Talk Business Magazine May 2014 by Talk Business

W W W . T A L K B U S I N E S S M A G A Z I N E . C O . U K

FOR THE ENTREPRENEUR

BY THE ENTREPRENEUR

May 2014 £4.50

The Business Show Guide Don’t miss these highlights

Considering redundancies?

10 ways to avoid job cuts

THE START-UP ENTREPRENEUR Serial investor and entrepreneur, Raj Dhonota tells us why he’s pledged £1m to launch two start-ups every week in 2014

Cover_Final.ga.indd 1

24/04/2014 16:11

Swiss movement, English heart

C60 T R I D ENT- PR O AUTO MATIC Made in Switzerland / Sellita SW200-1 self-winding movement / 38 hour power reserve / 42mm marine-grade 316L stainless steel case and deployment bracelet / Water resistant to 300 metres / 4mm anti-reflective sapphire crystal / Deep-etched back-plate engraving

CWardmay.indd 1 227_ChristopherWard_Talk Business.indd 2

24/04/2014 16:57

CWardmay.indd 2

24/04/2014 08:40 16:57 24/04/2014

Professional Direct Double Page Advert_1 20/03/2014 09:25 Page 1

At Professional Direct Insurance we can offer you a range of services and covers to suit your business, because when you put your heart and soul into your business, isnâ&#x20AC;&#x2122;t your business worth protecting?

Untitled-3 2

27/03/2014 11:42

Call now on

0800 0744 448 or visit www.professionaldirect.co.uk Professional Direct is a trading name of Trade Direct Insurance Services Ltd, who are authorised and regulated by the Financial Conduct Authority. TD0012-1403

Untitled-3 3

27/03/2014 11:42

Have you seen the Citan? £169 per month*. A Daimler Brand

The great small van from Mercedes-Benz.

www.mbvans.co.uk/offers

Offer available at participating Mercedes-Benz Commercial Vehicle Dealers only. See your local participating Dealer for details. Please call 0845 602 4321 to find your nearest participating Dealer. *Finance for BUSINESS USERS ONLY. Vehicles shown for illustrative purposes only. Example based on a Citan 109 CDI Long manual transmission including first registration fee, RFL, delivery and finished in white paint at a price of £17,699.48 incl VAT on a Mercedes-Benz Finance Agility contract with a customer deposit of £4,207.74 incl VAT and a deposit contribution of £3,250.00 followed by 36 monthly payments of £169.00 and an optional final payment of £5,450.00. £3,250.00 deposit contribution is available on Agility,

MEC RETAIL DPS PRINT.indd 1 NewBusiness (3) SS.indd 1 12594 MEC TALK BUSINESS DPS

28/04/2014 24/04/2014 10:13 15:22

12594 M

014 15:22

Contract Hire and Operating Lease only. ÂŁ2,750.00 deposit contribution on Hire Purchase and Finance Lease only. Finance based on 10,000 miles per annum. VAT is charged at the prevailing rate. Credit provided subject to status. Offer is subject to terms and conditions. Excludes fleet. Vehicles must be registered between 01/03/2014 and 30/06/2014. Vehicles must be supplied by a franchised Mercedes-Benz Commercial Vehicles Dealer. Offer based on selected physical Dealer stock. Offer subject to availability. Finance provided by Mercedes-Benz Financial Services UK Ltd, MK15 8BA.

MEC RETAIL DPSBUSINESS PRINT.inddDPS 2 NewBusiness (3) SS.indd 2 12594 MEC TALK

29/04/2014 15:22 14:21 24/04/2014

Untitled-4 1

30/01/2014 15:30

iNSIDE 11 Editor’s letter 14 Letters 16 News & events

57 TALK strategy

Talk image

53 The branding column Rich With

95 We love… exhibitions Our favourite accessories

55 Don’t control your staff, influence them Flexible working

96 Look the business: smart shirts Fashion

57 10 ways to avoid job cuts Advice

98 Hot spots Locations for SMEs

60 Have no fear Handling redundancies

talk technology

63 Thames Valley Expo is back Preview

20 TALK Success 20 The start-up entrepreneur Raj Dhonota, serial entrepreneur and Apprentice candidate 28 A call back The Call Centre interview 31 Introducing… TB grills a young up-and-comer 33 The Business Show guide 10 of the best

65 Challenges of reaching China China and the internet 67 Born to sell: chapter one Adam Caplan 71 The sales doctor Solving your sales problems

talk MARKETING 73 The marketing column Kimberly Davis 75 Ten steps of Twitter Step seven: crediting authors 77 Avoid the junk folder Tips on email marketing

101 The accelerator Jon Bradford, the tech expert 103 Should HR be doing more video interviews? Interview methods 105 Improve internet security Web tips 107 Enhancing the fan experience User experience 109 I’ve got an app for that… Our fave business apps 110 3D printing for the masses Gadgets

TALK FRANCHISE 113 Franchise news

35 Book reviews

79 Save your marketing team Job cuts

117 Researching a franchisor Assessment

138 He said/she said What are the entrepreneurs saying this month?

talk people

121 The attributes a franchisor looks for Franchisee tips

talk MONEY 37 The funding expert Going public 40 Step two: getting the contract right Series by Simplify The Law 43 A day in the life Diary of a Start Up Loan recipient 45 Money matters The economy and current affairs 47 Make or break a business Cash flow

81 The people column Lee McQueen 83 Why do you need HR? Nine reasons 85 36% of staff leave due to a disruptive colleague Powwownow survey 87 Dealing with the job market HR Insight 88 Secret diary of an entrepreneur A week in the life of the founders of Claudi & Fin

49 A numbers game Accounting tips

91 Brought to you by Basepoint Top tips on redundancies

51 Pros & cons of forming a limited company Formation options

93 An insider’s view to director disputes Handling disagreements

009 OPENER Contents.ga.indd 9

123 Take one franchisee Michele Austin, LighterLife 125 The fran man Recuriting the right franchisees

talk aDVICE 126 Barter Card 128 UberOffice.com 130 Ulimate Business Cash 132 KMC Software 134 ActionCOACH 136 Talk Business directory

33 24/04/2014 14:40

. U K . C O I N E Z A A G S M E S N I S B U L K . T A W W W

SUBSCRIBE TODAY FOR T

. T

er mb

4.50 3£

te Sep

25% off RRP

fin T an he iss ce ue

N EE

201

E N ation I ov Zs Inn e sines uA B r fo th ate of of State retary K SMAEs,Gthe st t the Sec tU We mee , to talk abou Musiness b ls S il men in oS and Sk y, and w econom N E I S U

. T

N RE

a.indd

FINAL.g

Cover_

H RT

rch

T BY

A4adtemplate.indd 1

BUSINESS SHOW2014

THE

We accept

. U

Bud reac

R NT

other UtRwyhaatbou d ou tG FinE N sa to d E ha

e h t e ur r a s ‘SME lood of yo’ lifebeconom I

T EN

N RE

E TH

E TR

ess

L A I C ISE O S T‘ HE TERPRTION’ catas EN VOLU aign p m a RE re is flexible C 0

4.5

4£

201

n no

es C

or, use voucher code tbs2014 at talkbusinessmagazine.co.uk

. C

Jam

Purchase your subscription on stand 2318 at The Business Show 2014

pa p i ny you ce gr r ow

YOU ON YOUR ROAD

ENEUR

.50 2014 £4

Is th er fu e a s nd m yo art We re ur er ve al h bu wa dis ow co fac s yt un to tin rin in es o gc ga ou n s? co ld h d inv m el o

& ADVICE TO SUPPORT

BY TH

E C N I V E L B A C

April

FOR INSPIRATIONAL TIPS

TO SUCCESS

HE EN

ENE TREPR

REPR E ENT

star

t-up

ple

peo or nf r o i s e s pa pow er e n h mat ni o e ulti i a ss is th o y H ness lod Me y kind h tion w volu

utu f e h T

s of ade dec ee r h T -1

tled

Unti

e fam

and

how

usin

b his

and

Rem

ese

th ber

ce e offi

rd a w Re r staff ou 29/04/2014 12:51 h tax ug thro es ari

tion

pro

ks per

editor’s letter

Scan this QR code to subscribe to Talk Business

EDITOR

Dawn Murden dawn.murden@astongreenlake.com

DESIGN

Paul Christopher Daniels paul.daniels@astongreenlake.com Heather Rugeley heather.rugeley@astongreenlake.com

WEB DEVELOPMENT MANAGER Mitchell Finlay mitchell.finlay@astongreenlake.com

SALES & MARKETING MANAGER Scott Hartley scott.hartley@astongreenlake.com

SENIOR ACCOUNT MANAGER Trystan Hurley trystan.hurley@astongreenlake.com

MANAGING DIRECTOR Stuart McCreery

Circulation/subscriptions: UK £40, EUROPE £60, REST OF WORLD £95 Circulation enquiries: Aston Greenlake Publishing Ltd T: 0203 617 4680 Talk Business is published 12 times a year by Aston Greenlake Publishing Limited William Robinson Buildings, 3 Woodfield Terrace, Stansted Mountfitchet, Essex, CM24 8AJ © Copyright 2014. All rights reserved. No part of Talk Business may be reproduced, stored in a retrieval system or transmitted in any form or by any means, without the prior written consent of the editor. Talk Business will make every effort to return picture material, but it is sent at owner’s risk. Due to the nature of the printing process, images can be subject to a variation of up to 15 per cent, therefore Aston Greenlake Publishing Limited cannot be held responsible for such variation.

Printed by

Great employees make a great business ay is a good month for most; as the weather begins to get warmer, and two bank holidays approach we can think about taking a load off for a few days. However, this is not always the case for SME owners. Figures for the financial year are in, teamed with adjusting to the introductions from The Budget. If the figures are good and the new introductions have had a positive effect, then all is well. If not, then May can be a very difficult month evaluating the future. Financial losses, limited profits and a lack of funding can haemorrhage your business. It may trigger unavoidable cut backs, such as down-sizing your office, cutting distribution, terminating projects, and making the tough decision to let valuable staff members go. Our Face on the cover, Raj Dhonota knows what it’s like to be down and out. After 18 months of trying to make his first business work, he was forced to admit defeat - not only going into liquidation but also filing for personal bankruptcy. He reveals how he bounced back on page 20. If you’re in trouble and redundancies seem like the only answer – think again. Read our ten tips on avoiding job cuts on page 57. There may be a way to save those key workers yet. Remember great employees make a great business. Unfortunately, on occasion redundancy is the only way. If this is the case, turn to page 60 to read what David Evans, an employment law expert says about handling it in the best possible way.

When it comes to losing important members of staff, it’s not always due to redundancies. Research from Talent Q, a psychometric assessment specialist, found that 37% of staff are planning to leave their job this year, because organisations are failing to retain them. With economic recovery and the job market picking up, comes ambitious employees less willing to stay in a job where they don’t feel valued. Do you have an HR department or representative? How can you run the company and assure your staff are looked after? On page 83 we outline nine reasons why you need HR, from saving money to managing performance. Plus, on page 81 Lee McQueen discusses how he regularly rewards his staff. Take care of business for now,

@TalkBusinessMag

talkbusinessmagazine.co.uk

011 OPENER Editors Letter.gNEWa.indd 11

29/04/2014 17:28

Contributors & LETTERS

The experts Michelle Wright is founder of social business, Cause4. Launched in May 2009, Cause4 offers strategic support to charities, philanthropists and social enterprises. The company has worked with some of the country’s leading charitable organisations, including the Southbank Centre, National Gallery, and the National Theatre. In summer 2013 Michelle was awarded a Fast Growth Award from Unltd, and was invited by Lord Young of Graffham to become an Accelerate 250 member, as well as part of the Silicon Valley UK 100 Club for small businesses showing rapid growth and potential. Read her article on how cash flow can make or break a business on page 47.

Steve Ruffley is the chief market strategist at spreadbetting and CFD trading platform, InterTrader. Steve has had his own account on some of the biggest trading floors in Europe during the last decade, from investing for high net worth individuals at PriceWaterhouseCoopers to mentoring and risk managing the top city traders at Refco. Steve has run the trader education programme at InterTrader for several years, developing structured webinar courses to help traders identify and maintain their trading edge.

Andrew Johnson is finance director at Powwownow, a free conference call service provider in the UK. He has 11 years’ finance experience from the aviation, shipping and property sectors, including four years within telecommunications. Andrew joined Powwownow from Urban Wimax Networks PLC, where he was financial controller, and worked as a key member of its senior management team. Andrew is a chartered accountant and has a degree in accounting and finance.

Turn to page 45 to read how three stories dominating the headlines will affect our economy.

Read his article on page 85 on how 36% of staff leave their job due to a disruptive colleague.

Richard Cummings is managing director of HR Insight; he joined the firm as a human resources consultant in 2011 and has worked his way up. Richard leads a team of HR consultants, payroll specialists and employment law practitioners. Richard and his team provide HR support to clients. This support covers everything from contracts and polices to change management initiatives, including reorganisation and redundancy. Increasingly the team is working on people strategies, which include changing the way the businesses view recruitment, reward, employee relations and development. Richard discusses the basics of handling redundancies on page 87.

MAY 2014

012 Contributors.ga.indd 70

24/04/2014 14:45

Untitled-13 1

27/03/2014 16:18

MAILBOX

If you’d like to send us your thoughts about Talk Business, or anything else that’s happening on the SME scene, just get in touch: email: dawn.murden@astongreenlake.com. snail mail: Aston Greenlake Publishing Limited, William Robinson Buildings, 3 Woodfield Terrace, Stansted Mountfitchet, Essex, CM24 8AJ.

This month our readers are discussing direct debits and mumpreneurs, and retweeting our stories

Wasting time, wasting money

Tweets 0F the month... R OF E T T E L MONTH THE

Dear editor, Direct Debits (DD) and Direct Credits (DC) have undoubtedly become a cornerstone of the UK’s payment processes over the past decade, with almost six billion payments processed each year. Yet most organisations’ DD and DC set up processes are clearly still inadequate: almost a quarter of individuals (23%) have experienced a problem setting up or amending a DD or DC in the past 12 months. According to research undertaken by Redshift Research on behalf of Bottomline Technologies, 43% of finance teams spend over four hours every month fixing failed transactions, and 11% take more than 10 hours each month. Human error is unavoidable; it is only by imposing real time control that organisations can flag and address mistakes up front to reduce DD and DC failure and truly realise the benefits of more predictable cash flow. Richard Ransom Product Marketing Manager Bottomline Technologies

The rise of the mumpreneur I really enjoyed reading the news story last month [April] about the rise in the number of women with a family starting their own business. Going back to work after having children can be extremely difficult. Starting your own business gives you that flexibility that you need. Keep up the good work mums! Christina Brault Mum of two, entrepreneur of one

@KarenBrightHR An entrepreneur’s guide to hiring (and firing) staff via @talkbusinessmag http://ow.ly/vEDJF @CPLondonCity @TalkBusinessMag Exciting. Can’t wait to read the #May issue. @zacharythomas This BLEW MY MIND! Fascinating. RT @BluesCityLLC: Understanding the #millennial generation http:// talkbusinessmagazine.co.uk/ understanding-millennial-generation/ … via @talkbusinessmag @cleanhomeuk We’re in the #franchisor spotlight section (p.123) in @TalkBusinessMag April edition http:// tinyurl.com/qdeqjus @FreemanClarkeTW We share our thoughts on successful IT project management within SMEs in @TalkBusinessMag: http://bit. ly/1gGKON8 #CEO #SME @ResearchRunner Are you thinking of starting a #business? Today is the day via @talkbusinessmag Why not give us a call! http://ow.ly/vyb1j @awillige Reading: ‘How to manage IT projects successfully as an SME’ - by @FreemanClarkeTW (client) in @TalkBusinessMag http://ow.ly/vuZtM

MAY 2014

014 OPENER Letters.ga.indd 70

24/04/2014 14:46

TB_MAY_Hosting_SP_2014.pdf

23/04/2014

17:46

25GB Exchange 2013 mailbox & FREE .co.uk domain included*

30-day money back guarantee

Powerful website builder with online shop

Fasthosts keeps my websites up and running

Fasthosts have been supporting UK businesses for over 15 years So we know a thing or two when it comes to hosting for business, that's why we're offering up to 50% off for the first six months to help you get started and get the most out of having your business online. 24/7, Fasthosts is the choice for business.

Hosting from:

£2.49

50%

UP TO

With great performance, security and expert support

OFF

for 6 months

Normal price £4.99 per month ex VAT 12 month minimum term contract

* Free domain included for 1 year, includes .co.uk, .me.uk and .org.uk domains. After 1 year regular prices apply. Visit www.fasthosts.co.uk for full product details, terms and conditions.

fasthosts.co.uk or call 0808 1686 777 SERVERS • WEB HOSTING • DOMAIN NAMES • EXCHANGE EMAIL

TB_MAY_Hosting_SP_2014.indd 1

24/04/2014 09:37

NEWS & EVENTS

Dates for the diary

Business Junction Networking Events 14 May Swan, Shakespeare’s Globe 28 May Century Club, Shaftesbury Avenue 5 June The Hide at The Bull, Bishopsgate businessjunction.co.uk

19 June Puma Hotel, Oxford sterlingintegrity.co.uk

The Business Show 2014 15-16 May ExCel London greatbritishbusinessshow.co.uk

Kent 2020 Vision Live 14 May Kent Event Centre, Maidstone kent2020live.co.uk

Thames Valley Expo 12 June Museum of the Great Western Railway, Swindon thamesvalleyexpo.co.uk

Sterling Integrity 16 May The Village Hotel, Solihull 6 June The Village Hotel, Swansea

The Mobile Innovations Awards 8 July Grosvenor House Hotel on Park Lane, London. themobileinnovationsawards.com

Online Retail Conferences 16 September Royal Garden Hotel, Kensington orevents.com eCommerce Expo 1-2 October Olympia, London ecommerceexpo.co.uk Successful Selling Expo 16 October RICOH, Coventry sales-expo.co.uk

A third of employees plan to leave their current role in 2014 NEW RESEARCH FROM Talent Q, a psychometric assessment specialist, reveals that organisations are failing to motivate employees and retain staff adequately. Talent Q’s latest report, Putting the ‘I’ into engagement, is an indepth survey of 1,255 employees, across sectors and job roles, which examines post-recession employee attitudes and individual workplace concerns. Research in the report reveals 37% of employees are planning to leave their job in the next 12 months; suggesting UK companies are on the brink of a mass talent exodus. It also reveals nearly a third (30%) of employees are unmotivated in their job, with 10% claiming to be “very unmotivated”. Lucy Beaumont, solutions director at Talent Q, comments: ‘The overriding message here is that, across the board, a significant proportion of employees are unmotivated, disengaged and ready to leave their current role.

