19 minute read
Thought Leaders
Leading by example, one opinion, one idea, one lesson at a time, our thought leaders are significant in the Leicester and Leicestershire business scene.
With authority in their field of expertise, passion for sharing ideas, and commitment to helping others, they’ve been asked to express their most current brainwaves in print.
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Selected organisations and individuals share how and why they go about their business, reveal their ambitions, provide clarity on matters within their industry, educate on complex or novel subjects, inspire with their forwardthinking and progressive perspectives, or look backwards to evaluate what’s been learnt.
Got something you’d like to see our team of thought leaders cover? Send your topics of interest to kerry@crossproductions.co.uk.
Phil Nassau
Managing Director at ActionCOACH
Never outpace your learning
In my professional life, business owners ask the same question over and over again: “How do you become successful?”
Back in April, myself and 1,500 other business owners attended the BizX Forum and Awards to learn from the best of the best in business.
There were a couple of common learnings. Firstly, those I spoke with all wanted to get better at doing business. Secondly, the presenters explained that they did not achieve their success easily – they spent lots of time learning, they talked to the best in their industry and kept pushing forward. Not one of the presenters were given their success; they all failed along the way but learnt from the journey, never allowing others to outpace them.
So, how do you become successful?
There are several answers to this question; the biggest is in the title of this piece. You have to learn business to become great at it. If you’re reading this, I’m sure you are now thinking: ‘well you would say that!’ But if you want to be successful at what you do, you have to learn how.
I believe many business owners are deluded – this is based on the belief that we often consider ourselves to be better than we actually are. Much like in life, when we are given an opportunity, we can often make the wrong choices and therefore don’t succeed in the way we’d hoped.
When we admire highly successful people from afar, we tend to believe that they are just lucky, more talented than ourselves, or just in the right place at the right time. In truth, our lack of success is because of something we are not doing. In other words, our failure is not participating. Fear fuels the excuses in our heads about why we are not where we want to be. Continuing to learn is the key.
If you want to learn more about business, talk to other business leaders and get a head start on your journey, to avoid being outpaced by those around you.
Darren Willoughby
Managing Director at 2XL Commercial Finance
Portfolio landlords: time to fix?
Is it now time to look at fixing your loan rate or keeping it variable?
Bank of England took the unprecedented step of cutting interest rates to 0.25% on March 11 in an attempt to reduce the economic burden of the Covid-19 outbreak. Just a few days later, they slashed them further to an all-time low of 0.1%.
However, as we approach the middle of the year with inflation rising, coupled with an uncertain future especially due to the ongoing war in Ukraine, we have seen Bank of England’s rate increase to 0.75%.
planned, there has been a rush to try and fix interest rates, particularly from portfolio landlords. It’s because this proposed increase could have a serious impact on the mortgage and property market as banks look to factor in the actual rises as well as the predicted ones. But why the panic, you may ask?
Well, let’s just say you have £2m of debt on a base rate linked product at base+2.5% over 25 years. On March 19, 2020, your allin rate was 2.6%, meaning your monthly payment was £9,073 a month. Fast forward to March 2022 and your all-in rate is now 3% with monthly payments of £9,484.
If the year-end predictions come true with base rate potentially reaching 2%, your new all-in rate is now 4.5% meaning your new monthly payment is £11,116 – an increase of £2,043 a month. Annualised, this is an increase of £24,516 a year.
Jay Webb
Managing Director at Jay Webb Consultancy Services
Are your policies up to date and working for you?
For those of you in business or in the joyful role of HR, Covid is keeping us all on our toes.
On March 24, 2022 changes related to the Government’s policy of ‘Living with Covid’ and the Statutory Sick Pay (SSP) Scheme came into effect.
Pre-pandemic rules will apply, meaning that anyone who is unwell with Covid will only be paid SSP from the fourth day of their absence. Additionally, workers’ rights to claim SSP due to the sickness or self-isolation from the first day of absence also came to an end.
Covid will be treated like any other illness and people who are asymptomatic are not technically sick; SSP from day one is no longer applicable and, as there is no mandatory self-isolation, people can now go into work.
This is going to cause quite a dilemma for all organisations that have staff coming into work, because the alternative to not paying people some form of sick pay if they are asymptomatic is the risk that staff will come into work and potentially mix with vulnerable people.
