Enterprise and Business

Sometimes doing less is doing more

2012-01-05T08:58:00.000Z

So what will 2012 bring to those of us dedicated to encouraging enterprise? Over the last few weeks I have been considering what it requires to give the country a much needed business boost. Whilst I cannot claim any amazing insights my general conclusion was that we can often stimulate growth by stopping doing things! Vast sums of money are not needed - just goodwill, strength and determination. So to add to the numerous New Year lists here is my humble offering of a half dozen ideas which need some work but will hopefully provoke debate:

1. Speed up the planning process. Forget the controversy over the government plans and lets assume that the Green Belt is fully protected. Planning officers must be dragged into the real world. Any development - residential or commercial - on brownfield land which is say less than 5000msq and is designed to the highest BREEAM standards automatically gets planning permission. This improves the quality of stock at a stroke and is a much greater stimulus than enterprise zone status. It allows planners to concentrate on more strategic developments and hopefully improve the plethora of "rabbit hutch" housing that springs up everywhere.

2. Reform economic development. There are some truly inspirational EcDev professionals in local authorities. There are also some blockers. Let each LEP control all of the staff and budgets for EcDev in their areas. This should allow LEPs to really influence what happens. It puts budgets in control of businesses who are best placed to know what business needs and should avoid the repetition of meetings, papers, local initiatives etc. More money should get to the front line as staff numbers are rationalised and the leaders in EcDev are finally given the authority to do what they know needs to be done.

3. Free local authority assets. Remove all restrictions on what local authorities can do with their asset base. If they want to sell and spend the funds then let them. We vote for our representatives so give them the power to improve the area as they see fit. If they mess it up then local voters have only themselves to blame. It would herald a new era of freedom and true localism. I know of many councillors who could really make a difference given the opportunity instead of tinkering within archaic rules.

4.Change government contracting. We hear many promises about helping SMEs to access government contracts but little happens. With immediate effect any government contract of less than £10m pa can only be let to an SME. The government would get better value for money, more innovation, less "cronyism" and greater transparency.

5. Encourage philanthropy. There are too few people acting as philanthropists. We need a new era of giving and sharing - not through ineffective taxation but directly. Encourage giving in big companies via a simple annual league table of FTSE250 companies based on percentage of CSR to turnover. Make sure that it has to be displayed prominently. It will allow people to make up their mind what type of company they want to do business with. Amongst the rich reform inheritance tax to penalise those who "want to take it with them".

6. Stop giving government support to large companies. Most business people are sick of seeing large multinational companies getting handouts because they threaten to move or invest elsewhere. They should be able to raise their own investment and I doubt if one penny of government support has actually contributed to an increased take for the Treasury. We should be encouraging growth via start ups and new emerging businesses not propping up tired leviathans.

Well that should set a few hares running!

A merry public sector Christmas?!

2011-12-23T09:42:00.000Z

All employees planning to dash through the snow in a one horse open sleigh, going over the fields and laughing all the way are advised that a Risk Assessment will be required addressing the safety of an open sleigh for members of the public. This assessment must also consider whether it is appropriate to use only one horse for such a venture, particularly where the re are multiple passengers.

Please note that permission must also be obtained in writing from landowners before their fields may be entered. To avoid offending those not participating in celebrations, we would request that laughter is moderate only and not loud enough to be considered a noise nuisance.Benches, stools and orthopaedic chairs are now available for collection by any shepherds planning or required to watch the ir flocks at night.

While provision has also been made for remote monitoring of flocks by CCTV cameras from a centrally heated shepherd observation hut, all users of this facility are reminded that an emergency response plan must be submitted to account for known risks to the flocks. The angel of the Lord is additionally reminded that, prior to shining his/her glory all around, s/he must confirm that all shepherds are wearing appropriate Personal Protective Equipment to account for the harmful effects of UVA, UVB and the overwhelming effects of Glory.Following last years well-publicised case, everyone is advised that Equal Opportunities legislation prohibits any comment with regard to the redness of any part of Mr R Reindeer.

Further to this, exclusion of Mr R Reindeer from reindeer games will be considered discriminatory and disciplinary action will be taken against those found guilty of this offence.While it is acknowledged that gift bearing is a common practice in various parts of the world, particularly the Orient, everyone is reminded that the bearing of gifts is subject to Hospitality Guidelines and all gifts must be registered. This applies regardless of the individual, even royal personages. It is particularly noted that direct gifts of currency or gold are specifically precluded, while caution is advised regarding other common gifts such as aromatic resins that may evoke allergic reactions.

Finally, in the recent instance of the infant found tucked up in a manger without any crib for a bed, Social Services have been advised and will be arriving shortly.

An old story but scarily it could be so true!

Merry Christmas to all

Business Link - what next?

2011-11-17T11:49:00.000Z

So what follows the demise of Business Link later this month? Good news is that the website resource is being updated and expanded and remains one of the first ports of call for information on a wide variety of business related subjects. www.businesslink.gov.uk This is to be backed up with a telephone service but it is NOT an advice service and merely a navigation around the site for those in need or without access to internet services.

The government is also in the process of procuring a "Business Coaching for Growth" service which will target those companies with the best potential for high growth. This will be formally launched in April next year and should provide excellent support for the SME's accepted onto the scheme. There is likely to be a company contribution to the cost - which is reasonable - but the quality of assistance is likely to be much higher than that seen with other government initiatives.

Mentoring is now being accepted as a valuable resource and the website www.mentorsme.co.uk is a useful portal. However I have some reservations that this is in effect an unregulated "free for all" and in some cases could be used to gain business by unscrupulous operators or allow poor mentors to operate causing unknown mayhem. It is NOT, as has been suggested by some in government, a replacement for advice services. If quality can be driven up with mentors then again this is a useful addition to the landscape.

I am reasonably ambivalent about the loss of free advice to established businesses that do not display high growth potential. There is a wealth of private sector paid for support available and this should be the first point of call for the majority. Unfortunately the good work done by regional Business Link operators was often undone by the need to chase numbers, providing a light touch - often rated poorly by recipients. When you pay for support you value it more highly and take an active interest!

My biggest worry is the lack of a national start up service designed to help and support those entrepreneurs taking the first tentative steps on the road to self employment. I know that there are schemes for the unemployed but initial feedback indicates that self employment is dropping off the radar - unbelievable with jobs in short supply. However we should not wait for people to become unemployed before encouraging business start ups. We need to stimulate enterprise and for those facing redundancy, looking to change lifestyle or spinning out of a larger business or public sector environment starting a business is a logical step.

What is needed is a solid grounding, help with establishing the demand for the product or service and access to funding to give these start ups a better than normal chance of surviving. The 1980's saw an explosion in self employment, reducing the jobless figures and stimulating a "can do" attitude instead of the current dependant nature which appears to have infiltrated many areas of society.

Fill this start up gap and I believe that the government is close to covering the majority of the bases which should be expected by a pro enterprise administration. If it does that then the demise of Business Link face to face services will not have much of an impact. Fail to do so and you risk choking the supply chain of innovation which this country so desperately needs.

Enterprise Zone - blessing or curse?

2011-08-18T15:50:00.000+01:00

The subject of Enterprise Zones is the “hot” business topic of the moment with the news that areas within Lowestoft, Beccles and Great Yarmouth have been bestowed with this favoured status in the latest round of Government announcements.

There is no doubt that anything which is designed to support the economy in these areas is to be welcomed, especially given that the focus of this zone is on the vital renewable energy sector which is still in its infant stage.

Before looking at what this could mean for the local economy, we need to go back some 30 years to the first round of Enterprise Zones, which were introduced in the early 1980’s as an answer to the recession which the country was in the grip of following years of industrial decline. Even then the concept was nothing new with the idea first arising in the

USA

in the late 1960’s. It may surprise many, that both in America and the UK, the principle was invented and espoused by those on the left of the political divide but it required a Conservative government to bring it to reality.

Then, as now, there were financial and planning incentives for companies to locate in these “favoured” areas. However it should be noted that the financial incentives are relatively modest and short term and it would be a very foolish business person who would make a long term location decision based solely upon Enterprise Zone status. What being an EZ can do is remove a barrier for growing and ambitious businesses and speed up the pace of recovery and/or investment into an area.

The real challenge with such temporary incentives is to turn Great Yarmouth and Lowestoft into competitive business locations to both retain and recruit more companies to the area. This will require much more work than simply marketing land with “benefits” attached. It will require a complete change in mindset for politicians, business people and the local workforce to ensure that the benefits are lasting and that the inward investment does not turn into outward losses once the incentives cease.

NWES was itself born in Lowestoft during the era of Enterprise Zones and since 1982 it has helped create over 15000 new businesses and transform the lives of many local people. It is a combination of people and places which breed success and one cannot work without the other. As such the lure of EZ status needs to be coupled with a strong business support structure provided by organisations such as ours, designed to provide companies with the skills to survive and grow at a quicker pace than they would otherwise have done.

It is easy to get carried away with forecasts of job growth – which can often lead to disappointment when they fail to be reached. The evidence of the eighties zones is that of a total of 63000 jobs created only 13000 were new jobs – the remainder merely being displaced from neighbouring areas.

So how can the EZ status provide a long term benefit for the area? A major difference between the current crop of zones and the previous is that each of the areas has based their application upon favouring a particular market segment – in our case renewables. This should avoid the displacement seen in areas such as Dudley which saw farmland transformed into a shopping complex putting many local traders out of business. To cement businesses into the area we need to attract major investment which it is difficult to move and this means infrastructure.

The Local Enterprise Partnership and councils have a task ahead of them which will require them to be fleet of foot and willing to concentrate effort and resource in the EZ, perhaps to the short term detriment of other places and schemes.

- Planning needs to be overhauled with clear policy for the area available within the next 2-3 months and a guarantee that the planning process will not last more than a few days and weeks for eligible schemes.

- Where infrastructure is needed it takes priority over ALL other schemes

- Coherent marketing messages need to be ready within the month and distributed widely to potential interested parties

- Local businesses need to be properly engaged to avoid short term displacement, negative comment and curtailed investment

- Workforce training needs to be a priority in the targeted sector of energy

- A strong economic development team needs to be assembled at short notice drawing far and wide for the very best professionals in the sector

- A strong business support offering is required to meet skills and funding gaps inhibiting investment

- The leading lights in the energy sector need to sing the praises of Great Yarmouth and Lowestoft as we will be in direct competition with Humberside for he same investment.

The task has only just begun and all that the EZ status gives us is a head start, but for business that is usually all they need and if we are to avoid the mistakes seen in previous generations we need to grasp the opportunity for this area to be the centre for the UK renewables industry and not lose out to other more entrepreneurial locations as happened with the oil and gas exploration sector in the seventies.

History can act as a useful guide for the future of Great Yarmouth and Lowestoft and there can be no excuses for not taking full advantage of this helping hand to transform the local landscape and finally break the dependant nature of these great towns.

Some words of encouragement for your LEP

2011-05-19T09:03:00.000+01:00

Over the years I have had the privilege, honour and sometimes curse (!) of sitting on a number of public/private Boards and committees. My thoughts go out to all those who have recently chosen to sit on the Boards of the Local Enterprise Partnerships (LEPs). From my experience I would like to offer a few words of encouragement and warning designed to help each LEP achieve its aims and objectives.

These thoughts are in no order of importance and purely reflect my own experiences:

- Set out your aims and objectives straight away
- Be clear as to what you can and cannot achieve - do not try to be "all things to all men"
- Do a few things well rather than many things badly
- You are not a council committee so do not behave like one!
- In setting up your constitution remain faithful to the simple premise of "one person one vote" and ensure that there is a private sector majority of members
- In no circumstances agree to a constitution which gives public sector "founder members" the right to overturn a majority vote
- Run the meetings just like a private sector Board - tight, focussed and make decisions rather than procrastinate
- The public sector has an important role to play so make use of the knowledge held and do not set out to duplicate functions
- If other quasi organisations are "backed into" a LEP as an executive or similar do not just accept that it is fit for purpose. Start a full review and if necessary reappoint or renew.
- Have a simple informative website but do not spend silly money on it
- Insist on a 75% rolling attendance rate from all members or they are voted off
- Public sector members are generaly appointees and as such there may be a rapid churn due to elections, reshuffles etc. Where possible gain commitment for continuity or decisions will stall
- Ensure that everyone around the table has authority to vote on all matters i.e. no deferring to gain cabinet/member etc approval
- If the public sector funds the executive it is reasonable for them to request some ground rules. Agree them at the outset to avoid misunderstanding later.
- You are local ENTERPRISE partnerships - so address Enterprise and do not get sidetracked on peripheral matters
- Do not get sucked in to publicity campaigns unless they are integral to the core aims or you get tainted and alienate a wide cross section of the community
- Be sensitive to political situations but make the right decision not the politically expedient one
- Be open and transparent to avoid conspiracy theories - publish all Board minutes on the website etc
- Be bold - no-one remembers people who do not make a difference
- Think about who needs your help most - large corporates or pre start businesses - do not get sucked into the "glamour" of association with big names
- Think carefully about what you want the executive to do - keep it small and tight
- Do not directly deliver ANYTHING - enable others to do this

And finally before you make any decisions just ask yourself what your answer will be when your 8 year old grandson asks exeactly what did you achieve on the LEP?!

I wish everyone the best of luck and great success in achieving all that you set out to do - your country needs you!

Youth unemployment - why?

2011-02-17T09:06:00.000Z

The latest unemployment figures make depressing reading if you are under 24, with 1 in 5 young people now being unemployed. Whilst the headlines will trumpet this fact, the reality is that youth unemployment has been on an upwards trend for many years, even in the "boom" times. Indeed given the greater numbers of university entrants now, perhaps the real amount of young people "not in employment" is much higher.