With 81% of employees agreeing they would be more engaged and energised if employers understood their motivations, it’s clear that understanding what motivates an individual employee is a key piece of the talent management jigsaw that cannot be overlooked. ‘Our research clearly highlights the need to assess individual motivation. It also clearly demonstrates the need to empower line managers with tools and resources to engage with employees. Looking closely at line manager relationships with staff, more than half (51%) disagreed with the statement “my line manager adapts their working style to suit me”, suggesting that line managers are failing to get the best out of team members’ because they are not treating them on a personal and individual level.’ For further information visit: talentqgroup.com/assessments/ drives/?s=drives

MAY 2014

016_018 OPENER News.ga.indd 14

24/04/2014 14:48

THE OKI

C321dn

EVERYTHING

A BUSINESS NEEDS AFFORDABLE Our devices are manufactured to the highest standards of quality and technology. We are so convinced of the quality and reliability of our products that we offer an extension of the standard warranty to 3 years on all our products.

EFFICIENT Having the ability to achieve more with your printer means nothing if the device it too big for your office. OKIâ&#x20AC;&#x2122;s tried and tested LED technology means our devices are compact with modern styling that easily fit into the smallest of offices.

SMART

GREEN

Making printers affordable and helping customers print smarter is the overriding driving force behind a range of new and updated products from OKI. No matter what your business, we have the perfect print solution for you.

OKIâ&#x20AC;&#x2122;s energy saving features reduce power consumption to a minimum so you can save money when not in use. Now every business large or small can make a professional impression with OKI.

PRINT IN-HOUSE, ON-DEMAND Fast quality printing on flexible media from A6 flyers to 1.3m banners and 220gsm business cards.

Scan or visit: www.cleverprinters.co.uk/C321

OKI UK @OKIUK Untitled-2 1

/OKIUK

Print Smart. Print OKI 27/03/2014 11:35

Technology “blind spot” is risk for SMEs, new research reveals THE LLOYDS BANK UK Business Digital Index showed that there is a positive correlation between digital maturity and SMEs’ confidence in their own enterprise; however, almost a third of small firms believe going online is irrelevant for their business. It also found that only half of SMEs have a website and on the whole, those that do are only providing basic functionality, while a third of businesses are without basic online skills and don’t invest money in improving digital skills. Lloyds Banking Group director for digital, marketing, and customer development, Miguel-Angel RodriguezSola said: ‘Most businesses do use digital technology in some shape or form. However there is a real blind spot for many firms who are doing the basics but can’t see the benefits of doing more. ‘Businesses that are willing to invest for the long term could reap huge rewards from digital technology. Some of the benefits are quick wins, but businesses that really do focus on making digital technology a priority may

even find that they can capitalise more easily on growth opportunities, and that their confidence continues to rise.’ However, the study showed more than a third of SMEs felt they were already doing all they could to maintain

and improve their digital presence. On the whole, the region with the most firms without basic online skills is the North West (38%) followed by East Midlands (35%), Yorkshire and Humberside (34%).

31% of businesses expect to grow through M&A THE GRANT THORNTON International Business Report (IBR) reveals that global M&A activity has risen from this time last year. The results confirm that leaders of the world’s most progressive businesses view acquisitions as an important means to supplement and boost their existing operations. The IBR data shows that 31% of businesses globally expect to grow through M&A over the next three years, up from 28% in 2012. However, this rises to 55% of dynamic businesses, and is a pattern repeated across all regions. In addition, the last year has shown businesses putting these plans into action, with 39% confirming that they have seriously considered at least one acquisition during the past 12 months.

Mike Hughes, global leader for M&A at Grant Thornton, said: ‘The results are important on three levels. Firstly, the global increase in forecast M&A activity is another sign that the recovery is on a firmer footing, and that the focus of businesses is moving away from simply staying afloat towards a growth agenda. ‘The second is how important M&A is to the fastest growing businesses in the world, as they seek to access new markets and new pools of talent and technology to maintain their competitiveness. ‘Finally, the evidence that these businesses are actually investing time and funding into investigating acquisitions now, rather than just stating an aspiration to acquire in the future, is a great indicator of a robust market.’

MAY 2014

016_018 OPENER News.ga.indd 16

24/04/2014 14:49

Prevention is Better Than Cure...

Get Legal Advice for your New Business from FPG Solicitors - Commercial Law Experts.

020 3538 3807 l 0800 0934 274 l www.fpg-law.com l info@fpg-law.com P.S....... COME VISIT US AT

THE BUSINESS SHOW

15h and 16th May 2014 ExCel London

STAND 2346! FPG Solicitors are Authorised and Regulated by the Solicitors Regulation Authority SRA no.564051

019 TB32 FPG PRINT.indd 1

28/04/2014 15:23

The Start-Up Entrepreneur

Serial entrepreneur and investor, Raj Dhonota tells Dawn Murden how he bounced back from bankruptcy, and why he has pledged ÂŁ1million to help launch two start-ups a week in 2014

020_024 SUCCESS FOTC.ga.indd 18

24/04/2014 14:51

FACE ON THE COVER

It was a traumatic rollercoaster, but I wouldn’t change it

aj Dhonota is a serial entrepreneur and investor, and it’s clear his passion lies in SMEs and start-ups. You may recognise him from the first series of BBC’s Apprentice, where he featured alongside candidates like Lee McQueen. Even though the series put him in the public eye – he maintains it was “the least enjoyable experience” of his life, because the show does not portray real business. Raj studied law at Anglia Ruskin University. When he finished his degree he went to work in a bank, but soon realised it wasn’t for him and set up his own company, H for Homes. Unfortunately, after 18 months the company was making losses and Raj had to make a tough decision. He put the company into liquidation and filed for personal bankruptcy. ‘It was a traumatic rollercoaster, but I wouldn’t change it,’ he told me. ‘It made me more appreciative.’ He quickly picked himself up and tried for three years to launch

TALK SUCCESS

another company. Success came after The Apprentice with his company, Global Proximity – an outsourcing company. Within three years he grew it into a multi-million pound business before selling it to focus on other ideas. Raj is involved with a number of ventures; one of these is Igniva Solutions, a software development firm, which, as CEO, he has helped grow to a team of 400 with a turnover of £2 million per year. Raj’s main interest is helping people start a business, and he says this stems from his first failed business. ‘I want to help people,’ he told me. ‘I believe if I had the help of a mentor and more funding, my first business would have been successful.’ And that’s why he has set up the Start-Up Entrepreneur on his website, pledging a fund of £1 million that he will invest in entrepreneurs and start-ups, of any age and sector. Raj is looking for ventures that offer something new. He also explained he is not risk-averse, meaning he will enjoy backing the more riskier options, rather than simply the ones offering the safest ROI. He has been accepting applications since January and aims to help launch two startups each week during 2014. We met Raj to find out more about his first venture, and how it shaped his future…

talkbusinessmagazine.co.uk

020_024 SUCCESS FOTC.ga.indd 19

24/04/2014 14:51

TALK SUCCESS FACE ON THE COVER

WHAT WAS YOUR FIRST BUSINESS VENTURE? After I graduated from law, I didn’t want to go down that path. I worked at a bank for seven months, but I didn’t like the politics. Employment wasn’t for me. So I did my own thing, called H for Homes. It was a new age estate agents, with local realtors and no high street shop, like the US model. We launched across Kent and South East London. We had people with a local path, canvassing. We went from zero properties to 400 in 18 months. But even after 18 months we were making losses. It was a struggle from day one. We had to go into liquidation and I had to file for personal bankruptcy. It was my first business, and my first failure. There are now examples of this model in the industry doing well. My idea was right; I just needed a mentor and more money. HOW DID YOU GET YOUR START-UP CASH? I bootstrapped with personal loans, credit cards, and savings from my gap year. WHAT WERE THE BIGGEST STRUGGLES AND CHALLENGES YOU FACED AS A NEW BUSINESS? Finance was always an issue. There are more funding options available now, but even so, to access these you need to prove your concept before you secure investment. If I had a second chance with my first business, I would have executed it differently. I think it’s important to have a mentor – to help guide you. When people come to us for funding, when we talk about our experience, they want the expertise more than the money.

HOW DID FILING FOR BANKRUPTCY AFFECT YOU? I kept going with the business, determined to make it work. I didn’t know how or when to stop. I should have stopped sooner. Bankruptcy is the biggest setback in your life. I felt like I’d not only failed myself, but my family too. The desire was always there to come back. It made me more determined. I spent three years trying lots of businesses but they didn’t work. The only thing that got me through was

perseverance. I went from a middle class family to living on a council estate. I’ve never been materialistic and it wasn’t about the money, but my biggest fear was looking back and realising I hadn’t tried. I had to try.

I think it’s important to have a mentor – to help guide you

WHAT MADE YOU LAUNCH THE START-UP ENTREPRENEUR? I love to take an idea and develop it, add value and see it succeed. I have met a lot of talented people who don’t have confidence, money, the means, or know-how. It’s not just about the funding, we help businesses grow, and prevent them from failing. When I went bankrupt, I lost my flat, but I was lucky, I didn’t have children. Some people can’t afford to go bankrupt. In every business you have setbacks but we are there to guide them. I’ve always had the passion to help start-ups, and people from every walk of life. I’ve been investing on and off for a number of years. YOU ARE CEO OF IGNIVA, A SOFTWARE DEVELOPMENT FIRM. WHY DO YOU TAKE A BIG ROLE IN THE COMPANIES YOU INVEST IN? It’s a similar business to StartUp Entrepreneur, because it has a big focus on SMEs. I am an active investor, so I like to have a steer on the business. I don’t go out and sell services, but I become a big part of the strategy and expansion. I believe in aggressive growth, and I make sure everyone is focused on what needs to be achieved. It also safeguards my investment by being active. The start-up stats are risky – I think around 50% of businesses fail. IS THERE EVER TENSION WHEN YOU TRY TO STEER BUSINESSES? We do get resistance. I remember we had a guy from

MAY 2014

020_024 SUCCESS FOTC.ga.indd 20

24/04/2014 14:51

Providing flexible workspace for businesses for 20 years! Basepoint has proudly supported thousands of businesses over the past 20 years and currently provides over 1,400 companies with unique workspaces; from a 1 person managed office to open plan spaces for 100 people. So contact us today and our staff will do all they can to help you succeed... ...our business is your business.

Offices | Flexi-Space | Virtual Licences | Meeting Rooms

Unique workspaces for your business

basepoint.co.uk Untitled-2 1 ad_spring14_b.indd 1 7882_bpb_tb

27/03/2014 24/03/2014 11:09 14:38

TALK SUCCESS FACE ON THE COVER

My life I’m watching: Only Fools & Horses – I love Del Boy and Rodders. I’m reading: The Economist & Talk Business. I’m listening to: Eminem – I like his lyrics and listening to him at the gym. I also like ‘80’s and ‘90’s music, because it reminds me of university. I’m surfing: The BBC for news. I like reading blogs to see how people’s opinions differ from my own, and entrepreneur forums.

France pitching for £250,000 for a mobile app he’d created. I tried to work with him, and suggested a soft launch with a start up budget, and then make it bigger gradually, but he thought I was trying to strip his business down too much. WHAT DO YOU LOOK FOR WHEN YOU’RE INVESTING? We invest in people. A great idea helps, but what really matters is the person. I’ve seen great people make a not-so-great idea work. I like hungry people. They have to be motivated. And be able to deal with setbacks. I’m looking for drive. If a person comes in and just expects to be the next Facebook or Twitter, that’s no good. ON YOUR WEBSITE YOU SAY THE APPRENTICE IS ONE OF THE “LEAST ENJOYABLE EXPERIENCES” OF YOUR LIFE.

I’ve seen great people make a not-so-great idea work

WHY IS THIS? It was marketed as a challenge, being pitted against the 14 best entrepreneurs in the country, and I liked the idea of the challenge. But that wasn’t the case. It wasn’t about business; it was a reality TV show about ratings and entertainment. I’m not interested in celebrity stuff, and it bored me. There were some highlights, but I think the show gives business the wrong impression. It can be damaging due to the way it’s edited, portraying someone in a particular way. Like editing loads of “umms” and “errs” together. I would steer clear of it, and I told Alan Sugar that too.

DO YOU HAVE A MOTTO YOU SWEAR BY? Yes; if you believe, have the confidence and perseverance to do it. I also love the quote on

my website: “Whatever you can do or dream you can, begin it. Boldness has genius, power and magic in it.” by German writer and politician, Goethe. YOUR NEW BUSINESS, STEPOVERSEAS IS LAUNCHING THIS MONTH, TELL US ABOUT IT… It’s a platform that will help SMEs take advantage of other economies, like China and India. First it is launching for the property market – it will be kind of like Rightmove, but on a global scale. A global audience will be able to view residential and commercial properties, lets and land in their language, and SME’s will be able to advertise their properties to a global audience, with translation included. We will also be launching platforms for wholesalers, retail, etc. Contact: rajdhonota.com Twitter: @Raj_Dhonota

MAY 2014

020_024 SUCCESS FOTC.ga.indd 22

24/04/2014 14:52

Untitled-1 1

17/04/2014 09:41

We know your local audience. Advertise with Exterion Media and your local audience will know you. Over 32 million people in the UK’s towns and cities see our adverts in the heart of their community every week. Advertising with Exterion Media is the best way to ensure your local audience hears what you’ve got to say as they travel around town. Whatever the size of your business or budget, we have a tailored solution for you. What’s more, we make the process easy and stress free, through both a dedicated local account manager and free design service.

For the whole story head to exterionmedia.co.uk/local or call 0800 22 66 33

EXTERION 1 direct-ad andDPS.indd advitorial-25-4-14-B.indd All Pages

28/04/2014 10:24

Sponsored Article

Tony Ramirez, Head of Sales at Exterion Media tells us why Outdoor advertising in London is important for any business.

Why should I be using Outdoor advertising in London?

Not only is it easily the UK’s largest urban area, Londoners themselves are a unique audience. They’re younger, hyper-connected, opinion leaders with high levels of disposable income. There’s also a huge amount of them! London represents over 12% of the UK’s population* so by advertising in London you can easily extend the reach and visibility of your campaign. What’s more, Outdoor advertising and London go hand-in-hand. With 24 million journeys being made across the TfL network each day,** Outdoor advertising reaches and engages with audiences in ways other mediums simply cannot match.

Surely only larger brands can afford to advertise in London?

Absolutely not! In fact, with our huge range of formats across the capital, advertising in London with Exterion Media is so much more accessible than you might think. We tailor our advertising solutions to your budget, whatever its size, to make sure your budget works as hard as possible for you. Plus, advertising in London isn’t just for London businesses. We can give your business the presence and stature of a national brand by placing advertising in areas where you will be seen by the capital’s influential audiences.

Why should I use Exterion Media to reach the London audience?

From the iconic red buses and London Underground, to the

EXTERION DPS.indd 2

WE KNOW YOUR LOCAL AUDIENCE shopping Cities of Westfield, we dominate London with our media and provide unrivalled access to the capital’s valuable audiences. Quite simply, we are London. What’s more, we’re single-minded in our commitment to understanding Londoners. Our unique work.shop. play. online urban community of over 6000 Londoners provides us with up to the minute behavioural and attitudinal insights on a wide range of subjects. We also know how best to reach them using our London Worker Planning Tool - the only media neutral way to target London workers.

which stations people use, and the advertising sectors they’re most likely to be receptive to. Moreover, we have first-hand experience of what targeting influential Londoners can do for your brand. With specialists in all audiences and business sectors, and experienced account managers who know their area inside-out, we can make specific, tailored recommendations based upon what we know works. In short, we do the hard work so you get results!

There’s such a varied and extensive audience in London. How do you go about targeting a specific demographic?

Through our in-depth knowledge of the capital and our unique audience research tools we know how people travel around London, and where different audience types will be at each point in the day. We know

To find out how Exterion Media can ensure that your local area knows about your business visit

www.exterionmedia.co.uk/local for the whole story. Source: *ONS ** TfL

28/04/2014 17:55 10:24 25/04/2014

Credit: Interview Hub and BBC

You’re either a leader or you’re not

028_029 SUCCESS Call Centre.**ga**.indd 40

24/04/2014 14:54

THE CALL CENTRE INTERVIEW

or Nev Wilshire, the businessman at the middle of BBC Three’s fly-on-the-wall show, The Call Centre, it’s a life of ups and downs. Since embarking on a tumultuous career in the world of sales, he has gone from being an entrylevel rep straight out of sixth form, to a no-nonsense manager who owns his own company. We spoke to the larger-than-life boss and found out what it is that drives him. ‘Yes, I would consider myself a natural leader,’ the booming Welshman tells us. ‘I think that leadership quality is in me. You’re either a leader or you’re not.’ Currently the CEO of the Swansea-based Save Britain Money Group, an award-winning business that also spawned its own BBC TV show, it’s fair to say that Nev has the credentials to back up his beliefs. Described by some in the media as a reallife version of David Brent from The Office, Nev Wilshire was catapulted into fame when a documentary about the working day in his company was aired. Behind the workplace bravado, on screen sackings, and spontaneous requests for office karaoke, however, we wanted to know more about the man who describes himself as a “footballkicking, catchphrase-loving, man of the people”… ‘My first inclination of wanting to be a businessman was when I was about 17. I was doing my A-levels and I thought that was what I wanted to be. I did my A-levels and then took a year out to make some money and just get a job – and of course, once you’ve started earning money it’s difficult to give it all up!’ he says. ‘By the time I was 19, I was repping for a company. The sales were good, and they were going up and up. The division I got involved with was number

TALK SUCCESS

A call back We meet Nev Wilshire, the businessman at the heart of hit BBC Three programme, The Call Centre

By the time I was 28, I was a millionaire; by the time I was 38, I was bust

14 in the area out of 23 when I started, and I got it to be number one within two years. However, because I was so young, I was getting paid less than everybody else, which I took exception to. So when I was 24, I decided to branch out and go on my own.’ Grabbing life by the scruff of the neck as a young man, Nev went on to describe the reality of going it alone. ‘So, I started my own business when I was 24. By the time I was 28, I was a millionaire; by the time I was 38 I was bust,’ he exclaims. ‘It’s life. When you’re 17, you know it all. When you’re 19, you could run the country. When you’re 30, you don’t know quite so much, and when you’re 40, you realise you know nothing, when you’re 50... you realise what you did know, you’ve forgotten!’ On television, Nev’s riotous personality has gained him a devout fan following. His managerial style oscillates between enforcing strict rules, before encouraging people to break into song to improve office morale – “Happy people sell” appears a mantra. Also well known to the cult following of the show, is Nev’s allegiance to Swansea City FC. With a sigh he tells us, ‘It hasn’t just been an up and down season, it’s been a down and out season!’ But he also reinforces the fact that he knows the “Swans” will come back. It seems that his faith in the boom and bust cycle is apparent in all aspects of his life. Similarly, Nev goes on to describe the situation his company

is in when it comes to making long term business models. ‘Well, obviously we have plans as to where we want to take the business, but when we’re dealing with Government grants, all of a sudden the Government will change the grants and there’s nothing we can do about it. You’re up one minute and down the next. It’s just the way they do things.’ A sensible man might doubt Nev’s cavalier approach to the world of business, but his “who dares wins” attitude seems to be working for the self-made man from South Wales. Indeed, as Charles Darwin wrote “In the struggle for survival, the fittest win out at the expense of their rivals because they succeed in adapting themselves best to their environment.” So, perhaps Nev’s fearless approach to the cutthroat world of business will help him adapt and remain successful. Oh, and we’re told that a spot of singing is conducive to a happy office... The Call Centre airs on BBC3 from 8 April at 9pm and series one is available on DVD from 14 April

talkbusinessmagazine.co.uk

028_029 SUCCESS Call Centre.**ga**.indd 41

24/04/2014 14:56

Se e u s a t T h e Bu s i n e s s S h o w , Lo nd o n E x Ce L - S t a n d 1 9 8 4 .