Employers also have a duty of care under their health and safety obligations so will need to undertake a risk assessment on a caseby-case basis.
You will need to consider what your company’s policy will be for those who you don’t want to come into the workplace if they test positive for Covid and how you will manage this.
You may consider establishing your own enhanced sick pay if you expect people to be off who are capable and willing to work. Contractually, employees will have a right to be paid if you want to enforce them to stay at home – whether that is full pay, SSP or an enhanced SSP.
At present, there is no guidance from the Government, so employers need to create their own post-Covid policies and procedures to deal with it. There are many HR experts and legal firms who can help you with this.
Rik Pancholi
Managing Director at Pattersons Commercial Law
We don’t talk about Bruno, no, no, no!
We don’t talk about Bruno... but sometimes we actually need to. The reference here is not really to the character Bruno in the famous animated Disney movie Encanto, but in fact this is a reference to events that are outside our control.
As business owners, you will have realised throughout your career that there are certain things that you simply cannot plan for nor expect, no matter how detailed and how concrete your business plan is.
If we rewind over the last decade and a half, we have experienced a global financial crisis, a series of political changes, a worldwide pandemic and more recently, a war which was unforeseeable to many. If you think about it, our businesses – as resilient as they may be – have to be adaptive to a changing geopolitical environment and, as business owners, we have to be ready for change when it comes and when we least expect it.
I can think of many scenarios in which I’ve spoken to clients who have very valuable businesses and have seen them take a massive downturn because something huge and significant impacts them. As a specialist corporate lawyer who advises on business acquisitions and sales, I cannot stress how important it is to be ready and adaptive. If that means buying another business where there is a perfect opportunity, then you must always be ready for it. Equally, if a great offer lands on your lap and you are unsure whether to take it or not, it is always worth a look-see.
Whilst you may not want to talk about Bruno, sometimes we really must! If we avoid talking about future events outside our control, our businesses – much like the Madrigal family – may be hurt by the consequences when we could have instead worked things out together.
George Oliver
Director at 1284
Accelerating growth of start-up entrepreneurs
Emerging entrepreneurs value free stuff, right? And they invariably want it quickly? Accelerators offer a solution.
Business incubators have been around since the 1950s, but accelerators are a more recent phenomenon. Since the mid-2000s they have been supporting early-stage and start-up businesses with investment, short-term mentoring and training. Accelerators speed up early growth with intensive compressed support programmes. They may be public, private, university or community enterprises. They sometimes specialise in specific groups or sectors.
There are plenty of them to choose from in our region. For example, the Wayfinder scheme I work with provides a raft of free support to entrepreneurs. Wayfinder broadens the remit of Loughborough University’s LU Inc. incubator – which previously served graduate start-ups and research spinouts – to an accelerator for founders across Leicestershire and beyond. It runs two programmes a year.
Accelerator programmes generally last between three and six months. So, what should you look out for?
Rick Turoczy has worked in high-tech start-ups in the US for more than two decades. He co-founded the Portland Incubator Experiment (PIE) accelerator. Turoczy writes about building start-up communities by meeting entrepreneurs where fledgling communities already exist.
That is similar to the ethos of Leicester Startups, which recently moved to a new city co-working space and for whom I sometimes mentor. Leicester Startups is a social enterprise with a ‘give first’ ethos, running a programme that concludes with local entrepreneurs pitching to potential mentors and backers at a Demo Day.
Re-reading Nudge (the 2009 bestseller about how people make choices) recently, I noted it has a whole chapter devoted to why people make choices based on social influences. And I think that aspect of accelerators is maybe as important as the funding and mentorship provided – the best accelerators offer a supportive ecosystem in which entrepreneurs can celebrate breakthroughs and work through setbacks together.
As Turoczy concludes: “Remember that, in the long run, you’re not building an accelerator. You’re building a community.”
Laura Kearsley
Partner and solicitor in employment law at Nelsons
Eviction moratorium set to end
In 2017, employment tribunal fees were abolished, making justice far more accessible to employees across the country. Despite best intentions, employers may, at some point, have to navigate an employment tribunal.
It’s important to bear in mind that there’s an incredibly broad range of issues that could be the catalyst for employment tribunal claims, such as: unfair dismissal, breach of contract and discrimination.
It’s vital that once the Advisory, Conciliation and Arbitration Service (ACAS) tries to get in contact with an employer about a potential claim that they reply quickly. ACAS have a limited window of time during which they can try to resolve disputes before Tribunal proceedings are initiated.
