Sussex Business Times Magazine

SBT

ISSUE 4: FREE

SUSSEX BUSINESS TIMES

FIT FOR BUSINESS DUNCAN BANNATYNE: EXCLUSIVE INTERVIEW, HOW TO TAKE RISKS AND WIN, MAKING YOUR BUSINESS WORK FOR YOU, THE OUTSOURCING DEBATE CONFRONTED THE IMPORTANCE OF BEING FIT & EATING WELL.

SBT THE MAGAZINE THAT MATTERS www.sussexbusinesstimes.co.uk 1

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SBT Welcome Photograph © Grant Scott

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“We aim to be the hard working business magazine, for you, the business experts in your field” - SBT

We’ve had a shake up at the headquarters of SBT, to re-define, re-invigorate and refresh your magazine.

So whilst you get on with the tasks that are intrinsic to the success of your business, we’ve made it our job to get inside the business issues that matter; informing, inspiring and entertaining you, when you have a little down time.

We understand that you want facts, debate on relevant issues, inside information on how other local businesses are achieving their goals and inspirational profiles of successful national business people with links to the area.

To kick off our re-launch, we bring you an exclusive SBT interview with renowned entrepreneur Duncan Bannatyne, whose interests include health clubs in Eastbourne and Hastings. His key advice on mistakes to avoid in business are not to be missed (on page 33).

We’ve also discovered that neglecting your health is a big business mistake, and the benefits of being Fit For Business (page 17). We hope that you’ll be inspired by the personal story of one Director who has transformed his physique and along with our gym and exercise recommendations, kick start a new regime.

Whatever your personal goals, we know that times are tough in business right now, so we put a spotlight on one of the hot topics for those looking to cut costs - outsourcing - in The Big Debate (on page 45) and bring you the story of how two local hotels have successfully increased profits despite the economic downturn (on page 36). We also speak to the entrepreneur behind Thornes Foods; a former investment banker who has opened a farmers market, café and restaurant under one roof in central Brighton offering locally sourced, quality food; which he claims is “recession resilient” (on page 24).

Finally, here at SBT, we believe that we should be mixing business with just the right amount of pleasure. In the first of our new Spending It! series, we’ve therefore selected some of the most desirable limited edition watches (on page 7) and in Working Lunch (on page 13) bring you our round-up of the best restaurants in Chichester for business lunches.

We hope that our refreshed magazine brings you an entertaining balance and an indispensable guide to business in Sussex. As journalists, we aim to be the hard working business magazine, for you, the business experts in your field.

Editor Samantha Scott-Jeffries

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Contents SBT Issue 4

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SBT

ISSUE 4: FREE

SUSSEX BUSINESS TIMES

FIT FOR BUSINESS DUNCAN BANNATYNE: EXCLUSIVE INTERVIEW, HOW TO TAKE RISKS AND WIN, MAKING YOUR BUSINESS WORK FOR YOU, THE OUTSOURCING DEBATE CONFRONTED THE IMPORTANCE OF BEING FIT & EATING WELL.

SBT THE MAGAZINE THAT MATTERS www.sussexbusinesstimes.co.uk 1

WWW.SUSSEXBUSINESSTIMES.CO.UK

Cover Image: Dreamstime.com

Sussex Business Times Editor: Samantha Scott-Jeffries s.scott-jeffries@parkview-publishing.co.uk Editorial Director: Grant Scott g.scott@parkview-publishing.co.uk Design: Park View Studio: Harriet Weston h.weston@parkview-publishing.co.uk Commercial Business Manager: Thomas Hopkins t.hopkins@parkview-publishing.co.uk Managing Director/Publisher: Lee Mansfield l.mansfield@parkview-publishing.co.uk Sales Director: Simon Skinner s.skinner@parkview-publishing.co.uk Media Director Linda Grace l.grace@parkview-publishing.co.uk Accounts: Clare Fermor/ Amelia Wellings c.fermor@parkview-publishing.co.uk a.wellings@parkview-publishing.co.uk Published by Park View Publishing Park View House 19 The Avenue, Eastbourne, East Sussex BN21 3YD 01323 411 601 Printed by Gemini Press, Shoreham-by-Sea, West Sussex, BN43 6NZ All material in this publication is strictly copyright and all rights reserved. Reproduction without permission is prohibited. The views expressed in Sussex Business Times Magazine do not necessarily represent the view of Park View Publishing LTD. Every care is taken in compiling the contents but the publishers of Sussex Business Times Magazine assume no responsibility for any damage, loss or injury arising from the participation in any offers, competitions or advertisement contained within Sussex Business Times Magazine. All prices featured in Sussex Business Times Magazine are correct at the time of going to press.

Copyright Park View Publishing 2011 ©

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Welcome

It’s all change at SBT. We’ve got a brand new look and exciting content for you to explore.

Spending It! Why settle for the ordinary when choosing a new timepiece? SBT brings you the most desirable limited edition watches to spend your hard-earned cash on.

Working Lunch Need to know where you can enjoy the best business lunches in Sussex? We spotlight some of the best local venues and begin with a guide to restaurants in Chichester.

Fit for Business Could changing your approach to health and fitness improve your business performance? SBT presents the research that reveals the benefits of a fit workforce and tells the inspirational story of one company Director.

The Risk Taker From investment banker to luxury grocer; SBT speaks to the entrepreneur who has opened a centre for quality local food in Brighton in the midst of the economic downturn.

SBT Talks to Duncan Bannatyne The renowned entrepreneur whose businesses include Bannatyne’s Health Clubs and Spa Hotels in East Sussex, speaks exclusively about the secrets of his success.

The Inside Track Duncan Bannatyne offers essential advice on the key mistakes to avoid in any business.

Adding Value Discover what measures two local hotels have taken to succeed and increase their profits in tough times.

The Big Debate Is outsourcing the best way to cut costs and minimise economic risk? If so, at what potential cost? SBT interviews two experts within the industry to weigh up the argument.

Made in Sussex We profile Brewers, the national decorating and interiors merchant with The Royal Warrant that launched in East Sussex over 100 years ago, to discover the key to its enduring success.

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I am your colour of choice: For 2 year warranty on any camera and lens kit simply register your new Nikon within 30 days of purchase. Call 0800 408 5060 or visit www.nikon.co.uk/register.

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Spending it!

Objects of Desire Highly covetable and in scarce supply, these limited and special edition watches are making us tick at SBT. Which one will you choose?

ORIS Part of the limited edition collection inspired by RAID 2010 - a 600 mile contest in which classic cars dated pre 1975 raced from Basel to Paris - pays homage to the dashboard of the winner: the 1953 prestige Austin Healey 100M. Limited to 50 pieces, with a red pointer hand that can be activated at the touch of a button, our favourite is the Oris RAID 2011 Alarm edition, price on application, www.oris.ch

RAYMOND WEIL

OMEGA As the Official Timekeeper for the 25th time at the London 2012 Olympic Games, Omega have re-designed the first automatic Seamaster launched in 1948, in just 1,948 pieces. In appearance, it’s a timeless classic that recalls the stylish exterior of its legendary ancestor, yet the limited edition update is powered by an officially-certified chronometer equipped with a Co-Axial escapement. The Omega Seamaster 1948 Co-Axial London 2012, RRP £3,700 www.omegawatches.com

A new limited edition to the nabucco VA, Pensiero range, this model in titanium combines the strength of both design and materials. Named after the famous Verdi chorus, the watch reflects the power of the great Italian composer’s opera, whilst the classic design is complemented by a saddle-stitched crocodile leather strap. The Raymond Weil nabucco VA, Pensiero, RRP £3,595 www.raymond-weil.com

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Spending it!

ARMANI Just 999 pieces of the Super Meccanico limited edition timepiece collection have been produced worldwide. Each are individually numbered, engraved and presented in an exclusive box. The commanding barrel shaped stainless steel case houses a two eye chronograph automatic movement with unique multi-layer dial construction and is protected with scratch-resistant sapphire crystal.

The Armani AR4900, RRP £1,295 store.emporioarmaniwatches.com

TW STEEL TW Steel have created a special pilot edition watch to celebrate the rebranding of the Lotus Renault GP Team, for whom they are the ‘Official Timing Partner.’

The black and gold palette reflects the team’s sporting livery. The TW Steel TW678, RRP £325 www.twsteeluk.com

TISSOT Footballer Michael Owen guarantees high scores in style and performance for wearers of his 2011 limited edition watch.

The design integrates the home and away colours of Manchester Football Club and the striker’s lucky number seven, frames his signature on the case back.

Only 4999 pieces of the tailor made watch will be produced by Tissot.

RRP £370 www.tissot.ch

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2012 CATALOGUE NOW

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Spending it!

EBEL To celebrate Ebel’s centenary year, they have produced the Classic 100, limited to 1911 pieces globally, to mark the year that the brand launched.

An elegant nod to the past, with an antique logo, the alligator strap gives a nostalgic feel to a timepiece that would sit perfectly on the wrist of a lady or gent.

The Classic 100, RRP £1,590 www.ebel.com

RADO The Rado eSensa Colours is a limited edition range that fuses technology and glamour.

All featuring a smooth oval form, the watch is available in four colourways from icy silver, warm golds through to chocolate brown and bronze, each limited to 1000 numbered pieces.

The Rado eSensa Colours, is priced from £1,500 www.rado.com

SEKONDA This limited edition capsule collection of eye catching watches is perfect for evening events that require some sparkle. Available exclusively from H.Samuel, RRP £29.99 www.sekonda.com

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Tried & Tested

WorkingLunch

Need to impress a client, discuss important plans with a colleague or just enjoy a great lunch away from the office? SBT brings you our guide to the best business lunches across the county.

In this issue, we serve you the finest offerings from Chichester, including one of its best kept secrets.

It’s lunchtime at Field & Fork and its informal dining room Review is bustling. Each and every table is full, the food looks delicious and the conversation is animated. Yet there’s not a business lunch in sight. It’s difficult to comprehend.

Established in 2008 within the Pallant House Gallery in Chichester, ChefDirector Sam Mahoney, had until that point enjoyed a career cooking in Michelin star restaurants working alongside Gary Rhodes and Gordon Ramsay.

Having once trained as a 3 star Michelin apprentice under Albert and Michelle Roux at the esteemed Le Gavroche, his wife and business partner Janet, who today runs everything ‘front of house’ also began her professional career as a restauranteur with the Roux brothers.

Together they bring an elegant simplicity to Field & Fork, which extends from the food to the service and the atmosphere of the contemporary dining room.