So why has this come about? For too long now younger members of society have been poorly treated by our generation, which seems to have forgotten the reason and importance of education as a preparation for the world of work. An obsession with league tables and exam passes, which can easily be manipulated, has led us to produce a cadre of young people who emerge into the real world of earning a living with the wide eyed gaze of a new born baby.

Now is the time to put aside ideological and political standpoints and agree a cross party approach to education which will not be touched for the next 10-15 years. If there is one element of our society which is calling out for a carefully thought through and implemented strategy it is education. For too long we have tolerated political tinkering (from all parties), the creeping influence of ideological views, poor teaching and incorrect investment. Despite this there are numerous examples of clear thought, inspirational teachers and an understanding with business - just not enough to make a real difference.

I have taken a keen interest in the links between education and industry for many years now and can understand the frustration on both sides who are encumbered with a state of affairs which is not remotely fit for purpose. Perhaps the only league table that should be produced is how many pupils are engaged in gainful employment within 12 months of leaving school or university. At least then we can judge which schools prepare their young people for life beyond education. Of course there are many more factors to take into account but without a clear vision as to the purpose of education, from primary school to university, we are destined to retain high youth unemployment which is a crushing burden on society. If only a fraction of this money was invested into preventing unemployment everyone would be better off.

However any readjustment cannot be subject to the winds of political change, hence the need for a national education strategy agreed by all and with safeguards enshrined in legislation which prevents political meddling!

I employ 90 people - with a young average age. Recently we advertised entry grade positions and had 400 applications. Most were rejected through not meeting the simple instructions requested, poor spelling and CV's produced in something akin to text speak. Those individuals who were successful have been a delight to work with; enthusiastic, hardworking, willing to learn and bursting with potential. Academic qualifications do not mean a thing if there is no personality or social skills to accompany them - this is where many young people fall down.

We have a wonderful resource in our young people but now is the time to harness this and use it to build a bright future. The question is how many self interested politicians, antiquated union barons and short sighted CEO's will put aside their posturing to secure a great future for every young person leaving education?

Is Corporate Governance taken seriously?

2011-01-31T10:34:00.000Z

In many ways the UK is considered a beacon when it comes to Corporate Governance - principally as a result of the 2010 Corporate Governance Code - but is it any more than window dressing?

Too many organisations - private, public and third sector - pay lip service to this important aspect of running a Board and company. Usually it is "added in" to a minor sub committee to report on once a year; and yet corporate governance has the ability to enhance the prospects of any company.

It is all about driving an enterprise forward whilst at the same time exercising prudent control.This must be obvious to all directors? Not really and little is likely to change when directors are often chosen via a "closed shop". Until we open our minds to the recruitment of directors and apply much more imaginative ways of selection, induction, development and appraisal then corporate governance is unlikely to change very much.

We have some building blocks in place - a sound Companies Act (2006), a patchy Corporate Governance Code (2010, a weak regulatory framework and some appalling laws which cut across the afore mentioned. How we arrange these blocks will dictate if we are heading for another spectacular collapse along the lines of RBS or Enron or taking a world beating role as the beacon of good governance.

No-one wants burdensome regulation but putting good governance at the top of a directors list of responsibilities will result in healthy businesses which allow the executive to drive forward from a firm foundation.

It would take little to transform corporate governance in the UK - and surely this would set us apart from other countries as a place for the reputable to do business? As a Chartered Director (there are still less than 1000 in the country) as a start EVERY listed company should have a CDir on the Board as a minimum within 12 months - at least this would show more than lip service to good governance.

To borrow from a leading expert in this field - Prof Bob Garratt - "A fish rots from the head"!

The Demise of Enterprise…UK

2011-01-28T09:41:00.001Z

Without apology I copy below a blog post from George Derbyshire of the NFEA - a thoughtful and questioning article on the demise of Enterprise UK.

I read about the forthcoming closure of Enterprise UK with some sadness. I, and NFEA, have been involved since its earliest days, when three or four people camped out in space borrowed from the CBI in Centrepoint. Indeed NFEA director Sally Agass acted as interim Chief Executive on one occasion.

The organisation has some energetic and creative people and they can be proud of their achievements. Enterprise Week has certainly been worthwhile, as has Enterprising Britain (in which Enterprise Furness and NWES distinguished themselves.) I wish them all well in the future.

But of course Enterprise UK fell into the trap we advise all our clients about - it was over dependent on one source of funding. It only had one client and once that tap was turned off, it had nowhere to go. And the business organisations who make up its Board can’t be expected to take up the slack.

Indeed it could be regarded simply as an outsourced part of the operations of BIS.

I simply don’t understand why the previous Government felt it right to set up new organisations to carry out its wishes everytime it had a bright idea. All it did was create new bodies which inevitably had their own overheads and administrative burdens to carry, had no long term sustainability and which ran the risk of getting in the way of existing and more established organisations.

It would have been better all round to tap into the expertise of those of us who were already active on the ground, who had the experience, stability and dare I say low overheads to deliver the goods. This way the Government would have achieved its objectives and even strengthened the existing infrastructure.

But there is a wider point to be made. This is simply one example of the way the enterprise structure is being dismantled. The RDAs and BusinessLink are in wind-down mode and every week we are hearing about more closed programmes and business advisers being declared redundant. Third sector, voluntary and social enterprise providers - and enterprise agencies are just one part of a wide and deep network of providers - are not immune from this. The shockwaves are spreading widely across the business support pond.

The irony is that these independent organisations make up the Big Society that Mr Cameron is urging upon us - dedicated people, mission-driven, locally-based, quick on their feet and committed to their local communities. At a time when the state of the economy is causing renewed concerns, when unemployment is trending upwards and public sector job losses are being declared daily the need for a vigorous enterprise sector is, I’d have thought, obvious. We can help start new businesses, we can keep people away from unemployment, we can help others to move away from benefits and we can help businesses grow. But that needs a effective and comprehensive business support strategy. Wasn’t it a famous Conservative prime minister who growled “Give us the tools and we will finish the job!”?

How to make a LEP work.

2011-01-26T09:04:00.000Z

As we progress into 2011 more detail is leaking out as to how LEP's will be structured. There is an amazing amount of goodwill from the business community towards LEPs and it is vital that those who are responsible for the governance take advantage before the enthusiasm wanes.

I have attended a variety of events around LEPs over the last 3 months and I believe that it is critical that each LEP outlines its objectives very early on. Having sat on a variety of Boards and Quangos over the years the common problem which they all face is not living up to expectations. This results from a wide ranging set of objectives which are designed to pacify vocal opinion at the beginning but become a heavy weight around the neck as the reality of delivery differs from the grand ambitions.

A good example of this happened this week at a meeting in Norwich regarding the "New Anglia" LEP. The presentations were tight with the shadow board indicating a concentration on the tourism and energy industries. Now it is arguable if these are the correct priorities but I commend the principle of concentrating on areas where an effect can be seen and measured. The question and answer session however turned into a "What about..." inquisition. The competing demands of the cultural, creative etc industries were all raised and whilst they are important the LEP with limited resources cannot make a difference across the board.

To me it is vital that the LEP concentrates its activities in a few key areas where they can really make an immediate difference. If not they will fail and the business goodwill will evaporate very quickly. It will be interesting to see which argument wins out...a focused narrow approach or a wide "everything to all men" one.

As an aside it is clear that financial resources will be sparse so how about this for one way to make a real difference? All economic officers, departments and budgets in every local authority in the LEP area should be given to the LEP to administer. In Norfolk and Suffolk I would estimate that this would equate to 100 staff and over £5m. It would then be for the LEP to decide on how many staff are required and what they do with the budget. Radical but I would bet that it would make a real difference. Business could then be tasked to match this sum. Perhaps via 1% extra on rates or by a "tithe" on representative movements which want a place on the Board such as Chambers, FSB,IOD etc. Say 10% of membership fees? Match this with UK government or ERDF funds and the budget is transformational.

I would not bet on the above happening but if a LEP just replaces an RDA or LSP it will become a toothless talking shop. If it does business differently such as above it could really become a powerhouse for economic good.

Tell the truth or what people want to hear?

2011-01-10T14:53:00.000Z

I have always struggled with the concept of telling people what they want to hear rather than what you perceive to be the truth. As a result I am sure that NWES has lost some business as I refuse to compromise just to gain a contract. Is this the right way to do business? Many will call me a fool however my personal beliefs are what drives the company and whilst I will never be highly popular by "telling it straight" I do hope that I am highly respected.

In business there are two ways to look at the gaining of customers - a short term, transactional approach or a long term relationship strategy. I prefer the latter which means having an honest and open relationship with the customer. Often this means telling them NOT to buy your product or service and sometimes even going to a competitor who may be better placed to deliver a solution to that particular need. In a percentage of cases you will lose the business completely - especially with those individuals who are uncomfortable with the bare honesty. However the majority will respect your candour and the relationship will be strengthened. If there is no trust then there is no long term relationship.

In working with new and existing businesses we strive to always be independant and impartial with our advice - our reputation is too important to us to compromise it with short term "quick fixes".

In my experience however in working with government and major corporates they often want to hear platitudes which reinforce their held view rather than alternative solutions. As I have said before process is more important that outcome in many such cases. This is why we have seen the amazing growth in some firms who win major government contracts and then underperform - usually without sanction. A good example is with New Deal where recent research has indicated that it cost over £30,000 for every new job created. Compare this to NWES where for 10% of that amount we set up new businesses which are proven to be more sustainable than average and who also employ others. Are we asked to the top table to explain how we can do this? No. The truth is someties unpalatable and uncomfortable when it does not sit within preconceived viewpoints.

I live in hope that one day honesty and values are as highly prized as profit.

Fond farewell or good riddance to Business Link?

2011-01-06T12:51:00.003Z

So at long last the worst guarded secret in Whitehall is out in the open - Business Links will cease to be in November this year. I will wait until nearer the time before I pass my judgement on the demise but it is appropriate to look at the policies and services which are likely to replace BL.

We will see a new website which is to be welcomed. The current site has a wealth of information available albeit that it is sometimes difficult to find and moves to improve the navigation are to be welcomed. A telephone contact centre to back up the website is interesting as it would appear to be (from the latest BIS paper) that the individuals will only be there to access the website for those not digitally connected. I have concerns that the helpline could have very low satisfaction levels if they cannot deal effectively with client queries. This is not a directory enquiries type of operation and I will bet that the majority of callers will be looking for bespoke answers to individual questions not some form of "information dump". No doubt we will learn more as time goes on but I am not inspired at the moment.

The Enterprise Allowance has been resurrected which I am very pleased about as I raised this in a meeting with Mark Prisk some 3 years ago. The radio debate on the Jeremy Vine show on Wednesday 5 January was very interesting with many examples of successful businesses who started out in the 1980's thanks to EA. However the overriding fact to emerge was that nearly every caller ranked the help and support that they received from Enterprise Agencies as just as important if not more so than the funding. This is the missing element in the new EA. Mr Prisk it is not too late to put a great value for money support package in place to complement this welcome initiative.

I am dismayed at the hype surrounding the "mentor" bank which claims to have 40,000 mentors available. Firstly are these new mentors or just a restating of what is already out there with respected organisations such as the Princes Trust? Secondly for a mentor relationship to work it needs to be "matched" so that the right person is linked with the correct business. Without this there will be hundreds of horror stories which will blow any credibility that this scheme has. Finally who is monitoring the quality of the mentors? Will they be qualified or is it a free for all with unscrupulous individuals looking at personal gain through the relationships? I totally support mentoring being a mentor myself but it is not as easy as some people in government seem to think. When I see 40,000 individuals and their details on a website then I will believe the numbers but until then I am very wary.

The future of this country is indeed in the hands of an enterprising minority. I would like all support aimed at starting up new businesses with a good foundation and then allowing the faster growth companies to buy in support as needed - no more picking winners please. Just look back to the 1980's with the greatest jump in entrepreneurship seen in any western country - learn and repeat and we can look forward to another era of great prosperity.

From Public to Private

2011-01-04T10:30:00.003Z

The government has made it clear that it sees a reduction in the public sector payroll to be a priority as it seeks to balance the books. The jury is out as to the real impact which will be seen as anecdotal evidence is that whilst there will be some job losses cuts are being made in third party contracts first. In the short term this will work but as "easy" cuts become exhausted there will have to be some overdue hard but necessary decisions made in town halls and government departments the length and breadth of the country.

So what is to become of those individuals deemed surplus to the public purse? Some will take the opportunity to grasp the overly generous redundancy/early retirement payments available and leave the job market, others will be moved "lock, stock and barrel" into the private sector as an outsourced service and the remainder will be at the mercy of the private sector job market.

What are the prospects for these folks - many of whom have only known the protective arms of the public employer? I would argue that for many the prospects are very good - if they can change their mindset and embrace wholeheartedly the opportunities afforded by private sector employers. From observation the main difference between the private and public sectors is that the private sector is focused on the outcome whereas the public sector places a greater emphasis on the process.

Many public sector employees have good transferable skills which can be of benefit to the dynamic employer. The challenge is for those individuals to identify and convey those skills more effectively. Most employers do not see experience in the public sector as important so a reliance on a CV which fails to explain how this can benefit a company are destined to fail. A change of attitude and an understanding of what is important to the private sector is important. A repositioning, demonstrating commercial awareness and how they present themselves, will reap its rewards - however speed is of the essence as there is a limit to the capacity of the private sector to soak up the surplus workforce.

