successful as
capitalism is
they
they are
are entitled
entitled to
to contin-
contin- an entrepreneur
examined. Hutton andalso
as an investor.whether
ponders Startingthe from his
West,
ual
ual success
success in the future. spare bedroom
particularly the with
U.S.,awill
single phone
be wise and borrowed
enough to continue office
its
As
As aa result, they risk be- be- equipment, Peter and
free market policies withhis business partner Stephen
China.
coming
coming complacent,
complacent, com- com- Lansdown
China can set out to build
dominate a business
the twenty that would
first century if itcon-
em-
fortable,
fortable, and and mediocre.
mediocre. sciously
braces the beeconomic
different from that of all
and political their competitors.
pluralism of the West.
Instead,
Instead, they
they should continue
con- searching for fresh ap- They have heldisfast
This pluralism to their
defined unconventional
to include the rule ofways ever
law, inde-
tinue searching
proaches for fresh
to improve approaches
products to improve
and services, and prod-
focus since,
pendent regularly turning the acompanyâ
legal institutions, free press,TMs strategy and
independent sci-
ucts and services,
on staying lean and and focus on staying lean and agile.
agile. business model upside
entific research, down in theirgovernment.
and representative relentless effort to
China
In
In Seduced
Seduced by by Success,
Success, authorauthor Robert
Robert J.J. Herbold
Herbold give their clients
currently the best
lacks these information,
ideals the best prices
and institutions, whichand will
demonstrates
demonstrateshow howsuccessful
successfulcompanies
companiescan canlose
losetheir
their the
makebesttheservice. Widely
country’s recognised
current as the and
economic number one
political
way
way asas the
the world
world changes
changes and and as
as they
they become
become com-
com- firm in their
models business, Hargreaves
unsustainable. Hutton arguesLansdown was floated
it is imperative for
placent
placent about
about building
building onon their
their best
best business
business practices.
practices. on
thethe London
West stock market
to continue in 2007,
to engage valued
China at £800 mil-
in international
He
He uses
uses instructive
instructive case
case studies
studies to to show
show how
how certain
certain lion.
tradeInand
For idea
A Penny is a must
exchange andread for anyone
believes who wants
the world’s future
top
top companies
companies werewere seduced
seduced by by their
their success,
success, and
and he
he to understand
specifically hangs how the investment
on whether China and business
the U.S. works,
can re-
provides
provides insight
insight asas to
to how
how toto put
put success
success into
into per-
per- what's
sist thewrong with conventional
temptations of rivalry and management
find constructive wisdom
ways
spective
spectiveby byoutlining
outliningnine
ninetraps
trapsevery
everyorganization
organizationmust
must and what'sbusiness
to conduct right about the other.
with each true meaning of en-
avoid.
avoid. trepreneurship.

64 issue
64 •For 173
further Business Matters
information on how to advertise Tel: 0870 116 2854
BM173_64_65:Layout 1 16/06/2009 02:00 Page 2

Books

A book about innocence My Way - Duncan Bannatyne

Dan Germain joined Innocent At 30, Duncan Bannatyne
in 1999, shortly after his three had no money and was en-
college buddies began the joying life on the beaches of
London beverage company. Jersey. He saw a story of
His role is head of creative, someone who had made
which covers things like himself a millionaire, and
copywriting, design, ad- decided to do the same.
verts, web stuff and gener- Five years later he had
ally making sure that the done it, and now he is
company looks, sounds worth 168 million. In this
and feels just right. remarkable book,
In this book he talks about how Innocent be- Bannatyne relives his colourful path to riches, from ice
coming the company that it is today and really is a good cream salesman to multi-millionaire, explaining how any-
book for anyone who is thinking of starting their own one could take the same route as he did - if they really
business which involves fresh thinking and for anyone want to. Hugely articulate, and with numerous fasci-
who has been told that their business model will not nating and revealing stories to tell, this is an autobiogra-
work, when everything inside of them tells them that it phy and a business book unlike any other - but then
will. The book is a very easy read and you could come Bannatyne isn't like any other businessman
away from it with some really great ideas.