Millions of Viewers with TV Advertising...

Our TV Advertising packages include Production of your TV Commercial, Broadcast on National Television and now also YouTube. You can also benefit from CAIT, our

C a ll 0203 002 92 42

industry leading campaign analytics tool. See us at the Business Show, Stand 630.

Concept TV celebrates it ’s 10t h B irt h da y t h is ye a r. . . We’ve worked with eve ryon e from sm a ll st a rt u ps t o maj o r UK bran ds and even a fe w c e le brit ie s - so w e kn o w w hat we’re doing. All from ju st £26, 000.

THE TV

ADVERTISING

SPECIALISTS

Discover More

@concepttv concepttvofficial

Untitled-3 1

www.conceptstudios.co.uk 28/03/2014 11:43

UP-AND-COMING

reative Writing Magic Money Cards are sold to schools and families. They help 9-15 year-olds improve their English skills and score top marks in exams. Parents write to Crawford telling him that the system has really improved their children’s results, and some adults add that it has helped them too.

WHERE’D THE IDEA COME FROM? In my last year of primary school, I wanted to improve my own creative writing and my test scores in class. When my idea and the system I developed worked well for me, then I thought that it might be able to help others. Experts offered me some great advice, including the chief executive of a leading printing company who luckily had children my age. For two years my idea was successfully tested with families and schools and then we launched.

TALK SUCCESS

This month we speak to Crawford Johnston about founding Creative Writing Magic Money Cards, aged just 16

Introducing

Crawford Johnston

WHAT’S YOUR ADVICE TO YOUNG ENTREPRENEURS TRYING TO GET AN IDEA OFF THE GROUND? Young people have fertile imaginations creating plenty of ideas. Some of those ideas might be able to become businesses. If an idea works really well, and if the market is big enough (you develop useful skills when analysing the potential size of any market), then I would say, “go for it” – but listen to all the expert advice you can get before

Young people have fertile imaginations creating plenty of ideas

you push the “spend button”. Depending on the market, legal protection is important, too. I was fortunate enough to have city lawyers lead me through the process after inviting me to speak at their business club. Ask for advice in all directions – and listen hard. IF YOU WEREN’T AN ENTREPRENEUR, WHAT WOULD YOU BE DOING TODAY? I am 16 and just about to sit my GCSEs, so I’ll be at school, and then hopefully university for the next few years. I love science, but I haven’t decided what route to take yet - but as a music scholar, music is and will remain, a big part of me, so I’ll say “I’d be a musician.” WHAT HAVE BEEN THE BIGGEST CHALLENGES YOU’VE FACED AS A YOUNG ENTREPRENEUR? I met Mike Greene, from Channel 4’s Secret Millionaire, at a charity launch where I had been invited to perform, and he gave me his book and some great advice: to write down my challenges and aims. This advice means that my biggest challenge for my business will always be my next aim.

WHAT GETS YOU OUT OF BED IN THE MORNING? My iPad alarm, which sings the weather forecast for the day! Failing that – my mum. HOW MUCH DOES MONEY MOTIVATE YOU? Money is not at the top of my list, but it certainly doesn’t come too low down (because university fees are looming).

WHAT’S BEEN YOUR PROUDEST MOMENT? Just getting this far with everything makes me pretty proud. It’s great to have sales’ across five continents, and I am getting quite a kick out of how many islands have customers using my system – from the Shetlands to Singapore and from Ascension Island to Manhattan. WHAT’S YOUR VISION FOR THE FUTURE? I will have to learn and experience a great deal more before I can answer that question – but always having something to aim for will certainly be part of the answer. Contact: creativewritingmmc.co.uk

talkbusinessmagazine.co.uk

031 SUCCESS Young Entrepreneur.ga.indd 27

24/04/2014 14:57

SUCCESSFUL PEOPLE GET ON THE TRAIN

Conventus is an online platform which enables businesses to:



Connect with investors and influential people



Set up comprehensive online business profiles and connect to other businesses



Access resources and support services



Attend regional networking events



Increase marketing outreach



Pitch to investors online and in person

Our high-speed train will be pulling into the station soon

www.conventus.uk.com 0845 257 2103 Partneringforsuccess.indd 1

28/04/2014 10:18

GUIDE

TALK SUCCESS

The Business Show – 10 of the best EXHIBITORS The show floor will be packed with 360 market-leading exhibitors, featuring the biggest brands in business alongside innovative SMEs. Here is our top ten with their stand numbers: • 3M - 2126 • Alibaba - 2520 • Experian - 2320 • Intellectual Property Office 2790 • Rockstar Mentoring - 1956 • Royal Bank of Scotland - 1980 • Salesforce.com - 1750 • School For Startups - 1526 • Start-Up Loans - 1916 • Verisign - 2380 SPEAKERS Learn from the best. Britain’s leading business experts share their secrets in an exclusive schedule of more than 250 seminars. Make sure you don’t miss these essential addresses: • Charles Rolls, founder of international premium drinks brand, Fever-Tree • Clive Rich, the £10bn negotiator • Doug Richards, former BBC Dragon and serial entrepreneur • Facebook • Graham Corfield, the UK managing director of JUST EAT • LinkedIn • London Stock Exchange • Martyn Dawes, founder of Coffee Nation • Saatchi & Saatchi X • Will King, multiple awardwinning businessman and founder of King of Shaves WORKSHOPS There will be 170 interactive training sessions across the two days of the show – all led by experts. There’s workshops on:

Planning to go to the show? Here’s our quick guide, which shows you what not to miss at ExCeL, London on 15-16 May • Branding • Business planning • Cloud computing • Email marketing • Franchising • Get online • Mentoring • Protect and grow your business • Raising finance • Start-up strategy ALSO DON’T MISS… Llive show features, from networking events to your chance to pitch for investment: • Angels Den Pitch to a panel of multimillionaire investors and grow your business fast. • Business Connections Connect with thousands of new prospects, partnerships and suppliers. • Businesses For Sale Live Everything you need to know about buying or selling a business. • Facetime From branding to tax; your problems solved by an expert. • The Growth Strategy Boardroom Troubleshoot your business with like-minded individuals, led by an expert. • Midas Touch 5 minutes. 4 millionaires. 1 pitch. Will they invest in your start-up? • Speed Networking Meet 40 new contacts in 40 minutes. • Tweet Meet Bringing your social media contacts into the real world. • 4Networking 121 Roadshow Make real contacts and grow your business network fast.

CO-LOCATED SHOWS Giving you even more opportunities to establish or expand your business, running alongside The Business Show and Business Startup this May will be: • Accountex The UK’s only national exhibition for accountants and finance directors working in practice, business and the public sector. • Global Enterprise Mobility, Workforce & Travel Management 2014 Entirely dedicated to international trade – including enterprise mobility management, workforce management and travel management. • Going Global Going Global is the top UK national exhibition for businesses that are looking to expand internationally. • Legalex The UK’s only exhibition for solicitors and legal professionals, dedicated to the business needs of your firm. • Office Management & PA Giving office professionals, buyers and decision makers an educational and inspirational day out of the office. • Sales Innovation Expo The largest UK event for sales leaders equips you with the latest systems and tools to improve sales performance. FREE TICKETS Tickets are completely free and available at: thebusinessshow. co.uk or call 08000 686970

talkbusinessmagazine.co.uk

033 SUCCESS Business Show.ga.indd 27

28/04/2014 09:38

We provide bespoke B2B and B2C application development to clients in a wide range of industries.

Intergrate all your data & analytics in one bespoke business intelligence software. Get intouch

0333 577 3200 to learn more

Technical Support: +44 (0)845 257 7754 Sales & Enquiries: +44 (0)800 193 3010 Calling from Mobile: +44 (0)3335773200

Simplifying complex operations and internal processes through costeffective bespoke software solutions.

Untitled-13 1

hello@kmc-software.co.uk www.kmc-software.co.uk /KmcSoftware

27/02/2014 09:57

BOOK REVIEWS

Book reviews Forget Strategy. Get Results.

How Top Management Organizes and Mobilizes for Innovation By Jean-Philippe Deschamps & Beebe Nelson

About the authors: Jean-Philipe Deschamps is an innovation management practitioner with 40 years of international consulting experience. He joined IMD in 1996 as Professor of technology and focuses on research, teaching and consulting. Beebe Nelson has worked as an innovation and product development consultant and facilitator for the past 25 years. She has given lectures on innovation topics.

Our verdict:

About the author: Michael Tobin is CEO of the data centre provider, TelecityGroup plc. In October 2007, Michael successfully floated the company on the London Stock Exchange, and now it is a major FTSE250 technology stock.

Forget Strategy. Get Results. is published by Wiley, priced at £16.99 in paperback.

Innovation Governance

Our verdict:

Radical Management Attitudes That Will Deliver Outstanding Success By Michael Tobin, OBE

We say: This book is controversial, thought provoking, and at times, very entertaining. Michael provides a fresh way of thinking to successfully manage any sort of business.

TALK SUCCESS

Get Things Done What Stops Smart People

Achieving More and How You Can Change By Robert Kelsey

We say: Innovation governance (defined by the authors as organisational leadership at the corporate level) is a hot topic in the business world. The authors say it is often neglected in many companies. Innovation Governance is published by Jossey-Bass, priced at £29.99 in hardcover and e-book.

Our verdict:

About the author: Robert Kelsey is a successful writer and entrepreneur. Robert’s failures lead him to become a self-help addict, and inspired him to write his own books. Roberts first book What’s Stopping you? has sold 50,000 copies to date. We say: Many of us have the greatest intentions but find ourselves procrastinating, which results in low attainment and frustrated ambitions. This book examines why readers might have these tendencies, and teaches how to overcome them. Get Things Done is published by Capstone, priced at £10.99 in paperback.

We’ve got one of each book to give away FREE. Be the first to follow and tweet us, quoting the book name @TalkBusinessMag & we’ll send you a free copy!

talkbusinessmagazine.co.uk

035 SUCCESS Book Review.ga.indd 55

29/04/2014 15:58

P E E R - TO - P E E R B U S I N E S S F U N D I N G

Surprise me. What did the bank say? If your bank genuinely supports your business, consider yourself lucky. According to Harry Wilson, Banking Editor at The Telegraph* “half of all small businesses applying for a loan have been turned away by their bank”. If you need funding to capitalise on a precious opportunity or grow your business, call us at Freedman & Partners. We can help you secure the loan you need without the banks.

With direct access to independent lenders from the ThinCats Business Loan NetworkTM, we’re keen to meet you and learn about your business (if you’ve had no luck with the banks you’ll realise what a radical concept that is). QUICK, SIMPLE & TRANSPARENT We can assess your business and prepare your case to help ensure you receive full funding quickly and easily. We aren’t weighed down by rigid systems and have supportive lenders waiting to help you. With professional resources on tap, including accountants, lawyers and professional advisors, this really is a robust and easy solution that will give you and your business the lucky break it deserves.

CALL TODAY FOR YOUR FREE INITIAL ‘PRE-FLIGHT’ CONSULTATION

020 7433 3631

THINCATS ACCREDITED SPONSORS

28 Church Row, Hampstead, London NW3 6UP

freedmanpartners.com Simplify_Sept_FP_v1.indd 1

* www.telegraph.co.uk September 2013

23/04/2014 10:03

money or most of the last five years, the IPO runway has been fog bound, with brief breaks in the weather when a few of the queuing planes have been able to get off the ground. For about a year now, the fog has lifted and the number of companies taking off has dramatically increased. With most performing well in the after-market, investors have been making money, which provides a healthier environment for other companies considering a public listing. To put it in perspective, in the first three months of 2014, 28 UK companies floated on either AIM or the main market, raising £3.7 billion, which compares against 13 companies raising £1.6 billion in the same period last year. This is good news for investors and companies, providing another route for an exit as opposed to selling to a different set of private investors or another company. But what are the considerations for companies?

WHAT ARE THE BENEFITS? There are numerous benefits for companies and management teams, but to name just a few of the main ones: • raising new money for the company • providing a tool to motivate and retain talent – equity in a private company is difficult to value and illiquid; not so a public company • exiting without a change of control – an IPO may enable large shareholders to sell down a proportion of their shareholding, but retain an exposure to any further increase in value • enhancing the credibility and reputation of the

Going public as a viable exit option Our funding expert, Julian Smith discusses the benefits of IPOs company through increased disclosure and discipline from regular reporting • giving another currency for acquisition The benefits will differ on the specific circumstances, and of course, need to be weighed against the costs or downsides of pursuing an IPO.

28 UK companies floated on either AIM or the main market, raising £3.7 billion

REASONS NOT TO IPO It mostly comes down to capital. If you do not need to raise money, either to allow investors to crystallise their investment or to raise capital for the company, then maybe the other benefits are not appealing enough to offset the increased cost and scrutiny that comes with being a public company. WHICH MARKET TO IPO ON? There is more than one market place for companies to list their shares, with the three principal marketplaces being ISDX (operated by ICAP), AIM and the Main Market (both operated by the London Stock Exchange). They all have different requirements for companies to list and to adhere to thereafter. The Main Market comprises larger and more established companies, but has recently introduced the High Growth segment to appeal to mid-sized technology companies that might not meet the minimum 25% free float (shares in public hands) test, and was recently used by Just Eat in its successful IPO.

AIM and ISDX are more suited to younger companies with more flexible requirements for listing. In terms of size, there is no minimum and you certainly do not have to be a huge company to have a successful IPO and aftermarket. By way of example, Blur Group floated in October 2012, raising £4 million at a £20 million valuation. Today, it is worth six times that at £130 million. SO WHAT DO YOU NEED? Firstly, to attract investors, you need a strong equity story – and that’s largely about having a credible growth plan with a defensible market position, a strategy in place, and a team to execute it. Secondly, you need to appoint an external team to help you – you are likely to have an accountant and a lawyer in place, but are they qualified for the job? You will also need a financial adviser/broker to provide advice on the relevant listing rules and to help you sell the shares to investors. The process of going public is a bit like stripping an engine, checking that all the right parts are where they are meant to be, putting it back together again and publishing the manual for investors to read. Once the team has been appointed, its time to buckle up and enjoy the ride that will take up your life for four months or more… Contact: thefundingexpert.co.uk Twitter: @lefundingexpert

talkbusinessmagazine.co.uk

037 MONEY Funding Expert.ga.indd 37

24/04/2014 15:02

Do you want your customers to feel appreciated, remain loyal to your brand or service and reorder regularly?

Promotional products make almost six times as many recipients feel appreciated than the mediums of Print, Web, Direct Mail or TV*

Promotional products motivate over twice as many recipients to take action than the mediums of Print, Web, Direct Mail or TV*

*Statistics taken from research carried out by the BPMA in 2013

What could effective use of promotional products do for your business this year?

S 5 P U t

MOTIVATE YOUR STAFF

ATTRACT NEW BUSINESS

RAISE BRAND AWARENESS

S A

REWARD LOYALTY

EMC are helping organisations from local tradesmen to FTSE100 companies to make use of their brand and create memorable gifts.

We have the perfect gift for every budget and every occasion call us for a free sample pack to see how we do it! Quote TB14

Untitled-3 2

27/03/2014 11:49

in n

Plastic PlasticCoaster Coaster

xx55 0000

50 50Sheet SheetA6 A6Pad Pad

xx5 50 00 0

xx55 0000

15cm 15cmRuler Ruler

xx550000

99 4 4 5 5 ££

Shanghai ShanghaiBallpen Ballpen

Super SuperBranding BrandingBox! Box! 500 500Coasters, Coasters,500 50015cm 15cmRulers, Rulers,500 500A6 A6Pads Pads&&500 500Shanghai ShanghaiBallpens Ballpensall allfor for£549 £549 Price Priceincludes includesall all2000 2000products productswith withaa1 1colour colourprint, print,all allset setup upand anddelivery deliverytogether togetherto to1 1 UK UKmainland mainlandaddress. address. For Forany anyvariations variationsor orfor formore moredetails detailsplease pleasecall callour ourfriendly friendlysales sales team teamwho whowill willbe behappy happyto tohelp. help. Super SuperBranding BrandingBox BoxLite! Lite! All Allinclusive inclusivedeal dealfor for500 500Shanghai ShanghaiBallpens Ballpensand and500 500Pads, Pads,Rulers Rulersor orCoasters Coastersfor for£289 £289 Prices Pricesstated statedare areex exVAT VATand andvalid validfor fororders ordersconﬁrmed conﬁrmedby by16th 16thMay. May.

www.emcadgifts.co.uk www.emcadgifts.co.uk sales@emcadgifts.co.uk sales@emcadgifts.co.uk 0800 0800 170 170 7570 7570 020 020 8492 8492 2200 2200 Untitled-3 3

27/03/2014 11:49

Step two:

Getting the contract right ast month we talked about how to negotiate a good deal. This month we talk about turning the deal into a contract without losing sight of the goals.