For some this is a gilt edged opportunity to start up in business for themselves. It may be in a related area such as property management or a completely new start in the hospitality industry for example. Either way this is a real win for the individual and the economy as these new businesses will go on to create new jobs themselves. For me the best way that the government can ease the transition for public sector employees who lose their jobs is by investing in a bespoke public sector targeted business start up programme. This is surely what the Regional Growth Fund is designed for and it will be interesting to see if our political leaders have the foresight to invest in a programme which will enhance the wider economy for years to come.

CSR - what does it mean for Norfolk?

2010-10-26T11:44:00.001+01:00

For those of you expecting the CSR to bring some clarity to the future of business support, I am sorry, but hardly surprised, that you've been disappointed. In the same way that cabinet ministers have been scrambling over the last month or two to defend their departmental budgets, we shall now have a scramble within the departments as junior ministers and civil servants join the internal fray. Expect it to be Christmas before there is any break in the fog.

We do know some things however: EEDA are under sentence of death by March 2012 and are winding down their activities rapidly and will take the Business Link contract with them. We can expect a revised and more user friendly Business Link website and smart money is on the creation of a supporting call centre. There is talk of a network of growth hubs to provide more specialist support to growing businesses and exploit university research but the detail is glaring in its omission. The more traditional support so valued by start up and early stage businesses in the form of individual advice and business planning training looks in severe danger despite David Cameron calling for an age of entrepreneurship. I do not favour government support for established businesses as they should be in a position to pay for help but for those people that the country needs to set up their own business there looks as though there will be a vacuum which it is unlikely to be filled to any great degree. This is short sighted as encouraging enterprise is vital to our future – especially in areas such as Norfolk where we cannot rely on inward investment to any great degree and have a real need to “grow our own” entrepreneurs.

There has been some talk of mentoring and this is something that we value highly but it is not a panacea and it is not cost free. Volunteers need to be trained and managed, mentees need to be screened and matched. And that's a professional job. Which leads us on to the Enterprise Allowance – something for which I have been lobbying for the last four years, details are slow to emerge but it would be a disaster if this was merely an add-on to some multimillion welfare to work contract given to a multinational outsourcing organisation. If you want to make a difference, you have to get local organisations to engage with local people.

And talking of local, the LEP story is yet to unfold. We await the White Paper which will tell us more, I hope, about their role and responsibilities and whether the Regional Growth Fund can support enterprise activities. Not least if the East of England can expect to receive anything other than a token amount with the majority of funding going to the North East and North West. With funding for local authorities due to decrease substantially, the end of government funded streams such as LEGI which has had a major positive effect in Norwich and Great Yarmouth and the EEDA funded “Encouraging Economic Participation” finishing in March the immediate outlook is not good. With no county strategy for encouraging enterprise and start up businesses Norfolk needs to implement radical and far reaching policies in the short term if it is not to fall further behind its competitors.

The White Paper on Sub National Growth is due for publication on 28 October. It is required bedtime reading for local policy makers who need to elevate ambition and build on the latent potential evident in our Fine County

Work experience - to be endured or enjoyed?

2010-10-12T10:14:00.003+01:00

It is interesting to note a subtle debate which is bubbling under the radar relating to the subject of do people learn through experience or via specific interventions such as training courses etc. As with most debates of this nature I suggest that the answer lies somewhere in between the two extremes but I would like to focus on one element which is close to my heart - work experience.

I do tend to believe more in that behaviour is dictated by experience and thus work experience in my view is vital for young people. Unfortunately in too many cases work experience is treated in a "block" fashion with it being seen as a logistics exercise by schools, businesses and local authorities rather than a vital step in encouraging young people and explaining the world of work in a manner designed to inspire.

Of course there are numerous examples of good practice and work experience placements which have led to permanent jobs but for many young people work experience is an event to be endured rather than savoured.

If we think back in our own lives there will be some episodes which stand out as life changing in their impact and often these are based around an inspiring individual be it teacher, mentor or boss. If you ask successful leaders how they have learnt through their career they will often mention their first work experience. It could have been a school placement or indeed their own after school or holiday job but in most cases the experience sticks and acts as a powerful motivator either to be replicated or avoided!

I want to see every work placement tailored to a students needs and devised to inspire. At the time of work experience our young people are at an impressionable age and memories - good or bad - will stick for life. The influence of people at work will be remembered and it is important that businesses understand this and place young people with their most inspiring staff members - at whatever level in the company.

Work can come as a shock; the punctuality, dress, pressure and schedules will be totally different from what they are used to at school and so each young person should be adequately briefed by their teachers prior to starting and all experiences logged to help improve future placements. As I have mentioned this is not the norm due a wide variety of factors but we must never lose sight of why young people attend school - to prepare them for work.

We need to build a much stronger partnership between the world of work and academia, if we do that then our future will be in good hands.

Does the public sector really get Economic Development?

2010-10-11T06:48:00.003+01:00

With the spending review close upon us and an overwhelming need for fresh thinking in the public sector plain to anyone not within it the unanswered question is do the various bodies know what it is that they are trying to achieve?

Having been in enterprise support for almost 14 years I think that I have seen most of the various strategies designed to help boost enterprise. Unfortunately I am not impressed with much that I see. Economic Development is approached in an academic way more akin to a Planning Department than one designed to stimulate enterprising activity in an area. Most published aims and objectives in the local authority arena are identikit and fail the "Tippex test" - white out the county/district name and put in any other.

If there is no differentiation in tactics then the results will be broadly similar and yet it is almost impossible to get the relevant people to understand this. There are some notable exceptions however who have attempted a different approach and been regarded with a better than average result but these forward thinking authorities are all too uncommon - Suffolk County Council take a bow.

To me an Economic Development department should be tasked to understand what it is that motivates enterprise in their patch, find out where there is a real strength, seek to isolate local weaknesses and produce, tender and contract for an appropriate solution to their bespoke needs. Not radical perhaps but rarely seen. What is second nature in the private sector is anathema to the public sector. The fear of being different and the knowledge that there is no sanction for failure leads to a spiral of waste both in monetary terms and of opportunity.

So what should happen? We hear much about the Big Society which in turn must lead to Smaller Government. This is to be applauded but for this to happen we need Council officers and members with vision and backbone to make real changes. I want to see local authorities move away from the "transactional" approach currently seen to a "relationship" approach whereby trusted partners in the private sector are fully engaged to make a long term aim become reality. This a a real "win, win" situation but not widespread practice.

What we currently see in this sector are unrelated tender opportunities not forming any part of a long term strategy but instead driven by budget availability which are often won my what I would term as the "mercenary" tendency who write good bids, move in on an area but deliver appalling results before hoodwinking the next gullible authority elsewhere in the country. The time is ripe for long term relationships to be made by local authorities with organisations who have a great track record and will be around for the duration of the journey. I know of so many examples of tenders being won by companies who have failed in previous contracts but "due diligence" is not a phrase that I see when councils award contracts!

Where we see good practice the results follow and these are the areas performing better than everywhere else. The converse is also true; perhaps the only way to change the results is to change the people and methods - same activity = same results.

At NWES our mantra is that we always deliver and that is exactly what we do 100% of the time and yet past delivery is rarely a high scoring aspect in any tender. Make economic officers responsible for economic growth and if they do not deliver change them - this is what happens in the private sector and until it happens in the public sector my hopes are not high for the very areas that need innovative intervention.

Head up not Head down

2010-09-24T10:20:00.002+01:00

I recently attended the NFEA and PROWESS conferences which were held back to back in Nottingham. This is possibly the major event for our industry and sees an interesting programme of speakers with the chance to talk to other leading lights from the industry.

What continually amazes me is the fact that many agencies fail to attend. According to sources at the NFEA the excuses are varied and innovative! However a common theme of "I have not got the time" or "we cannot afford it" crop up all the time. I cannot understand this mindset. I am afraid that these are the very people who need to attend such events as they are clearly struggling in their individual businesses.

Whilst I am sure that it will not add to my popularity rating I feel that I must berate these people who are doing untold harm to the movement. The conferences are heavily subsidised and the costs of attending are minimal so the cost argument falls down straight away. The dates are well publicised in advance and so diary commitments should be minimal and thus the question of time management can only come down to disorganised CEOs.

It is no coincidence that the most successful agencies are perennial attendees at the conference. They have the wisdom & foresight to understand that expanding your network of contacts, learning new things, discussing plans with people in similar situations and gaining a greater understanding of the events dictating future government strategy far outweigh a £200 cost or day out of the office.

So what can be done to help these "Ostriches" take their heads out from the sand? Perhaps it needs a larger agency to "adopt" a smaller one and provide a bursary to enable the CEO to attend. A more proactive stance amongst regional members to exert some moral persuasion would help as would a personal contact from the NFEA CEO to every agency who has not attended. If we wish to be seen to be helping all then we need to be proactive and not just rely upon the dwindling number of forward thinking agencies.

I am a passionate advocate of learning, swapping good practice and networking to improve NWES and our growth and reach is testament to that success. Perhaps now is the time to hold to account those Chairmen of agencies which are under performing - shape up or ship out? Radical perhaps but difficult times call for radical solutions. We need to be relevant for 2010 and beyond and not living back in the 1980s.

So strike out a couple of days in the diary for September 2011 and take some time out to work on the business instead of working in the business - that's what a good CEO does.

What makes a good Chief Executive?

2010-09-01T11:40:00.003+01:00

A few random thoughts on what I think it takes to be a good leader. Not an exhaustive list and one to which I will continue to add and adapt. A good leader..

1. Is punctual
2. Knows the difference between important and urgent
3. Never complains that they do not have enough time
4. Does what is necessary even if it courts unpopularity
5. Accepts responsibility
6. Is always courteous
7. Says "Hello" to all staff every day
8. Thanks people as a matter of course
9. Talks to people "face to face"
10. Never checks their phone in the middle of a conversation
11. Is determined to be the best in their industry
12. Respects different opinions
13. Does not accept excuses
14. Understands that every system can be improved
15. Leads through attitude, skill and competence not by job title
16. Helps others in their careers
17. Sticks to their values come what may
18. Always has a "Plan B"
19. Knows that you are only as good as your last decision
20.Realises that paper qualifications mean nothing unless they can be converted into appropriate action
21. Learns from others both older and younger
22. Respects wisdom
23. Harnesses technology as a tool not a master
24. Knows the difference between "dress down" and "scruffy"
25. ...."one of the gang" and "embarrassing"
26. ...."in confidence" and "gossip"
27. knows that it is harder to build than destroy
28. Knows when to say "sorry"
29. Can laugh
30. Believes in themselves
31. Makes mistakes but learns from them
32. Takes inspiration from a wide variety of sources
33. Isn't afraid to copy as well as innovate
34. understands that there is no destination - business is a constant journey
35. Puts things in perspective
36. Knows that outputs, figures etc are a means to an end not the end itself
37. Understands that businesses is a cycle - there will be bad times as well as good
38. Can celebrate success
39. Is not afraid of odd numbered lists!

Becoming a Mentor

2010-08-24T09:39:00.000+01:00

Perhaps the most undervalued and under utilised asset in business today is experience. Experience helps you to make good decisions and is usually gained by making bad ones.

Too often in business the benefit of this experience is lost and not shared either within or outside of the company. This is an expensive mistake. There are many ways in which this knowledge can be harvested to help others and one such method is via mentoring.

Academics have spent many years and millions of words attempting to define mentoring and the difference between that and coaching and counselling. To the business this is of little relevance – it is the harnessing of experience which can give a business an edge over the competition that matters.

The word mentor comes from a character in Homer’s Odyssey taken over by the goddess Athena to guide a young Telemachus in his time of difficulty. In many ways this sums up the essence of a mentoring relationship. It is a helpful partnership based upon mutual trust and respect.

A mentor is a guide who can help a mentee to find correct solutions to both business problems and career issues. To work, the mentor will have both an empathy with the mentee and their business and will have encountered similar business issues in their professional life.

It is not the role of a mentor to run the mentees business, make decisions for them or line manage them. Rather that they help the mentee believe in themselves, question and challenge whilst providing guidance and encouragement. It is an excellent medium for exploring new ideas in confidence.

So, what should you look for in a good mentoring relationship?

Experience: usually the mentor is older but not always. I know of one person in his 20’s that mentors older people on the ways of the online world.

Availability: it may be great having a famous or successful person to mentor you but if they are not available to you when needed it defeats the purpose.

Focus: you need a mentor who is able to not only focus on you and what you would like to achieve, but also help you focus.

Belief: someone who believes in your potential; if they are not sold on you then they will not put in all of their effort.

Open minded: a mentor who will allow you to progress in a way that you need to progress, not necessarily in the way that they would prefer.

Positive: someone who is positive and helps keep you positive, to help you up when you fall and who cares about your success as much as you do.

Many successful business people have several mentors throughout their career helping them at different stages along the way. Sadly not all of them then act as mentors themselves. Being a mentor is a rewarding experience and should be a freely given service during a working life – not just when you are retired. If you are interested in becoming a mentor or having a mentor work with you then contact organisations such as NWES or Princes Trust who can act as impartial matching brokers.

The secret of success!

2010-08-13T16:09:00.002+01:00

"Sir, what is the secret of your success" a young man asked a renowned entrepreneur

"Two words" he replied

"Sir, what are those words"

"Right decisions"

"And how do you make right decisions?"

"One word"

"And what is that"

"Experience"

"And how do you get experience?"

"Two words"

"What are they"

"Wrong decisions"

Local Enterprise Partnerships - friend or foe?