This is an unfussy space that retains something of the gallery feel beyond its walls. There is modest Scandinavian lighting, very comfortable chairs and scrubbed clean tables, which are bathed in natural daylight from the courtyard beyond a wall of glass doors, which looks rife for a summer visit. Although sophisticated, this is an environment designed not to detract from the star of the dining experience; the food.

Here the menus change weekly and are constructed around the availability of seasonal produce. Not just what is grown locally, but also what can be plucked from the owners’ own local glasshouse, where they grow their own vegetables and fruit.

The result is a vibrant a la carte menu and

Why it works A chef with credentials whose dishes impress A menu based on local and own grown produce A well priced set lunch menu which offers choice An atmopshere conducive to a business lunch A courtyard providing an al fresco summer option, whilst gallery hire is available for business events and lectures

a set menu that doesn’t disappoint on choice or price, starting at £17.95 for two courses. The friendly and attentive waiting staff allow plenty of space for diners to consider which dishes appeal; all of which are pleasingly unexpected and unpredictable, without being intimidating or needing explanation. They will, however, bring freshly hand baked bread rolls and a glass of something chilled from the wine list (that extends from very good house offerings to Tattinger) whilst you do so. SBT’s three courses (£21.95)

ABOVE: Private drinking in the Pallant Gallery

“the set menu doesn’t disappoint on choice or price” BELOW: Minted chocolate parfait at Fork & Field

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opened with a creamy peppered goats curd cheese served on a crisp slice of melba toast and a crunchy, fresh salad of beetroot, apple and hazelnut that tasted truly autumnal.

The main course of roasted fillet of hake was served with delicately spiced Indian potatoes which were undeniably moreish, and a delicious layer of wilted spinach on a creamy lemon butter sauce dotted with baby brown shrimps, that melted the mouth. The contrast in textures were a delight. Other dishes that had tempted from the set lunch menu had included a ham hock and parsley terrine with a pickled mushroom salad.

It was hard to resist dessert. The

minted milk chocolate parfait had a pleasing, firm wobble, a nutty base and smooth creamy centre, complemented by the delicate crunch of toasted almonds and juicy, plump apricots. The perfect end to a great lunch.

Before SBT left, we learnt that the six impressive gallery spaces at Pallant House are available to hire in a multitude of options; from daytime business meetings to canapé receptions and sit down meals, costing from £200+VAT excluding catering by Field & Fork. For more information visit www.pallant.org.uk www.fieldandfork.co.uk

SBT

Recommendations Four more top restaurants to visit in Chichester

dining outdoors. When a meeting needs to be mellow and the price super-competitve, Prezzo’s deals, with lunch offers from £12.00 for two main courses are a sensible option with food that’s reassuringly consistent for the price. www.prezzorestaurants.co.uk

Amelie & Friends

If lunch actually needs to be brunch, SBT recommends the menu at Amelie & Friends. Visit for really fresh food in a minimalist setting and great coffee. www.amelieandfriends.com

The Ship Hotel

Prezzo

Centrally located, Chichester’s Prezzo offers views of the town’s 12th century Cathedral and a walled garden for

The large restaurant and bar at The Ship Hotel lends itself well to the classic business lunch. Its’ contemporary decor is smart, the menu focuses on British classics and there is plenty of space for larger groups as well as tables for two that need private space. There is also the option of hiring meeting rooms. www.theshiphotel.net

Portrait Charles Birchmore

Tried & Tested

What makes the perfect business lunch?

SBT consults renowned restauranteur Raymond Blanc “The business lunch is, in itself, a minefield of possibilities. Quick? Slow?, Quiet? Joyous? Expensive?

Good value? The list goes on. I sometimes wish we could read minds or at least insist that our business guests fill in a questionnaire before coming; nice to see you Mrs Jones, that will be a quiet table for two, out in an hour, the Dine with Wine for both of you; we won’t ask if you want a second glass of wine, a long pause just before dessert as you get down to some nitty gritty but smiles all round with dessert as the deal is sealed. And of course you weren’t here yesterday doing exactly the same thing with somebody else.

Sadly this will never happen, so at Brasserie Blanc we rely on our skill and experience. It’s not as easy but it’s our business” - Raymond Blanc

Brasserie Blanc never fails to impress and the Chichester branch is no exception. The dine with wine menu from £11.50 for a two course lunch, is hard to beat on taste, service and value. www.brasserieblanc.com

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The 2011-12 official home kit

A new shirt for a new era The superb Brighton & Hove Albion FC Official home kit is now available from the Seagulls Store at the Amex Stadium or the City centre store at 128 Queens Road, Brighton.

Alternatively, order online at

www.seagullsdirect.co.uk

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Fitness Focus

Fit For Business How can being in good physical shape have an impact on your business? Research indicates that a fit workforce is less stressed, takes fewer sick days and is more productive, whilst SBT meets one Director whose radical turnaround in health changed the way he did business, forever.

Insight

One Directors Story

Colin Siggs, Sole Proprietor and Director of Just Property; a successful East Sussex estate agents, lost three and a half stone, became fit enough to cycle the amateur leg of the Tour De France, and changed his approach to his working life forever.

“My story began on the basis that I wasn’t fit” Colin Siggs tells SBT. “I was working seven days a week and 14 or 15 hours a day and I made a radical decision to change my life on losing a good friend who died of cancer who was the same age as me [39]. I realised that there is more to life than work, not because I’d financially made it, but on waking up one morning and thinking ‘I want to see more of my kids.’”

For Siggs, the wake up call of losing a friend hit hard, and he took drastic action. “I looked at my life, my business and decided [at first] to give it up. Really, to be honest, it was as simple as that.

People can’t believe that I decided to do that, rather than sell it or attempt to sell it.” Obviously people read in to it what they wanted, maybe they thought that the recession was why I got out of it, but I paid my liabilities up to date, relinquished my business partnership and we made a nice donation to charity (a subsidiary of the Conquest Hospital Hastings), and advertised that I’d retired.”

The business that Siggs was walking away from had been thriving. “Land registry figures proved that we sold more properties per office than any estate agent in the country - in excess of 600 a year - and proved not only was there not another agent in Sussex, but in England, that could sustain the volume of business that we did.” Siggs had three offices and a team of 16 staff, but his health was suffering. “I was touching 17.5 stone” he claims. I’d been a smoker all of my life.

In a very stressful environment you eat as

“The first thing I did was to raise money for my friend who died, in the John of Groats to Lands End cycle ride in May 2010” he says simply. In fact he raised £5,000 for the charity and shed two stone in the process.

“My training was all about cardio.

I put myself through such a regime that I would be in a puddle of sweat, even initially because of the weight that I had to lose.” At the gym “two complaints were made by fellow gym goers saying ‘this guy sweats too much’, it was almost as

“You feel a lot more alert when you’re fit...you feel so much sharper, full of vigour” - Colin Siggs many pies as you can, and have a few pints of an evening, that’s the way life goes.” He had also held a family membership to his local David Lloyd gym in Eastbourne “for some years, but had never used it because of not being able to get down there - I was always at work.”

Sticking to his convictions, Siggs initially “gave up work completely” although he divided the company, and kept one of his offices “that operates out of a small village at the back of Hastings, in Fairlight. Being the only agent here, it would have been sacrilege to give it up” he claims. Instead, a long standing employee managed it, whilst Siggs focused on his health.

if they were discriminating, so being shy, in the end, I chose eventually to invest in a Turbo bike and trained at home as hard as I could, with music on as loud as I liked. I could flood the floor and it wouldn’t matter.” He took on the vast majority of his training at home and the results were immediate.

Cycling became a passion. Coupled with his Turbo training, Siggs upgraded his road bike and cycled over the Downs “to see if I was cut out for it.” After the success of completing the John of Groats to Land’s End cycle ride, he “wanted to do something more challenging.” Siggs trained for 6 months everyday for the amateur version of the Tour De France.

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Fitness Focus

“I went to The Tri Store in Eastbourne who were very supportive. They specialise in racing bikes, and a couple of guys who work there are actually triathletes, and were able to advise me on a particular programme. As well as doing so many hours on the Turbo (maybe two at a time, putting weights on the legs) and at the gym, it was also very important to get out on the road twice a week and to cycle 80-100 miles per session. I had to discipline myself. The hard thing was putting the hours in. The strength is always there, but it’s all about doing it day in and day out in all weather conditions for the Tour de France - it can be extremes with the weather from snow blizzards in minus two to 34 degrees and making sure you’re taking on the right salts etc - it was more complex than I’d first thought. The last thing I wanted to do was to cycle 12 stages and not have the energy for the last seven, I wanted to do the whole thing.”

Siggs completed the 2,5000 mile event in 19 stages, which climbs at its highest point to 2,100 metres in July 2011.

The Amateur Tour culminated in an intensive three week cycle, in which Siggs was one of five Englishmen to complete

Join The Club Whatever you look for in a workout, SBT’s diverse round up of East and West Sussex based gyms and health clubs, should spur you into positive action.

the entire course. His wife Gill and his daughters came to the Champs-Élysées to spur him on. He is understandably proud to have realised such a huge personal achievement, but the impact of the four year journey on his life/work balance, has also been immense. Now 42, and three and a half stone lighter, “four years on, I’d say the balance is right now, I can work a bit more smartly.”

Today, Siggs is back in the Fairfied office. With his two staff, one of which still manages the office, “the current business is a very small I’m proud to say.

We represent the 5 villages; Fairlight, Pett, Winchelsea Beach, Guestling, Icklesham - in 1066 country, where people predominantly come and retire.”

The experience is very different from his former working days. His priorities have changed, and family, since that wake up

call, is very high up on his list. “I have a father with Parkinson’s Disease, so I’m able to spend some time with him...I have a great relationship with my kids.” And daily exercise, whether it’s a three hour walk over the Downs with the dog, a cycle ride, or walking the kids to school, is always a feature. “It’s about getting the balance right, being happy with a little less, rather than being unhappy with a little bit more” Siggs deduces. “A lot of people in my position end up with £50k extra in the bank, but don’t end up with family and kids.”

Siggs has also felt the impact on his new found fitness in his daily working life. “You do feel so much sharper and full of vigour, you feel a lot more alert when you’re fit.” He speaks of “feeling more in control because you feel fitter... You even become more patient with people.” It is no secret that Siggs has a cold when relaying this to SBT, but he stresses “I can honestly say that this is the first cold I’ve had in four years. I’m probably fitter now at 42, than I was at 22, playing football.”

All this, Siggs has achieved with a balance in the enjoyment of life as well as its balance. He loves food and claims never to have put himself on a

Bulldogs Gym, East Grinstead

City Gym Express, Eastbourne

Situated in Imberhorne Business Centre, Bulldogs Gym offers membership for a monthly fee only (with no contract).