Negotiation - An A-Z Guide (The Economist)

There couldn't be a better time for these business

guides from The Economist - They're a handy guide, with
some dry humour and stern disapproval thrown it to stop
things getting too dull - These are interesting and excellent
reference guides to those interested in the markets, or who
own shares. Anybody who thinks they have nothing to
learn from these is asking for trouble, or raised eyebrows
at the very least.
Almost every access of business - and indeed human
life - involves negotiating skills, whether you are striking a
deal, organising a team working on a project, seeking a pay
rise or a pay-off, or simply settling such important matters
as who is going to do the shopping or the household
chores. This witty and intelligent guide looks at the theory
and practice of negotiating and provides a wealth of illu-
minating insights into the skills and psychology of negoti-
ation that can make all the difference to how successful
you are. Following an introductory essay on how negotia-
tion has developed, the A-Z covers everything from Add-
uon and Assumptive close, through Lifeboat clause and
Manipulative ploys, all the way to Yesable proposition and
Zeuthen's conflict avoidance model. Appendices include
information on training resources and suggestions for fur-
ther reading. Gavin Kennedy is Emeritus Professor at
Heriot-Watt University, Scotland, and the author of several
successful books on negotiation, including Everything is
Negotiable and The Perfect Negotiation.

Business Matters issue 173 • 65

BM173_Gettting to Know you:Layout 1 16/06/2009 02:09 Page 1

Getting to know you...

Nat Hardwick territory and creating hardware and software positively influence what I'm doing now? These
systems that changed the face of the way we are better questions to ask than to wish you'd
do business today is no small undertaking. done things differently.
Bill Gates' dream of having 'A computer on
every desk and in every home, all running Mi- What defines your way of
crosoft software' is one of the most aspira- doing business?
tional statements I think you can make, and I think freedom of expression and a sense
made inspirational by the fact that he went on of community are key to my work philosophy
to achieve this seemingly impossible goal. and way of doing business. As a sometime
Against todays technological backdrop such a musician I experience such a strong sense of
claim would be bold but not unbelievable, but community and collaboration, where the final
it was originally made at a time when comput- output can only be created by working to-
ers filled rooms! The idea of home computing gether and utilising each persons own special-
was unheard of. ism, that it cannot fail to influence the way I do
Steve Jobs has created, in my opinion, the business. Each and every on of us has our own
What do you currently do? worlds greatest brand. He's influenced not only unique skill and knowledge base. There's no
I'm Managing Director of SFEDI Enterprises the world of technology but their brand and de- way I can assume to be the best at everything,
Ltd. We're the enterprise arm of SFEDI, the sign has crossed into so many other arenas, and it would be arrogant to think otherwise. By
Small Firms Enterprise Development Initiative. not least music. working together with my colleagues, partners
SFEDI are the UK national standards setting and clients then we draw on the best that each
body for business enterprise and also carry out Whom do you admire? individual has to offer.
research into the needs and issues of small My admiration is for anyone who is able to I'm lucky in that the majority of my working
business. Originally government funded we're take new paths and exert a positive influence life I've been my own boss. This has afforded
now an independent organisation run by en- on those around them. Passionate people, me the freedom to think and do what I want. I
trepreneurs for entrepreneurs. In terms of how from whatever walk of life, who are able to take find that I thrive in these conditions and try to
we work together, SFEDI does the thinking, we their passion and enthuse others are key to a nurture this same environment for those I work
do the doing! progressive society. If I had to pick one person with. Do as you would be done by.
With my background in psychology and it would have to be Berry Gordy, founder of
technology my interests lie in providing support Motown Records. He was passionate about What would you say to businesses who
systems for small business based on current music and its power to forge social change. He are worried about tough times ahead?
and emerging technologies. My philosophy is understood his own abilities as a businessman Tough times for small businesses can come
based around the online open-source move- and was able to recognise talent and abilities in at any time. Successful small companies must
ment, in that access to best practice tools, re- others. He went on to form not only a business be prepared for tough times at all times. Dis-
sources and support should be based on but a musical genre and through that a social aster can be just around the corner. It's when
principles of sharing, peer review and should movement. He knew that in order to achieve you get complacent that problems can arise.
be free for all. By exchanging knowledge and his goals he would have to collaborate with In terms of the current economic situation it
experience the small business community can others with the skills he didn't have and de- provides an opportunity to focus on areas of
only become stronger. My circle of friends in- velop networks. From the back room of a stu- your business where improvements can be
clude a number of other small business owners dio in Detroit he went on to create a global made. Necessity is the mother of invention and
and I know that if I have an issue, it's highly phenomenon that still influences the industry difficult times can focus your mind.
likely I'm not the first. Ask around and find out today. He was one of a number of pioneers in By viewing the current situation as an op-
how other people solved it, what they used and music at the time but he stands out in my mind portunity to be more efficient and innovate
where they got it. Small businesses helping as a formidable businessman who took a small businesses can come out of the other
other small businesses. By pooling our exper- structured, well thought out approach at a time side as stronger, leaner more effective organi-
tise we make the whole community stronger when an industry was in its 'Wild West' phase. sations. The small business actually has an ad-
than its composite parts. That's what SFEDI vantage over big business in that they are more
aims to make happen. A national, collaborative Looking back, are there things agile and can move quickly to take advantage
small business movement. you would do differently? of change to improve the way they do busi-
I try not to look back with any sense of re- ness. Don't get bogged down by worry and
Who is your inspiration in business? gret. Of course, there are things that perhaps I allow it to lead to inaction. Pro-active busi-
I think it's a close call between, Steve Jobs, wish I hadn't done and things I wish I had but nesses can and will prosper in tougher times. If
co-founder of Apple and Pixar Studios, and Bill the art of the entrepreneur is to continually look you can maintain your success in harder times
Gates, Microsoft's former CEO. Starting out in to the future. How can I make things better? it makes it that much easier to prosper when
computing in the 70s when it was all unknown How can I use the experiences of the past to things take a turn for the better.