If this is unsuccessful, the next thing an employer will receive is a copy of the claim and a response pack from the Tribunal. The response will need to be submitted within 28 days of the claim being issued by the Tribunal. If a response isn’t received by then, the employer may be excluded from taking any further part in the claim and, in some cases, the tribunal may automatically rule in favour of the employee.
If you file your response in time, a preliminary hearing is sometimes held to review certain aspects of the claim, such as: the time and date of the employment tribunal and what steps both parties must take beforehand. Once adequate time has passed for both parties to gather the required evidence, the full employment tribunal will take place.
During the tribunal, should proceedings go in favour of the employee, it’s likely that the employer will be ordered to either pay compensation or sometimes to give the employee their old job back or find them a similar role.
It’s crucial to review existing contracts, policies and procedures regularly to ensure that they are fully compliant, up to date and safeguard the business’ rights – paving the way for a sound employer and employee relationship.
Employment law can be extremely complex. Therefore, if a claim is filed, it is vital to remain calm and seek legal advice as soon as possible to ensure the business is protected throughout proceedings.
Jennifer Thomas
Development Manager for Leicestershire, Northamptonshire, and Rutland at Federation of Small Businesses
Small firms are absolutely crucial to our economic recovery, bringing innovation and dynamism, creating jobs, growth and opportunities. They account for 60% of private sector employment in the UK and make up 99% of all businesses. But they face significant barriers, being unfairly penalised and held back while big businesses with greater resources, opportunities and platforms, grab the spotlight.
Tellingly, large corporates are now regularly being struck off the Prompt Payment Code for their poor payment practices – but is this making a real difference to their willingness to improve? Big businesses must become better corporate citizens with their supply chains, including when it comes to stamping out poor payment practices, reducing bureaucracy, and gifting through the Apprenticeship Levy.
As I write this in midMarch, the Bank of England’s Monetary Policy Committee has raised the base rate to 0.75%. This move will mean higher debt costs for many firms at a moment when soaring overheads are threatening futures. At the same time, consumer confidence has plunged and the cost-of-living squeeze has intensified, with record fuel prices and sky-high utility bills meaning loss of disposable income. Small businesses increasingly feel that the Government is indifferent to the cost pressures they face. The planned hikes to national insurance and dividend taxation taking effect, alongside an income tax threshold freeze, will, for many, be the final straw. Increasing the Employment Allowance, upping the small business rates relief threshold on rates, steps to spread the pressure of debt repayments and taking action on surging fuel and utility bills would all help. We have urged the chancellor to take these and various other steps to support SMEs in his Spring Statement, and by the time this article is published we will know what he is prepared to do to help.
From growth-inhibiting tax hikes by government to poor supply chain treatment by big businesses, unfair treatment and policy against SMEs holds back our economy and must be challenged. Government and big businesses should back small businesses in whatever way they can, as part of their DNA. We must inform and encourage them to do so and also challenge where we don’t see this happening.
Krupa Joshi-Bhatt
Celebrating similarities in a world full of differences
Over the past couple of years, the words diversity and inclusion, or wider still, equality, diversity, equity and inclusion (EDEI), have become of extreme importance within our communities. The #BlackLivesMatter (#BLM) movement triggered a wave of emotional upheaval that resulted in cultural changes everywhere.
With businesses introducing focus and resource internally to evidence their efforts, it’s been an opportunity to recognise existing provision within the local voluntary community and social enterprise sector (VCSE) and connect with them. This combined effort to ensure people from diverse backgrounds get a fair chance has encouraged broader perspectives, positive workplaces, improved team integrity and better staff retention. Voluntary Action Leicestershire (VAL) trustees committed to the Equality Diversity Inclusion principle of the Charity Governance code as good practice and have internal processes in place to do the same.
However, whilst the local VCSE sector is constantly battling inequalities in local communities, the 2021 Sewell report carried out by the Commission for Race and Ethnic Disparities undermines and disregards the presence of inequalities based around ethnicity and background. The sector plays a huge role in offering tailored and bespoke services to suit the individual needs of those from different walks of life – with a focus on promoting equal life chances to all, continually commended by the local authorities, health partners and private sector organisations.