2010-08-05T09:16:00.003+01:00

From an external perspective it would seem that the local authority network is focused solely on the forthcoming local enterprise partnership discussions (LEPs) and how it may impact on their control of services.

Since the notice from the government that Regional Development Agencies - and also regional government offices - are to be abolished there has been little talk of anything other than LEPs. Reaction varies from authorities caught like rabbits in headlights awaiting "further guidance" to those who see it as a way to wrest power and control. The government has been specific in that they are seeking views from local areas and will not be issuing more guidance and yet some authorities cling on to the hope of details emerging telling them what they have to do just like a toddler with a comfort blanket. It is very disappointing that officers have become so used to "obeying orders" that many seem to have lost the ability to think for themselves.

At the other end of the spectrum the opportunistic see this as a chance to grab the initiative (and power) and are seeking to overturn the "old order". I have had so many conversations with officers and members that I am dizzy with the myriad of solutions being touted around.

I am realistic enough to understand that the decisions on what the boundaries may be will be decided by politicians. Businesses have neither the time nor inclination to spend hour after hour arguing over lines on a map.

So what seems to be emerging? At this stage it is clear that upper level authorities see boundaries concurrent with theirs and that it is a chance to wrest more control for themselves. On the whole districts are disgruntled and are seeking different pairings which appear to have greater resonance with the governments vision of local economic areas with a degree of common issues. Worryingly there is little in the way of original thinking and exciting and different ideas being discussed.

In the East of England we suffer from a lack of a regional identity with places like Herrtfordshire having little in common with Norfolk for example. This should be the catalyst for original thinking and LEPs emerging which do not follow simple county lines. For example Great Yarmouth and Lowestoft are reliant on each other (even if both authorities refuse to acknowledge that) and have more in common than they do with say Ipswich and Kings Lynn and yet county lines preclude real engagement. Similarly the coastal strip from Kings Lynn to Harwich shares ports to tourism, energy to erosion and would make a very interesting LEP which could be unique - thus increasing the chance of accessing funding. In the other direction a LEP based on Peterborough and including the fens, south lincs, west norfolk and rural cambridgeshire has much to commend it.

So where does business fit in? Somewhere down the line in all honesty. There has been minimal discussion with real businesses with local authorities believing that if they consult with Chambers of Commerce, the IOD and FSB that they have ticked that box. We support - and are members of - each of these organisations but they are not business. We need CEOs and Chairmen of businesses to sit on LEPs if they are to be anything other than talking shops. I even got hold of one internal council document which suggested that despite government instruction that a LEP must have local authority majority or they would be "undemocratic" and power may be ceded to "unaccountable" individuals! I know who I would rather have running my budgets!

This is a great opportunity to shape local plans over the next few years and yet I wonder if I am being too cynical in believing that little will change. I want a strong local economy based on enterprise and cutting through the ridiculous bureaucracy which stops most business people from becoming councillors. I hope that LEPs become local powerhouses for change but based on what I have seen and heard so far my hopes are not that high.

Removing the FT from the FTSE100

2010-06-24T14:45:00.002+01:00

Well we now have our very own Social Enterprise 100 list. The RBS SE100 index is an interesting albeit controversial (in parts) ranking. I am very much a supporter of anything which raises the profile of social enterprise and this report is a major piece of work. Ranking anything is always going to cause debate and argument but the authors have done a good job in addressing as many variables as possible.

I look forward to seeing future SE100 lists and the rate of change within the organisations being ranked. I have a feeling that many of the stars of 2010 will disappear rapidly with the cuts in government spending. As an example the withdrawal of the Future Jobs Fund will adversely affect many of the high fliers in this years index.

What this report shows is how important social enterprise is to the country with the 350 businesses listed having a turnover of £812m. I am hoping that there are even more entrants next year and that this list becomes as important in our industry as the FTSE100.

Size is not everything as we know but with "impact rankings" alongside growth and size we can see a real pattern emerging of what the sector has to offer. For NWES it is interesting to note that we are ranked at 24 in the "BIG50".

What the sector needs to do now is to use this information in putting across our message. We still struggle to define ourselves and I for one hate "third sector" but perhaps this will begin to change perceptions.

So well done to RBS and if you want to read the report then access it via: www.socialenterpriselive.com/se100

So what next for Business Link?

2010-06-17T10:35:00.003+01:00

A really interesting article appeared in the Sunday Times on 6 June 2010. This was an interview with Mark Prisk the small firms minister who began to expand on thoughts first raised in opposition. With the cost of BL estimated at £190m pa can there be significant savings? Well for me the answer is a resounding YES! We have a great opportunity to radically reform business support in this country and my ideas would save c75% of the current BL budget.

The changes which have been mooted to the BL structure are to be welcomed. We do have a good relationship with BL as their main deliverers but we are keen to provide start up support directly once more and return to the enterprising economy last seen some 25 years ago. We are clear in our vision which has been consistent for many years:

- Information can be provided via an improved (over the already good) BL national website. This should be the first point of call for information on a number of business related topics and can perform a similar role to that of the universally acclaimed BBC site. This can be administered nationally under contract to an experienced website company. The budget for this can be agreed but should not be more than say 3% of the current national BL funding of £190m
- Those businesses which have reached a certain stage in their development, say 3 years, should be in a position to source and pay for any business support required. There may be exceptions at key stages such as first export, where generic support can be provided via the BL website and dedicated country export counsellors available via telephone, but in general the rule should be to let the market determine the support required. The budget for this is unlikely to exceed say 5% of the current BL funding.
- Start up support is absolutely vital in an era where the job market is likely to remain depressed for some time. Whilst support for unemployed people will be dealt with under the DWP programmes there is still a need for help for those who wish to leave the world of paid employment and seek self employment. These people are important as they leave vacancies to be filled and will in turn create employment via their own businesses. This is one element often overlooked in “self employment programmes” that on average every business created with help from an enterprise agency such as NWES will in turn create 2 new jobs. Currently BL pays lip service to start up support with a very low percentage of their funding going to support start up business. We would strongly support a separate start up programme to be delivered directly by the enterprise agency network for any individual who is not covered by the DWP programme. This could be delivered for approximately 10% of the current BL budget.
- There is a place for a national “enterprise in education” programme which will stimulate young people to harness their latent enterprising talent. This would require much discussion to agree on an acceptable way forward but should be a consideration for implementation during the lifetime of a parliament. Using our own experience this can be delivered in all secondary schools across the country for 5% of the BL budget.
- Beyond this we would suggest that there is little that should remain from the current BL offer. Therefore there are potential savings of 75% of the £190m currently spent - £140m. In turn we believe that the offer will be more transparent, that there will be little mourning in the business community beyond those with a vested interest, the savings in administration cots and bureaucracy in organisations such as RDA’s, and BIS could in turn be added to the cost savings.

Radical perhaps but now is the time to be bold - its over to you minister!

Learning lessons from failures

2010-06-10T11:15:00.004+01:00

The differing problems facing BP and BA set me thinking about how some household names were destroyed by a combination of lack of planning, staff unrest, poor strategy or marketing that went wrong. It is surprising how many examples there are when you start thinking about it. My list would include:

Ratners This must be the classic example of the wrong thing said at the wrong time to the wrong audience. Who could have guessed that a poor joke contained in a speech to the Institute of Directors in 1991 would bring down a high street giant? Cracks about a decanter being "total crap" and earrings lasting less time than an M&S prawn sandwich wiped £500m from the worth of Ratners. Where Ratners had previously cornered an important segment of the market at a stroke no-one wanted to be seen wearing their products and the company never recovered. Gerald Ratner has the dubious honour of being remembered as a man who destroyed a company rather than a great entrepreneur who built one. A lesson for everyone running a business not to dismiss your own product.

Enron A major player originally in the energy sector brought down by perhaps the worst case of corporate mismanagement ever seen. Diversification is generally a good thing but Enron moved into a huge range of sectors which it knew little about and then rather than managing it even with a modicum of ability it hid problems with a labyrinth of insider deals, associated companies etc and went from a $60billion company to bankruptcy in a heartbeat. This is a classic case of fraud, bad practice and incompetency which will hopefully never be repeated on this scale again.

DeLorean A favourite of mine because it exposed the soft underbelly of government support for big industry. Four years only 6000 cars sold and it went bust in spectacular fashion having consumed vast amounts of taxpayers money. Fraud was of course a major part of this but it should be a case study for any government looking to "bribe" companies to set up in a particular location.

Most dotcoms Our very own South Sea Bubble when the combined intelligence of the market was lost in a rush to enter a new unknown market. The number of massive failures is long but includes notable scalps such as Boo and Flooz. Technology advance is wonderful but normal investment rules should apply!

Hoover flights What idiot thought up the idea to give away a free gift worth more than the product being purchased - and worse what idiots agreed to run with it?! Spend a £100 on a Hoover and get a free flight anywhere in the world - it is thought to have cost the company £50m, its royal warrant and its independence. A juicy case of marketing gone mad.

Betamax I cannot decide if this is a technology or marketing failure. This was a product which was superior to its VHS competitor but lost out big time. Some say because VHS could record up to 4 hours on a tape whilst Betamax could only record 1 hour (a major flaw) whilst others accuse Sony of losing out to a worldwide marketing campaign. Either way Betamax is a footnote in technology advance but a good lesson that engineering on its own does not a good product make.

Swissair Perhaps the best case study there is about pursuing an overambitious expansion programme without due diligence. For 60 years one of the worlds best run airlines producing annual profits it embarked on an expansion programme (allegedly after advice from consultants) without targetting its takeovers and putting market share over profitability. It got the share but was saddled with huge losses and a lack of cash flow and within 10 years it folded.

There are many more examples but these should act as valuable lessons for businesses. I would like to think that we would see less failures as we go forward but I can spy the warning signs in several household names and expect to see a few more "staples" such as Woolworths disappearing from view over the coming years. Strategy and effective delivery is key and some companies suffer from a lack of both and will be found out.

Getting paid during the tough times

2010-06-09T15:33:00.002+01:00

As I have mentioned before cash flow is the most vital component of any successful business. The day that the cash dries up is the day your business folds. With many companies pushing credit as far as they can what can you do to minimise the effect on your business? Here are a few of my tips to consider:

1. Raise payment terms at the point of sale not at the bottom of the first invoice. It is a common misconception that this may mean you lose the sale. I would argue that only poor payers will be frightened off and you can do without those types of customer. So play to their integrity and explain that you operate on fair trading terms - you will be surprised at how many people will agree with you.

2. Where possible get payment in advance. I would suggest wording such as " We never ask our good customers to subsidise the few customers who abuse credit terms by not paying on time. As a result we ask that payment is made when the work is started/goods are delivered etc

3. Offer huge settlement discounts! Take a tip from some of the major retailers. If your target price is £250 then price it at £350 and offer £100 off for payment within 7 days - it works.

4. People pay people they like. Just as the adage that people do business with people they like the same goes for payment. So be approachable, pleasant, deal face to face or phone not by letter, appeal to their fairness, thank people for payment and dont threaten unless you intend to follow it up!

5.Give prompt payers an "added extra". Low cost giveaways such as an upgrade, next day delivery, extended warranty, discount on next order, priority etc

6.Payment is not just the job of the finance team. Use your whole team and exploit their contact with customers. Reward your team and make it into a fun team event.

7. Hold a prize draw. as an example put all prompt payers into a monthly draw with say a meal, champagne or vouchers for the winners. At £100 a month it costs £1200pa - good value for increased cash flow.

8. Ensure your systems are in place. So that you invoice promptly, chase when due and follow up promptly - you will be paid promptly!

9. Offer finance for your customers. Work with your bank and you may even make money out of it. Just think car dealers, golf clubs, electronic stores etc.

10. Be bold. Generally if you do not ask you do not get - so be bold and ask/insist on your terms. A sale is only a sale when you are paid - never forget that.

The new New Deal?

2010-06-07T11:00:00.004+01:00

I attended a “meet the ministers” event in London for New Deal suppliers on 2 June 2010. The event was hosted by DWP with Chris Grayling and Lord Freud. In general the message was that there will be rapid changes and they want to build on the best but free providers to get on with the job. In the new scheme the government is looking to transform welfare to work and any new system will be providers paid on results – not for “inputs”. It is likely that there will be a single scheme instead of the myriad of special programmes currently seen and the volumes going through are likely to be much higher as claimants are moved from IB onto JSA.

The message was clear that this is not a rebranding but a radical transformation. The government is clear that intensive provision is not a role for government and should be provided by the private/third sector. It is likely that clients will come with different amounts attached to their heads with the “hardest to help” coming with the most money. Providers will then be free to deliver whatever is required to get these people into work. This could include confidence building etc along with direct work related activities. The government is clear that the idea is to get people into work and not a job i.e. as long as they are off the register that is fine and for instance they could become a temp moving from role to role rather than staying in one job. Providers will be paid on sustainable work so the claimant would have to be off the register for an agreed period e.g. 2/3 years.

This system means that providers need a strong capital base as payments could be 12 months+ down the line. By strong capital base the indication was “needing city help” i.e. £100m+. Companies will need scale and “rich” coalitions are encouraged with multiple disciplines aligned with good management, innovation and creativity. Changes will be made in days and weeks not months and we can expect to receive individual communication soon regarding what is happening to current provision and expect more details in 4-6 weeks on the new programme.

In answer to some questions:

- Is FND2 dropped? No decision today but preparation work will not be wasted

- What will be the geographical contracting areas? Not yet decided but hints as to FND1&2 areas. Not looking to shake up unnecessarily

- What is the role of the 3rd sector? Want to see 3rd sector involved at highest levels but capital may be a problem

- Will the risk be put down to the smaller players? It is the job of the prime contractor to fund the contract!!!