Benefits include free one to one personal training for the first month to devise a programme to suite your specific needs. Nutritional advice is also available.

Bulldogs invites all abilities to lose weight, tone up and get into shape, using their quality equipment. www.bulldogsgym.co.uk

A well equipped, independent gym in 5,000 sq. metres of space in central Eastbourne, City Gym combines serious workout facilities (staffed by on hand professionals and therapists) with a separate female only area and stylish changing rooms. Facilities include ‘Studio One’ unisex hair salon, holistic massage and physio rooms.

Day passes are also available for you to try out this supportive environment. www.citygymexpress.co.uk

“Feeling fit, you can achieve a lot” - Colin Siggs

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Fitness Focus

weight loss diet, in losing his eventual three and a half stone stone (that, he claims was all down to exercise). And, he continues to smoke. I will get to the top of the mountain, have a celebratory smoke and admire the view” he laughs.

“Yet what he has shed, is his old self in business.

“It’s easy to let your business take over your life. You get into a zone and you don’t know you’re on the self destruct button when you’re in it.”

With his newfound approach to health and life/work balance, he is nonetheless ambitious. “I’m still considering myself relatively young to do something else, so I’m looking to start up another [property] business in 2012 albeit on a smaller scale than before. I’m at that stage where I want to do something new, but I don’t want to become the animal I once was. Feeling fit, I think you can achieve a lot.”

Whether that achievement is a thriving new Sussex business, or the completion of his next physical challenge - a five day, 20 mile a day walk over the South Downs in February 2012 - SBT wishes Colin Siggs, the best of luck.

SBTFacts

It isn’t just directors who need to take care of themselves.

Can you afford an unhealthy workforce?

• The annual cost of sickness absence in the UK is £17 billion.

• The average levels of absence per employee, per year is 7.4 days, costing £692.

• Research shows that by exercising more, employees take less sick days and return to work from illness quicker.

• Healthy employees have a stronger resistance to stress/emotional health concerns. This is hugely significant as stress is the second biggest cause of short-term absence in workers and the number one cause of long-term absence.

• Research also indicates that healthy employees are more productive The non-financial benefits to the business can include having an engaged team and a positive corporate brand.

• Healthy workforce programmers have seen employees endorse the company as an employer of choice

Sources - Healthy Work: evidence in action 2010, Confederation of British industry.

On the path to recovery: Absence and workplace health survey 2010

www.just-property.net

Curves, Eastbourne

Gym Xtreme, Worthing

Inspire Fitness, Crawley

Claiming to have the largest fitness franchise in the world, with 10,000 locations for female members only, Curves can also be found in East Sussex.

Members can enjoy a personal coaching system designed to maintain motivation, and circuit training combined with Zumba fitness. Their website is currently advertising a ‘join now rest of the year free’ offer (as of November 2011, with terms and conditions). www.curveseastbourne.co.uk

The GX Fitness Suite and Gym Xtreme Fight School located in the heart of Worthing town centre, is dedicated to Martial Arts and Fitness. The Gym Xtreme Centre incorporates a recently added fitness suite with high tech cardiovascular and weight resistance equipment. The purpose built Martial Arts training facility inclues a Boxing Ring, an Mixed Martial Arts (MMA) Cage and the only BlideBoxx in Sussex and runs 50 classes per week. www.gym-xtreme.com

Inspire claims to have one of the most professional and comprehensive fitness facilities in Sussex. Situated within the grounds of the 4* Arora International Hotel (close to the train station), the gym has been recently refurbished and offers a fully equipped Cybex cardiovascular and conditioning environment. Members can enjoy personal training, treatments, free studio classes and the car parking and restaurant within the hotel. www.gymcrawley.co.uk

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HEALTHY PEOPLE – HEALTHY PROFITS! I

llness caused by lack of exercise has a direct impact on the economy, both in terms of working days lost to sickness and the burden on the NHS. With so many of us working long hours, it’s not surprising that many people don’t put the extra effort in to get as much exercise as they should.

35% of employees surveyed by Deloitte said that work commitments were a major deterrent to exercising. In the same report, it was estimated that if 70% of the population exercised for the recommended 150 minutes a week, sick days would be cut by almost three million a year, saving employers in the region of £500 million.

Offering heath benefits such as gym memberships or access to on-site gym facilities can be an attractive draw for potential new employees as well as improving the health of your existing workforce.

Keeping active can have a positive impact on conditions such as anxiety and depression as well as physical health and wellbeing. Taking care of your staff is a valuable investment which no business should ignore.

French company Vielife conducted the first controlled study exploring the link between health and productivity. They found that over twelve months, employees given a multicomponent health programme were 8.5% more productive. A conservative estimate is that the business received a return of just under £4 for every £1 spent on the programme in improved performance and reduced sick days.

“If I was down to my last dollar, I would spend it on public relations” Do you know who said that? More importantly, when was the last time you said that?

If you don’t know the value of PR, traditional and online, to your company or organisation, would you like to know?

Here is what one client said about jag press & publicity recently: “Thanks for all your creative, hard work. We are a better organisation for it.” jag is a dynamic, results driven PR consultancy passionate about creating communication solutions that deliver ‘business’ value.

We work across various sectors and are split into three distinct divisions: • Health, mental health & wellbeing • Campaigns/issues management; crisis PR and • Consumer PR/promotion and editorial services covering a variety of industries – and one of them could be yours!

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30 Sussex Business Times

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Fitness Focus

LA Fitness, Brighton & Hove LA Fitness offers specific courses, classes, corporate membership deals and packages for businesses, with tailor-made options to suit both large corporations and smaller operations.

Personal membership can include personal training. There is a current offer online of free gym membership until 2012 (as of November 2011, with terms and conditions). www.lafitness.co.uk /corporate-membership

Shoreham Beach Fit Aptly named for seaside dwellers, Beach Fit’s comprehensive range of cardio vascular and strength equipment helps members to shift pounds or build muscle.

Gym facilities include Power Plate and a comprehensive range of personal training packages are also on offer, which feature in depth health and fitness assessments.

Beach Fit prides itself on its affordable membership with no joining fees. Zumba classes at the harbour club will also be on offer from January 2012 three times a week alongside weekly yoga classes. www.shorehambeachfit.co.uk

Nuffield Health Centre, Chichester Having won the FIA Flame Award 2011, for the Corporate Fitness Club of the year, Nuffield - the UK’s leading health charity - specialises in corporate fitness.

Specialists visit your premises to offer fully integrated well-being packages, personal training and health MOTs. Simple membership can also be obtained for their Chichester gym. www.nuffieldhealth.com /Corporate-wellbeing

Pheonix Performance, Hove This personal training and fitness studio is located on Haywards Heath High Street.

Pheonix offers a wide range of classes including yoga, pilates, boxercise, just kicks and MMA for self defence amongst others. Massage, sports injury services and biomechanical screening is also available. Pheonix Performance prides itself on its exclusive service, small class sizes and a friendly environment. www.pheonixperformance centre.co.uk

29 Exercises You Can Do At (Or Near) Your Desk If your business commitments leave you without any time to visit the gym, or you want to kick start your initial work outs, bring exercise to the office!

SBT reveals some simple techniques designed to gently increase your heart rate without compromising your appearance in the office. Use them to fill in the days where a gym visit is impossible, or to avoid some of the ills that come from sitting at a desk for too long: sore wrists, stiffness, or even repetitive motion injuries.

Feet and Legs Toe raises.

Lift your toes while keeping your heels firmly on the ground. While you can do this exercise standing, it works very well while seated.

Football foot drill At practice, football players practice rapidly tapping their feet in place, simulating a run.

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SBT SUSSEX BUSINESS TIMES

SBT

ISSUE 4: FREE

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FIT FOR BUSINESS DUNCAN BANNATYNE: EXCLUSIVE INTERVIEW, HOW TO TAKE RISKS AND WIN, MAKING YOUR BUSINESS WORK FOR YOU, THE OUTSOURCING DEBATE CONFRONTED THE IMPORTANCE OF BEING FIT & EATING WELL.

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Fitness Focus

“[You feel] more in control because you feel fitter...You even become more patient with people. I’m probably fitter now at 42, than I was at 22, playing football.” Colin Siggs Do the same thing while seated, for 30 seconds at a go.

Take the stairs If you need a challenge, try taking them two at a time — you’ll get a chance to stretch your legs more than you would otherwise.

Calf raises Stand in front of a desk or another piece of furniture you can hold on to for balance. Raise your heels off the floor and slowly lower them.

Lunge While walking, take the widest step you can and lunge forward.

Hip flexes While sitting in your chair, lift your right foot a few inches off of the floor.

Keep your knee bent at a 90 degree angle and hold the position for as long as you are comfortable.

Walk the hallway Walk down the hallway as fast as you can without actually running.

Plié squats Point your toes outwards and take a wide stance. Slowly bend your knees in the direction of your toes.

Once you can no longer see your toes, slowly stand up. While plié squats are more graceful than regular squats, you might want to give them a pass if your work attire includes a skirt.

Leg extensions While sitting in your chair, extend your right leg until it is level with your hip. Hold as it for as long as you are comfortable and then relax it. Alternate sides.

Hands and Arms Shadow box Stand up and take a couple of jabs at the air.

Arm pump Pump both of your arms over your head

for 30 seconds.

Shoulder raises Raise your shoulder to your ear, hold and then relax. Repeat, alternating shoulders.

Wrist stretches Stretch your arm out in front of you with the palm up. With your other hand, grab your fingers and lightly pull them down to stretch your forearm.

Tricep dips Put your arms behind your back, resting on your chair and slowly raise and lower yourself as many times as possible.

Elevated push ups Lean on a sturdy piece of furniture and slowly push your body off of it in a standing push up.

Hand stretches Tense and relax the muscles in your hands. Make fists, spread your fingers and bend your fingers.

Flapping wings Stretch both of your arms up and back, as far as you can. Bring them forward until they meet and stretch your arms out in front of you. Repeat.

Water bottle weights Use a full water bottle as a weight to increase the difficulty of your work out. You can do front raises, overhead presses and bicep curls more effectively with a water bottle.

Torso Back twist Sit up straight in your chair and place your right arm behind your right hip. Twist to the right and hold. Alternate sides and repeat several times.

Wall sits Rest your back against a wall and move your feet away from the wall.

The wall should be supporting

the weight of your back and your knees should be bent. Hold the position as long as possible.

Gluteal Squeeze Tense up the muscles of your rear end and hold for a count of 10.

Curls Cross your arms over your chest and sit up straight.

Tense your abdominal muscles and curl your shoulders towards your hips. Hold for a few seconds.

