11 minute read
ask the expert
How to increase your business resilience and growth plans in a post-pandemic environment
Although elements of normal business life have resumed since pandemic restrictions were lifted, the operating environment for many UK businesses remains uncertain.
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Covid, the Brexit transition, the fuel crisis and container shipping issues mean some businesses have been experiencing supply shortages and increased costs. Now the Bank of England is signalling that curbing inflation may be necessary, and an increase in interest rates also seems likely.
Is growth even possible in this context, when so many factors seemingly fall outside of an individual business’s control? We spoke to Luke Cartwright, NatWest’s Local Enterprise Manager in Sussex, who says markets influx presents an amazing opportunity to scale and grow, so long as a correct risk appetite and strategic plan are in place.
According to Luke, it’s a good time for SMEs to re-evaluate their business plans, in order to shore up resilience, boost productivity and create greater efficiencies. As all eyes turn to Glasgow and the COP26 climate summit, he adds that small and mediumsized enterprises (SMEs) have the potential to unlock significant revenue opportunity for themselves as well as enable the country to meet its ambitious climate commitments.
So – what to do and where to turn if you are a business looking to grow and scale? Luke shares his top five tips:
See opportunity in the challenges
SMEs already play a critical role in the UK economy, contributing around 50% of total UK turnover and 60% of employment. Success in a changing social context is about identifying the challenges we face as a society and embedding your business in the solution to those challenges. If we look at the climate challenge, for example, an in-depth analysis of the UK SME landscape by NatWest has found that if the public and private sectors work together to provide relevant support, half the UK’s carbon reduction ambition can be delivered by the country’s SME sector. At the same time, SMEs themselves can tap into a £160bn-plus revenue opportunity.
Connect with your local business community
In my experience, people do better when they are able to see others around them experiencing the same challenges and succeeding. Seek out contacts in your local business community and connect with other entrepreneurs around you – while they may not be directly relevant to your industry – they might have some insight that helps you think outside the box. Local enterprise partnerships are excellent places to start, and in addition to some great community contacts you will probably find a NatWest Expert in Residence at your local LEP. As an Expert in Residence at the Coast to Capital LEP I support female entrepreneurs to develop and grow their business across Greater Brighton, West Sussex and East Surrey.
Equip yourself with the right knowledge and tools
Now, more than ever, it is vital to have the right tools and support to help you and your business succeed. There are many different options when it comes to learning how to operate a business, from private colleges to not-for-profit courses. At NatWest, we offer Business Builder to support businesses and entrepreneurs at all stages (whether you’re just starting out or an established business looking to make a change). It's free and you don’t even have to be a NatWest customer to join. Business Builder is also complemented by a variety of events, which are run by our Local Enterprise Managers such as myself and other local partners.
Adopt a growth mindset
Everyone starts somewhere. Accessing finance and serious backing can be difficult when you are in the very early stages of developing your business and often it’s an introduction to the world of investing that’s needed to boost your confidence. The NatWest Accelerator supports and empowers UK entrepreneurs to scale their businesses to the next level. Our free accelerator programme specialises in areas such as high growth, climate, FinTech and corporate social responsibility to provide:
One-to-one coaching with our experienced Acceleration Managers
A programme of thought leadership and events Access to a network of like-minded peers, supported by our Ecosystem Managers
Focused support with access to experts from across your specialism
Use of our modern co-working spaces in one of our nationwide hubs
Luke Cartwright
Local Enterprise Manager, Natwest Bank PLC
Find out what support is available to you
The UK banking and finance industry delivered an unprecedented level of support to SMEs in 2020 and continues to support businesses of all sizes across the country to help them trade and invest for recovery. NatWest has just announced an additional £1bn in funding for businesses committed to addressing the climate challenge.
Additionally, there are several grants available to SMEs, for example through the government’s Innovation Funding Service or its Help to Grow: Digital scheme. SMEs can find more using the Swoop Grant Finder funding platform.
Businesses developing and investing in new products, processes or services or enhancing existing ones are eligible for tax relief. Other incentives include the government’s new super-deduction scheme.
Of course, any decision to seek out a loan or investment should be carefully considered first. Decide on your goals and work back from that to work out the investment you need to get there.
For individual support and advice, please contact our Local Enterprise Manager on email: Luke.Cartwright@natwest.com
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Duncan Gunn
Founder, GUNN Associates
COP26: Lessons in Leadership from the built environment
The design community is committed to addressing climate change. As architects, we often associate our professional identity with the buildings we design.
However, the changing nature of society and the economic climate means there is growing pressure on societies to find creative solutions to complex issues via the built environment.
Take the COP26 Climate Summit as an example, the UK has led with their commitment to reducing economy-wide greenhouse gas emissions by at least 68% by 2030, compared to 1990 levels and now more than 100 world leaders have promised to end and reverse deforestation by 2030, in the summit's first major deal.