- What happens re the benefit trap? Claimants will be better off working with hints that 55% taper rate on benefits e.g. claimants will keep 55p of every £ earned.

- Is the government still committed to Work for Yourself? Yes!

All "good stuff" so far then and little to argue with. However as with any government programme the devil is in the detail and I do have some queries, concerns and questions which need to be answered. In particular:

- Safeguards that the small and medium sized members of the coalition will not be squeezed by the prime contractor - the "Tesco effect" - risk needs to be equally shared and not passed down to the end deliverer

- A maximum amount that prime contractors can "cream" from the contract

- Where contractors do not deliver then they cannot simply bid and win another contract without previous performance taken into account

- Weighting given to consortia including the third sector

- Work for Yourself kept as a separate contract as it is not about employment and needs a specialist approach

- Clarity over contract areas - not too big or local provision disappears and a lowest common denominator approach prevails

So we can all look forward to more detail coming soon and I am sure that we can expect some radical changes - I certainly hope so!

A heartfelt plea not to reinvent the wheel

2010-05-06T09:20:00.004+01:00

I was at a meeting last week with some senior BIS personnel talking about various post election scenarios for the business support programme. The consensus was that where possible we MUST try to avoid politicians wishing to overload us with initiatives, constantly change programmes after a short period and discarding good programmes for the sake of change.

When looking at what has worked well and what has not there are obviously areas where people will disagree but the general consensus was:

- A scheme which incorporates the best of the Enterprise Allowance Scheme and start up training is effective and can be a no cost option with benefit savings

- The brokerage element of Business Link is variable and not proven to be effective and could be dropped

- The Business Link website is a good resource and should be maintained but it is not for all and a 1-1 advice service is required

- The New Deal for the Self Employed was good and should be brought back - not incorporated into a single New Deal pot. It was shown that it has a 400% pay back in benefits saved.

So any incoming minister has the chance to put his or her stamp on the enterprise agenda but would be wise to look at the past for guidance for the future. He/she would be a hero to the industry if they also pledged that any changes were for the term of a parliament and would be given the chance to succeed!

Wishful thinking perhaps?

So where next for the NFEA?

2010-05-05T15:59:00.003+01:00

On the eve of polling day the enterprise agency movement has a great deal of thinking to do about its own future with a new political landscape. The movement has been adept at surviving all manner of changes both political and social over the years, but, with spending cuts of a magnitude never before seen looming over us like a sword of Damocles we need to start considering our own future.

I would guess that we have c130 agencies left around the country and there is a definite split growing between the "Premier League" and the rest. This is not meant in a derogatory way but is an observation based on size and sustainability. The NFEA has been like our industry FA safeguarding the movement but has the time come for major changes?

I wish to see the movement flourish but believe that this will be in a different way to that seen before. There will be more consolidation, mergers, joint working and, unfortunately, some failures in the months and years to come. If we are to remain as an industry then it is important that the NFEA responds to these changes and reflects the new network.

My personal vision is for a lean executive charged with lobbying and influencing in the corridors of power. This should be backed up with a small but effective Board who use their skills to support the executive and drive forward an unashamedly start up orientated business support structure. We need to be seen, heard and respected and with a new government we have a brief opportunity to shape the industry future.

I have no complaints with the current Board and executive but would like to see a clear strategy communicated to the membership of exactly what we are doing to safeguard the start up agenda in the corridors of power.

I also believe that it is important that the larger agencies should help fund this activity in return for a greater say in direction. The regional structure is now outdated and with some notable exceptions does not work effectively. We need the best, motivated and enthusiastic people to relentlessly push forward change and guide new ministers in their early days.

Perhaps once again I am at the sharp edge of reform and my ideas will not necessarily be met with agreement by all but inaction or wrong action now will condemn the NFEA to the dustbin of history as its relevance declines. Conversely there is a gap for a true leader in the enterprise field and the NFEA has the potential to claim this crown. Which direction will the NFEA take?

The NFEA manifesto - a blueprint for the future?

2010-03-08T08:23:00.003Z

I have attached below a "manifesto" devised by the NFEA outlining their view of how we should be supporting new business. It has some interesting points and I will return to this subject and debate the individual merits at a later date. For now read on and let the NFEA know what you think.

As Britain slowly emerges from the deepest recession for almost a century, there is a focus on enterprise as never before. Enterprise has a great part to play in helping ameliorate the consequences the recession has had for individuals, families and communities, and to reduce worklessness. But there are deeper forces at work, independent of the current economic situation.

Ours is a society which is becoming more enterprising. In a fast-changing world, people are adapting to changing circumstances quicker and more effectively than ever, they are learning new skills, they are more confident to apply their natural abilities to innovate, they are more comfortable in taking risks and they are eager to take responsibility from an early age.
And ours is a society which is becoming more entrepreneurial. In Britain today, 72% of our businesses have no employees. This accounts for 12.2% of the workforce. 95% of our businesses have less than 10 employees, accounting for 25.5% of our workforce.

2.5 million businesses are based in the owner’s home, a figure that grew by 16% in 2008 alone.
As the attractions of enterprise and entrepreneurship increase, the attractions of employment in large organisations reduce. No longer do large corporations or public sector employers offer jobs for life, steady progression and a guaranteed pension. Indeed, the domination of employment by large organisations which has been a feature of society post-Industrial Revolution may come to be seen as an aberration, and most of the remaining large employers may be seen as an anachronism.

Throughout most of recorded history, we have been farmers, hunters, craftsmen, traders or merchants - living on our wits and our skills, and taking responsibility for ourselves and our dependants. Exactly the attributes the twenty-first century needs.

Small businesses -
• Are an engine of innovation
• Are the biggest creator of new jobs
• Are better at moving people into employment from worklessness
• Employ more disabled people, females and older people
• Offer more flexible employment
• Treat employees more fairly

A successful enterprise economy means both:

A faster growing economy
&
A fairer, more diverse, more cohesive society.

In all we do, our focus is on our clients, those brave people who seek to support themselves, their families and their communities through the skills of enterprise. They may be individuals establishing their own business, or groups coming together to form social enterprises. We are confident in our belief that providing the support they need is in the national interest. We leave others to debate systems, structures, processes and personalities: we will work positively and collaboratively with any individual or institution which shares our ethos.

Enterprise for all

In an ideal world, everyone who was interested in exploring the opportunities for starting their own business, or who wished to improve their business skills would be entitled to personalised, free and accessible support from a relevant professional.

We recognise that an element of prioritising is inevitable. However much of the prioritising is driven by myths.

Myth No. 1 - It is possible to pick winners at start-up stage
Long experience should have taught us by now that picking winners, especially in the early stages of a new business, is well-nigh impossible. Predictions rarely come to pass. Circumstances change. More importantly, too many real growth and innovation businesses are not identified and do not receive the support they deserve. And many businesses have their ambitions and aspirations transformed by exposure to professional business support at crucial points in their development.
Myth No. 2 - Lifestyle businesses are of little value and deserve no support
This is an extremely patronising approach to the vast majority of almost half a million people a year who start a business. They are becoming economically self- sufficient, they are plotting a route from benefit dependency, they are achieving a long-held ambition, or they are perhaps supplementing retirement earnings. They are all role models for friends and neighbours. And some of them will become businesses of substantial scale.
Myth No. 3 - Too many new businesses fail
It is often said that 1 in 3 new businesses fail within 3 years of start-up. This is a misreading of the figures.
Over 2 in 3 businesses survive for more than 3 years but not all closures represent failure: less than half the businesses which close are in financial distress.iv They may have succeeded and been sold to new owners. They may have closed as other better opportunities present themselves to their owners. They may have used the businesses as a bridge into employment, or to higher education. Whatever the outcome, they will have learned valuable skills and enjoyed valuable experiences.

We believe that the enterprise net should be cast as widely as possible. The more people who are engaged in new business starts, the more growing and innovative businesses we have. The more engagement with business support that they have, the easier it will be to identify the businesses which will benefit from specialist support.

Delivering enterprise support

Our experience, supported by a body of research, is that businesses and individuals want to see a tailored approach, rather than be "shoe-horned" into generic "one size fits all" schemes. They wish to be treated as individuals and they trust local deliverers, rather than increasingly remote government services or indeed what they see as civil servants. They value easy access, simple and effective delivery, local visibility and an understanding of the economy in which they live. They prefer a "one stop" approach rather than being "handed off" (a telling phrase) to others, particularly at the start-up stage, and where it is necessary to refer them to more specialised forms of support, they expect this to be done smoothly. And they expect the support they receive to
We recognise the need for innovation in business support. For example we have played our part in developing and promoting the new discipline of Enterprise Coach. We acknowledge the impact of the internet and regard www.businesslink.gov.uk as a superb source of generic advice (though it’s identification with government, and its combination of transactional and information material are obstacles in the eyes of some potential users). Social networking is increasingly important in signposting to sources of support or facilitating peer-to-peer networking. And the growth of the Internet is opening up new business opportunities for small businesses, which now, for example, have the ability to trade internationally far more easily than before.

But for a significant number of people, further support is required. It is important to remember that digital exclusion applies to those most in need of support. The demand for face-to-face advice is actually growing, possibly because many people need help in understanding the material they are provided with over the Internet.

To be truly effective, business support needs to be available across a range of media with the client provided with the option of following whichever route he or she feels most appropriate.

A comprehensive package

NFEA member’s experience, dating back to previous recessions and based on experience of involvement in over 10% of the national start-up figures, leads us to propose a model we have titled the Enterprise Escalator. It brings together tried and trusted approaches, is consistent with the Government’s Solutions for Business and is modular in nature, allowing for variations in local and regional priorities and budgets.

But the Enterprise Escalator provides a comprehensive customer journey, comprising:
• Outreach and awareness raising. We need to continue to raise the awareness of the opportunities entrepreneurship offers and to make specific efforts to engage with groups under-represented in entrepreneurship, both at a national and local level.
• Pre-start advice. It is important to evaluate individual’s skills and motivations to ensure they are consistent with a successful start. We should recognize that starting a business is not the right course for everyone and we should not set people up to fail. Thus there need to be links back to alternative solutions for those who decide against start-up, such as adult training and employment opportunities.
• Start-up training. Everyone should be entitled to introductory and basic training, in parallel with standard web, telephone and printed advice. In particular, feedback from our network, based on discussions with clients and the financial community, is that there is an enhanced need for financial management training, to facilitate renewed lending into the small business sector.
• One to one support. Our experience is that spending time with a business adviser is the most effective single form of support.
• Access to finance. There are obvious challenges in resourcing start-up grants and deploying them effectively. Small grants can be effective as a marketing tool, and we know that, utilised carefully, small grants can be vital in getting some small enterprises off the ground and unlocking finance from other sources. CDFI’s, particularly business orientated ones, need further support, and again can unlock much greater packages of finance from commercial sources.
• Mentoring. Provision of mentoring in the early stages of trading is limited at present. It should be available to a much wider audience than those receiving the intensive start up support.
• Networking. This can be a superb resource in terms of business development, confidence building and facilitating peer-to-peer networking which gets such high marks in most surveys of effective business support.

We recommend that the Enterprise Escalator be established as an outward facing title for this range of support mechanisms, the proportions of which, and the overall availability of which can be flexed as circumstances dictate. Additionally, new and small businesses need easy access to business premises, of which NFEA manage some, but not enough, and a supportive infrastructure. The regulatory burden needs to be cut, particularly in relation to the planning and legislative barriers to home based businesses and the roll out of fast broadband needs to be accelerated.

In summary

A successful enterprise economy means both economic growth and greater social inclusion.
Supporting people into self-employment is a cost-effective option for Government, even discounting the wider social and economic impacts. The way to have more high growth, high innovation and high employment start-ups is to have more start-ups of all types.
The demand is for accessible, credible and independent advice.
We need a logical Enterprise Escalator of support, which people can step on or step off from at different points and a government which provides a supportive business environment.

NFEA is the national enterprise network.

Our members are drawn from local enterprise agencies and a wider range of enterprise support organisations and provide an array of services to new and emerging businesses, including independent and impartial advice, training and mentoring to all who seek them. With roots dating back to the 70’s, NFEA members are social enterprises, with boards drawn from the local community, and have extensive experience of providing support to new and emerging businesses, and with representation in over 250 locations, they offer an unrivalled route to this market.

In 2008 alone, the NFEA network of enterprise support organisations supported over 100,000 pre starts, nearly 25,000 start ups and 130,000 established businesses - totalling over 250,000 clients across the country. Many NFEA members have expanded in scope and now provide advice and guidance to a wide range of clients ranging from young people in schools, colleges and universities, through the pre-start and early stages sector to established businesses. Many are able to supplement their core services with the provision of incubation and managed workspace where they support over 2000 businesses, and with tens of millions of loan and investment capacity.

Full NFEA members are required to meet exacting quality standards covering both their individual advisers and the organisation. NFEA owns, with a partner, Customer First UK Ltd, the national standard for Customer Service, and manages the Approved Local Enterprise Agency register on behalf of the Secretary of State

Halting the meddling?

2010-02-18T10:49:00.003Z

The Sunday Times brought us an article by Mark Prisk (Shadow small business minister) about business support under a Conservative government. Whilst I can hear the gnashing of teeth in some quarters I can only applaud what could be good news for Enterprise agencies and business start ups.

I have previously argued for a light touch from government, which should seek to create the conditions to start and grow a business and then let the market dictate degrees of success. Enterprise Agencies are ideally placed to meet this need as mentioned by Mark Prisk and indeed have been doing so successfully for 30 years. Our error was in not getting together as a strong national group for too long, not sharing good ideas and allowing the concept of Business Link to be nurtured rather than strengthening what was already there.