Abdominal stretches Sit on the edge of your chair and stretch your arms out in front of you.While keeping your back straight, contract your abdominal muscles. Relax and repeat.

Neck rotations Drop your chin and roll your neck. Raise your chin up and bend your neck to each side. Repeat, moving slowly, with care.

Jumping Jacks Low-impact jumping jacks are most suitable for the office.

Raise your right arm and tap your left toe to the side at the same time.

Keep your right foot on the floor. Alternate sides for a full minute.

Pretend skipping rope Hop either on both feet at once, or on alternating feet.

Pretend skipping rope, version 2 Move your arms as if you are turning a skipping rope while tapping one foot in front of you. Alternate feet.

Chair dips Place the palms of your hands on your chair and your feet on the floor.

Move your rear end off of the edge of your seat. Bend your elbows and lower your body. Straighten your arms to return to the starting position.

Chair squats Lift your rear end off of your seat and hold for a few seconds.

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The Risk Taker

Why would an investment banker leave the city, renovate a 5,000 sq. ft site in Brighton’s North Laines and open it as a centre for quality food in the midst of the recession? SBT speaks to the West Sussex born entrepreneur who has done exactly that.

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An Entrepreneur’s Story

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An Entrepreneur’s Story

On paper, Jason Hurwitz had ‘made it’ by the age of 30.

Profile Working in equity derivatives for UBS, one of the world’s largest investment banks, he lived in London, “thoroughly enjoyed” his job “and could afford a very nice lifestyle.” However, it was clear that working for a large corporation was never going to be a permanent choice.

UBS, it transpires, was just one step in this entrepreneur’s long term business plan. Born and raised in West Sussex, Hurwitz claims that “from the age of 14, I’ve always been certain that I wanted to start a business.” He studied for a business degree at Leeds Business School (which focused around entrepreneurialism, managing processes and businesses) and on graduating, moved to the city to “understand finance.” At UBS he took “quite a diverse route through banking, moving around to pick up a broad range of skills with the view to starting a business.” And whilst there, he was “always looking at ideas, incubating them” in his head.

Yet whilst Hurwitz is commendably ambitious and undeniably focused, why would an investment banker decide to renovate a 5,000 sq. ft Victorian property in Brighton’s North Lanes, and transform it into a centre for local food in the heart of a recession? Not least without experience of either the food business or retail?

Initially, the timing wasn’t all his own doing. As readers of SBT are likely to recall, in recent history UBS invested heavily in some of the Residential Mortgage Backed Securities that famously didn’t do well “and as a consequence of that” Hurwitz elaborates “they had to make sweeping cuts across the business.” After 18 months of job insecurity, he “finally got the call” as he puts it, during the fifth round of redundancies, in 2009.

Whilst many would take the safe option and look for another permanent position, Hurwitz took what is arguably, a gargantuan risk. “I looked at it and thought, ‘okay mortgage rates are as low as they are ever going to be, the

Freshly baked bread inside the store

business proposition.

Hurwitz, it seems, is as passionate about locally produced food as he was about starting his own venture. “It’s always been a personal interest” he confirms. From a family of “foodies” he recalls “going to a farm shop in Sussex six years ago.” It is here that he had his ‘light bulb moment’. “I saw an enormous breadth of quality food from local suppliers, clearly made with passion.

The freshness and deliciousness of the food really jumped out and I thought, why don’t we all shop like this when all of this fresh produce is here? I concluded that it’s just not convenient. We don’t have the energy or time to travel far to buy quality food.” So the key behind Hurwitz’s business model is to make quality, local food convenient. He has bought local suppliers “all under one roof” and Thornes’ store and restaurant is “open seven days a week and late into the evening, because that’s when people use supermarkets the most, and they pay with a credit card. People are generally busy or lazy and there is no point denying that. We need to make life suitable to meet consumer’s expectations.”

As for opening during a historic financial downturn, Hurwitz sounds well rehearsed in his answer. “If you look at what’s been going on with food in the last 10-15 years from foot and mouth disease and mad cow disease, people have stopped trusting the food chains.

They want to know where their food has come from, who has handled it on the way and they generally think more about what they’re putting into their mouths. Adding to that, people want more healthy lives, are focused on their food with the rise of celebrity chefs and that movement has been growing throughout the recent recessions. People aren’t going to stop being interested in food. I believe food is recession resilient.”

Hurwitz convinced the banks of the demand for quality, local food, his passion and most importantly, his business plan. “The city gave me the ability to take a business plan and present it in the way that investors wanted to read it” he confirms candidly. He “had to raise every penny” from outside investors, a number of which, he reveals is “30 in total (due to

“People aren’t going to stop being interested in food.

I believe food is recession resilient.”

- Jason Hurwitz

cost of living is as low as it’s ever going to be and it’s never going to be easier to explore a business opportunity myself.’

With a redundancy package which he describes as modest, yet enough “to keep me ticking over and the family afloat” he set about seeing if his concept of bringing quality, local food to the urban environment was a viable

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An Entrepreneur’s Story

a number of small investors, friends and family which distort the numbers) and one bank.”

The set up costs to transform the 5,000 sq. ft site, must have been vast.

“We renovated every wall, every window and every roof tile at £7.50 each.

The huge capital outlay of running a food business, refrigeration, display... is why a lot of people don’t do it, it’s a great barrier” he adds. Recouping these costs, depends on “how quickly we find our feet.”

Of course, this, and all of the risks were considered in his business planning, including his own lack of direct experience. “I don’t come from a retail or food background and what investors look at always, are two things - the strength of the business plan and the people around it to make it happen. The path is never straight and you need the right people on board to navigate that. So I bought in people who did have experience - a store manager who worked for over 30 years managing the Co-Operative food chain” [amongst other specific experts on each counter in the store].

So is food recession proof as Hurwitz claims?

What is evident, is that although we as a nation are spending on food, in tough times we are counting how much we’re spending on it. As the supermarkets continually squeeze their suppliers to bring us the lowest price deals of their competitors, will we assume that we are paying over the odds for an expensive refurbishment, the label of something locally grown or produced by an artisan at Thornes?

It’s an assumption that Hurwitz has been fighting throughout his first two months of trading, and one that he nonetheless, calculated - his economies of scale are very deliberately designed to benefit both his customers and his suppliers.

“Our food must reflect the true cost of production, we’re not artificially lowering our prices in the way that

the supermarkets are doing now. A classic case is our milk. Our dairy supplier sells the majority of their milk wholesale to supermarkets, they earn 24p a litre on that milk and it costs them 26p on every litre [to produce it]. With us, they make a profit - our milk is an extra 9p a litre, do customers really care about that 9p? We make a big story about it and say our milk is 9p more, but the milk they supply to us is from the farm around the corner [and unlike the supermarket milk] it’s not homogenised, it’s how old milk used to be, shake it and the cream will settle on top like it used to.” Hurwitz goes further to note that despite preconceptions over Thornes’ pricing, some of their fresh produce is “fundamentally cheaper” than the supermarkets. “Our baking potatoes are 46% cheaper, white onions are 52% cheaper” he claims (and he is clearly spelling out these messages on black boards in store). Thornes sustains buying at a fair price from their suppliers as a large operation with extended

Hurwitz put in a bid of the asking price on the former Taj site “but they wanted the safety of a supermarket and now it’s Sainsbury’s” - SBT

opening hours, “and we can pass on our economies of scale to our customers.”

The knock on, is that “the food margins are low for us, but underneath we have a great structure for running the business.”

Fresh local produce from Sussex suppliers on display at Thornes Foods

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Advertorial

Business Planning in an Uncertain Economy How can managers plan effectively in an environment characterised by slow recovery and uncertainty?

Delivering the Bank’s quarterly inflation report in November, the Governor of the Bank of England stated that the UK’s economic outlook has worsened, and the economy could stagnate until the middle of next year. 2011 and 2012 growth predictions have been cut to around 1%, with the Eurozone crisis pronounced as the “single biggest risk” to the UK. Unfortunately, this outlook means it is likely to be a long, slow crawl out of recession for businesses. Corporate insolvencies are up by 6.5% on the same period a year ago, according to the most recent Insolvency Service Statistics, published November 4. There are also still few businesses expanding and few taking on new staff – we are seeing companies fall or exist, rather than grow.

So in this environment of instability and risk to the economy, how do managers plan for recovery? How does a business stay afloat in times of uncertainty?

In our view, it is wise to firstly guard against the worst case scenario. Given the unpredictability of the economy, putting in place a plan that addresses the potential for one or more business critical event occurring in 2012 is a wise move. A business critical event could be a funding line being reduced or taken away, the loss of a key customer, a supplier getting into financial difficulty or simply pressure from customers to drastically reduce prices. If such an event occurs, there are a number of steps that should be immediately taken by the management team.

1. Consult your accountant: The worst thing any manager can do at the first sign of trouble is to look the other way. The problem will not go away, it will only get worse and, the longer it is left, the fewer options will be open to the business when management finally does face the music.

2. Get a tight control on cash management: If this is an area that has traditionally received little attention, make sure it becomes a key priority. Analyse the debtors, particularly late payers, and agree a plan of action with the finance team or credit controller to recoup outstanding debts as quickly as possible.

3. Communicate regularly and clearly: Make sure internal lines of communication are clearly understood and regular reporting is maintained. If management fails to communicate with staff, then a version of the truth, usually inaccurate, will become the reality.

This type of alarmist gossip will distract and demotivate staff and, at worst, will result in concerned team members hunting for a job elsewhere.

If these steps are taken quickly, it is very possible that the event will prove challenging, rather than fatal. Planning for these types of events will also reassure funders and senior members of staff, in itself helping to make the business more stable.

But what if the business finds itself in all together happier circumstances, faced with the “good problem” of how to take advantage of a growth opportunity? During this climate one of the biggest challenges for a business is securing finance. How do you ramp up operations to satisfy a spike in demand, particularly when lenders are cautious? There is finance available for SMEs, whether through some of the Government schemes, a bank or alternative finance provider, but the key to approaching any potential funder successfully is to first seek expert advice. In all cases, the approach will have to be accompanied by a strong business case and robust, transparent financial forecasts.

There is no simple answer when planning in an uncertain environment. But by recognising the challenges and opportunities uncertainty presents, and the solutions available to some of the problems created, management can put the business in the best possible position to survive and grow.

By Ian Sykes, Partner at FRP Advisory LLP, the specialist restructuring, recovery and insolvency firm Contacts for FRP Advisory: Jade Devlin, Grayling, Tel: +44 (0) 121 265 2769, Email: jade.devlin@grayling.com Kate Macnamara, Grayling, Tel: +44 (0)121 265 2761, Mobile: +44 (0)771 422 2793, Email: kate.macnamara@grayling.com About FRP Advisory FRP Advisory LLP is focused on creating, preserving and recovering value for its clients. The firm offers a comprehensive suite of services to the mid-market and financial community. These focus on enhancing the performance of businesses, as well as saving businesses in distress.