The bigger picture
The one thing that has shone out over the course of the last two years is the unanimous desire to help each other out. Whilst our community is made up of a unique blend of people, the focal point has been the similarity driving everyone towards the same goal – humanity. The VCSE has always served the needs of the community, and it is great to see other sectors partnering with them to create greater positive change!
Bhavin Gandhi
Director at Paradigm Wills and Legal Services
Ringfencing and bloodline planning: do you know your options?
When a potential client wants to discuss making a new Will, I always ask what’s important to them and what is it they want to achieve by making a Will. The usual responses I get are that they want to name their children as executors, or they want to change how their estate will be distributed once they pass away or change the beneficiaries. When we get talking further down the line to understand their family set-up and more about the people they are surrounded by (such as family members, children, and grandchildren) and we discuss bloodline planning and how children’s inheritance can be ringfenced against future divorce, we tend to hear them say: “I wasn’t aware of these options when I last made my Will”. Quite shocking.
The clients may have made a DIY Will or purchased a Will online and spoken to someone who just processed their order and did not give them information on their options. Ringfencing inheritance to protect it against beneficiaries going through a divorce is one of many things you can protect against. I always invite people in for a coffee and a chat to review their Will to explain to them what they actually have and whether it suits their requirements, and if it does, then that’s great.
However, if they wish to understand how to protect their children’s inheritance, we will carry out a thorough fact-find to understand what their estate consists of and what they want to achieve. We’d also help to educate them on their options that they can then go away and think about before they decide what it is they want to do.
Many people come back and want to put comprehensive plans into place as they feel it’s important to protect what they have worked hard for. Do you fully understand what is in your Will and have you had all possible options explained to you?
Andrea Gray
Managing Director at PPL PRS
Changing how we communicate
Communication is not only about talking to someone, but also about our body language, how we listen, our responses and our physical reactions. With all meetings taking place remotely over the last two years, it has become harder to ‘read’ the person on the screen. Returning to in-person meetings has also led many of us to find that our communication skills may now be a little lacking. Some colleagues may have even taken their first steps into the working world within that remote environment and have never encountered office etiquette and routines.
Open and honest communication has now never been more key to ensuring our workplaces return to the buzzing and thriving hubs they were preCOVID. Understanding that we all have different levels of comfort and styles of communication is vital.
I prefer straight to the point and factual styles of communication, whereas some of my colleagues respond well to more visual and creative ways of working and discussing ideas and issues.
What is most important though, as we all return to a new normal, is a real consideration that we aren’t all the same, we do have different ways of saying the same things, and just because someone else’s style of communication is different to yours, it doesn’t mean they are wrong. They are just different to YOU.
In this ever-evolving world which brings new challenges for diversity and inclusion almost daily, this is a good time to take stock of our own behaviour and communication style and understand that it is these things which make us all unique – our upbringing, our gender, our culture, our experiences – they all influence how we behave on a daily basis and how we treat others who are different to us. This understanding can go a long way to building strong teams who respect each other and work hard to make your business a success.
Sally Smith
Marketing Director at Cross Productions
Remove unconscious bias, open up to opportunity
From your life experiences to date, your mind has stored information you have been exposed to from meeting people, watching TV or reading books. Each element of information is given associations in your brain, ultimately creating your view of the world.
Stripping this back to its simplest form, these associations provoke your knee jerk reactions; you see a red light and your unconscious mind tells you to hit the brakes.
Our unconscious bias has been impacting and influencing organisational decisions for decades. Did you know that a huge 58% of FTSE 500 CEOs are almost 6ft in height, yet only 14.5% of the male population are this height?
Our perception of height and power has put these people in more senior positions. Just because they are taller does not give them a more effective skill set to be in the position than those who are shorter.
So how can you start retraining your mind and open yourself up to new opportunities? There are many tools to draw upon and here are a couple of hacks to help you.
Remove bias triggers
When recruiting, remove their name, age and gender and focus on the skills and experience. By hiring someone who is not the ‘usual type’, you can benefit from different perspectives and ideas that create new opportunities.
Spend time with people different to yourself
Learning more about cultural differences can change the educational information you already have ingrained, enabling change in your unconscious bias. Future decisions will be made with an open mind, and you become receptive to things that are different rather than things that are safe, gaining you different experiences. The more exposure you have, the more you increase your chances of different outcomes.
Remember, we are products of our environment; change your environment and you experience something new.