The fact that we have survived for 30 years is testament to our sustainability and so the proposal to go back to our roots and have government funds match our income for a three year period is spot on. The detail needs to be agreed but if we could match our income it gives us a chance to build on our solid foundations, invest in income generating assets and break free of government support which in future can be targeted where it is needed - if at all.

We are impartial social enterprises rooted in local communities and as such sit ready to grasp this opportunity. Combine this with a new Enterprise Allowance type scheme and a new spurt in business starts could be seen along the lines of the 1980's. Some will fail but that is free market enterprise, many will thrive and provide the country with a more diverse business base less reliant upon "big business" and less exposed to the risks which that entails.

Too many government departments seek to meddle and launch new initiatives. It is the small things which can make a big difference and if there truly is simplified legislation and repeal of the plethora of unnecessary employment law then business will get behind it. History can and should influence the future so when you have something good - nurture it!

Doug Richard - Visionary or Misguided?

2010-02-04T15:16:00.004Z

I encourage you to read "The Entrepreneurs Manifesto" from the pen of Doug Richard. This is a concise, passionate and thought provoking pamphlet which is worthy of wide debate. I have criticised his previous offering the "Richard Report" which whilst it contained some excellent points they were lost in easily dismissed and - dare I say - inaccurate assumptions. However Mr Richard has moved on and is obviously warming to his theme.

Who could really disagree with his points on a burgeoning state with the answer to many of our problems being the enterprise and ingenuity of the new breed of entrepreneurs? The answer is probably plenty of people in the public sector but does this mean that Doug Richard is wrong? For what my opinion is worth - No.

In this document he is espousing a vision and so it is light on the "how and when" but it is for others to refine the detail. I believe that we stand faced with a wonderful opportunity which only comes along once every generation - the chance to effect major change for the general good. The financial crisis should allow us to question everything and wipe away the status quo - whether it does or not is in our hands. Will we elect a government with the strength to do what is right instead of what is popular? Does any party offer us this choice?

As a social enterprise ourselves we stand firm behind the rationale that we have the potential to offer more than purely profit driven organisations. We take a long term view which does not have to take into account shareholder return - this means that we have grown quicker than the average company, produce greater surpluses and help more people. In other words good business needs a vision and this is what government in general tends to lack.

So what should we disagree with in the "manifesto"? Well I would counter the sweeping argument about business support and instead put forward that it is new enterprise that keeps the market fresh. As such put time and money into incentivising new business starts from a wide sector of society, nurture them for 12 months, equip them with the skills to survive and thrive and then it is time to allow them to make their own way without government help. So 7/10 for this one Doug - it just needs some refinement! Otherwise this is A* and one can only hope that whoever gets elected works out the detail as a matter of urgency and implement the actions without delay. Or is this just wishful thinking.........

www.schoolforstartups.co.uk

Lowestoft - UK capital of enterprise

2010-02-02T07:10:00.001Z

A few years ago Lowestoft faced one of the worst periods in its long and distinguished history: low levels of entrepreneurship and enterprise; a failing business community in declining industries and a lack of aspiration amongst its population. Having drifted into the 15% most deprived places in the country, action needed to be taken if the town was not to descend into complete deprivation.

As major employers such as Shell and Birds Eye either relocated or reduced their presence in the town, they left behind a declining business stock and a fragmented supply chain.

Aspiration amongst young people was low with the main priority being to “escape” the area. Levels of educational attainment lagged behind the regional and national average and with traditional low skills jobs fast disappearing levels of unemployment started to soar.

Enterprise and entrepreneurship was in sparse supply with the area having the lowest number of business start ups in the East of England. It seemed to be a forgotten area when it came to provision and take up of business support initiatives and few role models for people to aspire to. For those who did go on to start up in business the stock of office and workshop space was of a very low quality, old and decaying. The town was not attractive to speculative developers who could gain greater returns on their investment elsewhere.

Despite these problems it was possible to find enterprise in some unexpected areas – visionary teachers in local schools, community leaders, local councils and of course NWES. Whilst there was no grand conference held or glossy strategy written there was an informal network established between these individuals, each of whom undertook to make a difference in their specialist area.

As the local enterprise agency NWES acted as the catalyst to ensure that change occurred. Over the last few years we have helped to transform the town to the extent that unemployment levels are lower than the regional and national average, there is a greater and more diverse mix of businesses operating and we are looking to the future by establishing Lowestoft as the UK centre for renewable energy.

We have taken a business like approach to everything with sustainability being the key. By investing £3m+ of our own money we have also levered in capital funds from the local authorities and the RDA to provide a ring of managed workspace catering from light industrial requirements through to a state of the art Innovation Centre for the Renewable sector.

On their own buildings offer little, it is the activity within which determines the success or failure in reaching your objectives. By linking in with High Schools, we have started the process of enthusing young people with the desire to be enterprising, opened their eyes to the exciting opportunities in new sectors such as Renewable Energy and established a sense of pride in their town.
Within our centres we provide intensive training and 1-1 support for any aspiring entrepreneur; free of charge. Our role is clear – to be a trusted friend to anyone considering starting or growing a business. We are known as “the place to go to” and act as the enterprise hub referring clients on to the “spokes” such as Business Link, Princes Trust, Universities and colleges as appropriate.

We believe that most things can be replicated if required and this is the case with what we have achieved in Lowestoft. There are a number of base “rules” which need to be considered and met if intervention is likely to succeed:

- Managed workspace can be made to work in any size of town
- In deprived areas it will require public sector capital intervention to succeed
- Centres must be operationally in profit after 3 years
- Break even rates should be set at 70% occupancy
- “easy in, easy out” terms are what tenants want
- The building alone is not enough. It is what happens inside that encourages enterprise
- A well publicised start up training programme along with one to one support is crucial to deliver sustainable business starts
- Large public sector led “partnerships” will not achieve much. What is required is a small cadre of determined people from all sectors who will actually achieve the desired outcomes
- Do not concentrate on quantity but on quality. Penetration targets and similar are meaningless - there is no “one size fits all” provision and effort should be made to encourage sustainable start ups not some arbitrary target.
- Do not compete on price (we are the most expensive in the town but the service is the best).
- Invest in the most deprived areas as this has the maximum effect as a catalyst for further investment

The desire to regenerate through enterprise is a core element in the strategy of most areas and regions; however the rhetoric is not often transformed into reality. What has been demonstrated in Lowestoft with the aid of NWES is that vision, strategy, persistence combined with an element of stubbornness and a refusal to take “No” for an answer can make a real difference.

Lowestoft is “on the edge” both in terms of geography and in enterprise activity. We have shown how deprivation, seasonal unemployment, low investment levels and a cycle of despair can be halted and reversed. The town has not had the benefit of copious levels of government spending seen elsewhere and yet it stands as a case study of how to generate enterprise through a combination of selected capital investment combined with innovative services to stimulate entrepreneurship from disaffected pupils in schools through to growth businesses in new technology areas.

Pre Packs or Stitch Ups?

2009-11-02T15:34:00.004Z

Are pre pack administrations a fair way to rescue failed businesses? As the economy continues to slip and slide more businesses are likely to fail in the coming months and years. The concept of a pre pack administration is to complete a complex financial restructuring with minimal adverse effect. Without doubt speed is important in dealing with any insolvent position in order to protect as much as possible but have we gone too far down this road with loopholes being exploited by unscrupulous individuals?

Where a protracted public sales process could damage the business, its reputation and consumer confidence then there has to be an argument for the pre pack as negative publicity can lead to a cash hemorrhage and significant job losses. But how common is this and does this concept still hold water with smaller or niche companies?

The law - whilst now strengthened with the introduction of SIP 16 for insolvency practitioners - is still open to abuse and has too many loopholes. Perhaps we should be asking why a business may not survive and once we understand this then the issue of a pre pack becomes much clearer. There are two key elements to survival - cash and good management. If a company has enough cash then a pre pack is unnecessary and if the management fails then it must be wrong to organise a pre pack with the same managers still in place!

Too often the losers in a pre pack are the small creditors who are forced into acceptance of a poor deal by bigger players and the fear of losing everything. Where the new owner is the original one there must be some mechanism whereby future profits are subject to a "pre pack" tax over and above normal taxation and which gets distributed to those who lose out under the original agreement. Otherwise everyone may as well dump their debt burden and undergo a pre pack.

I still believe in integrity, honesty and fairness in business dealings and pre packs fail to pass these tests in too many cases.

It's time to get in line for an award from the Queen.

2009-10-27T14:54:00.002Z

Whilst time is tight to get your nominations in I would urge everyone to look at the Queen's Awards. These really are the equivalent of an Oscar in our industry and recognise those companies and individuals who have had a major impact.

What I like about these awards are that you have to prove what you have done as a company or individual which goes beyond the day to day expectations. Introduced in 2004 these annual awards close for nominations on 31 October and so you do not have much time to get those entries in.

All too often we fail to celebrate individuals and companies who have made a real difference and so spread the word and if it is too late for this year make sure that you put a note in the diary for next year!

Just follow the link to www.queensawards.org.uk to learn more. There seems to be a real lack of representation from the East of England in this years awards so let us try and rectify that for next year. We have a lot to be proud of.

Confused, patronised and angry!

2009-10-27T13:46:00.003Z

Do people in social enterprises actually know that they are running a social enterprise? I ask this question because recently I have read many articles where the writers tie themselves in knots trying to pen a definition.

Too many people have their own vision, which it would seem has to mirror their own organisation, and then seek to dismiss any other business which could quite legitimately call themselves a social enterprise. Some recent examples range from the "Red Tory" Philip Blond struggling on Newsnight to Liam Byrne who seems to suggest that the Labour party reinvents itself as a social enterprise.

How hard is it to create a definition which everyone can understand? Looking at the essential components:

- First and foremost it is an enterprise and therefore needs to be a legal body. If not it is a voluntary or community organisation which is related to but not necessarily the same thing as a social enterprise.

- It needs to trade in the widest sense of the word.

- Profits do not go to shareholders, partners or investors but back into the business for the benefit of the wider community.

Beyond this everything is negotiable in my view. Social enterprise is not the answer to all of our problems and has no monopoly on great thoughts and ideas. However what it does have as a massive "USP" is an ethos which understands that profit at any cost is not always desirable.

I feel fed up with the rather patronising and incredulous reactions from people when you explain that money and profit is not the sole way you measure success. However I place much of the blame for this attitude firmly in the lap of the sector itself. We are fractured, not sure of ourselves, shun success and perpetuate the myths surrounding the industry.

A good example of this is the recent SEEE (Social Enterprise East of England) "inTouch" magazine. Rarely have I felt such despair after reading something designed to help and showcase the industry. Patronising articles on Twitter, business cards and a "problem page" made me angry and realise that well meaning though the people may be that they have no idea of what is happening in the real world. It assumes that its constituents are grant hungry micro businesses with no skills and experience. Well that is not the case at NWES!

If you have not got the skills to run your own business then do not set up a social enterprise - go and work for someone who has or learn them before joining our throng. The overwhelming majority of people in our sector are well meaning but until they (and funders) realise that, by being good at business you will achieve your aims much quicker, we are destined to be peripheral and seen as laudable but insignificant.

I want to be a part of an industry making a real difference. It will have companies of all shapes and sizes which are well run and have a financial vision to match its social vision. At NWES we believe in sharing our expertise far and wide and have helped numerous individuals and organisations in this country and abroad - all for free. Despite this locally we are viewed with suspicion by some because we "are too big to be a social enterprise", "make a surplus on trading", "do not have grant income" - all of these are direct quotes.

What I do applaud is the initiative being run in conjunction with RBS which is the SE100. It is looking for those social enterprises that make and measure social impact, are growing and making a real difference. Have a look at www.se100.co.uk and see what a social enterprise really looks like!

We need more of ideas like this which showcase the best and encourage the rest if we are ever going to make social enterprise clearly understood by all. I am proud to be a "social entrepreneur" but would like to see many more of us around!

So was the NFEA conference worth it?

2009-09-18T15:56:00.002+01:00

Without doubt! As always we were treated to an excellent conference, well organised, a good variety of speakers and relevant to the times. It was clear that there were fewer members than last year but those that did attend got more from the time invested, were from the leading agencies in the country and are those likely to survive the turbulent times ahead.

So what stood out? The theme of social ethos and commercial focus was a thread linking all of the elements and was best exemplified by Josephine Fairley founder of Green and Blacks. She was always going to get a great response by giving a bar of chocolate to every delegate beforehand! If anyone wants to know what happened to any uneaten bars ask Emma Chapman! Jo had a great story to tell from the germ of an idea to an exit strategy and the "adoption" of her business by Cadbury. The commercial reality was never far from the surface but this is a business with a social ethos underpinning everything that they did from sourcing to wrapping.

Whilst as always at NWES we are politically neutral the contrast between the two MP speakers at the conference was so marked as to be embarrassing. On day one we heard from Lorely Burt the Liberal spokesman and the general consensus was that she was somewhat out of her comfort zone, had only a fleeting knowledge of her brief, rambled on about a range of unrelated subjects and left everyone no clearer about her party policy on small business. When the party has a respected "hard hitter" such as Vince Cable it is all the more surprising that a "lightweight" was paraded before us. If you are going to speak at an event take the time to understand the audience, be focused and tell the listening delegates something new. I hope that Lorely matures into her brief because as one delegate said to me straight afterwards "god help us all if she ever wields any power"!