WHY DO WE NEED A CONTRACT? So, let’s say that you’ve done the hard part – negotiating the deal. After all, that’s what we’re all in business for, isn’t it? You know you have an agreement in principle, but now you need to be sure that it is going to give you the benefit that you want for your business – and that’s where the nitty gritty of the contract comes in. Getting the contract right is key to getting the best from your deal: it makes things clear and certain and sadly, necessarily sets out what will happen should things go wrong. Sometimes, merely seeing what the consequences of problems will be, helps the parties take extra care to make sure they don’t arise. The most important thing is that both (or all) parties are clear about everything they are agreeing to. A signed or electronically authenticated final version of the contract, showing that everyone intends to be bound

Simon Hetherington leads the legal author team for simplifythelaw. co.uk, a company that helps SMEs solve legal issues for free. Here he explains how to make your contracts work for you

Getting the contract right is key to getting the best from your deal

by it, will ensure that there is no doubt about that later on. The contract may contain, in the same document, all the terms that cover the agreement, and in a small contract that may be most convenient. But it is also very common to incorporate a party’s standard terms and conditions (‘T&Cs’) by referring in the main contract to a separate document, in which the standard T&Cs are set out. Typically, they tend to be on the reverse of an order form or on a website. HOW DO I KNOW WHAT TERMS TO USE? First you need to be aware that the terms and conditions that are likely to be appropriate will depend on a number of factors: 1. Is the other party a business or a consumer? This sounds like a pretty straightforward question, and indeed it is, but it’s really important. For example, if you are dealing remotely – via the internet, say – and you are using standard T&Cs, then it may not always be obvious in what capacity the

other party is contracting. It makes a difference to the terms you can have in your contract, and the law protects consumers in a number of ways that may not be mentioned in the contract (we’ll be covering the particular issues about dealing with consumers next month). 2. Does your business sell goods or provide services? There are various differences between these, which the contract will need to deal with – for example, how you measure when the contract has been satisfactorily performed, both in terms of time and quality. 3. Is this a one-off deal or a continuing arrangement? An on-going relationship between two parties would be best contained in a ‘supply contract’. If it is a long-term deal, there will need to be particular provision for its duration or termination. STANDARD TERMS AND CONDITIONS Chances are that, although your business will have dealings with

MAY 2014

040_041 MONEY Evident Legal.ga.indd 40

24/04/2014 15:05

SIMPLIFY THE LAW

Make sure that you can deliver your side of the bargain

many other people, you will often be covering much the same ground in each case. For this reason, you can develop your own standard T&Cs to fit your business, without wasting valuable time. And many terms, especially those to do with payment, termination, quality of work, warranties and intellectual property rights, can be drafted using variations of established contractual clauses. Some of the things you may need to consider, either as part of the standard T&Cs or as part of the main contract, include: price (VAT, postage & packing costs), payment terms (including interest for late payment), warranties from the seller, etc. Standard T&Cs do not usually include specific details, such as price or delivery dates. Those clearly need to be set out in the principal contract documents. Anything intended to form part of the contract should be clearly referenced and incorporated. Whose standard terms take precedence? If you are dealing with another business, you may both have your own set of standard T&Cs. There is no rule saying that the buyer’s take precedence over the seller’s

040_041 MONEY Evident Legal.ga.indd 41

or vice versa; generally the last set of standard T&Cs referred to in negotiation will apply. So you should always attach your own standard T&Cs in correspondence and refer to them specifically; and specifically reject or accept the other party’s T&Cs before the contract is acted on. Make sure that you can deliver your side of the bargain. And especially, if you are using the other party’s T&Cs, make sure that there are no terms in it that you couldn’t meet – overdemanding delivery schedules for example, or unrealistic service level thresholds. If you think there may be a need to change the terms of the contract later, make sure that the T&Cs allow for a variation without undue penalty. We’ll talk about how to manage problems and disputes in a future article. ADMINISTRATION Contracts do not have to be physically signed to be legally binding – electronic confirmation may be enough if it is clear that it is intended to confirm agreement. But it may be good practice, especially if the contract has a high value, to have signed hard copies to avoid doubt. Unless you agree otherwise, you should assume that the date of the contract is the date on which the last signature is applied. If the parties meet to sign the documents, this issue does not arise. And don’t forget – the contract is not a dead document as soon as it’s signed. Make sure that you and your staff or subcontractors review it regularly so that it remains a good guide to how the deal is going and how to head off any difficulties before they arise.

TALK MONEY

CONTRACT PROCESS CHECKLIST

To turn your negotiated deal into a binding contract on the right terms, ask yourself the following questions: 1. Am I dealing with a business or a consumer? 2. Is this a one-off deal or an ongoing relationship? 3. Are you selling (or buying) goods or services? 4. Is it clear where all the contractual terms are set out? 5. Are the main terms clear: price, time, duration and termination? 6. Is it clear how the contract is to be carried out, and what constitutes satisfactory performance? 7. Do my standard T&Cs cover this deal? 8. Do I need to add any specific clauses to the standard T&Cs? 9. Have I ensured that I have referred to my own T&Cs in all correspondence, and rejected the other party’s, if appropriate? 10. Is the other party trying to impose obligations that I can’t fulfil? 11. How is the contract to be signed: electronically or on hard copy? 12. Do I know what to do if things go wrong later? If you know the answer to these questions, you’re well set for a good and profitable business deal. If you’re not sure where things stand, take the time to check your negotiations and correspondence and get the right terms down in the right contract to ensure that this deal delivers the benefits you need. For more information, and to draft the above mentioned contracts, visit: simplifythelaw.co.uk

Next month: Doing business with consumers: the pitfalls and protections that you need to be aware of.

24/04/2014 15:06

Blue Sky - Talk Business AW_Layout 1 17/04/2014 12:28 Page 1

looking for expert help to grow your business?

Blue Sky Corporate Finance is an independent provider of accountancy, corporate finance and due diligence expertise to businesses across the West Midlands. We specialise in helping small to medium sized businesses, across a diverse range of sectors, with their individual requirements. We offer unbiased advice and guidance on a wide range of financial and business matters, ensuring we secure the best long term option for your business. We listen, understand and help bring together everything that is required to drive your business forward.

For more information, please call us for an informal chat. Weâ&#x20AC;&#x2122;re here to help.

0845 2583 759 info@blueskycf.com

www.blueskycf.com

Untitled-7 1

17/04/2014 14:05

START-UP LOANS

TALK MONEY

A day in The life This month, our Start Up Loan recipient, Alex Schlagman reveals a typical day running his personalised shopping app

DEAR DIARY Breakfast is the only thing that never changes day to day. Tea and a banana while talking to my co-founder, Colin as his train chugs through South London towards Waterloo. We discuss priorities for the day ahead and any questions that are keeping either of us up at night. This morning I’m meeting my CFO, David to go through our updated financial forecast. We have decided to make a significant update to our product strategy that affects our revenue model just as we’re getting ready to pitch for angel investment. Everyone involved is excited by the update, but the pressure is on to get our business plan aligned ASAP. David is delivering. He’s burnt the midnight oil updating our P&L and cash flow projections. Within an hour, we’re both confident the numbers match the words. I leave David to run some sensitivity analysis on the updated model. Over the weekend, Colin has designed mock-ups reflecting our updates to the product strategy, and all three of us have noted the features we should focus on now, next, and later. It’s decision time and while we initially disagree on a few points, we find common ground and agree the new scope for version one of Zim – our minimum viable product for public release.

08:30

09:00

12.30

I’m meeting a professional investor called James in under an hour, but beforehand I need to add our updated financial summary and the new product demo to our investment pitch deck. I do most of this sitting on a Central Line train. I end up arriving 30 minutes before James. We were introduced by one of my mentors two weeks ago. I’ve already had a call with him and shared a one-page executive summary. Now it’s time to blow him away with our pitch! I’d planned to take him through a carefully constructed presentation outlining and validating our investment thesis. This goes out of the window as I jump around the story following his questions. He agrees there is a big market opportunity here. We arrange to meet again in two weeks to introduce Colin, my head of technology, go through in more detail regarding our plans, and update on our progress. After update calls with Colin, David and a couple of my mentors, I head to the gym for a swim, steam, shower and a change of socks! I’m going to an event at Google Campus, where I base myself most days. At this Dragons Den-influenced event, five start-ups present on stage in turn before being grilled and rated by four angel investors. I’m aiming to connect with useful new contacts and see if this is an event I want to apply for next month. I enjoy the event, eat lots of free pizza, and meet three of the four “Dragons”.

13:30

14:30

16:00

18:00

In Profile Entrepreneur: Alex Schlagman Business: Pocket High Street Web: pockethighstreet.com Concept: A personalised mobile shopping application Start-Up loan: £9,950 My head’s still swimming in work when I get to a bar close to home, to see a good friend who also recently set up his own business. We put the world to rights over a couple of Kopperbergs in under an hour before heading home. Although I’d planned to write a few emails that I’ll need to send tomorrow; my priorities change as I start thinking about all the things I’d heard and seen today. Two hours later, I’ve updated our investment pitch, and sent Colin a set of new questions and ideas to discuss in about eight hours’ time.

21:00

The Start-Up Loans Company is a Government-backed scheme that provides funding and mentoring for budding entrepreneurs to help their business succeed. With the help of this initiative, more than 30 new businesses are started daily in England, Wales and Northern Ireland. Contact: startuploans.co.uk

talkbusinessmagazine.co.uk

043 MONEY Start Up Loan Case Study.ga.indd 49

24/04/2014 15:07

e u q e h c e Th n i is ! t s o p t he Frustrated by sluggish cashflow? We can release the money you have tied up in your unpaid invoices. This gives you extra working capital to grow your business and means you can concentrate on making money instead of chasing it.

Call 0800 121 7757 or email info@ultimatefinance.co.uk www.ultimatefinance.co.uk Untitled-3 1

31/01/2014 11:22

CURRENT AFFAIRS

UKRAINE The situation in the Crimea is one that could drag on for years. While the EU and US have placed sanctions on Russia, there is a certainly an air of caution. Our reliance on oil, gas and electricity from Russia is clear. Moreover, from property to finance, Russian money is flowing into London at a massive rate. The UK and London know the significance of Russia, and Russian money, so they are very unlikely to rock the boat. After an early dip in the main indices, it seems like the rest of the world is carrying on as normal. The much bigger economic concern of the FED continuing to taper QE has seen losses retraced, and is now sending the main markets to new highs. The biggest short term risk is a huge spike in oil and natural gas process. The only saving grace is that we are approaching summer. FCA – PAY DAY LOANS The introduction of short term loans at first became a joke for people to talk about over a coffee. An APR of more than 1,000% - people would be mad to do that, wouldn’t they? Unfortunately the “what you want, when you want it” culture is still firmly in the mind-set of the UK population. Where there is supply there will be demand, and these loans are no exception. Currently, there are six million people in the UK that have lost control of their finances and have “unsustainable debt”. Although pay-day loans are a factor, they are a very small part of the overall problem. With the Bank of England keeping rates artificially low to stimulate growth, we have created a breeding ground once again for toxic debt. The FCA will certainly do its job and tighten up the

TALK MONEY

Money matters

Steve Ruffley, chief market strategist at spread betting and CFD trading platform, InterTrader, outlines how three stories dominating headlines are affecting the economy regulation, but the profit has been made - and the damage has already been done.

We have created a breeding ground once again for toxic debt

THE NHS The problem with the NHS is the amount of waste within the system. This waste is not from the nurses and front line support, but from the management consultants and mis-management of resources behind the scenes. The constant restructuring of staff, paying over-inflated redundancies and then hiring the same staff back on contracts, is crippling the

NHS and wasting money. The UK prides itself on free point-of-contact health care. However, with an aging and rapidly expanding population, how can we realistically continue to fund a cost-hungry machine? The answer is, we can’t. History has seen the UK systematically privatise the public sector, and the health system could be next. This could dilute the care for the most in need and send the base level cost for the consumer up. Contact: intertrader.com

talkbusinessmagazine.co.uk

045 MONEY Economy and Current Affairs.ga.indd 49

24/04/2014 15:09

Are you looking for legal services for your business? Hart Brown has a well established and respected commercial team providing legal services to an expanding and diverse range of businesses. Each piece of work is led by a partner and backed up by a talented team with a wealth of knowledge and experience. We can help if your business needs advice on: Supply of goods and services Contracts Dispute resolution Commercial agreements Commercial property Starting a business

Business structures Funding Investment Mergers Acquisitions Sale of a business Insolvency Employment

01483 887766 commercial@hartbrown.co.uk www.hartbrown.co.uk Authorised & Regulated by the Solicitors Regulation Authority (50788). Authorised & Regulated by the Financial Conduct Authority

Untitled-2 HB ad.indd 11

17/04/2014 4/17/2014 9:44:4710:34 AM

CASH FLOW

TALK MONEY

Does cash flow make or break a small business? hen I started my business, Cause4, four years ago, a wise entrepreneur reminded me of the well-known adage; “turnover is vanity, profit is sanity, and cash flow is reality.” As it turns out, this couldn’t be truer. Cause4 has grown well with a turnover just shy of £1 million and, with this experience of growth in mind, I now know that all fast-growing small businesses face the same two challenges. Firstly, managing cash flow when growing fast, and secondly, recruiting talented staff quickly enough to cope with demand. The fundamentals of running a business are the same universally, whatever sector the business operates within. It doesn’t take a genius to work out that if you pay your team on the first of each month as well as invoicing clients on the same day – with the standard 30-day payment period – your income might lag some four to five weeks behind your payroll. That’s if you’re lucky enough to have clients that pay on time. When faced with paying a high monthly payroll against a backlog of income, even the most optimistic entrepreneur can start to panic. Cash flow

Michelle Wright, CEO of Cause4, a fundraising partner for charities, philanthropists and social enterprises, discusses how money can make or break your business Turnover is vanity, profit is sanity, and cash flow is reality

is the lifeblood of the business and if you run out, you go under – even if the business is profitable. All too often the cash needed for growth is tied up in working capital – and the cold sweat of making the payroll is a painful reality. I quickly had to learn a few things about cash. My top tips are: • KNOW YOUR NUMBERS The one thing that an entrepreneur can’t lose sight of is the numbers. Prepare cash flow projections for next year, next quarter and – if you’re on shaky ground – next week. An accurate cash flow projection means that you can make decisions well before trouble strikes. • MAKE EDUCATED GUESSES Cash flow plans balance a number of factors, including customer payment histories, upcoming expenditure and suppliers’ terms. As you grow, this all needs adjusting, and seasonal sales fluctuations are also important. I now know that over the Christmas period – and well into the January “hangover recovery” – we

simply won’t get paid. That needs planning for. • PRE-SELL PRODUCTS OR SERVICES If we all got paid for services the minute we delivered them, then cash flow would never be a problem. In our service-based business, we can’t always presell our services like schools or membership clubs that ask for payment in advance. However, we can improve the cash flow through prompt invoicing at the end of the month, and adding charges for clients that pay late. It’s all in the terms. • ENCOURAGE GOOD KARMA – PAY ON TIME No accountant would agree with me here; however, we’ve always been good payers, and I believe that encouraging good karma is crucial. If we don’t pay on time, how can we expect our customers to pay promptly? We need to make sure that we encourage good cash management. After all, what goes around, comes around… Contact: cause4.co.uk

talkbusinessmagazine.co.uk

047 MONEY make or break.ga.indd 49

24/04/2014 15:10

call: 08000 142 433 or e-mail: howard@cash-4business.co.uk

Helping your company to manage it’s finances and keep the cash that you need!

“5 Ways To Access The Money You Need To Survive, Grow And Expand In Business.” A recent report showed that business owners were taking on personal debt via credit cards and mortgages rather than asking their bank. In many cases the money needed already exists within the business hidden away, if you can find it you can use it! 1) The biggest asset most businesses have is their customer list. Typically businesses are owed up to 80% of their annual turnover. Typically a business turning over £50,000 per month with a two month average wait to be paid can get up to £80,000 in 24 hours, with the balance paid a few days later. 2) If your business takes credit card & debit cards then you can release extra funds from this source also, called merchant cash advances it’s a particularly flexible form of finance based on the average of the last 12 months. As an unsecured form of money it can be effective instantly. 3) Re-finance your existing plant & equipment, even your vehicles. If you have any machinery, in your factory that you own. It is possible to value those items and borrow against them. Even if they are still on finance themselves. You’ll typically get up to 85% of the value as extra cash introduced into the business. 4) Many businesses have stock tied up in warehouses that is slow moving or bought for a special client on a call-off arrangement. Whilst it’s sitting there it’s dead money and you can often borrow cash against it’s re-sale value. With say 80,000 of stock you can release up to £40,000 cash. 5) Lastly the most often abused source of money. Everyone hates paying tax and whilst many companies save the money that they need for their VAT, PAYE and Tax bills, sadly many do not. They use the money as a sort of unapproved overdraft. HMRC are getting tough and imposing interest, fines, and pre-paid bonds on companies that are persistently late. But there are lenders who will pay your VAT and tax bills for you and let you spread the cost of re-payment over 4 months for vat and up to 12 months for tax. Of course we also help companies with other forms of money management to help you keep the cash that you need. We have access to lenders who are willing to help any business from start-up to venture capital. We’ve got the best rates for bridging finance, commercial mortgages, unsecured loans and banking products.

ACCOUNTING

TALK MONEY

A numbers game ven with a return to economic stability, entrepreneurs are faced with a number of pressures to ensure business survival. The key to longevity is to eradicate common business problems, including day-to-day frustrations, such as managing accounts, which can be time consuming and costly due to cumbersome accounting requirements and processes. So how can you improve your business’ accounting efficiencies?