More than 200 businesses and groups have backed a report calling on world leaders to radically reduce the greenhouses gases produced by the built environment. These public and private sector clients, developers, architects, engineers, contractors, suppliers, and collectively calling not only for stronger environmental regulation, but also for more resources and infrastructure to facilitate a sustainable built environment.
The media at COP26 has also turned its attention to the leaders outside of the conference halls, not the politicians, talking of “revolution not reverence”. And this shows the nature of leadership in its wider context. Of course, diplomacy is needed in the real world, negotiations and deals are struck, and concessions made, but there is also a place for leaders like Greta Thunberg, who lead with raw facts, emotion, and perseverance.
The built environment and those that shape it are critically important. Our buildings are responsible for almost 40 per cent of global carbon emissions. There is no doubt that we need bolder regulations and more robust policies to change this for our future, and effective leadership at every level here will determine the success or failure.
At a micro-level, the expectations of our developer clients have changed, so we have moved quickly to re-evaluate the way we design and how we advise them. A focus on innovation in design and digital has enabled us to respond to these market-driven challenges and offer flexibility. It’s crucial that we still continuously review and adapt and rethink the layout of spaces in light of the wider macro-economic drivers which are fundamentally changing how we use spaces to live, work, learn and play.
www.gunn-associates.com Words matter. The right words matter most of all
But in today’s media-rich society we’re bombarded with competing messages. The art of persuasion begins with good quality copy. Which helps you stand out from the crowd. Drop me a line if you need creative, engaging content to get more eyes on your business. At an exclusive 20% discount for Chamber Members.
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07854 129732
www.wealdenwordsmith.co.uk
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Behind the entrepreneur
Healys Corporate team specialise in supporting businesses, investors and entrepreneurs with legal advice to help them grow their businesses on a national and international level. From start-ups and SMEs to larger corporates and clients overseas, we support clients in maximising on business opportunities.
Karen Lord
Partner & Head of Corporate, Heallys LLP
We recently worked with Bread Ahead, an artisan award winning bakery and baking school based in London.
Karen Lord, Partner & Head of the Corporate Department, and solicitor Charlie Pattihis worked with Founder of Bread Ahead Matthew Jones, to launch the franchise and joint venture arrangement with a large family-run company in the Kingdom of Saudi Arabia. The deal involved negotiating a detailed development joint venture agreement and supporting franchise and commercial agreements.
We caught up with Matt to get his thoughts and reflections on the deal, how this opportunity came about and what it takes to launch a franchise in a foreign jurisdiction.
Healys LLP has recently been advising Bread Ahead on launching their first franchise. To start things off, could you tell us what is it about franchising that was an attractive option for you?
“Frankly it looked like the correct business option for us; and since the teaching aspect is such a core part of our business, it seemed to be the perfect way for us to expand into different countries. We approach franchising a little differently to other businesses. It’s more of a joint venture with key partners as opposed to the conventional model.”
Earlier this year we completed an exciting new franchise development deal in the Middle East. How did this opportunity come about?
“That’s an interesting story. It was purely word of mouth. The wife of a senior member of a very large family in the Kingdom of Saudi Arabia (KSA) visited our store in Borough Market, tried one of our signature doughnuts and loved it – and it all came from there…”
Negotiations were quite intense at times. What are some key points you’d recommend a potential franchisor should bear in mind when granting an international area development agreement?
“My advice to anyone looking to do something similar, especially in the Middle East, is to be aware of the differences in societal and cultural norms compared to the UK. We quickly found that, even though the agreements were all subject to English law, we were going to need to incorporate a number of changes to account for the commercial realties of actually operating a business in the KSA.”
This was your first cross-border transaction. What were some of the key challenges you faced as a result of this and what was something that surprised you about this deal?
“It quickly became apparent that there is much more to a cross-border venture than formulating and sharing recipes! I can remember there was a huge amount of work behind the scenes to set up the infrastructure required to make this work, quite aside from the negotiation of the actual development and franchise agreements. I would strongly recommend anyone embarking on a similar venture to take your time, be organised, get a strong team around you (including a good legal team!) and above all, do your homework.
“The first stage in any journey is always the most difficult – but also the most exciting. This deal was so important for us, because it gave the company a foothold in the Middle East and will hopefully open up a gateway to a much bigger world.”
What are your plans for the next 12 months?
“The pandemic was a game-changer in every way. Regional cities have become much more attractive areas to live and work in – and with many people still working from home, there is a great deal of opportunity for us in those areas. On an international level, we plan to refine the model that we have established in the KSA and continue expansion into other territories in the Middle East.”
A key concern of any franchisor is that their business model, brand and assets are properly protected. As solicitors our role is to make sure that this is the case, usually by building rights and restrictions into franchise agreements, and to highlight possible risks to our client.
We are pleased to have been able to work with Matt, and assist Bread Ahead in reaching a fair compromise with the franchisee, and their lawyers.
For more information or advice regarding franchising and corporate legal services, please don’t hesitate to contact us.