On day two we had Mark Prisk the Conservative Shadow. I am not exaggerating when I say that here was the best conference speech that we have ever had from a politician - certainly in my 12 years. Mark is obviously very at home with his portfolio, had taken the time to research the listening audience and gave us all something new. Not everything will have gone down well but we heard an honest appraisal of what can and cannot be done, how it will influence enterprise agencies and what we can expect from an incoming Conservative government. Irrespective of political leanings the audience seemed all in agreement that here was someone that we can do business with.

For the first time in many years I had no responsibility to worry about and it was somewhat liberating which made this one of the most enjoyable conferences ever. The team who attended with me all came back with several actions to put into place and a much better understanding of the industry and where NWES is placed (at the top obviously!). On this showing the NFEA conference has a lot more life in it yet and the non attendees are in danger of falling even further behind the pack. Book now for next year!

In a climate of cutbacks is the conference the first to go?

2009-08-10T15:07:00.002+01:00

As we draw towards considering diary commitments for the autumn the mind is inevitably drawn towards the conference season. Over the years I have had the pleasure and misfortune to attend a wide variety of conferences covering many sectors. Sometimes as a speaker, others as a delegate I always make it a rule to look back and consider what it was that I gained from attending.

When I first started attending conferences I came back disappointed almost every time. I felt that my time could be better spent in the office and that I learned very little from my time away. After a few such episodes I looked at the common denominator linking all these conferences and it was me! Like much else in life you get out what you put in and I was a passive attendee despite always paying my own way.

To change this I knew that I had to play an active part in any conference which I was going to attend. Prior to setting off I have an indication of who it is that I wish to meet, what questions I am seeking answers to, what areas I need to be updated on and what it is that will make a difference to the business when I return.

As such I only attend those conferences which pass the tests above and always come back invigorated, with ideas to implement and new contacts made. How many people prepare themselves for conference attendance? Very few in my opinion. Too often I see delegates gravitate to those people that they know, never widen their circle of acquaintances and use the conference as a whinge session! Why?

Each year NWES takes a small contingent to the NFEA conference. We use this event as a valuable networking opportunity, chance to learn some tricks from other similar companies and gather ideas which may benefit us. I usually take a cross section of my staff to help them gain a wider appreciation of the industry and see how we compare to our peer group.

In the last week I have spoken to a couple of "wise men" in the industry who are probably not attending the NFEA conference this year. They have good reasons (excuses?) for being elsewhere but I would suggest that now more than ever attendance is vital for any agency that is serious about its future. Times ahead could, and probably will, be very hard and it is through continual learning and sharing of experiences that you stand a better chance of surviving intact.

For members of the NFEA the conference is astounding value and should be pencilled in as a must attend event. With 100+ members I would suggest that taking 2/3 people from each agency will be an investment that will pay dividends in the future. However to get that benefit consider the points above and make sure that you speak to as many new faces as familiar ones, that you get answers - or at least suggestions - to your questions and learn something that you will put into place when you return to the coal face. It could be the best money that you spend all year!

For members and non members alike see http://www.nfea.com/ for details of an industry specific conference which could help you.

Short term mentality - long term suffering.

2009-08-03T09:45:00.003+01:00

This week we will learn how much profit (or loss) that our Banks will post. To the fore comes comment on bonuses paid to those traders "gambling" in a high risk - high reward environment. Howls of outrage are usually met with protests that it is too difficult to change the culture, that it will lead to an exodus of talent etc.

We have two issues here 1. Should Banks be allowed to gamble on the markets this way and 2. How should traders be rewarded.

On the first point then the answer should be yes however there has to be strict limits placed on the trading related to the strength of the Bank balance sheet and ability to meet obligations should losses be made. It was unlimited gambling on ever more obscure derivatives which caused the downfall of many institutions and yet we seem prepared to let the same mistakes be made. The argument that a bank is too large to be allowed to fail simply means that it is too large.

Reward for traders has a simple solution and yet no-one wants to break ranks. Traders can be paid bonuses according to how successful they are but the bonuses should be in shares and must be held for at least 5 years before they can be traded. In addition if losses are made then entitlement to shares reduces proportionally. This way there is an incentive to look at the long term rather than short term and each trader is tied to the performance of their parent company.

The bleats that this may affect the city in a negative way and drive away "talent" are foundless. Do we really want financial mercenaries gambling with our future? If they have no moral guidelines or sense of responsibility then quite frankly we are better off without them.

We talk about corporate responsibility and it is a real interest of mine but I have doubts if any of our top 250 companies pay anything other than lip service to this.

Reward exceptional work but tie it in to overall company performance and make any incentives long term - do this and we may just have a better society and stronger companies as a result!

So does an Enterprise Agency really make a difference?

2009-07-30T15:25:00.003+01:00

When hosting the judges for the Enterprising Britain Awards we were asked a similar question which encouraged me to do some investigation. NWES was set up to combat the mass redundancies due to the closure of the Pye TV factory in Lowestoft back in 1982. Its successor Sanyo recently closed so where does Lowestoft stand now compared to then?

Looking at the figures for the last few years one can see how the town has performed in comparison to the region and country.

Economically Active – in employment – all people:

Date Number Waveney East England Great Britain

Mar 06 47400 70.6% 77.7% 74.3%

Sep 08 54000 78.3% 77.6% 74.5%

As you can see Waveney has substantially outperformed both the East of England and Great Britain rising from a laggard to being above the national average for economically active people in employment.

Economically Active – Unemployed – all people

Date Number Waveney East England Great Britain

Jan 06 3800 7.3% 4.6% 5.4%

Sep 08 2900 5.1% 4.3% 5.3%

Source: www.nomisweb.co.uk

There is a similar story with the latest unemployed figures; whilst there will always be seasonal fluctuations due to the nature of the area it can be seen that substantial progress has been made, bringing Waveney to below the national average from a position 35% above it some 33 months before.

The most recent figures for those people on Job Seekers Allowance, whilst showing an increase, demonstrate that our policy of job diversification is sheltering Lowestoft from the worst effects of the recession. In the period from January 2008 to May 2009 (latest figures available) Lowestoft has seen a 41% increase in JSA claimants. However in the same period the East of England has seen a 106% rise and Great Britain an 86% rise.

These are impressive results and whilst full employment is always the goal it shows how a policy of diversification and broadening the business base has paid substantial dividends over the years.

Lowestoft with NWES at the helm is now looking to the future positioning itself as the UK base for the rapidly emerging renewables industry - housed at the £10m NWES managed OrbisEnergy. Check out our website for great pictures from the top floor of the most easterly building in Britain!

2009-07-21T11:41:00.002+01:00

I thought that I would post a blog entry by a judge for the "Enterprising Britain" competition who visited us in Lowestoft. As you can see he was impressed by what he saw and we will know how successful we have been at the national awards in October!

Enterprising Britain: A Judge's PerspectiveBy Maurice Helfgott, Founder of Amery Capital Ltd.Published Monday, 20 July, 2009 - 18:53

As founder of investment and advisory firm, Amery Capital , whose investments include Long Tall Sally, I was appointed a judge in this year’s Enterprising Britain competition has been a fantastic experience.
I have now completed both of my judging visits and each has highlighted how passion and dedication can transform lives and communities. It is great to see projects demonstrating how working in partnership can create new and exciting opportunities.
Each year, Enterprising Britain seeks out the most enterprising place in the UK, somewhere which has improved the local climate for business by creating opportunities for residents to be enterprising.
In these tough economic times, the dedication and vision of the people involved in these projects is a real inspiration. Entrepreneurship is key to our journey out of the recession and will be crucial in building a strong economy for the future.
The project I visited in the South West is run by The University of Plymouth, which is taking a leading role in the area’s social, economic and cultural development. It is fully engaged and working in partnership with a variety of organisations and agencies across the city to ensure the programmes developed are based on real need and are complimentary to partner activity. The university has developed a wide range of projects targeted to create an impact and raise levels of aspiration and quality of life.
Particularly interesting in Plymouth was a groundbreaking new partnership between the university and the Royal Government of Bahrain. It is a great example of private sector investment in the project and signals the creation of exciting international links and potential investment in Plymouth’s science and technology sectors. It is anticipated that the partnership will significantly boost the city’s financial and knowledge economies and its promotion of the vast opportunities available is definitely something I think others can learn from.

In the East of England NWES, a local enterprise agency in Lowestoft, was set up to reduce disadvantage by encouraging enterprising activity and self employment. Concentrating predominantly on people who are long term unemployed and facing barriers to work, its aim is to increase the number of business start-ups within the town by offering support, training, mentoring and provision of finance and flexible workspace.
The jewel in the crown in Lowestoft is the newly opened OrbisEnergy centre – an £8.7million investment designed to capitalise on the renewable energy sector. Amongst many other projects, the organisation gave £3million of its own money to fund the Lowestoft Enterprise Park, transforming a derelict industrial area into a thriving community of small businesses. NWES is about finding ways to give real benefits to both individuals and the community so that it is no longer dependant on just a few major employers, but offers a range of employment opportunities throughout the area.
Both projects I visited have successfully created jobs, reduced unemployment and attracted inward investment. The knowledge and experience they have will prove a vital aid for stimulating economic recovery and I wish them the best of luck in the competition.

NWES is proud to be the Eastern area representative in this years competition and are happy to share our experience with any other "enterprising place".

Who bears the brunt of the recession?

2009-07-08T08:47:00.004+01:00

Over the last few weeks there appear to be an increased level in the number of stories about the private sector bearing the brunt of the recession whilst the public sector sails on regardless. It is an interesting concept and one which deserves significant time expended on it by the very best political brains for the good of the country.

Is it true? Looking at the facts it is clear that the cuts in jobs and expenditure is falling almost entirely on the private sector. Public sector employment has risen sharply over the last 10 years and shows little sign of contracting whilst the rise in unemployment can be attributed to private sector cutbacks. In general though it is fair to point out that the public sector often lags behind the private sector as it is difficult to implement change and is subject to political influence rather than economic reality.

We are entering a different climate, one which many people are too young to remember -austerity. The post war mentality of save, mend and make do lasted with us until the early 1980's and then an era of spending has changed the way that we live. I still live by a mantra that if I cannot buy it with my own money then I do not buy it. It may be out of favour as a philosophy and yet I have no money worries and live within my means! In corporate life however we need to learn the value of money once again. Political spin where all spending is "investment" needs to be stopped. Capital programmes are investment but current spending is exactly that - spending.

If we do not cut public expenditure sharply then we will return to an era more akin to "Life on Mars" with record unemployment, industrial unrest and appalling public services. We hear that cuts in public spending means a cut in services. This is untrue. Looking at productivity levels in the public and private sector over recent years we see a gap of about 20% - indeed in recent years public sector productivity has fallen!

The cuts do not need to be across the whole spectrum but the increase in productivity does. Thus if a department such as Health is protected from cuts then that is in return for an increase in productivity. In this department alone the waste is enormous and simple business techniques could save billions of pounds which could result in more being done for the sick and vulnerable.

I would like to see ALL public authorities conducting an exercise whereby every service is investigated and is contracted out to the private, social or voluntary sector unless it can be proven that to do so would be more expensive or result in a worse service. Waste would soon be stripped out, creativity and dynamism would result and I believe that we would get a better service for a lower cost. Eventually this would lead to more jobs, lower taxes and an improved social structure.

So will this happen? Maybe, but slowly, as it appears that politicians believe that to articulate this would lose votes. I am not sure that is true but we need a strong leader prepared to do the right thing rather than the vote winning appeasement.

A Brave new World

2009-06-23T15:38:00.002+01:00

The world has changed. The pace and scale of the current recession has heralded a new way of thinking about the future of capitalism. Undoubtedly the current basis of our model will not radically change (at least no one sensible is suggesting that it will) but the way in which we do business will do. The settled and safe view of the economy has been shaken and corporate life in the future is unlikely to settle into its previous comfortable position. Industries that are "too big to fail" are simply too big and this opens up a wealth of opportunity for a new breed of entrepreneur.

An unprecedented number of people are looking at new ways to do business. This could be the model of business e.g. a social enterprise rather than solely for profit; or the way in which trade is carried on, with new ways of using existing resources or by consumers changing their buying methodology. All this will happen at a speed not previously seen and so it will take nimble and flexible businesses and individuals to provide solutions rather than the "supertankers" of multi national companies.

Great businesses emerge all the time and innovation, desire and enterprise are found as easily in a recession as in boom times. Barriers to entry are lowered; labour, materials and premises are cheaper. And the motivation is greater - why bother risking it all to be an entrepreneur when you can risk other peoples money as a trader and make enough to retire on by age 30? That is why most people would be hard pushed to name a true entrepreneur who has made it big in the last 15 years.

So the time is right to usher in the new capitalism with less reliance on a handful of banks, retailers and industrialists and more variety, innovation and choice. There will still be casualties but the next few years could herald an exciting new world - perhaps now is the time for governments to get firmly behind start up businesses rather than protecting the few or trying to pick winners.

In my opinion there has never been a better time to start up your own business.

Is it that hard to implement an expenses policy?

2009-05-28T12:35:00.003+01:00

I have resisted the temptation so far to comment on the scandal of MPs expenses, however it does raise a much more important question - how are our taxes spent?

What I find difficult is the inexplicable refusal of anyone named to admit what we all know to be reality i.e. they have been caught "with their hands in the till". The answer......in line with the general mentality of the public sector is to have an inquiry, convene a panel, take ages and come up with a compromise.