REPORTING Small business owners often waste valuable time due to accounts systems, which are incapable of sufficiently updating information. Using a system that allows owners, staff and accountants to look at the same information in real time gives true visibility of cash flow. This, in turn secures the company as a whole by informing important business and investment decisions. DUPLICATION IS THE ROOT OF ALL EVIL It is important that small businesses focus on saving time, improving accuracy and removing duplication. Fundamentally, automating processes such as cash flow and payroll can allow small businesses to save resource whilst eliminating the risk of mistakes caused by human error. ACCESS FOR ALL Ensure your accounts are easily accessible and can be updated by more than one person in the business, so you can see an accurate picture of the finances

Phill Robinson, CEO of IRIS Accountancy Software, gives top tips on how small business owners can ease daily accounting struggles

Small business owners often waste valuable time

at any time. This also allows the bookkeeper, business owner and in fact, anyone else in the company who needs to access the accounts, to update information in their own time. ONE SIZE DOESN’T ALWAYS FIT ALL Customers are individuals and every business is unique. Therefore, don’t fall into the trap of working from software that has non-specific accounting processes, as it won’t be tailored to the requirements of the business. For example, the software may contain mandatory fields for data that isn’t necessarily applicable to your business, which can result in time being wasted entering information that is redundant. KEEPING ON TOP OF IT It is important that business owners keep on top of

accounting. Keeping a box of receipts that piles up and is sent to the accountant once or twice a year isn’t time- or costeffective for anyone. CASH FLOW IN THE CLOUD Cash flow can cause problems for businesses of all shapes and sizes. However, moving accounts away from traditional desktop software to cloud solutions can provide business owners with the flexibility to submit an invoice or receive a full update on cash flow, from wherever and whenever. Setting up and growing any business can incur unexpected costs, which can in turn affect your cash flow. This is why cash flow management is absolutely vital to overall business success, and without it, your business could be at risk of failing to meet its true potential. Contact: iris.co.uk

talkbusinessmagazine.co.uk

049 MONEY Accounting Tips.ga.indd 49

24/04/2014 15:11

The Fabulous Life Ladder What is your vision for your future? - how to make it a reality. Learn how emotions and programming impact success and discover the essential daily activity that improves your business. Effectively identify and remove blocks to money, success, and failure that keep you trapped. Sign up for our FREE introductory workshop at the Elite Business Exhibition on the 10th or come and visit us at stand 102.

050 TB32May.indd 1

29/04/2014 10:07

COMPANY FORMATION

TALK MONEY

The pros & cons of

forming a

imited companies and sole traders are the two most popular types of company chosen by UK business owners. The first step for anyone setting up a limited company is to register with Companies House, which oversees the registry of companies. There are more than two million limited companies registered in the UK, with 300,000 new firms set up every year. Each limited company must have at least one director; however having a secretary is no longer mandatory. There is no legal obligation for companies to trade using a particular entity, but there are differences between them.

ADVANTAGES OF A LIMITED COMPANY STATUS The term “limited” adds weight, so it seems bigger, both to potential investors and consumers. INVESTORS They are more likely to take a chance on limited companies, as opposed to sole traders or partnerships. A limited company gives them more security. SECURITY Banks tend to favour limited companies and they are given the

limited company

Dawn Murden gives the argument for and against forming an LTD chance to take out extra security by lodging a “floating charge” over the company’s assets. That means that if the terms and conditions of a loan are breached, the bank has the first claim on the assets. SHARES Provided there are no unusual clauses in the shareholder’s agreement or company’s articles, transferring shares in a limited company is generally easier and more straightforward than it would be in a partnership or for a sole trader.

Banks tend to favour limited companies and they are given the chance to take out extra security DIVIDENDS

The dividends of a limited company are not subject to National Insurance and are at a lower rate of tax than self-employment income.

and the directors can still be liable for the company’s debt. ADMINISTRATION Directors are also expected to deliver statutory documents to Companies House, so anyone failing to do this is subject to late filing penalties, and could be deemed to have carried out a criminal offence. LESS PRIVACY Becoming a limited company means accounts and other details are held on public record so anyone, including competitors, can access company information, although it can be restricted.

WITHDRAWALS Making withdrawals from the company can also pose a problem in terms of tax, as it is difficult for shareholders EFFECTIVE TAX RATES and directors to separate If you intend retaining some of their finances from those of the profits within the business, then it might be best to go limited the business. as this reduces the tax rate. ACCOUNTANCY FEES One expense bound to be DISADVANTAGES OF A higher for limited companies LIMITED COMPANY is the accountancy fee, as LIABILITY Banks will still require personal reporting requirements tend to be bigger. guarantees from the directors,

talkbusinessmagazine.co.uk

051 MONEY Compny Formation.ga.indd 49

24/04/2014 15:12

A4adtemplate.indd 1 Untitled-1 1

28/04/20149:46 14:06 2014/02/26 AM

indfulness. If we want to go erudite for a second, it is, according to the Buddha, one of the seven factors of enlightenment. For those of us that aren’t quite so attuned to the cosmos, it’s about being in the present. According to the 2014 JWT Trend Report (the annual barometer of what’s going to be “in” this year) mindful living – people questioning the depths of their digital immersion – is set to be an emerging movement. It’s not difficult to see why. We live in an age of constant information overload; we tweet while watching TV, Facebook while we should be writing a report, or read a review while we watch a film. It often feels like we are compelled to be doing something alongside the activity we choose. It’s not enough to be at an event or talk, we have to engage on social media while someone is talking. Depending on your point of view, this can be both rude and pointless as we could miss valuable points of interest. Does any of this actually make our lives better? Although, this is not the first time people are predicting the demise of the

Strategy

Head up for mindful living M

This month Rich With, creative director of The Grow Creative Company, stops and thinks for a moment, for a change

Does any of this actually make our lives better?

information age, and having information at our fingertips is certainly helpful, it’s hard to argue with those advocating this critical mass of often pointless guff needs to be stemmed a little. Interestingly, brands are also picking up on this movement. The bastion of forwardthinking that is the American automobile market, (or Buick anyway) recently unveiled it’s #InTheMoment campaign – suggesting people look up from their phones and have a real conversation, share a meal or enjoy the world around them. They even issued a pledge that they hope people will sign up to. Is Buick a step ahead of the curve and simply cashing in on something that’s possibly set to be an active influence on more and more of us? Possibly, but all irony aside, it’ll quickly be found out as people stop and ponder that question. With new devices, such as Google Glass, the user experience will mean our heads will start to look up again (rather than down at our phones or tablets). It’s more than likely that apps in cars on a HUD

(heads-up display) will inform us of outstanding areas of natural beauty, or Michelin-starred restaurants on our journeys. We’ll start to figure out how to use the constant barrage of social media to our advantage, so it is not constantly demanding our attention. These “glanceable user interfaces” are set to help as they convey relevant information to the user with the minimum of fuss. And when branding is at it’s most subtle and also it’s most useful, it can breed real love for the company.

Contact: justgrow.co

talkbusinessmagazine.co.uk

053 STRATEGY Rich With.ga.indd 51

24/04/2014 15:13

BUSINESS SHOW2014

ExCeL LONDON

THE

15 & 16 MAY 2014

THE UK’S BIGGEST BUSINESS EXHIBITION FOR ANYBODY STARTING OR GROWING A BUSINESS S CHARLES ROLL

WILL KING

N LUCY TARLETO

BRAD BURTON

D DOUG RICHAR

SOME OF THE BIGGEST NAMES IN BUSINESS GIVING YOU ALL THE INSPIRATION, ADVICE AND TOOLS TO HELP GROW YOUR BUSINESS 250 FREE SEMINARS 10 HANDS ON WORKSHOPS NETWORKING EXPERT ADVICE ST

BUSINESS SHOW2014

THE

RUNNING ALONGSIDE Of�ice Management

SALES INNOVATION

E X P O 2 0 1 4

Exhibition and Conference

GLOBAL MOBILITY ENTERPRISE, TALENT & TRAVEL

Untitled-2 1

ROUND TABLE DISCUSSIONS PITCH TO PANELS OF INVESTORS 350 EXHIBITORS BUSINESSES FOR SALE LIVE

2014

LIMITED FREE TICKET S available at ww

w.thebusine or call 08000ssshow.co.uk 68 69 70 27/03/2014 11:45

FLEXIBLE WORKING

TALK STRATEGY

Don’t control your staff, influence them S Philip Vanhoutte, senior VP and managing director of Europe & Africa for Plantronics, talks about the fears of flexible working and how to overcome them

marter working is now a reality in the modern workplace, with employees across the country being empowered with the flexibility to work in an environment that suits them, but this new way of working can be daunting for managers and employees alike. When staff have no fixed working hours and migrate away from their office desk, as they do at Plantronics, not being able to physically see your team to ensure results can create an air of losing control, and a resulting lack in productivity. On facing tough decisions in how to intelligently manage employees to their fullest potential, our solution has been to retrain and coach everyone as part of a smarter working change to achieve complete trust management. Trust is the number one driver of employee engagement, and we have created and nurtured a new working culture. The move to smarter working required a shift in management style from “controlling” to “influencing”. This isn’t always easy. But if you identify the correct training agent to support this required change, and help managers to embrace managing a distributed workforce, you will build a high performing, distributed team. We found Role Assessments a huge asset and put them in place to avert

managers from being subjective in their decision as to who could or could not participate in our smarter working practices. Implementing the right technology and finding the right space are the basics, but also consider the following essentials for establishing trust: • Training A clear understanding of goals, practices and procedures in this new way of working, to learn how to deal with a dispersed team and be coached to “trust” employees. • A structured change management programme Assumptions about how work is done will be challenged. Meetings, processes, teamwork and management techniques will all need to be rethought. • Set clear objectives Define how employee contribution will be measured. Clarify expectations. Plantronics is using the now renowned software, SuccessFactors to define, align, cascade and monitor business performance. • Stay connected The right technology is essential to ensure teams are always contactable. Unified communications makes this easier. • Communication Working practices will significantly change – more e-communication, performance measured by results rather

Implementing the right technology and finding the right space are the basics

than presence. Providing clear guidelines on the new working practices will support employees and help managers retain control. The journey to smarter working requires enlightened leadership and a well-integrated, multidisciplinary approach but central to this all is a great opportunity to review and redefine what work means for people. If it isn’t clear already, I am a true smarter working convert. Today, our award-winning offices are at the forefront of the flexible working movement, incorporating smart office design, technology for collaborative communication, and the recognition of human factors that impact how we work, like BYOD, hoteling and remote working.

talkbusinessmagazine.co.uk

055 STRATEGY Flexible Working.ga.indd 41

24/04/2014 15:15

Our Virtual Offices give you a prestigious city centre address allowing you the freedom to work where you want Contact Charlie on 0203 440 4444 or Charlie.smith@i2office.co.uk Quote "Talk Business" and get your first month free (Offer ends 31st May 2015 and subject to Terms & Conditions)

Untitled-2 1

www.i2office.co.uk www i2office co uk

27/03/2014 11:52

JOB CUTS

TALK STRATEGY

10 ways to avoid job cuts nfortunately, not everything goes the way we planned it to, especially in business. Whether it’s the uncertainty of the economy, troughs in business, or an unpredicted sector disrupter, it can lead to business owners contemplating job cuts and redundancies. However, redundancies can hurt the business’ reputation and affect overall employee morale and performance. Plus you hired that person for a reason, and losing them could be detrimental to the business.

1. CREATE A CONTINGENCY PLAN If your company does not already have a contingency plan, develop one now. During an emergency situation, it is much better to have a well thought out and developed plan. 2. NEGOTIATE PAY Unless in a set contract, it may be beneficial to consider lowering employee pay for a certain amount of time. Although employees may initially become angry, chances are they will take less pay over no pay. Consider offering repayments or bonuses when business picks back up. 3. LOWER BENEFITS Often, offering health insurance and other benefits to an employee can be detrimental to small and

Everything doesn’t always go the way you planned, so Talk Business gives top 10 tips to avoid job cuts even large businesses. Consider asking the employee to contribute a larger portion. 4. OFFER UNPAID VACATION TIME During the holidays or even over the summer months, employees may just want to spend extra time with their families and children, or perhaps you have a member of staff that wants to take a sabbatical? Your company can save money and the employee will return well rested from a vacation.

Perhaps you have a member of staff that wants to take a sabbatical

5. OFFER EARLY RETIREMENT Rather than letting employees go, consider offering a severance and early retirement option to a top employee near retirement age. 6. COMMUNICATE Communicate with the employees and find out ways to save money and ask if they have any ideas. They will respect your honesty and may surprise you with great ideas. It will also give you an indication of how enthusiastic they are about their job. 7. HIRING FREEZE Consider a hiring freeze until business picks back up. This will allow the company to consolidate several positions or departments. It can also serve as an opportunity to restructure

departments. Also, if an employee does retire or quit, you don’t need to necessarily replace their position. Instead, you could divide the work between other employees. If you choose to do this, remember that you may need to adjust salaries for employees absorbing a larger workload. 8. OFFER PART-TIME WORK Full time employees may jump at the idea of going to part time status for a set amount of time. Continue to offer them benefits and fair pay. When business does pick up, you will have a number of skilled employees ready to return to full-time. 9. FLEXIBLE WORKING Considering offering flexible working hours and adjusting salary accordingly – this may help you claw back enough money to avoid making redundancies. 10. RELOCATION It may sounds drastic but consider relocating or downsizing your office. There are some great office deals to be had, and perhaps you could even down size and have some staff working from home, or if you’re a very small company, a virtual office might suit. It’s a great way to save money.

talkbusinessmagazine.co.uk

057 STRATEGY Job Cuts.ga.indd 41

24/04/2014 15:16

Want to run your own letting agency? Let’s do the numbers.

OFFICES

£332K

OVER

UNIQUE VISITORS TO OUR 6000 WEBSITE EVERY DAY *Plus VAT

**Average turnover of our top 25% of offices YTD July 2013

Be part of the equation. Contact us today.

franchising@belvoirlettings.com 01476 570 000 / www.belvoirfranchise.com

Untitled-4 belvoir.indd2 4

28/03/2014 10:31 09:57

belvoir.i

14 09:57

Sponsored Article

Selling

• Nessinimil id et quidis utatur simini con nobitio • Nessinimil id et quidis utatur simini con nobitio

Learn to:

Go to Dummies.com®

for videos, step-by-step examples, how-to articles, or to shop!

• Master the selling cycle in seven steps • Take advantage of the latest technology to improve your sales • Follow up and build relationships that sustain and grow your business • Sell in up and down economies

$19.99 USA / $23.99 CN / £14.99 UK

ISBN 978-0-0000-0000-0

atet ad ad Num quam, iat. uga. Xero sdamet ed. Name

Ben Kench

Advertorial Business Booster.indd 40

When YOU are buying do you like being pushed? No!! None of us do!! So pushing is directly contrary to buying…so why the heck is our sales driven commercial mentality killing the market and alienating the prospects with an energy and drive that is selfish and unpleasant??? It has to change” says Ben Kench, author of ‘Selling For Dummies’ and Sales and Business Growth Specialist.. “The bottom line is sales teams and companies that are stuck in the ‘old world’ cut and thrust of driven selling will gradually find it increasingly difficult and less effective to continue with urgency and push and deadline mentality”. “It would appear that although such labels as ‘consultative selling’ are banded around and preached about, rarely are they truly practiced…and as a result very few potential customers are willing to entertain the salespersons visit” says Ben, “ and the result of the resistance is a response to ‘push harder’ from the selling directors! Its leaving a bad taste and putting off prospects. A better way for the new ‘information rich’ age is to genuinely help, genuinely serve and genuinely sell what is right for the client at the right time for the client. That way

relationships last and long term value is increased. To gain sales, teams need to slow down and nurture” If you are a business owner whom resists salespersons approaches then you will resonate with the idea… but as a business owner you also need to sell and hit targets! It’s a challenge - but the good news is it is one you can win! For more ideas and a chat about increasing business and sales performance connect directly with Ben on ben@benkench.com or visit www. benkench.com/from-the-heart

28/04/2014 16:51

Dacorum_&Breath_A4_Ad_A-W1.0.pdf

28/04/2014

17:34

CMY

A4adtemplate.indd 1

29/04/2014 09:57

ADVICE

TALK STRATEGY

The Sales Doctor Sales doctor, Tony Morris gives advice on motivating your sales staff with great incentives

Q: A:

Dear Sales doctor, I’d like to show my sales team how important they are to the business. Have you any advice about incentives? What’s important to find out first, is what would incentivise your sales team? Without knowing this, it’s very difficult to incentivise your people. In my opinion, it is the responsibility of the sales manager to know exactly what motivates each person in his/her team. I have a client who runs a 150seat call centre, and they do daily competitions where people can win a bottle of wine, a box of chocolates, a duvet day, and many more prizes. After doing a survey with the staff, it was found the incentive valued the most is the £10 trophy that was given out on close of play on Friday for the performer of the week. You would never have guessed that people actually cared about this trophy. When choosing the right incentives for your team, you have to consider the sort of environment and culture you would like on your sales floor. If you want a loud and exciting sales floor, then I would recommend a points system, which I call a sales ladder. You decide on a list of categories that you would like to incentivise your team to achieve, as it’s important to not just reward the top sales performer, otherwise people will start to resent that person and give up when they realise they can’t win. To follow is an idea of categories that an IT hardware client of mine uses: • Most calls made in the week • Most proactive referrals gained in the week

• • • • •

Most meetings made in the week Most quotes sent out in the week Most business closed in the week Highest deal closed in the week Most testimonials received in the week • Hardest worker of the week – managers’ discretion You need to allocate points to each category: each could be worth 10 points and you then decide the value of a point i.e. one point = £1. Only one person can win per category, therefore it incentivises the team to compete. You can have a big whiteboard up in your office with a list of all the categories down the left hand side and the names of the sales team at the top; this way they can personally enter their figures on the board at close of play every day and take ownership. Many of my clients insist the sales team have to accrue their points for a minimum of three months before cashing them in. They are allowed to gamble them at the end of the month if they wish i.e. double or nothing, and you can put a dartboard in the office; again this all depends on what environment you want on your sales floor. One final thought to add to the sales ladder is to have a plaque in the office saying “Top sales performer of the month” with a framed picture of the sales person above it. You can choose the salesperson who achieves the most points in the month, or this could be for the person who brings in the most revenue; again this needs to be decided by management. Another great incentive to think about is team-building days.