66 • issue 173 Business Matters

Still paying high agency fees
and advertising costs in advance
of filling your position?

No Upfront Costs - No Candidate No Fee!

Using a network of the UK’s largest job boards, candidate databases and
networking sites, RecruitmentRevolution.com will source you relevant talent; supply you
with over 400 complimentary assessment tools; schedule your interview diary; and only
levy a £575 fee when you successfully secure your new candidate - That’s Refreshing!
001077_umbrella fp BusMatters.ad:Layout 1 16/7/08 09:25 Page 1

It’s rough out there, but we can get through it together. e3 can help protect your
profits when things are against you.

Our innovative and enlightened energy efficiency measures can help your
business with some serious savings. Join npower business for gas and
electricity and we’ll be happy to share our industry leading knowledge.
Your business could save up to £1,000* in the first year and you can start
saving from day one, with very little effort.

Because you’ll reduce your carbon footprint too, you’ll contribute to a calmer
brighter future! Head for shelter now, call

†
0845 072 3091 quoting AI093
or visit npower.com/e3

† Calls may be monitored and/or recorded for security, quality or training purposes. Calls from BT landlines to 0845 numbers will be charged up to 4p per minute. A call set up charge of 5p applies. The price of calls may
vary with other operators. Please check with your operator for exact charges. Correct as of May 2008.* The Carbon Trust states that most businesses could quickly cut their energy bills by 10% without any capital
investment and, with a little investment, savings of 20% are realistic (Source : www.carbontrust.co.uk April 2008). In monetary terms, this equates to a saving of approximately £1,000 per annum, based on an electricity
consumption of 33,000 kWh per annum and an average pence per unit of 15p (including the standing charge).
npower is a registered trademark and the trading name of Npower Direct Limited (registered in England and Wales No. 3782443) and npower Commercial Gas Limited (registered in England and Wales No. 3768856) and
associated companies. Registered Office: Windmill Hill Business Park, Whitehall Way, Swindon, SN5 6PB.