Services include: commercial & asset finance, corporate insolvency, restructuring, independent business reviews, interim management & placement services, personal insolvency & advisory, creditor services, insolvency investigation services and banking live-side support.

With 28 partners and 200 staff, FRP Advisory is one of the largest restructuring, recovery and insolvency firms in the UK, operating out of 9 locations including London, Bexleyheath, Hornchurch, Birmingham, Manchester, Leicester, North East, St Albans and Worthing.

To find out more, visit www.frpadvisory.com

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An Entrepreneur’s Story

Hurwitz’s fundamental aim with his price structure is to make “quality produce available to everyone, everyday.”

Of course not everything on offer is inexpensive - you can, for example buy Britain’s best cheddar (Montgomerys), from the deli counter at £2.55 per 100g - however, essentially the margins are much lower than many farm shops, which often have “an ambitious margin

Brighton as a town is very forward looking, adventurous and an ethical city.

Furthermore, “it’s a great food city too, with the country’s largest food festival, funded by local businesses”

All Photography by Katariina Jarvinen

- Jason Hurwitz

strategy.” Whilst he could be charging more, Hurwitz is far keener to win over return customers with his quality produce With it’s central North Laines location and prominent facade, Hurwitz feels Thornes is “at a junction point in the city where people who work in the centre walk past on their way home.” Then on Saturdays, as Thornes opens its doors, the 100 year old street market in which it is situated “rolls in.”

Choosing Brighton to launch the store, was deliberate. “Brighton as a town is very forward looking, adventurous and an ethical city with a green council and green MPs. People [here] are very considered about how they spend their money and where it goes.” Furthermore, “its a great food city too, with the country’s largest food festival, funded by local businesses.”

And, Hurwitz confirms, “the south east has the largest number of local suppliers in the country.”

Nevertheless finding a site, wasn’t

straightforward. Hurwitz initially viewed large properties in Brighton that were priced for retailers, “and were 10 times more [than the eventual site] so they wasn’t feasible for an independent food retailer.” He also put in a bid of the asking price on the former Taj site opposite the Pavillion “but they wanted the safety of a supermarket and now it’s Sainsbury’s” he reveals. Hurwitz, however, seems smitten with his location in the North Laines.

The Saturday before speaking to SBT, Thornes received 350 paying customers.

The store “is doing well, we are definitely in the black” he confirms, whilst the restaurant on the top floor is winning more customers than forecast. Hurwitz admits however, “the lessons are that it’s harder to change food shopping habits than it is to convince someone to go out to dinner.” It is easy for SBT readers who know Brighton, to instantly think of how ‘Bill’s’ has adapted it’s store to restaurant ratio at this point. It’s an easy comparison to make. Yet not only is Hurwitz adamant that BIll’s was not a catalyst - (his research took him much further afield and he notes The Good Shed in Canterbury, as an example of an inspirational operation) amongst farmer’s markets, farm shops, delis and fishmongers, “and the desire to put those things under one roof” - he is also adamant that he will stay true to his initial vision. “Bill’s a great place but its 98.5% restaurant these days and I spend 98.5% of the time talking about our store. The ground floor will always be a store.”

It’s a strong sense of vision and belief that has got Thornes off the ground as a business, and one, which in characteristic Hurwitz style, already has ambition. His broad target is for “people to use us as an alternative to supermarkets” and although just two months into trading, whilst “still making the first branch work” he is thinking ahead to the possibilities of bringing the brand to other urban centres (both in Sussex - he mentions the requests he’s received from customers for a branch in Hove - and nationwide).

Having been nominated for Best Sussex Food Shop in the Sussex Food Awards which will be judged this December, Thornes is already gaining recognition.

Yet only time will tell how the risk of opening right now, will facilitate Hurwitz’s next move. www.thornesfoods.co.uk

Jason Hurwitz visits a dairy supplier to the store

Hurwitz’s Plan of Action 1.

Hurwitz first visited suppliers and gained an understanding of the market.

2. He embarked on a

three month viability analysis to ensure his concept was a valid and viable business concept, calculating the set up and running costs.

3.

Confident with the analysis, he spent three months writing a detailed business plan. The first draft was 160 pages long.

4.

Next, he spent six months focused on raising the funds for the business.

He secured funding with 30 investors and one bank.

5.

Then he searched for a site in Brighton. Three were short listed and two fell through. It took eight months with funding in place to secure a location.

6. A six month renovation

of the site ensued. Hurwitz delegated the physical project management of the build and shop fit, so that he could recruit staff, line up suppliers and organise refrigeration.

7. Thornes opened 18th August, 2011.

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The Secrets Of My Success

SBT talks to

Duncan Bannatyne

In an exclusive interview with SBT Editor Samantha Scott-Jeffries, the star of Dragons’ Den and renowned entrepreneur whose interests include Bannatyne’s Health Clubs and Spa Hotels in Sussex, reveals what lies behind his ambition and key decisions in business.

You started your career with an ice-cream van, then moved into care homes, then health clubs and spa hotels. What inspired what might appear to be radical changes in direction?

There were different opportunities at different times. In the 1980’s, Margaret Thatcher was encouraging private suppliers of care for the elderly and I was in the right place at the right time. I saw the trend and capitalised on it. Then health clubs began to grow in popularity so I founded Bannatyne Fitness and that business has evolved over the years.

What gave you the certainty that each of these new ventures would work?

The belief that people needed or wanted the service and would pay for it. There has to be a practical application for any business plan.

Why did you decide to launch a spa hotel in Hastings, and in 2006, in defiance of the credit crunch?

There was nothing like it in the area and as the recession took hold, people wanted to allow themselves little indulgences close to home, rather than spending more on foreign spa breaks.

Our readers will be familiar Bannatyne’s in Eastbourne and Hastings, and may know that membership to one, invites access to both clubs (and a variety of clubs around the UK). What inspired this flexibility for your members?

An understanding of our customers’ habits and what they desire; we know that many people relocate, through work or family necessity, and they should be able to use the club closest to their new address.

From your recent book 43 Mistakes Businesses Make & How To Avoid Them [featured overleaf], what is the number one theme that our readers should avoid?

Not knowing when it is time to stop and move on to the next idea.

You also wrote How To Be Smart With Your Time this year. In your opinion, what is the biggest misuse of time in business?

One of my rules of thumb is to keep meetings to a strict time limit. Meetings that go on for longer than 30 minutes are often time wasting, and it is usually possible to get everything done in 20 minutes.

As an employer across the Bannatyne Group and an investor on Dragons’ Den, what are the key attributes you seek in the business people you invest in?

I look for honesty and commitment to the job; you also need to be very knowledgeable about the industry you are in and more passionate and determined than the next man.

What do you consider to be your most successful or most defining moment in business to be to date?

Setting up and then selling Quality Care Homes for £26 million was the move that allowed me to grow and diversify into other sectors successfully.

What do you attribute your drive for success to?

A hunger to succeed and confidence that I can do it.

You say in your blog that entrepreneurs shouldn’t fear austerity. What advice can you offer Sussex based entrepreneurs and small businesses in tough times?

I would say that, in such an uncertain job market, being your own boss is the perfect solution. Anyone can do it, as long as they have the passion and determination to succeed.

I know Sussex is a hotbed for entrepreneurs, and now is a better time than ever before to set up on your own.

Portrait © Duncan Bannatyne

How did your upbringing and early career shape you as a business man?

Exclusive Where I was brought up in Glasgow, Interview young men left school and went straight to the shipyards or factories. Becoming an entrepreneur was almost unheard of, but ever since an early age, I wanted to find ways to make money on my own initiative. We were not a well off family, so I had to improvise to earn money; I remember knocking on doors to create a newspaper round for myself, which eventually consisted of 100 addresses and allowed me to afford a bike.

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Portrait © Duncan Bannatyne

“Sussex is a hotbed for entrepreneurs, and now is a better time than ever before to set up on your own” - Duncan Bannatyne

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SBT

Networking Event SUSSEX BUSINESS TIMES

To celebrate 37 years of SBT and involve you in the latest changes we are making to re-fresh and improve your magazine, we are hosting a networking afternoon on Friday 27th January that’s not to be missed.

Join us to meet the new team behind your favourite business title and be entertained by guest speaker Colin Hutchinson, the former Managing Director of Chelsea Football Club, and the Editorial Director of the Life Media Group, Grant Scott, who will be talking about the importance of social media in building brand communication. It promises not only to be an essential event but the first of many that SBT will be hosting around the Sussex region in 2012.

Colin Hutchinson

Colin Hutchinson: was the Managing Director of Chelsea FC for 15 years.

As well as running the football club on a day-to-day basis (including the leisure and retail development around the club’s Fulham home), he was closely involved in the hiring and firing of players and managers.

Responsible for transfers and players’ contracts, Colin signed £126m worth of players including Ruud Gulit, Mark Hughes and Gianfranco Zola. Now based in East Sussex, he is a captivating speaker with many stories to tell and his business credentials are abundant.

Grant Scott

Grant Scott: has been involved with magazine publishing for over twenty five years working on publications such as Elle and Tatler, and for commercial clients such as BMW, Nautica, Bang & Olufson, Ford and Nectar to name just a few. Starting his digital career in 2000 during the dot com boom, Grant has been responsible for the launch of a number of online platforms including tablet and mobile phone apps, webinars and podcasts, and is a leading commentator on the use of social media to build brand communities.

Date: Friday 27th Jan 2012 Start time: 2:15pm with drinks on arrival. A traditional hog roast will be served. The event ends and the bar opens at 5:00pm.

Tickets: £35 (limited to 70) Call 0870 777 9778 or email info@sussexbusinesstimes.co.uk to reserve your space.

Venue: Saffrons Sports Club, Compton Place Road, Eastbourne, East Sussex, BN21 1EA

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The Inside Track

Duncan Bannatyne’s

Key Mistakes to Avoid in Business

In his interview with SBT, Duncan Bannatyne noted that one of the biggest mistakes in business was “not knowing when it is time to stop and move on to the next idea.” Here he elaborates on bad business ideas and identifies a second mistake - not doing a ‘sensitivity analysis’ - an essential tool which calculates how robust any business is. Can you afford not to take his advice?