Tony Morris is the director of Sales Doctor, a sales training company based in Covent Garden, London. He is also the author of Coffee’s for Closers, a sales book with techniques you can put into practice. Contact: wedosalestraining.com

Need a diagnosis?

Send your sales problems to the editor, marked ‘FAO the sales doctor’: dawn.murden@ astongreenlake.com

talkbusinessmagazine.co.uk

071 STRATEGY Sales Doctor.ga.indd 61

24/04/2014 15:23

Exhibitions • Portable Displays • Engagement • Live Events

Building Brands with exhibition stands Skyline design and manufacture the world’s largest range of innovative exhibition stand systems and components. We have over 25 different systems, allowing us to create the right solution for you and your brand.

• Reconfigurable to fit different stand sizes • Interchangeable graphics for updating content • Multi-use exhibiting with no refurbishment costs • Rent or purchase to maximise your budget • Lighter and quicker to build, labour and shipping costs • Compact for low-cost storage Skyline Envoy™ System

Why not get in touch and arrange a visit to our showroom?

call:

0845 415 4709

email: info@skylinewhitespace.com look: www.skylinewhitespace.com

TALKBUSINESS_FULLPAGE_MAY14.indd 1

07/04/2014 18:25

mARKETING

Marvel at this Kimberly Davis, founder of Sarsaparilla Marketing, discusses the marketing genius of Marvel hile most girls love a good rom-com, I’m a sci-fi geek. I’d much rather be watching Batman, X-men, or Star Trek. But there is more to this genre than special effects and action. Sci-fi has been leading the way for new and innovative marketing ideas for years. For example, did you know…Star Wars was the first movie to incorporate merchandising into its marketing plan? The studios didn’t think the idea would work, so they let George Lucas pass up a $500,000 (£298,000) director’s fee in return for keeping licensing and merchandising rights for himself. A wise move for Lucas, as the merchandising rights have made $20 billion (£11 billion), exceeding the revenue from the films. More recently, there was another huge stride forward in sci-fi marketing. In the original Marvel comics, Iron Man, Thor, The Incredible Hulk, and Captain America were all independent characters who were later brought together to create The Avengers. This strategy proved highly successful in the comic world,

and Marvel predicted it could do the same in film. So they put together a plan to create and link all of these franchises together. Marvel wisely tested the waters in the modern market by creating the individual movies. It started with Iron Man in 2008, followed by The Incredible Hulk (2008), Thor (2011), and Captain America (2011). Each was a huge success. But this was just the first step in this brilliant marketing plan. Marvel also planted the seeds for growth by including minor secondary characters in these movies, which die-hard fans would recognise as the agents of S.H.I.E.L.D. The characters were barely noticeable to those who were new to the stories, but these characters were the glue that would quietly tie the series together. Now it was time for phase two… the release of The Avengers, which featured the stars and characters from all the individual movies in one blockbuster hit. The movie became the sixth highest grossing movie of all time. This allowed the company to move on to step three. The release of the Marvel’s Agents of S.H.I.E.L.D. television show

Marvel wisely tested the waters in the modern market

featuring the minor characters from the movies. The real genius is that Marvel has found a way to seamlessly cross promote and link the story lines of all of these movies and shows together perfectly while allowing them to stand independently. If you’ve watched one, you want to watch them all. It’s all wrapped up in one perfect little marketing package. I applaud Marvel for making such a complex process so easy and elegant. We can all learn from its marketing ingenuity.

Kimberly Davis is the founder of Sarsaparilla Marketing, an author, and speaker. Contact: sarsaparillamarketing.com

talkbusinessmagazine.co.uk

073 MARKETING Kim.ga.indd 69

24/04/2014 15:24

Technology for Startups Starting up your own business can be a challenging, hard but ultimately rewarding experience. In today’s business world the reliance on technology to deliver your product or service to clients has never been greater. So with a wealth of products and services to choose from, what should the new startup look out for to help them? We are going to concentrate on six items we feel would aid any startup.

Office Software

Remote Desktop Access

Having an office suite is fundamental to the running of any business. With the advent of cloud services, products such as Google Docs or Office 365 are a great way to get started with your office applications. Alternatives such as Open Office, which are freeware or open source allowing your budget room to breathe!

Flexibility and the need or the desire to work from anywhere but still access the files you need has never been easier. Whether you need to access your desktop from a clients location or your own iPad or laptop you can with services like LogMeIn or TeamViewer.

Online Storage or Backup All-in-one printer Rather than having a separate scanner, printer and fax machine, save space and reduce costs by investing in a decent All-In-One Printer. Most good performers come in under £150 and with running costs being pretty low they are a vital piece of equipment for any new business.

Cloud services like Dropbox, Microsofts OneDrive, Google Drive or Box.com mean there are many ways to make sure you can acces vital files where and when you need them most. You can also use some of these services as methods to back up those files too.

MailChimp Book Keeping Software Another fundamental element in your new business is book keeping software. There are many products out there, but depending on your individual needs, you may be able to use one of the online services rather than the desktop applications. From our experience we’d recommend something like Sage One or even Instant Accounts.

MailChimp is a great service that allows you to keep your clients up to date with your latest offers, products and services. With a really easy drag and drop interface to create your email shots, you can easily create effective campaigns and track their success. The fact that the service is free for accounts with up to 2000 contacts and the easy way to integrate it into your website are all added bonuses! Outside of the above items another great thing to have to hand is someone to help you with all of your technology meaning you can concentrate on running your business. For more information you can visit us at www.lime-it.co.uk

t: 01455 221136 e: info@lime-it.co.uk Lime IT & Media Solutions Ltd, Alma Park, Woodway Lane, Claybrooke Parva, Lutterworth, Leicester, LE17 5BH

TB_MAY_LimeIT_SP_2014.indd 1

24/04/2014 16:29

TEN STEPS OF TWITTER

TALK MARKETING

Ten steps of Twitter Step seven: crediting authors Dawn Murden sets out to improve the Talk Business Twitter – follow our journey and improve yours too ast month, Joel from Brandwatch told me to focus on “being more human”. ‘What I want you to do is take pictures of the office, meetings or events you attend,’ Joel said. Joel explained that using #InsideBrandwatch, and then tweeting about something in the office like a birthday or a funny debate has been hugely popular for them. He explained it was about displaying to your followers you’re not a corporate company; but a group of friendly humans, who are approachable. I found the tip hard this month, because there were no office birthdays and not many events, and so it was rather quiet. I did however do a review on a hotel, which I tweeted about, and went on

a skiing event that we posted pictures of. ‘And how did that go?’ Joel asked. It went well – the hotel retweeted and a few other people favourited, but it wasn’t hugely popular. I went on to tell Joel that I thought that particular tip wasn’t something you could implement straight away, as I didn’t want to fabricate anything. I said it was one of the tips that we have to work on and develop as things happen, and he agreed. This month Joel said he wants me concentrate on using the @ symbol to credit authors. Be it from our own articles on Talk Business, or from blogs, national newspapers, SME websites, etc. ‘Tweet about an article saying: “A great article by @X on X – you have to read it” with

Concentrate on using the @ symbol to credit authors

the link,’ Joel said. ‘The author should retweet it.’ The author should feel encouraged to retweet, and therefore it will build up your audience and engagement. And also the author will appreciate it. In terms of tweeting our own stuff vs. other sources, Joel reminded me that 80% of tweets should be about other sources, and around 20% from ourselves. However, he also said publishing houses usually tweet more of their own stuff. As an extra bit of advice, Joel also mentioned that emojis (cartoon images) are now being used on Twitter. ‘I suspect this will really take off,’ he said. ‘When we use symbols on our tweets, they seem to get more attention – perhaps this is because people have a visual mind.’ He told me to visit getemoji.com and then just copy and paste them into Twitter. So for the next month, we’ll be tweeting lots of business authors about their articles with smiley faces and more. Contact: brandwatch.com

talkbusinessmagazine.co.uk

075 MARKETING Twitter.ga.indd 75

24/04/2014 15:25

ONLINE PRINT FOR PROFESSIONALS ! Nobody can beat us when it comes to printing. You order online, we print. Fast, attractive and reliable. How about: 5000 FLYERS A6 £40.87 *250gsm gloss, 4/4 colours

1000 MAGAZINES A5 £135.54 *12 pages, 135gsm gloss, 4/4 colours

1000 BUSINESS CARDS £27.36 *300gsm matt, 4/4 colours

Tel: 01274 669512 Mob: 07834 229487 Mail: info@atkins-solutions.co.uk

Guarantee to Save you Money! Low Cost Remote Support “The wide range of services and expertise that Atkins Solutions have provided over the last few years has given us the conﬁdence to place our IT infrastructure into their hands.” - Chris Burrow, Contracts Manager (Specialist Building Systems)

P76 TB32May.indd 1

28/04/2014 14:35

EMAIL TALK MARKETING

Avoid the junk folder MAKE AN IMPACT – WHETHER SUBSCRIBERS OPEN YOUR EMAIL OR NOT Even if your subscribers don’t open your email, its presence in their inbox has a tangible impact on brand awareness. Sending an email communication featuring your brand name, and a subject line that communicates what’s in the email and how that benefits the user, can still influence a purchase decision. MAP OUT YOUR MESSAGING STRATEGY IN LINE WITH THE CUSTOMER JOURNEY Because most recipients won’t read every email, it is much more useful to think about connecting consecutive subject lines with one another. Core brand messaging and tone of voice should be present and consistent in every subject line. As each new email pops up in your subscribers’ inboxes, recipients will learn more about your brand over time. AVOID BEING DUMPED IN THE “JUNK” FOLDER Keeping a “clean” list of email subscribers is one of many important ways of ensuring that your messages land in the inbox. That means mailing your subscribers on a regular basis and, if emails to the same address bounce back a few times in a row, it’s time to remove them from your database. There are many other ways to ensure and improve inbox placement, so it’s always good practice to seek help from an email expert. AVOID BEING BLACKLISTED AS A “SPAMMER” According to our analysis of 13 billion sent emails tracked by Return Path, less than one

Dela Quist, CEO of Alchemy Worx, a digital marketing agency, gives his top tips for successful email marketing

From sending four emails to eight per quarter could be as much as £1.3 million

subscriber in every 2,000 will mark an email as SPAM. So, if you are receiving a higher rate of SPAM complaints, it is likely that you are making some basic errors. One common mistake is to send emails to relevant subscribers from a sister brand. Recipients who don’t recognise the “from” address or the branding are more likely to mark you as SPAM. By all means, let your subscriber list know about other offerings, but keep the “from” address familiar.

REMEMBER THAT MOST UNSUBSCRIBES ARE HEALTHY It’s only natural that some subscribers will outgrow your business. Yet, when “unsubscribers” are asked why they are opting out of marketing emails, they often complain about “receiving too many emails”. If a recipient has become uninterested in your business, they’ll probably feel that one email per month is too many. However, for a list of one million subscribers, the potential additional revenue of the increase from sending four emails to eight per quarter could be as much as £1.3 million. In comparison, the potential loss in revenue from the number of consumers that might unsubscribe from the email list is only £18,000. Some unsubscribes are a small price to pay for the benefit of a successful email programme. And those people who do unsubscribe were probably not going to buy from you anyway. Contact: alchemyworx.com

talkbusinessmagazine.co.uk

077 MARKETING Email Tips.ga.indd 45

24/04/2014 15:26

Sponsored Article

ood managers are essential to any successful organisation. An exceptionally good manager achieves a hard working, productive and effective workforce that punches above its weight in its performance. What a good manager will not do is: • Hire people who don’t fit • Hire people who make them look smart in comparison • Treat employees like untrustworthy fools • Not deal with a problem quickly and efficiently • Never say ‘thank you’ for a job well done So what makes a good manager? A key to successful management is the relationship between the manager and his or her staff. It’s the manner in which managers manage people that separates the ordinary from the good and the exceptional. Good relationships are based on trust, commitment and engagement, and a good manager’s essential role is to build these relationships for the benefit of the organisation, so that the tasks that are set are completed with enthusiasm, effectively, on time and with the energy to do more. What good managers do is: 9 hire exceptional staff who may be smarter than they are because these people can add value to the team and do the job well! 9 make the organisation a preferred employer by attracting exceptional staff who can do an exceptional job

Advertorial Square Circle.indd 40

MANAGING PEOPLE IS EASY – OR IS IT! for the customers 9 treat their staff like adults – communication is key so they get to know their staff, find out what motivates them as it is not the same for everyone! 9 give praise when and where it is due 9 deal with problems quickly so that they are nipping any issues in the bud before things get out of hand 9 support and coach all the members of their team By doing this a good manager is more likely to have staff who are engaged, committed and ‘go the extra mile’. They are, by default, less likely to have de-motivated staff who cause lots of problems. They will also be more likely to manage any member of the team who is causing problems so that these are dealt with and either the employee is helped to improve or is managed out of the organisation in

a fair and effective way. A good manager is also good at managing and developing themselves. They recognise that there is usually room for improvement in themselves as well as their team so that they: • achieve good results • are assertive and communicate well • are clear thinkers and effective speakers who are good at influencing others • are decisive, good at negotiation and problem solving • excel at time management • spend time in self-development Management is a skill that can be learned. If any of your managers or supervisors need to improve their management skills, then contact us and discuss training for these individuals so that this benefits the business. Square Circle HR Ltd can provide either one to one coaching or design in-house training which can be delivered to a group of staff. See more at www.squarecirclehr.com, email or call Alison Welsh alison@ squarecirclehr.com or 0141 248 7826.

28/04/2014 15:33

Theaccelerator arlier this month, a debate broke out on Newsnight between Eileen Burbidge, a partner from Passion Capital, and Andrew Orlowski, editor of The Register, about the need for more “engineering” driven culture around start-ups. As is the case with most good television debates, both parties have equally valid points. As technology entrepreneurs, we do a really bad job of explaining what we do, leaving movies such as the Social Network and television programmes such as Dragons’ Den to fill in the gaps. Whilst they might help to popularise technology and entrepreneurship in the mainstream – their oversimplification can lead to massive misinterpretation. Steve Jobs hasn’t helped either, with the “appification” of the tech sector that has created this simplification – reducing highly sophisticated hardware and software to the press of a small icon on an iPhone or iPad. It belittles the hardcore engineering (both software and hardware), which has gone into the creation of this technology. Two world class software businesses based in TechCity that punch well above their weight on a global stage are Swiftkey and CityMapper. Both apps can easily be dismissed as frivolous, but both are built on some extremely hardcore algorithms that are being calculated in real time.

technology

Our tech columnist; Jon Bradford, managing director of Techstars, says we need more (software) engineers

As technology entrepreneurs we do a really bad job of explaining what we do

For those who are not familiar with either app, Swiftkey is a keyboard that uses artificial intelligence technologies that enable it to predict the next word the user intends to type, whilst CityMapper is a journey planner that makes the large complicated city transportation systems simple and usable. But let’s not get carried away, we are as much at fault. We can’t help ourselves but make life difficult. Let’s start with the fact that we call ourselves software developers. To clarify, developers are builders who buy and sell property hoping to make a good profit on the way through. We, as a community, have a responsibility to call ourselves software engineers – not software developers. Software engineers that build software products that can be (frictionlessly) exported around the world at a push of a button - no different from manufacturing in the past. Embracing this new found description as software engineers can be extended into education. As was argued, we need many more engineers, yes software engineers, and they are not going to come through the current education system. I believe that we need to adopt the historic approach of training engineers through apprenticeships, opting out of university, and working and learning in parallel to build

the skills and experience for a career during the next 20 years. This is no longer optional, and from September 2014, computer programming will be taught in primary and secondary schools, making England the first country in the world to mandate this. Kids from the age of five will be taught to code, through to at least 16. Never underestimate the power, wonder and sophistication of the technology at your fingertips. As Jony Ive describes perfectly: ‘When something exceeds your ability to understand how it works, it sort of becomes magical.’ Contact: techstars.com Twitter: @jd

Jon Bradford is managing director of Techstars in London. Alongside this he is also a co-founder of f6s, the largest community of start-up founders in the world, and tech.eu, a dedicated tech blog for start-ups in Europe.

talkbusinessmagazine.co.uk

101 Technology Accelerator.ga.indd 79

101

24/04/2014 15:47

Why should you be “Content Marketing”? Content Marketing is the creation and sharing of unique content (written and visual) that helps your business communicate key messages and encourages your audience to believe the things you want them to about your brand. Sounds like magic? It is a bit. Which is why so many businesses are adopting it as a key part of their marketing strategy. It’s no longer enough to just tell people that you are great at what you do and the right choice. You need to prove it. And content marketing is how you do this.

Let’s go back into yesteryear In the “olden days” businesses used to have websites, and that was it. In my design agency, we created many high quality websites – to share what made a business great and unique and to show personality. A few years ago, we started to integrate blogs and social media too – which was the beginnings of content marketing. Now it’s time to think beyond blogging and social media. It’s time to think content marketing.

This requires an audit and a cleanup - and a 6 point checklist: 1.

Your website and email communications should be responsive (that means the layout is fluid and automatically adjusts for mobile devices, browsers, tablets etc to be visually appealing and easy to read).

Ideally, your website should be built in WordPress (our favourite CMS which allows you to easily update the site).

All your communications should be fresh and visually appealing – using great use of space, typography, layout and images.

Throughout our marketing, you should include social media (links to great profiles, social media sharing, and of course, your people need to be familiar with the tools).

You need a seamlessly integrated blog (where you can write articles, embed video, embed PowerPoint files and include images/infographics).

Your website should be content marketing ready - which involves regular content coming from your team and your business, distributed via social media and on your site, combined with new ways to engage and listen.

Content includes: Blogs Social Media Updates Ebooks White Papers Reports Infographic

Great, unique and relevant content lets you do all these amazing things for your business: Consistently remind people you exist

Want to learn more? Ask us for an invite to our upcoming seminar “The Content Marketing Game Plan” in Soho, on the 21st of May. Be sure to mention “Talk Business” for extra special perks!

Show yourselves as experts/thought leaders Answer frequently asked questions Allow people to get to know the personality and personalities in the business

Get in touch

Attract the right customers

020 7036 0560 www.topleftdesign.com team@topleftdesign.com twitter.com/topleftdesign

Smart content marketing takes time, creativity, energy and strategy. It takes the development of your marketing muscles. The first step is recognising the value and the possibility. Then you need to make sure you have the right online environment to support your content marketing activity.