Mistake - It’s just a bad idea

Starting a new business based on a good Essential idea is hard enough. Starting with a bad idea? You’d have to be a masochist. One of Advice the reasons Dragons’ Den is so popular – and why it’s such fun to make – is because every now and then someone comes into the Den with a truly terrible idea. It can be very hard not to seem cruel when entrepreneurs tell us they’ve spent six-figure sums and left their jobs to start these businesses, but it is our job to tell them to stop spending, stop trying and stop dreaming.

In my opinion, one of the worst ideas we’ve seen has got to be what became known as ‘the cucumber condom’, a plastic device you stick on the end of a cucumber to stop it drying out. As the inventor of Q-Top went through his pitch I found so many flaws that I didn’t really know where to begin with my questions. While I imagine a couple of people watching probably did say to the person next to them on the sofa: ‘That’s quite a good idea,’ I am certain that the majority of people watching were saying, ‘Why don’t you just cut the end off the cucumber?’

cabs. The idea was to sell the video equipment to cabbies for hundreds of pounds, and in return give them a share of the advertising revenue. The trouble as I saw it was that it would take so long for the cabbies to get their investment back that they were better off sticking with the paper ads they already had – especially as passengers would ask them to turn the TV off so they could have a conversation! However, that’s only my opinion and I gather Cabtivate did get off the ground.

Ask around

Throughout these sorts of presentations I find myself wondering, ‘Why didn’t someone stop them? Surely there must be someone in their life with a tiny bit of common sense who could have taken them to one side and said, “Really, have you thought about this properly?”’

Not only had these people had these bad ideas and mistaken them for businesses, they had wasted time and money on them. And presumably, a few months and several thousands pounds down, no one had the heart to tell them they were deluded.......until they met the Dragons.

So how can you be sure that you aren’t about to spend your time and your money on a bad idea? Well you could try asking people for their opinion. Some entrepreneurs are deluded into thinking their bad idea is potentially so lucrative that they won’t tell people about it in case the idea gets stolen!

The chances that someone will steal your idea are so remote that it really is a risk worth taking. Remember the old saying: no risk, no reward? Take a small risk and reap a big reward.

And if you really can’t face telling friends and family, find an online forum and ask for feedback. The other technique is to force yourself to come up with five reasons why your idea will fail in the marketplace. Then take a long hard look at those five reasons and ask yourself how likely it is that these scenarios would happen. A bit likely? Pretty likely? Very likely? And those are just the reasons you came up with. There are hundreds more you haven’t considered yet.

“Remember the old saying: no risk, no reward? Take a small risk and reap a big reward”

What need does your business fulfil?

- Duncan Bannatyne

The reason why I thought Q-Top was a bad idea wasn’t that the ends of cucumbers don’t dry out, it was that the drying out of cucumbers isn’t really a problem for anyone. And why would you fiddle around with the Q-Top when it’s much easier to discard the dry first slice? Even if you were given your Q-Top for free you probably wouldn’t use it. Q-Top is one of the Den’s howlers because it attempted to solve a problem that no one was aware they had. And you can’t build a business for those two people watching who thought it was quite a good idea.

Businesses need bloody good ideas to thrive. In the first series, an entrepreneur called Mark Greenhalgh brought us Cabtivate, a business that offered video advertising in the back of black

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The Inside Track

Mistake - Not doing a sensitivity analysis

I confess that when I first started out in business I had never heard of a sensitivity analysis. Now that I do know about it, I wouldn’t want to be without it.

What is it?

A sensitivity analysis is one of the best defences a business can have against going under because it is a really simple tool that lets you understand how robust your business is. To carry out a sensitivity analysis you just need a set of your business’s accounts and all you do is play around with your costs and revenues. Simply ask yourself how far your costs could rise before you’d end up in the red: 10, 20, 50 per cent?

And then see how far your revenues could fall before you couldn’t pay your bills: 5, 15, 25 per cent? The sensitivity analysis is particularly useful if your business is heavily geared –

“As long as the financial reality stays within the margins you’ve identified, you can continue to operate with confidence.”

- Duncan Bannatyne

2. It can trigger the smoke alarm

Just as a smoke alarm wakes you up in the night to give you a better chance of escaping a fire, so a sensitivity analysis can be your wake-up call to danger for your business. If you know you can only let revenues dip by 20 per cent, then when they start to slide, you can make adjustments and preparations. As soon as revenues slip, you can begin to cut costs. Or if costs start to rise, you can take evasive action to prevent them eating too far into your profits.

3. It gives you confidence

If you know your business can survive a 10 per cent drop in revenue, then you’re not going to panic when your income drops by 5 per cent. As long as the financial reality stays within the margins you’ve identified, you can continue to operate with confidence.

How useful is it?

When you perform a sensitivity analysis you need to look at each area of expenditure and income separately. You might be able to absorb a 50 per cent hike in some costs, while a 5 per cent increase in other costs could wipe you out. The more detail you put into your sensitivity analysis, the more useful it will be.

Since I discovered the wonders of the sensitivity analysis, I’ve realised how valuable it is as it helps me make better decisions.

In case you’re interested, in my businesses I am always looking for a 40 per cent cushion. I know that my overall costs can rise by 20 per cent at the same time as my revenues drop by 20 per cent and still be able to stay afloat. The wider the margin your sensitivity analysis reveals, the more likely it is your business will endure. If you fail to do a sensitivity analysis, then you are failing to protect your venture.

i.e, you have a lot of debt – you can be particularly vulnerable to changes in bank lending rates. Your loan repayments could well be your business’s biggest cost, which means a 1 per cent rate rise could hurt your profit margin by a lot more than 1 per cent.

It doesn’t sound a lot, but I know from my own businesses how much 1 per cent impacts the bottom line. In 2011, the VAT rate increased from 17.5 to 20 per cent. The 2.5 per cent difference might not sound like very much, but on Bannatyne Fitness’s turnover of £100 million, it actually meant we were handing over an extra £2.5 million in tax each year because we didn’t feel we could pass on the increase to our members.

It might have been a small percentage, but it translated into a huge amount of money.

1. It gives you a reality check

When we look at our accounts we are looking at actual figures that correspond with actual pounds. If the figure is big enough, we tend to feel pretty secure. But if your £1 million profit is made on a tiny margin, you can easily see that a small percentage shift could wipe out a massive chunk of your earnings – or wipe the business out altogether. If you know all that’s standing between you and your millions is a 5 per cent cushion, you might behave rather differently than if it were 50 per cent. A sensitivity analysis can be your wake-up call to danger.

Read all of Duncan Bannatyne’s key business mistakes in his book - 43 Mistakes Businesses Make...and How to Avoid Them by Duncan Bannatyne, Published by Headline in trade paperback, priced £13.99 www.headline.co.uk

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Adding Value

Great Expectations The hotels succeeding in tough times are diversifying and improving their offerings to entice customers and maximise profits. SBT speaks to two locally based hotel businesses of different scales, who have experienced a healthy uplift in takings as a result.

Case Study 1

Alexander House Hotel East Grinstead

At a time when many companies are culling their marketing and sales personnel in an attempt to save resources, Alexander House took the bold decision to invest into these areas along with new refurbishments. The result? An increase of 22% in overnight stays, 25% on spa days and 10% on dining, year on year.

Alexander House in West Sussex, is one of three boutique and spa hotels in the Alexander Hotels collection, which are all located just outside London in historic buildings and “share the same ethos at the top end of the hotel market, giving personal service” explains owner Peter Hinchliffe.

Peter and Deborah Hinchcliffe bought their West Sussex site in 2002, and applied for planning permission to add a large extension to the existing property in which to house a spa and 23 additional bedrooms, whilst they renovated the original part of the building in 2003. “It was a slightly run down hotel” claims Hinchcliffe with 15 existing bedrooms which “as a commercial entity wasn’t terribly viable” he elaborates. “Having done exactly the same thing at Rowhill Grange, in Kent” (also in their collection) “ten years down the line, with the benefit of experience we applied the same model with current fashions in mind.” The work was completed in 2006.

“As with all businesses the recession hit two or three years ago and things took

The swimming pool in the Utopia Spa at the Alexander House Hotel, with its subterranean Grecian inspired interior

The imposing exterior of the Alexander House Hotel

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Adding Value

Utopia Spa at The Alexander House Hotel

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The development of the Ocean Suite at Eastbourne Pier has created one of the most spectacular private hire venues on the south coast.

The Ocean Suite is reached via stairs up to a private traditional terrace area which offers unbeatable 360ยบ sea views. The suite can hold up to 200 guests. Guests can enjoy the comfortable surroundings and state of the art facilities in the suite and then walk out onto the roof terrace and private sun deck, complete with mini bar to take in the beautiful Sussex coastline.

As you arrive into the Ocean Suite the sense of space and light is amazing. The suite is glass to three sides and bathed in natural light which gives a spectacular feeling of being on board a luxury boat.

The room itself has been given a cool finish of light creams and jet black which compliment the champagne bar decor running almost the full length of the back wall. The striking lighting gives a crisp feel to the whole room which is a complete contrast with the blue of the ocean surrounding the suite.

The Ocean Suite offers unrivalled fine dining options through RED Anywhere who will manage all catering on site, headed up by Daniel Clarke (Master Chef of Great Britain).

We look forward to welcoming you to the Ocean Suite in the near future.

THE OCEAN SUITE, EASTBOURNE PIER, GRAND PARADE, EASTBOURNE, BN21 3EL T 01323 410467 F 01323 738918 E INFO@THEOCEANSUITE.CO.UK W WWW.THEOCEANSUITE.CO.UK

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Adding Value

The South Lounge at The Alexander House Hotel

a severe downturn.” reveals Hichcliffe, candidly. “As with everyone else, you look at your business and see what’s best to do to weather the storm. We decided 18 months ago to really major on our marketing and sales activity, rather than cut back and prune” he continues.

“We knew we needed to get every bit out of the business that we could.” To Hinchcliffe, this was an obvious move. “In any business, unless you are maximising your facilities, you know that you aren’t doing the amount of business you could be doing. If you are operating at a level and know there is another 25% capacity, it’s a point of saying ‘how do we fill that’? The only way is to get people coming, the customer base broader and encourage returning guests.”

Hinchcliffe bought in Group Marketing Manager Lucy Chisholm in February 2010. Chisholm had been made redundant from a large group of hotels with a site in Sussex, and claims that “within a period of six months, about eight decent people I knew well [in

“Avoiding peaks and troughs to protect cash flow, investing in staff and/or marketing are themes that link both of these case studies.” - SBT the industry] went through the same thing.” Chisholm developed an “all in one strategy and package” for the AH group, based on her previous work at other 5 star hotels. She looked at areas that were particular low points “mid week lunches in the restaurant, overnight breaks after the new year and developed promotions for those times, rewarding returning customers. Secondly, she aimed to grow the brand and the hotel’s database “enticing new customers with branding exercises, lead generation and promotion” as a way of saying thank you and keeping in touch.” To further reinforce branding, Chisholm employed

external branding agency Creative & Brand in Alcester, Warwickshire, to work on social media projects. “They have put together a social media strategy for the year. The first part of the project is to get people from the database to ‘like’ us on Facebook...the marketing possibilities from that are huge.” Other social media platforms they utilize are Trip Advisor, Linkedin and Twitter. “We want to know when customers have had a good experience, or when there have been issues, because with social media it really is so instant” says Chisholm of online feedback.