Keren Lerner | CEO of TLD

Illustrations by Tamlyn Hall

019 TB32 FPG PRINT.indd 1

28/04/2014 15:35

VIDEO INTERVIEWS

TALK TECHNOLOGY

Should HR professionals be doing more video interviews? THE BENEFITS The primary benefit of video interviews is that you can cast the net wider. You can see people from further afield, who may not have the time or inclination to travel a long distance for what might be a speculative interview. Recruitment, is, or should be, about casting the net widely. The best of 100 potential candidates will always be better than the best of 50. With that said, that also means you can save the huge cost of candidate expenses, particularly if they do have the will to travel from abroad seeking a career in the UK. In 2012, employers in the UK spent an average of 10 working days interviewing, 16% of the working week travelling to meet candidates, and £3,286 reimbursing candidates’ travel

Peter Burgess, managing director of Retail Human Resources, examines how business owners can make use of the growing trend

Recruitment, is, or should be, about casting the net widely

expenses, according to a survey carried out by Cammio - a Dutch company specialising in online video services. In terms of logistics, video interviews mean that you don’t have to book a room to conduct the interview. Whilst they should be held somewhere quiet with no interruptions, this is another task that doesn’t have to be added to the to-do-list. The key is to ensure that the interviewers are trained to interview in this way, and that the equipment and connection is as good as it can be. Of course the latter will depend on the interviewee having the right capacity with their connection too.

ARE VIDEO INTERVIEWS TRICKIER FOR THE CANDIDATE? People are always selfconscious about how they come across on camera. How many times have we watched a video of ourselves and thought, “do I really sound or look like that?” The key is to break through that barrier - and that’s where the practice comes into play. In today’s media-savvy and techworld, the trick to making a good impression; for some businesses an interview may be less about what you know and more about how you come across on camera. Contact: retailhumanresources.com

talkbusinessmagazine.co.uk

103 Technology Video Interviews.ga.indd 41

103

24/04/2014 15:48

Make the change

Take Control... Sometimes changing software requires a leap of faith...

Embarrassing Websites Do you have an embarrassing website? We can help, as web experts we care about the health, vitality and potency of your website.

Have a friendly chat with our experts

01424 447858

Cognito Software provide flexible solutions that will grow with your firm.

Cognito software - worth the leap Legal Accounts

Practice Management

Time Recording

Compliance Probate

Trust

Case Management COLP & COFA

FREE

Financial Reporting

WEBSITE PRESCRIPTION

Marketing & CRM

QUOTE ‘TALKBUSINESS’

Estate Accounting

LET OUR EXPERTS REVIEW YOUR WEBSITE

Book your demonstration

View our full range of web services

Call: 0121 314 7745 or info@cognitosoftware.co.uk www.cognitosoftware.co.uk

Untitled-10 1

www.diligencedigital.co.uk 27/03/2014 14:40

We know employment law inside out. Whether you’re looking for hands-on help in dealing with absence or performance issues, need a tailored employment contract or need solid advice to enable you to meet your obligations as an employer, we can provide you with all the support you need

Our straightforward, results-led approach offers the following benefits to your business: • Improved employee performance, leading to increased business efficiency and productivity. • Cost savings as a result of reductions in absence and employee turnover. • Time saved dealing with Human Resources issues. More time available to run your business. • Confidence that your HR systems and documents meet legal requirements - reduced risk of tribunal or prosection. • No more HR headaches!

Our main office is in Barton-le-Clay, Bedfordshire Tel: 01582 883299

www.suallen.co.uk - su@suallen.co.uk Su Allen HR.indd 1

104 TB32May.indd 1

30/01/2014 09:50

29/04/2014 10:32

WEB SECURITY

TALK TECHNOLOGY

Top ten tips to improve internet security Nick Chowdrey, a finance and accounting writer for Crunch, an online accountancy firm for freelancers and small businesses, gives his top tips on web security 1. INSTALL LATEST WINDOWS/OSX Having an outdated version of your operating system is a bit like driving a rickety old car. Not only does it look like it’s from the past, in many cases it’s also not very safe. The latest versions boast the most cutting-edge security software, so if your OS is stuck in the ‘noughties you should seriously consider an upgrade. 2. BIN INTERNET EXPLORER We realise some people have been using Internet Explorer since the world wide web was first spun, but we hate to break it to you… it’s rubbish! IE users are targeted because the bad guys know they’re not likely to be very web-savvy. But don’t despair, there are plenty of free (and better) alternatives to choose from. 3. CONSTANTLY KEEP YOUR BROWSER/OS UP TO DATE Constant update notifications can be a pain in the modem, but ignoring them is just foolhardy. Virtual bugs are just like real life ones, they’re constantly evolving to find different ways to infect you. All the latest know-how is crammed into those updates, so it’s really important to stay up to date. 4. IMPROVE YOUR PASSWORDS If a hacker discovers your email login is “johnmail86” they’ll probably guess that

For maximum security, use a random combination of upper/ lower case letters

your Facebook login is “johnfacebook86”, (sorry John, better change those passwords!) For maximum security, use a random combination of upper/lower case letters, numbers and symbols and download a password logger to keep them safe. 5. TWO-FACTOR AUTHENTICATION It may sound a bit swanky, but this just means that logging in requires two ways to check your identity, usually a password and a reference code sent to your phone. You can set this up on many websites, including Twitter and Gmail, in the privacy settings. 6. INSTALL ANTI-SPYWARE AS WELL AS ANTI-VIRUS Spyware and viruses are two different things and you should get programmes that deal with both. There’s loads of free software to choose from. 7. MAINTAIN RESTORE POINTS Ever wished you could turn back time? Well computers kind of allow you to do that, giving you

the chance to rewind to before things went horribly wrong. Your computer will usually create restore points on its own, but it’s a good idea to do it yourself every time you install an important program. 8. BACKUP DATA External hard drives are pretty cheap nowadays, and virtual storage, such as offered by Dropbox and Google, can be even cheaper. 9. INSTALL AN AD BLOCKER Internet ads aren’t only annoying; they often contain links to nasty sites that will inject all kinds of unwanted things into your computer. Most browsers nowadays have a pop-up blocker installed, but ad-blockers go a step further, removing ads that appear on the page as well. 10. BE A VIGILANT BROWSER To be honest, this point could make up a whole new tip sheet. But in a nutshell, try to stick to browsing sites that you trust. Sites listed higher up searches are more likely to be safe because more people have used them. There are some dark and dingy corners of the internet. Just try and stay away.

talkbusinessmagazine.co.uk

105 Technology Web Security.ga.indd 41

105

24/04/2014 15:49

ROADSmay.indd 1

24/04/2014 17:04

USER EXPERIENCE

TALK TECHNOLOGY

Enhancing the fan experience eople are more connected than ever, and that trend will continue at an increasingly rapid rate. It is estimated that by 2015, there will be 5.6 billion mobile devices in use globally, accompanied by a projected increase of 2,600 per cent in mobile data transfers. Clearly, there is an increasing appetite for media-rich experiences delivered on mobile devices. These trends are arguably most obvious in the sports and entertainment realm, resulting in a host of new experiences for fans and business opportunities for teams, leagues, stadia and arena owners, as well as their partners. There are a growing number of sports-related social networking websites and applications that create instant access to the latest scores and allow users to post and share images and videos of games and events. With this comes a rise in demand for these amenities to be available in venue to complement the action. Fans expect their mobile experience to be as good, if not better than, the experience to and from the event. However in most sports and entertainment venues today, existing wireless and cellular technologies, such as 3G and 4G, are not optimised for the reliable delivery of these services to such a highly concentrated group of users, leaving

Nigel Collier, managing director of digital innovative, Studio Skylab discusses how to improve the fan experience with technology

According to Google, 84% of smartphone shoppers use their phones while in a physical store

thousands of fans with limited ability to share video and access mobile data applications. The need to create a seamless and uninterrupted stadium Wi-Fi experience has become one of the primary focuses for industry executives. As a result, there is an increasing need to address the requirement for seamless and reliable connectivity, and the emerging business opportunities associated with the event and venue-specific applications. The opportunities for increased levels of interactivity to engage fans in compelling ways are endless. Sporting venues can offer exclusive location-based applications such as concierge services, and revenue opportunities like realtime concessions, merchandise, and ticket ordering, while uninterrupted voice and text services will allow fans to enjoy the event like never before. But the rewards for offering an enhanced mobile experience do not remain online, as venues are increasingly offering instant prizes for fans who access, and are actively involved in, their social media campaigns. Digital sales will account for 11.5% of the total retail sales within the UK this year - one of

the highest in the world - and in the UK, more than half of us now own a smartphone, and 6.5 million of us regularly access retail stores on it. But those figures are set for explosive growth. Mobile devices will continue to drive shopper behaviour as consumers use them to price check, access product placement, view recommendations and explore social media to inform their purchasing decisions. According to Google, 84% of smartphone shoppers use their phones while in a physical store. This wonâ&#x20AC;&#x2122;t just generate online sales, but will transform the way that consumers shop in a multi-channel world.Apps create interactive experiences, and this can be replicated to stadium or event merchandise stores, giving SMEâ&#x20AC;&#x2122;s the opportunity to sell products to an engaged audience before, during, and after a live event. 2014 will be the year that forward thinking retailers see mobile not just as another retail channel, but instead as a personal gateway to the shopper that can inform, inspire and excite by enabling a richer and more targeted experience. Contact: studioskylab.com

talkbusinessmagazine.co.uk

107 TECHNOLOGY Fan Experience.ga.indd 41

107

24/04/2014 15:50

Sponsored Article

HYPHEN8 IN:GAGE –

A BETTER WAY TO DO SALESFORCE.COM

alesforce.com has proven to be the preferred cloud platform for businesses to build and deliver CRM solutions. Salesforce.com

applications provide, out-of-the-box, a deep and broad set of functionality to meet almost every need. However, its implementation typically requires some level of configuration,

customisation and integration - to ensure that the package fully meets your specific business needs. To achieve this, you’ll need expert resources who have the requisite skills and experience in delivering high value solutions. Some organisations decide to establish their own internal Salesforce.com team. Others decide to engage an external Salesforce. com Consulting partner firm. BUT - experiences have shown that there are some drawbacks and limitations with each of these approaches:

BUILD YOUR OWN TEAM

ENGAGE A SPECIALIST SALESFORCE.COM CONSULTING PARTNER

This could involve cross-training existing staff AND/OR recruiting new staff with right skills and experiences. This approach gives you full control of your own talent pool, which you can flex to meet the changing needs of your business. However, this option could also involve: • Recruiting and Training Costs • Retention Costs (and associated risks) • Project Delivery Risks (particularly during unplanned sick, holiday or other leave) • Sub-optimal utilisation What’s more, your capabilities are limited to the incumbent skills of your team - and hence might need to engage additional staff to support other, or more complex needs.

This approach will give you access to the resources and complete suite of skills you need – and the potential ability to deliver a project, aligned with best practice, in a shorter timespan. However, these folks: • Can introduce high costs;

So, in response to these issues, Hyphen8’s IN:GAGE programme provides organisations access to a flexible, scaleable and retained resource service – all year round. It provides experienced technical experts, and business consultants

IN:GAGE - A BETTER WAY The IN:GAGE programme is a fully managed “One Stop Shop” service, that operates almost like your own in-house function. It includes: • Designing, developing and supporting CRM applications to meet your immediate and longer-term business meets • Providing guidance, knowledge, methods and advice to help ensuring users are fully trained and engaged to make best use of with extensive experience in helping organisations deliver transformational change. IN:GAGE is a fully managed “One Stop Shop” service tailored to meet your ongoing business needs (details in the green box).

Contact Hyphen8 now to explore how Salesforce.com can be tailored to meet the needs of your business, in the Cloud! Tel: 0207 608 5671 Email: team@hyphen8.com Web: www.hyphen8.com

Advertorial Hyphenate.indd 40

• May not be cognisant of the culture and workings of your business; and, • Don’t have any vested interest in helping you truly deliver business benefits. Furthermore, you may still need to recruit some staff to provide ongoing support and maintenance!

application capabilities • Helping you ensure rigorous data quality management processes are in place to deliver reliable information that can be trusted • Advising at a strategic and operational level to ensure your organisation gets the best value from the solutions in place • All of the above would be delivered and managed within a robust governance and risk managed framework. Hyphen8 is a UK based CRM consulting firm that specialises in helping businesses and not-for-profit organisations get the best value from their investments in cloud computing, based on the Salesforce.com platform.

hyphen cloud consulting

17/03/2014 11:02

APPS

TALK TECHNOLOGY

I’ve got an app for that… This month, we’ve chosen apps to help you track flights, and scan documents with your smartphone

CamScanner Price: FREE Compatible with: Android and iOS The gist: CamScanner is a mobile document scanning and sharing app, already installed on 60 million devices in 208 countries. It allows you to scan, store, sync and collaborate on various content across

smartphones, iPads, tablets and computers using your smartphone camera. It includes its own image cropping and enhancing algorithm for clearer images, and you can even extract particular sections of text froma document. It’s great when you’re on the go. Downloadable from: camscanner.net

Flight Track 5 Price: £2.99 Compatible with: Android and iOS The gist: It gives you real time departure info, delays, and gate numbers at a glance. International coverage allows you to track flights worldwide. It even informs you of cancellations and helps you find alternate flights when you’re stuck.

Users get push notifications with flight updates, and can view terminal maps to help navigate to the gate. With FlightTrack, you can search flights by number or route in the search field, create trips with multiple flights and passengers, and view the progression of an entire trip within a single workflow. Downloadable from: mobiata.com/apps/ flighttrack

talkbusinessmagazine.co.uk

109 TECHNOLOGY Apps.ga.indd 55

109

24/04/2014 15:51

TALK TECHNOLOGY GADGETS

3D printing for

the masses Dawn Murden reports on The Micro 3D printer, which prints jewellery and toys at the click of a button, and will retail at just £150

110

Nokia has released schematics for printable phone covers

have printed whole dresses using them, while Nokia has released schematics for printable phone covers, and Rolls Royce is looking to print engine parts. Printers are currently being developed for medical use as well – imagine being able to print teeth and joints, for example. The reason 3D printing has become a buzzword more recently is because the printers are becoming more accessible to the masses. The cheapest models used to be in excess of £2,000. However, now there are models for £1,000 or less, available from high street stores such as Maplin. But last month, there was a model in the news that took the tech world by storm. A firm in Maryland created the Micro 3D, which costs just £150. The designers have been working on the printer for a number of years, but launched it on

Kickstarter, a funding platform for creative projects last month. In just 11 minutes, the Micro 3D had achieved its target of $50,000 (£30,000). The campaign runs until May 7, and at the time of writing, the M3D has already raised more than $250,000 (£156,00) in funding – smashing its target. The printer weighs just 2.2lbs (1kg), and will print objects up to 4.6 inches (117mm) tall. It comes ready to use, so there’s nothing to assemble or set up – unlike many of the other budget 3D printers available at the moment. The designers of the M3D say it is not just lighter than existing printers, but 10 times more efficient – they say they took all of the features they like from existing printers and redesigned everything else. ‘At M3D we knew at some point in the future these tools

Picture credit: M3D/Kickstarter

here has been a real buzz about 3D printing during the last few months. The actual concept of 3D printing for most seems mind boggling. It involves converting a computer-generated image into a solid object through “sequential layering” – building your creation through thousands upon thousands of microscopic horizontal layers. Watching one of the videos of the printers in action makes me think I should be watching a scene from a futuristic sci-fi film. The technology is still in its relative infancy. Despite emerging around 30 years ago, it has only taken off in the past decade. Now some are saying 3D printing is the “third industrial revolution”, claiming it is the biggest invention since the Internet. There are many examples of how 3D printers are being used already. Fashion designers

MAY 2014

110_111 TECHNOLOGY Gadgets.ga.indd 54

24/04/2014 15:52

Picture credit: M3D/Kickstarter

GADGETS

would be a part of everyone’s lives, so we asked why not now?’ said founder Michael Armani. ‘In order for [3D printers] to live up their potential, they need to be affordable and completely effortless to use. ‘There hasn’t been a truly affordable consumer printer that’s easy to use; where you plug it in and press print, until now. And that’s why we made the Micro 3D printer. ‘The Micro 3D is for everyone. We designed it to be perfect for beginners and experts.’ So how did the company keep the costs down? Co-founder, David Jones said: ‘We’ve managed to keep the cost of the Micro low by ensuring that it’s space- and power-efficient, compact, and lightweight. ‘It uses as much power as a tablet would use, without compromising on reliability, consistency, or accessibility.’

The firm did offer “early bird” printers on eBay for $199 (£109), but these sold out within minutes. It’s clear 3D printing is very popular right now. So what sort of things can you make with the printer? Well, the demo video includes examples of custom-made pastry cutters, and replacing broken shower hooks. It can also print custom toys, jewellery and food, including chocolate - bringing a range of manufacturing options to your business. If you run a productbased business, it could be revolutionary for you in producing prototypes, and in some cases the real thing. It will bring your creation to life right before your eyes, and no longer will you have to use wood and glue, rely on a manufacturer, or injection moulding. You may think if you run a services company that you

If you run a productbased business, it could be revolutionary for you in producing prototypes

TALK TECHNOLOGY

have no interest in this type of technology – but what about printing promotional material? Without the help, and cost, of another company, you could produce models, jewellery and badges for shows and exhibitions. 3D printing is definitely something SMEs should be considering to grow their business, especially when the Micro 3D goes on general sale. There’s no doubt competitors will try to rival it, opening up the technology to the masses, and you, even further. To find out more about the Micro 3D visit: themicro3d.com Visit the Kickstarter page here: kickstarter.com/projects/ m3d/the-micro-the-first-trulyconsumer-3d-printer Next month, we’ll take a look at the best 3D printers on the market right now.

talkbusinessmagazine.co.uk

110_111 TECHNOLOGY Gadgets.ga.indd 55

111

24/04/2014 15:53

122 FS - Sandwhich.indd 1

29/04/2014 10:20

fRANCHISE

fRANCHISE NEWS Driver Hire reports best ever year

Franchisee of the Year Awards open for entries THE BRITISH FRANCHISE Association (bfa) has launched the bfa HSBC Franchisee of the Year Awards, with two new categories, as the oldest awards in UK franchising celebrate its 25th anniversary. The bfa HSBC Franchisee of the Year Award is given to the UK’s most outstanding franchisee, selected from the winners of the six categories below: Award for Franchisee Customer Service Recognises excellence in customer care, identifying the franchisees that have gone above and beyond to deliver exemplary service to their customer base. Young Franchisee of the Year Award Identifies the country’s pioneering young franchisees. The category is for those under the age of 30, and will celebrate the triumphs and enterprising nature of the nation’s young talent. Micro-Business of the Year Award Showcases the excellent business practice carried out by the country’s smaller franchises. Mobile and home-based businesses run by a single operator or couple are eligible for this category. Female Franchisee of the Year Award Champions the commitment and drive present in female franchisees across the country whose passion and skill makes them stand out from the crowd.

pizza delivery hise with

Olderpreneur Franchisee of the Year This award provides an opportunity for franchisees above the age of 55 to celebrate the ways in which they have used their knowledge and expertise to create new avenues of growth for their business. B2B Franchisee of the Year Highlights the franchisees operating in a business-to-business environment. It will commend franchisees who can demonstrate how they have leveraged their relationships and expertise to create a profitable business delivering high-quality service, products and savings to their clients.

DRIVER HIRE HAs had an excellent year. Another strong set of weekly turnover figures for the final week in March completed an outstanding 12 months, helping the transport and logistics recruiter to smash its previous best (set in 2007/08) by more than £1 million. Overall, network turnover for the year ending 31 March 2014 was £78 million, an outstanding 19% up on the previous year. Even more impressively, 38 offices increased turnover by 25% or more, and within that number were 18 offices who achieved growth of 50% or more. The Driver Hire network also had 29 offices passing the £1 million turnover mark. And, with the network’s average growth running at 27.5% during the final weeks of 2013/14, it looks as though the franchise will make a flying start to the new financial year as well. Commenting on the achievement, Chris Chidley, Driver Hire’s group chief executive, said: ‘Whilst there’s no doubt that the economy is improving, our rate of growth is easily outpacing it. ‘Breaking the record is a fantastic way to celebrate our 30th year in business.’

Franchisors have until 28 May to nominate franchisees, before finalists are invited for interviews with the judging panel in July. The winners will be announced at a black tie ceremony in Birmingham on 2 October 2014. Brian Smart, bfa director general, said: ‘The bfa HSBC Franchisee of the Year Awards provides the bfa with the perfect platform to celebrate the individuals making a difference and progressing in the industry. They celebrate the forward-thinking business practices carried out by the country’s most impressive franchisees. We urge franchisors to nominate their favourite franchisees, so their successes can be celebrated at a national level.’ For more information visit: thebfa.org/ franchise-awards/franchisee-awards

Sponsored Article

Frequently people come in off the street with a button that’s just come off – we’ll fix it there and then – again for no charge confident in the knowledge that he or she will regard us as a lifesaver and talk about The ZipYard to others. SYSTEMS The sophisticated till system included as part of the ZipYard package has a customer relationship management feature which tracks customers each time they come in and allows us to make notes. If a regular is getting ready to go on holiday I can input this into the system. Then I can wish them a happy holiday when they pick up the clothes and ask them about it the next time they’re in. Building relationships is paramount– and as a result the average repeat customer visits us about once a month. Some have used us over 200 times spending several thousand pounds. Outstanding customer service means that we have to be prepared to do whatever it takes. Last year a groom and his entire male entourage turned up the day before the wedding in a panic because they had only just discovered their suits were ill fitting. We stayed open through the night to finish the work and to get the party to the church on time and looking their best.

Another customer spent over £400 altering her wardrobe after a successful diet, and an elderly lady brought in all of her clothes to be taken in - all bundled into storage boxes and carried up the high street to us. Nowadays very few people have the time or skill to mend their own clothes –and a lot of our work involves repairs - but even I was surprised when one of our regular customers brought in a pair of her son’s Y fronts for us to fix a tear! For many of our customers we have become their ‘personal’ tailors. One wellheeled man left a message on our answering machine to say his wife was bringing in a ball gown the next day so ‘please leave space on your machine’ for her. They expect a very fast service and we rarely disappoint. A regular moved out of the area but saves up his repairs until he comes back to visit friends – travelling over 160 miles for our quality of service. Grateful customers send flowers, wedding cake, thank you notes and gifts.

THE FUTURE Managing customer expectations isn’t easy and it has been a big challenge for us to be able to turn round work quickly as the volume increases. Recently we dealt with 90 paying customers in one day which is ten an hour! We already open seven days a week and are looking to employ another seamstress to focus full time on express work and have installed a second till to cope with the queues that had begun to form outside the door in busy periods. We are looking ways to extend the range of services we offer including a paid for delivery and collection service which will appeal to our busier user clientele. At the moment I manage ZipYard with the help of one other but I will be recruiting additional customer facing staff to free me up to do more marketing and work on plans to open another ZipYard in the North West.

CUSTOMER STORIES

“To Danuska with eternal thanks. You u saved my day. It means so much more than words could ever say.” - Breeda (bride) We frequently see brides who have bought a dress form the internet. On one occasion a woman came in to the centre in tears with a dress that fitted terribly –by the time we had finished she was parading up and down with a big smile on her face.

DPS APRIL 2014.indd 117

Contact: Emma Downes T: 01530 513307 E: edownes@thezipyard.co.uk W: www.thezipyard.co.uk

12/03/2014 10:21

create a great impression High-Quality, personalised clothing. Online. On time. On budget

10% Business Show OFF at

Discount

Clothes2order.com Voucher code: TALKBIZ4 Voucher code: BIZSHOW13 Expires: 30/06/2014 Expires: 18/06/2013

We offer the fastest, most dependable service in clothing for uniforms, promotions and events. We start as we mean to go on - with the best brands in the business: t-shirts, polo shirts, hoodies and more by Fruit Of The Loom, Regatta, B&C, Gidan. Then we customise them to meet our customers’ most exacting requirements, using conventional and digital printing, or computerised embroidery techniques. Get off to a flying start with an instant quote. Then place your order (text, logos, multi-coloured designs) using our simple, online system. Finally, access our 24 hour express service to ensure that your order is in your hands the very next day. Exceptional clothing. Expert design. Fast and friendly service.

clothes2order.com

08456 522 655

*Terms and conditions: Discount code valid once per customer, not in conjunction with any other offer. Maximum purchase quantity with this discount is 499 pieces, above this call for a bespoke quote or see our best rates online at www.clothes2order.com

Untitled-14 1

Untitled-3 1

27/03/2014 17:28

27/03/2014 13:14

RESEARCHING

TALK FRANCHISE

n order to assess a franchisor, it is first necessary to understand the essence of a franchise. Franchising is neither an industry in its own right nor even a business. It is though one of the fastest growing and most consistently successful methods for distributing products and services. It’s a crazy mixture of conformity and individuality that combines the best elements of big business and small operations. To be successful, a franchisee must comply with the franchise system, and yet such compliance will enable the franchisee to achieve a greater level of fulfillment. The 2012 NatWest/British Franchise Association Survey highlighted the following: • Market turnover in excess of £13.4 billion. • 590,000 people employed (more than the armed forces!). • Approximately 40,000 nondairy franchise units in UK. • 929 active franchise systems. In Britain, there is a latent but massive and increasing desire to run our own business, and this goes across culture, race, age and social background. There is no template for being a successful franchisee – except perhaps the following: • Willingness and propensity to work hard. • Acknowledgement to follow and adopt the franchisor’s system. • A desire to succeed. In franchising, success comes from the successful marriage of franchisor and franchisee. The phrase “in business for yourself, not by yourself”, really does capture the essence of franchising. If you open your own business, you are responsible for absolutely everything, whereas with a franchise, the franchisor

Researching a franchisor Nigel Toplis, managing director of four major franchise companies, including Recognition Express, gives tips on how to assess a franchisor

There is an increasing desire to run our own business

offers experience, know-how, proven operation methods, marketing tools, sales training, technical guidance, as well as a corporate identity, trademarks, and the all important brand. When selecting the right franchise for yourself, there are six steps you should go through: • Suitability • Investment level • The industry • The franchisor • Professional advice – legal/ financial • Making the decision All six steps are important, but in this article we are looking specifically at assessing the franchisor. A good franchise should have at least the following attributes: 1. A PROVEN BUSINESS HISTORY Ensure the franchisor has been successfully trading for at least two years.

Ask to see evidence of their trading history and their annual accounts, and meet with other franchisees and get their opinion of the success of the franchisor.

10 KEY QUESTIONS FOR FRANCHISEES • Are you making money? • Are you working long hours? • Do you get on with the other franchisees? • Has the business affected your family life? • Does the franchisor offer good support? • Are you lonely? • Do you enjoy the business? • Is the business giving you what you expected when you first came on board? • Is your family still supportive? • If you knew what you know now, would you still have joined the franchise?

talkbusinessmagazine.co.uk

117 FRANCHISE Research.ga.indd 117

117

24/04/2014 15:55

TALK FRANCHISE RESEARCHING

of a sale – and the typical profit? How many customers would you need to meet your minimum business projections? • Does this franchisor seem profitable? • Does this franchisor offer the best potential for growth?

The British Franchise Association under-go vigorous checks on franchisors before allowing them to become members 2. WELL DOCUMENTED SYSTEMS The franchisor should have their business system documented by way of a manual (or manuals). Ask to see the manual(s) before you sign the Franchise Agreement and be comfortable that the systems are well thought out, professionally presented and easy for you to understand and follow. 3. EFFECTIVE TRAINING The franchisor should provide you with training in all aspects of the business system – including but not limited to sales, marketing, operations and finance. Ask to see a copy of the training programme for new franchisees. 4. SECURITY OF TENURE Make sure that the franchisor does actually own the franchise or at least has the rights to operate the franchise. It is not unusual for a franchisor to run the business under a Master Licence agreement from another country. 5. ONGOING SUPPORT STRUCTURE Ongoing support is critical and whilst it is true that you

118

are buying into a brand and a business system even more you are buying into the franchisors intellect, know-how and support. You need to be clear that they have this support structure in place. 6. BFA MEMBERSHIP The British Franchise Association under-go vigorous checks on franchisors before allowing them to become members. It is not to say that nonmembers are poor franchisors but bfa membership does give you added ‘peace of mind’. You can answer a number of questions about a franchisor by doing diligent “desk research”. Check with the bfa, Companies House, franchise magazines, and ask the following: • Are there other franchisors in the industry? If not, why not? • Is your preferred franchisor the largest operator? A key player? • Are they an insignificant newcomer but with a brilliant new slant? • Does it offer the best package to you as a customer? • How often does a consumer buy the product or service? • Do the products or services enjoy repeat business? • What is the typical value

However, there is nothing better than meeting with the franchisor face to face and asking about: • Profitability – ask for two/three years of reports and accounts. • Knowledge – question them on the market and market trends. • Success – how long have then been in business/how successfully? • Vision – are they a serious player – or full of platitudes? • Support – ask to see detailed support plans; examine the company organisation chart; note improvements made to their systems (or not); are you forced to buy company product? Do they have the manpower and intellect in each key business area? Also get a copy of the franchise agreement – they won’t change the document to suit you but you need to be aware of its contents. Once you have met with the franchisor and if you are still happy to proceed (and they are happy to meet with you then ask to visit/speak with some existing franchisees. So, in summary, look for a franchise where the franchisor has a proven history, good systems, effective training and bfa membership. Plus make sure that they are a business you are interested in; that you have some or most of the skills required; the investment required is within your compass; and the industry meets your specification in that it’s large, growing and sustainable.

MAY 2014

117 FRANCHISE Research.ga.indd 118

28/04/2014 09:43

TB-Actioncoach_ad.indd 1

24/04/2014 17:34

A4 advert Talk Business_Layout 1 16/04/2014 11:11 Page 1

Supporting SMEs Whether local, national or international, we tailor our services and shape them to fit your needs, because ultimately we are focused on you and helping you prosper. We have a wealth of experience assisting our SME clients with a range of services, including: • Audit • Business advisory • Corporate finance • Corporate tax • Private client services • Turnaround and recovery • Services for international businesses For further information or to subscribe to receive our SMEssentials newswire, please contact our London office to be put through to one of our SME specialists: t: +44 (0)20 7767 2659 e: london@uhy-uk.com www.uhy-uk.com

Untitled-1 1

17/04/2014 09:39

TOP FIVE

TALK FRANCHISE

The attributes franchisors look for in franchisees t is true that the key to every business’ success is unique. However, there are some universal attributes that will appeal to all franchisors.

1. DILIGENCE Franchisors are successful because they have honed their core business down to a method that can be easily replicated, and which breeds confidence in customers. A franchisee who diligently follows these rules, consults training manuals, and takes on board franchisor advice will be a great asset. From cleaning franchisor, Ecocleen: ‘Our proven business model gives you the opportunity to develop a substantial and profitable business from launch. You will benefit from our proven capability and experience.’ 2. POSITIVITY Franchising is not for the layabout. Entrepreneurship and innovation is important to success. However, highly motivated franchisees who can use their initiative to hone the rules to drive sales will be valued. From the children’s play franchisor, Creation Station: ‘It helps if you have a positive attitude…[but] if you’re the type of person who would fall at the first hurdle, then going

Sarah Louise Dean, editor at FranchiseSales.com, reveals the top five attributes franchisors looks for in franchisees in to business for yourself probably isn’t the right choice.’

Entrepreneurship and innovation is important to success

3. FRIENDLINESS Whether it’s with the franchisor, suppliers, customers or staff, franchisees will get the best out of their work if they have good customer service skills. A franchisee is a business partner not an employee, so being courteous, happy and friendly in all relationships, from monthly meetings to customer complaints, is a skill that franchisors seek - as this benefits the entire enterprise. From organic food franchisor, Riverford Organic: ‘We’re looking for people with a love of customer interaction. Friendly, approachable people that can build relationships with their customers. Because it is all about retaining the customers you get.’ 4. SALES AND MANAGEMENT SKILLS In any business, the ability to sell a brand is fundamental to long term growth and success. Also, a franchisee with a good reputation, great integrity, and the ability to carefully manage accounts, wages and sales, will do well. Those without business experience can

still demonstrate these abilities – a good credit record and a keen, personable nature can win a franchisor over who can then provide sales training. From kitchen re-fit franchisor, Dream Doors: ‘We’re looking for someone with sales and management skills. We don’t look for people who come from the kitchen industry.’ 5. LEADERSHIP Following a franchise model should lead to easy sales, but a franchisee must lead the business to really excel. This not only includes managing staff, but striking the balance between being a team player and leading with authority. This is particularly important as a management franchise owner – providing leadership and supervision for staff will make sure that the day-to-day running of the business is carried out most effectively. From office skills training franchisor, Pitman Training: ‘You want someone who is fairly driven, to be successful and competitive. Because the staff are an integral part of the business, you will need to be able to manage and motivate staff.’

talkbusinessmagazine.co.uk

121 FRANCHISE Dynamis.ga.indd 117

121

24/04/2014 15:57

A business opportunity that changes lives

Looking to make a change? What if you could earn money whilst making a difference to people’s lives?

LIFESTYLE

EARNINGS

Freedom to choose when you work to create a better life

Be financially rewarded for the time and effort you put in

ght Ideal Wei Coach

PEOPLE

CAREER

Change your life and the lives of others

Change your career for something more rewarding

Become an Ideal Weight Franchisee and change your life! Our Franchisees are professional accredited coaches who help people make positive changes to their lifestyle.

A chance to be your own boss

Support and guidance

A better work/life balance

Become rewarded financially

Make a real difference

❤ ❤ ❤

idealweightfranchise.com MEDIA10-IDEALWEIGHT_ad.indd 1

Email: recruitment@idealweight.co.uk or Call: 020 3225 5280 £

Earn money whilst doing something much more rewarding. This is more than just a business opportunity.

A member of the British Franchise Association

28/04/2014 15:58

T1F

WHY DID YOU DECIDE TO TAKE ON A FRANCHISE? I initially decided to work with the franchise business model as this was the first time that I had ventured into the business world without the security of being employed. The benefits of this model for me are that the brand is already out there in the public domain, and the umbrella organisation can offer intelligence, e.g. research into obesity. I also like that there is a back up team of professionals that can assist me, such as a qualified medical team. It’s also great is that there is a regional business development manager that I can obtain support/ideas from, and that there is considerable brand awareness, as LighterLife has a presence in England, Scotland and Ireland too. WHAT ARE THE BIGGEST CHALLENGES? For me, working within protocols when initially setting up was an adjustment, and when client numbers are low it can be frustrating. It can also occasionally be very demanding having to carry out almost all the responsibilities myself, while trying to stay motivated. At times, when client numbers are lower than you would like, you end up working really long hours and of course are not reaping that financial reward. I have been known to enlist the help of family at times like these, including my 82-year-old mum, to help label and deliver magazines and leaflets for me. WHAT DID YOU GET FOR YOUR MONEY? New franchisees are fortunate enough to have great support and free supervision for the first year, which always helps you get off the ground. You get

pizza delivery hise with

TALK FRANCHISE

Take one franchisee

Michele Austin, LighterLife We speak to Michele Austin, franchisee for LighterLife, a weight loss management programme, about her business in Cambridge the learning and development advantages, as well as a recognised qualification in what you do. Plus you gain the professional knowledge and understanding of the business as well as learn all about product development.

I recall one saying that I had saved the person’s life

HOW MUCH DID THE FRANCHISE SET YOU BACK? From my personal experience, about £12,000, and if like me you buy the goodwill of the existing practice, a further £11,000. WHAT IS YOUR VISION FOR THE FUTURE? In an ideal world I would like to purchase a second area, and to at least double my client base. Personally, I would just

like to be known for working successfully with clients and keeping boundaries tight – that is my aim. WHAT HAS BEEN YOUR PROUDEST MOMENT IN BUSINESS? To be honest it is the little things really. I once had a card sent to me saying “I love you more than cheese” and I just loved it! I get e-mails occasionally, and I recall one saying that I had saved the person’s life, as they were no longer on medication – that was just so touching. Seeing individual’s change as they lose their weight and gain just so much selfconfidence is amazing, it makes every day worth it.