Along with marketing, Hinchcliffe

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Adding Value

bought in an additional four to five people in sales, with Reema Bakshi as Corporate Sales manager for all three sites. Bakshi had previously worked for the Four Seasons chain. As a result Hinchcliffe claims that “corporate business, executive meetings and events have increased and improved. “Dividends of last year have been the results of bringing in a stronger sales team and marketing” whilst the rewards of social media are yet to be fully realised.

The new hotel team has placed a concerted focus on spa days, now up 25% year on year. This has been achieved “by offering day membership” and the initiation of a “small local membership scheme as well.” An annual or monthly fee for the latter buys use of the facilities including a sophisticated gym and studio, personal training and fitness training, which Hinchcliffe claims “are not in the mass leisure club business. It’s a very small number of members who get very personal attention and are looked after individually” he elaborates.

The 10% increase in dining owes much to the “considerable amount of money spent on a major refurbishment of the main lounge and restaurant” which saw the hotel close for two weeks a year last January. The restaurant overhaul was in part, a response to changing times and tastes. “The days of small portions, fine dining and foams have passed” says Hinchliffe of his new menu. “We’ve really moved in to using a lot of locally sourced ingredients” he claims, and “our food is now much more in line with what our guests want.” The restaurant has been subsequently re-launched and marketed to outside diners. “A lot of people think that hotel restaurants are for hotel guests only” he explains “we are a destination restaurant for people in the area.”

With the financial year having started at Alexander House (in October) Hinchcliffe is anticipating “a sizable amount of spin off from the Jubilee and Olympics next summer. We’re geared up to take advantage of that and it’s a case of carrying on investing in the business.” Hinchcliffe is in fact currently spending £100,000 on a new presidential style suite, and will also create a new board room for executive meetings.“We think you have to carry on investing. We reinvest as we have done along the way, you have to keep on top of things, or it can slip.” www.alexanderhotels.co.uk

Case Study 2

Pelham House, Lewes

Just ten minutes from Brighton, with both indoor areas and gardens offering possbilities for civil ceremonies and receptions, Pelham House has always operated as a wedding venue. However, since organising weddings in house in 2008, they have enjoyed a 61% rise in the number of weddings and more than a £1,000 increase on the average spend of each wedding in 2011 at the hotel. In 2008, the hotel hosted 39 weddings with an average spend of £3,414 and in 2011 they will hold 63 weddings at the hotel with an average spend of £4,522.

Pelham House in Lewes opened in 2004 after the 16th Century Town House was restored by a group of four local families to offer a contemporary hotel interior with historic features.

For four years, the hotel contracted out food and beverage as well as the catering for weddings and events to a third party.

“It was en vogue at the time” explains General Manager Paul Morgan “there were quite a few hotels operating like that and some still do with named chefs, but it wasn’t working for the hotel.” Morgan lists some of the issues as a blurring as to “who was responsible for what”, practical issues such as “licencing and regulations” and the fact that the company in question

was “more suited to the weddings and events than the finer detail of [day to day] breakfast and room service.” In short, the result was a “separated service” for customers and in 2008, the hotel “had to weigh up having a bigger payroll in house, but an increased revenue in the wedding business, which needed the finance from food and beverage from larger events.”

In 2008 a decision was taken for Pelham House to take over running all of its’ events and its’ restaurant, in house.

In 2009 “when things started getting tight” [in the recession] we looked at the management and sales structure and stripped it back, to make it more efficient, which was tricky” Morgan continues.

“There was a real pressure to reach targets and a lot of effort. It was a seven day a week operation. A three man sales team were on site seven days a week to ensure that if potential guests wanted to be shown around at any time, they would be available, even when events were running. The hotel invested in training for all staff to deal with enquiries and ‘show rounds.’ “That contributed to the increase in weddings and the confidence of what we sell.”

Abi Stephenson was bought in as the Business Development Manager, and originally oversaw weddings, until she was in a position to employ someone for that role and focus on solely developing the business. In addition “a food and beverage manager, restaurant manager, conference manager were employed, with a total of six people in the kitchen. Now,

The restored 16th century Pelham House Hotel, in Lewes

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Newly weds celebrate their big day at the Pelham House Hotel

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Adding Value

there is a six person, part time events team who equate to four full time staff” [employed as and when needed].

“In a small team, everyone has an understanding of the product, the service, dealing with enquiries efficiently” says Morgan of the new structure.

With new staff to facilitate in-house weddings, Pelham House is able to devise simple packages for their clients.

This presumably enables a small inhouse team to facilitate the events with more ease than treating each wedding as a bespoke offering, and also Morgan claims, appeals to the client. “A lot of clients want a package for an amount per head, so that it’s transparent.” Within these packages, Morgan explains how the hotel then offers “flexibility on the rates depending on the time of year, what we’re forecasting and what we can discount at certain times” thus passing on the most attractive deals to clients. “The sales team knows there are perameters which they can’t go below because the profit margins won’t be worth it, but where they can discount in certain ways.

So, the restaurant manager’s gross profit for food and drink would be protected, but we might take a hit on hotel rates at that time of year, as we know we can make it back at another time” Morgan reveals. Conversely, the packages are also devised to be upscaled with extras as clients wish, to allow for the hotel to upsell a package and increase the value of each wedding. “They might add

a cheese course, 50 extra covers for evening guests and a buffet” he offers as an example. The important thing is to get revenue coming in. We don’t want peaks and troughs, we want to be busy all of the time, it protects staff and cash flow. We look ahead and forecast weekly, monthly, three monthly and six monthly and we invest a lot of time looking at where the gaps are.”

Hoteliers Association “we share information surrounding our performance and we have a weekly note sent to all of our hotels about our occupancy. If we can’t accomodate people we send them to our competitive set, we have visibility there” and presumably a reciprocal relationship. Maintaining relationships with competitors “helps us focus on what we do well and not so well. It’s more

“Maintaining relationships with competitors helps you focus on what you do well and not so well. It’s more detrimental not to talk.”

Paul Morgan, Pelham House Hotel

The hotel has undertaken a complete re-branding of their website and marketing material. Improved listings were sought on specialist wedding websites and reciprocal links were realised on a list of suppliers sites, which results in Pelham House being much more promient in google searches.

Morgan also notes reviewing the competiton as key, both nationally and locally. As members of the Sussex

One of the luxurious bedrooms at Pelham House Hotel

detrimental not to talk,” Morgan confirms.

With weddings as a strong part of its’ core business, the hotel now hosts internal and external wedding fairs. The former “does not generate profit” [aside from a potential small fee for suppliers to take a table] explains Morgan, but “showcases the hotel. We provide welcome drinks, canapés, there is no door charge and we don’t get sniffy about who’s having a look. Visitors see the hotel in its best light and they might like the meeting rooms, or stay for lunch.”

Nevertheless, it is obvious that Pelham House’s packages are winning them clients, but it does raise the question of how much they may have increased their prices since 2008. “We increased them last year in line with VAT but the year before we didn’t. We keep the main package under £100 a head. The increase comes from people who sit outside the package” and the hotel’s success in upselling their standard offerings. For the future, the hotel is keen to build on its’ success, with a target of 70 weddings for 2012. www.pelhamhouse.com

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SBT Discusses...

DEBATE THE BIG

Is outsourcing a smart way for businesses to minimise their economic risk in tough times?

SBT opens up the debate to two Sussex based experts within the industry.

Do you outsource to reduce your outgoings when finances get tight?

It can be a tricky decision to take. For some businesses, it’s a solution that can be financially effective; enabling a reduction of in-house staff and avoiding the psychological trauma of having to create redundancies when a fleet of specifically trained professionals can be called upon (and paid for) as and when needed. Yet SBT has heard of scenarios where the reality is not so straightforward. The remaining in-house staff can feel insecure, demotivated and unable to oversee external workers, lines of responsibility can become clouded and the dedication of the overall workforce diluted, when the cultures of the two businesses do not mutually collide.

So, is outsourcing the best solution for businesses in tough times? SBT consults two very different local experts within the outsourcing industry to explore both sides of the argument.

Butcher set up his company in the last recession on recognising that finance could be outsourced in the way that IT was being offered to companies by third parties. “There are economies of scale, it’s skilled and the reasons for companies outsourcing computer operations were the same as finance.” In fact Butcher claims to have been one of the first companies to provide outsourcing for

“We take the view that they are enhancing control over their business” - David Butcher

finance. “When BP announced they were going to outsource their finance department that finally convinced me that it was worth doing.”

The Case For Outsourcing

Why did you think that outsourcing finance would appeal to companies as a good concept?

I knew that people would be cutting their costs, downsizing and that a finance department is generally inefficient.

We therefore, could go in and offer companies an alternative.

David Butcher, Managing Director of FD Outsourcing, in Crawley has offered outsourcing of financial services for 19 years. Currently handling approximately 25 clients at any one time, he is a provider to all scales of businesses from start-ups through to companies with a turnover in the region of £5m.

So are you confirming that outsourcing can cut costs?

In truth, I have generally not tried to sell the business as a means to cutting costs, because if you are going to try to cut costs, saying, ‘this is a cheaper way of doing it’, people aren’t going to necessarily take the risk to uproot and

FOR

change the way they run the financial side of their business for a marginal saving. They have got to have a problem they need to solve and we can provide them with a better solution than they could do otherwise, and we can do it cheaper. They are often trying to reduce their whole finance department, and will look to see what the alternatives are.

What about for large businesses?

Offshoring, which is putting call centres out to India (for example) and where it is possible fo UK companies to employ people for a far lower cost than they can in the UK, is generally for large companies where they have a large volume of transactions that don’t need to be done in the same waking hours.

That can cut costs.

So how do you appeal to your market?

We are in the SME market place where it isn’t high volumes of transactions but a range of skills are required, where our part time staff are available five days a week. Our client might want a Finance Director half a day a week, but prefer that half days’ effort to be spread over five days. They can call us at any time that they need a person available, enabling

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SBT Discusses...

them to have a range of skills available five days a week for a part time price.

And what if their requirements change?

We can add financial people with certain skills as and when they are needed. The client has the flexibility of outsourcing without having to worry about the staff or having to expand or contract - this gives

that reports went to the States on a weekly basis, and that the weekly UK accountants dealt with the US tax affairs.

The value for them was being able to continue their UK operation seamlessly.

How do clients feel that they are still in control when outsourcing?

That’s a mindset. People can see it as abdicating control, but we take the view

It could be that the customer is paying for services that they dont actually need.

- Ash Patel me the problem rather than the customer.

If there are new provisions coming in or changes in legislation then usually each company has the cost of implementing those changes and work out what is relevant for them - we can work it out once, and apply it to all.

How else is outsourcing cost effective? Can you offer an example?

A UK branch of a US corporation needed to downsize its operations back in 2009 and one of the things that they needed to do was to make the whole of their finance department redundant. They wanted me to replicate what they already had, but I went in and said ‘actually, although that’s the brief you’re giving me it’s not the most efficient way of doing it.’ So we completely streamlined, stripped out all of the things that weren’t necessary or added value and implemented Sage for them, which is the UK’s market leading package in the SME market place, which they never could have done from the US, thousands of miles away. There is no need for clients to have software themselves if they can access it via us.

They don’t need their own copy of Sage (for example) if using our servers.

How did the practicality of the UK and US offices work?

They were operating the system (Sage) on our servers here, so I had two people operating on the general purchase ledger side, me providing them with the technical Financial Director advice, plus two ladies (their staff) in their offices who were doing the invoicing and the stock control. That worked to ensure

that through employing the experts they have better advice and we are enhancing the control by giving them a greater understanding, rather than reducing it.

So what is the real value of outsourcing?

The real value can be avoiding the hidden costs of not doing it; the costs of mistakes being made, of senior staff having to do junior work, junior staff doing senior work or give financial advice.

AGAINST

The pitfalls of outsourcing Ash Patel, is the Director of Managed Services for ADA Technology Services in Burgess Hill who have 20 years experience of providing co-sourced and fully managed IT services. Patel has been with the business for 10 years, in which time he has seen a £4m turnover increase to £20m. In the last five years ADA has seen a growth in outsourcing within the mid market, which they class as 30-1500 users. “Based in Sussex, 95% of our business is local but at the top end of our business we work for Bloomberg and BGC in New York.”

Patel says that in big business, the interest in outsourcing lies “in cost control, head count reductions and

efficiency gains, and at the smaller end of business, companies are “interested at getting more value and de-risking.”

Thus, here we focus on the pitfalls on outsourcing to small service providers.

Patel speaks of how some clients find ADA Technology Services having had an unsuccessful experience of outsourcing from another IT provider first...

So where can outsourcing go wrong for the client?

By not really having a clear understanding of what they are buying, that’s probably no.1 in my eyes. A lot of customers very easily accept how they think service providers are going to meet their requirements. They need to spend a lot more time in the due dilligence stage, really trying to understand at a practical ground level how the service is going to operate, where the boundaries are, how their contract protects them. We come across a lot of customers who have had their fingers bunt, they are re-styling and have had false promises and have been mislead.

So is this about the service provider up-selling their product?

The most common factor is the disparity between what a service provider promises and what they can really deliver.

They might be selling the dream, selling way beyond the operational capabilities they can deliver. One outsourcing company discovered that they were 18 months behind what they could operationally deliver and what the sales forecast had promised.

How can this happen?

If you look at a service provider they are two separate businesses; operations and sales. Sales are selling on the basis of what customers want, and operations are often reactionary and trying to play catch up, which is partly the nature of being on the floor. The customer won’t necessarily see the capability operationally to match what they’re buying.

You speak of getting the wrong partnership, tell me more?

Let’s start with the business performance of certain outsourcing companies. If they’ve built a business model around selling projects, then I’m expecting to sell X many projects to pay for an operational head count. The challenge of that model is that if they are having to go out and sell projects and they haven’t got the financial

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UNWINDING?

BEING SOCIAL?

CALL PRIORY

When an occasional habit gets out of control it can quickly become an addiction. It can wreck your life and the lives of those around you.

Fortunately addictions can be treated and the sooner you act, the sooner you can regain control of your life. The Priory Hospital Brighton & Hove offers a free, confidential assessment.

Call Priory on 0845 2 PRIORY (that’s 0845 2 774679) to talk to an experienced addictions therapist for help and advice.

You’ve come this far, don’t back out now.

Contact the Priory Hospital Brighton & Hove for a free initial addictions assessment:

Tel: 0845 2 PRIORY (0845 2 774679) Email: info@priorygroup.com

48 www.sussexbusinesstimes.co.uk www.priorygroup.com/addictions 40 Sussex Business Times

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SBT Discusses...

security within their own model to protect themselves, then one or two months down the line if they don’t hit their project value or targets, the first thing they will be releasing is their technical head count, and that affects the client. The last thing the customer wants to know is that the outsourcer is losing its’ head count.

Can there be other problems with transparency?

Not knowing the cost structure, where excess charges are, what’s included and excluded in the service, that gets client’s backs up. It could be that the customer is paying for services that they don’t actually need.

They have got to have a problem they need to solve and we can provide them with a better solution than they could do otherwise, and we can do it cheaper.

- David Butcher You also speak of the importance of the customer’s own awareness.

Can you elaborate?

In the industry at the moment there is a lot of talk about cloud; public cloud, private cloud and a lot of service providers are dropping that to customers at the moment. Customers are making decisions and go wrong when they haven’t looked at all of the options, especially where there is jargon, sales speak or not knowing providers’ operational capabilities at the back end.

Then there is the question of processes.

Customers often don’t get the best from service providers because they are lacking in the internal processes that would enable them use IT efficiently. We have a customer who outsourced their IT to us and there are certain decisions that they should have made regarding the security data in their own business we don’t want to be responsible for the integrity of their data. If they are running an application for their business, they are responsible for the data that resides within that application and the service provider is aware that the data is not their responsibility. If that data corrupts because internal staff input it in the wrong way, then the service provider can’t be accountable for that, that’s the fault of the company’s own processes.

Are there other ways of getting the wrong partnership, such as cultural incompatibility, for example?

One customer came to us to say a service provider didn’t have a clear understanding of how they could present information back to them in a way that they could understand. They had a monthly report which was very technically led rather than saying simply that they were at risk of exceeding capacity, might lose information as a result, or advising them around what decisions they needed to make. The customer had to tell the service provider how to relay information in a way that they could understand it!

How else is it possible to get the match wrong?

For many companies IT is a reactive function based on what the company needs at a particular time, rather than part of its strategic planning. However, if a business plans to expand, then not finding a partner who is going to accomodate that scale of growth is where another problem lies. Organisations tend to outgrow their IT services. At a particular time they will have made a commercial decision that IT is a problem that needs fixing, but if they are then looking to expand quickly they can find that the service provider can’t scale up or guide in a consultative way to get them where they want to be.

So to summarise, what is key?

The essence is trust and communication. www.ada.co.uk www.fdoutsourcing.com

Tips for successfully outsourcing IT IT is one of the most common services to be outsourced. Ash Patel of ADA Technology Services advises on what to look for and expect from a potential service provider.

There has to be good cultural compatibility A good fit comes down to ethics and a personality feel. It’s vital that the outsourcing company has a true understanding of your sector.

We have open days, we’ll go down the pub and have social events with our customers, so that we can experience eachother face to face.

Insist on planning It’s vital to know where potential exposure is and where the excess is in a services contract.

This ensures that the work is planned and you are getting value.

Check that the service provider is embracing the relevant standards and disciplines The provider needs to be managing services and cases using specific processes to get the best from their team.

The customer can reap the benefit of us training staff Smaller businesses often don’t have the capability to identify gaps within their own IT teams and invest in them. Staff retention in this area can be a problem, as can growing skills, if there is not always an IT career path for in-house IT employees.

If the customer employs the right service provider, they can reap the benefit from us training staff.

Ask for a fully transparent payment plan At ADA we offer a comparison of what we can do, the services on offer and what can be achieved to show and demonstrate how IT can save costs and add value.

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Home Grown Hero

Made In Sussex:

Brewers

SBT celebrates local businesses that have become thriving national brands.

In the first part of this new feature series we profile Brewers, the decorating and interiors merchant that originated in Eastbourne over 100 years ago. Now boasting 130 branches, they have recently been awarded a Royal Warrant. We discover the key to Brewers enduring success.

“People are the most important thing to the Brand Brewers business” claims it’s current Focus Chairman, Mark Brewer, and it would seem that this has always been the case. When the Quaker Clement Brewer set up the founding branch of Brewers in Eastbourne in 1904, the family run business prided itself on offering key advice and friendly support to its’ clientelle. Away from the store, Brewer is said to have always been punctual when delivering to customers on his bicycle heavily laden with products.

With the customer at the foundation of his principles, Brewers’ objective was to offer the decorator everything he could need for the perfect finish; a principle that has served the company for over 100 years of trading.

The company today offers a wide and diverse range of quality decorating materials, including wallpaper and paint from brands such as Dulux, Crown, Farrow and Ball, Sanderson, Little Greene, Harlequin, Zoffany and Osborne & Little amongst many many others. “Brewers has been a proud and leading supplier to decorators in Sussex, supplying them with high quality products at great value” says Mark Brewer. While it’s our people that make the Brewers business different, our customers come first and this business basic has helped

ABOVE: Brewers’ first store on Pevensey Road, Eastbourne

Brewers to retain long-standing and dedicated customers. This same ethos helped Brewers to be awarded the prestigious Royal Warrant for product supply to HRM” he continues.

Having supplied decorating materials to a number of royal housholds, including Buckingham Palace for some decades, the company now boasts the official mark of recognition and badge of excellence for its operational ability, customer

service and ethical approach to business.

Today, Brewers purports to be the UK’s largest independent supplier of decorating materials with 130 branches across the country. It has nevertheless, retained it’s status as an independent family business - testament to the generations that have maintained and furthered the original vision of a man with strong business principles.

“Brewers has been a proud and leading supplier to decorators in Sussex, supplying them with high quality products at great value” - Mark Brewer, Chairman.

50 www.sussexbusinesstimes.co.uk

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Full Pa

1976

Trek makes its first bike, the 520. A high-tensile, double-butted steel frame built in a barn in Waterloo, Wisconsin. It’s still under warranty.

520

Madone 6.9 SSL

2012

Now a top performer in the Tour de France, the Madone combines aerospace technology with ultimate comfort. Now designed by bona-fide rocket scientists at Trek HQ in Waterloo, Wisconsin, just minutes from the same barn where it all began.

Technology has changed a lot in 35 years. Our goal has remained the same: Build The World’s Best Bikes.

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