Is business any different? I would split businesses into those that are owner run and those which are larger e.g. PLC. In the latter there is always an expenses policy and most people lower down in the organisation adhere to them under threat of dismissal if they falsify claims. Higher up some of these organisations are run as personal fiefdoms by individuals who have lost all sense of reality. Just look at the extravagant expenditure incurred by Fred Goodwin or the arrogance of the US car manufacturers flying around in private planes. It is not their money and so they regard it as a "perk" and there are too few people prepared to challenge them. Exploitation in my eyes.

In an owner run company there is a knowledge that every penny counts and so expenses are kept to an absolute minimum and have to be justified. No expense account lunches here - a sandwich during a meeting is the most that can be expected. In NWES expenses are minimal. Staff members understand that we can only spend what we earn and so if we increase mileage rates for example then there is less to pay on salaries.

We have heard so much about "moral compasses" from our politicians over the years but most have been shown to lack these. Forget the rules, common sense should dictate what can be justified and what cannot. There is a simple solution which can be implemented within a week. ALL employees in the public sector should adhere to a single set of rules which apply to all publicly funded organisations. Most businesses could supply a template to be adopted and then there would be no need to hold special committees etc. It would be transparent and those of us who pay taxes would know that our money was being used wisely.

I know that this will not happen because it employs common sense and a quick and workable solution. Also there are too many people with a vested interest in maintaining their perks. Still we can hope!

Do we value work placements?

2009-05-21T15:25:00.003+01:00

As we get into the throes of the academic summer term the thoughts of teachers and students in Years 10 & 11 turn to the question of work placements. What should be one of the most important choices of the whole year for school and student alike is so often an afterthought and appears to be a "tick the box" exercise. There are some brilliant exceptions of course but my experience suggests that these are unfortunately in a minority.

One of the key tasks of a school is to prepare their students for a life of worthwhile work (although some teachers disagree with me!) and this - often first taste - of work experience is crucial. Chose correctly and it can be the catalyst for making important career choices; get it wrong and options can be cut or unfairly restricted.

So what makes a good work placement? I have a few simple thoughts which should be at the core of any decision:

1. The student and the placement have to be carefully matched to ensure that both parties benefit from the experience.
2. Pre and post placement reviews are a necessity to agree a learning programme and then assess what was achieved.
3. Placements with employers should all have a full and detailed work plan to ensure that the charge of "unpaid tea boy/girl" is unfounded.
4. Identify what motivates each student and use this in the matching process in 1 above - as any employer will tell you, a motivated employee is worth looking after.
5. The placement lasts for the normal working day whatever that may be. For a student to understand what work entails they need to experience the real thing not a truncated version.
6. Incorporate the work placement into the curriculum and use the experience gained in appropriate lessons e.g. Business Studies

Employers are delighted to help schools with rich work placements but find the bureaucracy and lack of real ongoing engagement to be deeply unfulfilling. Businesses understand the need to look after the workforce of the future but find it frustrating to come up against obstacles when offering to help. A lot of good work is going on but perhaps now is the time to have a radical rethink about how these placements are organised and what they should achieve. With the advent of the new diplomas a different tack needs to be taken so when better than now to think radical thoughts?

In Norfolk "The Exchange" is the place to go for advice on placements www.norfolk-exchange.org.uk and any company wanting to know how to participate should contact them as the first point of call. I know that The Exchange is looking at many exciting innovations to come in over the coming year so keep watching!

One final thought ......perhaps ALL teachers should also undertake a two week work placement EVERY year in the private sector - it would help them understand the importance of placements, provide material for lessons, re-invigorate "tired" teachers etc. Could it ever happen?

When to ask for help

2009-05-12T16:54:00.003+01:00

I was chatting to a business acquaintance recently when the topic turned to how and when an entrepreneur should expand their management team. One particular company was discussed as we both knew and had some knowledge of the principal and their business. As is the case in so many fledgling enterprises the business was doing very well, had built up an enviable customer list, was growing steadily and yet the owner seemed to be doing everything himself. One minute on the phone to a supplier, the next in the warehouse moving on to discussing finance and then dealing with an advert.

An entrepreneur has to be many things but they also need to know when to expand the top team to allow them to build the business rather than run the business. Too often a good business stalls because the owner cannot physically do more and they then become a bottleneck holding up all growth - the very thing which they should be concentrating on. A good example of how to bring in people at the right time is Karan Bilimoria the founder of Cobra beer. Despite being an accountant Karan still understood that the role of CEO meant that he had to delegate and this he did in 2001 with the appointment of a Financial Director.

"He was a godsend. He came in and took a huge weight off me. By taking on the FD role he freed me up. It shows the huge impact that a new member of a team can bring."

Whatever the size of business and the skills of the owner there comes a time when a team has to be built at a senior level. Leave it too long and the business stalls and can crash, too early and the costs may be a limiting factor. It is a skill to determine the right time and that is where an external pair of eyes can help. Getting some independent advice from a trusted advisor can help the owner of a small business to see the problems that they are too close to identify.

An entrepreneur needs to get their hands dirty but not to the extent of being a "Jack of all trades". Concentrate on what you are good at and expand your business through strategic thinking - it works. Just ask Karan Bilimoria!

Is football a business?

2009-05-05T07:08:00.002+01:00

One of my passions is following Norwich City FC who have just fallen into the third tier of English football for the first time in my lifetime. Much has already been written about their demise but I thought that I would look at it from a business perspective to analyse the problems that the club faces.

The Board: With any business a period of sustained decline over a number of years has to come down to the failings of the Board of Directors. A Board has several duties and responsibilities but its major role is to set strategy, empower and monitor progress. Under all of these measures the NCFC Board has spectacularly failed to deliver. There has been no published strategy other than a few meaningless platitudes such as "Prudence with Ambition" which point to a preoccupation with a marketing spin rather than any solid and workable business plan. There is an argument that the Board abdicated responsibility rather than empowering which has resulted in the current run down of its assets. Monitoring of progress should have been the easy bit but unfortunately there has been a weakness in not making the appropriate decisions at the right time - resulting in delay, confusion and a demoralised workforce. It would be easy to blame Delia Smith for all of the woes of the club but this is patently unfair. She has invested heavily in the club and recognised that she is not a natural Chairman and so did not take up this post. The mistake that she made was not to build a strong Board around her. Instead she has a decidedly substandard team which has been unable to meet the demands placed upon it. To rectify this Delia should be insisting that the Board is replaced with credible business people and a smattering of football experts that can take the club forwards to the next stage. Change is needed at this level before implementing the next stage in the clubs recovery.

The Executive Team: This is actually a hard one to call because apart from Neil Doncaster, the CEO, the rest of the senior team are almost invisible to the public eye. Any CEO who has overseen such failure must be at risk and Mr Doncaster is no exception. Unfortunately we have become used to carefully constructed "non phrases" emanating from this direction which amount to more spin rather than any desire to rectify the obvious failings within the club. Allowing key members of staff such as Andy Cullen to go without any adequate replacement has contributed to the spiral of decline. A club has to live within its means and as such every aspect of the business has to be looked at with a view to efficiency and unfortunately this does not appear to have been the case at NCFC. A strong team needs to be built to run the club with clear direction from the Board and the resources required to live within its means. Now is not the time for tinkering - the Canaries need major surgery.

The Manager: A strong manager is required at any football club. However their scope and remit should be clearly defined. Budgets provided, facilities made available and time allowed to implement change. A manager needs a strong team around them - people who fill the gaps in knowledge and ability and who can work together for the benefit of the club. As in any team a mixture of youth, experience, desire and proven success is preferred. Bryan Gunn our current manager has many of these skills in place and his desire to do well can probably never be surpassed. However is the support team up to the job? If Bryan can be mentored by an experienced and respected football figure then he could be the man to take NCFC back up into the Championship. Without a guiding hand the passion alone would not be enough but the club must stop the revolving managerial door which is destabilising and the reason why we are in our current position. This is the Boards fault. It is not my place to suggest who should fill this post - I am sure however that the track record of the current Board points to the fact that they cannot be trusted to get it right.

The Fans: In case anyone at the club had forgotten we are also known as CUSTOMERS! The support given has been stupendous despite the mediocrity that we have become accustomed to. The fans have done all that they can for the club and now it is time to repay this loyalty. I would estimate that the fans are worth £10m+ to the club in gate receipts and club related sundry expenditure alone - hence we are the most important part of the equation. No business can count upon the loyalty of its customers forever if it continues to disappoint them with the quality of its offering. Football is entertainment and discretionary expenditure even allowing for the tribal bond that links the fans to the club. There are many examples of well supported clubs losing their fan base through years of neglecting their needs. the fans are realistic - we do not expect Premiership glory but we do require commitment, entertainment and the odd moment of glory. (The average fan accepts that NCFC has one good year in ten!)

The Players: These are the employees of the club. Much has been written about how and why football beats to a different economic drum but this is patently not true. There is no need to run a football club any differently than any other business. Employee wage inflation should be halted, contracts rewritten to allow clubs to dismiss under performing players and to stop the disgruntled player seeking to leave at their whim. The culture of win bonuses should be dropped with say an end of season target resulting in a one off payment relevant to the clubs financial benefit. The argument would be that no players would want to come to Norwich if we insisted upon such contracts. I do not believe this is true. We would attract players who are keen to make their mark, can see significant reward for success and with a desire to achieve. It only needs one club to start the process and the rest will soon follow.

Relegation should be a wake up call for everyone and an opportunity to implement the tough decisions for the long term future of the club. No more talk of "sugar daddies" riding to the rescue with riches galore - despite the spin few clubs have this fallback position - indeed most would be delighted with the investment made by Delia. Run the club well and success will follow, build the right team on and off the pitch and the fans (customers d not forget) will support them forever. The first step has to come from Delia though to build a strong Board. The very best of luck Delia from all City fans.

On the ball City.

What do you learn from a conference?

2009-04-30T14:27:00.003+01:00

Yesterday I attended the Institute of Directors Annual Conference. This is always an interesting affair and attracts speakers of the very highest quality. Reflecting on the day I wondered what delegates thought about the conference and what they will change when they get back to running their companies.

As is to be expected, the speakers provided a wide variety of views and opinions and some were of course contradictory! When I attend any conference the major selling point for me is "will I learn one thing that I can implement to improve my business"? If the answer is "yes" it is a success, if not then perhaps it was not worth it. Sometimes the learning points come via networking and casual contacts others through some inspiring or thought provoking comments made by a keynote speaker.

I have learned that it is unlikely that I will gain insight from a politician of any colour as they are all scared of making a definitive statement - a sad albeit understandable reflection. You can be entertained and informed by these individuals but will it change what you do? Not in my experience. The best speakers are usually those with less to lose in terms of career prospects etc and hence for me the highlight was Tim Smit the founder of the Eden Project. He articulated many of my values and was a resounding champion for ethical capitalism. It is not all about maximising profit but optimising profit and taking a wider view of impact on local areas. This is true sustainability. Those organisations that show scant regard for their customers or employees have a limited life - when it comes to the crunch they will be the hardest hit.

I noted three points which I think are good lessons for anyone in business:

1. Optimise profit not maximise profit
2. Do not shy away from the hard decisions
3. Stay away from the negative people - wherever they may be found

Nothing earth shattering but points that are all too often forgotten in the day to day operation of a business. Follow this guidance and you will most likely run a good operation.

There was a mood of underlying determination in the audience to prosper despite the mess that we are in through no fault of our own. I still maintain that this is an excellent time to start or grow your business and this view is shared with many commentators at the conference. I just wish that our political rulers could follow the guidance above and then we could all move forward with confidence.

So what did the Budget do for enterprise?

2009-04-23T07:00:00.002+01:00

Rarely have I approached a budget less optimistic that anything would be done to stimulate enterprise - the good news is that I was not disappointed! Once you look behind the political "crowd pleasers" there is nothing to cheer anyone in business or indeed considering starting one.

We all appreciate that the public finances are in an unprecedented mess but real action to address this would in itself be good news for business. What companies need is:

- faith in a governments ability to accurately forecast growth (or decline) which the Treasury seems spectacularly unable to do. They have stretched the bounds of credibility too far this time and it begs the question of the Treasury - are they political "spinners" or public employees providing unbiased opinion based upon fact?

- a clear medium and long term strategy to eradicate the record levels of debt which we currently see. This was no-where to be seen. History will treat very harshly those who play politics with the future of millions of people. In the last 18 months the government has mortgaged the future of the next generation for the next 18 years.

- incentives to reduce unemployment by taking on extra staff. Unfortunately the tax on employment for businesses is so high that to increase your work force at the moment is actively discouraged. A holiday on employer NI for all new employees taken from the unemployment register would be enough to sway some business towards employing new staff, thus saving unemployment benefit and increasing the tax take.

- belief in the fairness of the system. Small businesses cannot afford high powered tax advisors and so in general pay full tax on profits earned. Big business pays a fraction as they employ tax avoidance advice to minimise their contribution. If you analysed profits announced by FTSE100 companies and then the corporation tax paid there would not be a high correlation! Tesco announced £3billion in profits recently - what is the size of the cheque that they will be writing to the Treasury?

Simple measures to encourage enterprise could radically improve our economy, revitalise industry and capture the innovation that exists in this great country. But we see nothing. Some nods to the lobbying by big business which will do little for the economy. Does anyone truly believe that offering a £2000 part exchange on a 10 year old car which you must have owned for at least 12 months will make people rush out to buy a brand new car?! If you ride around in an old banger the chances are that you do not want or cannot afford a new car.

The debt fuelled boom has ended with the biggest bust ever seen. The future is based upon saving and investment (not the euphemism used by government in lieu of spending), reducing and eliminating debt so that future generations can benefit. Delaying this strategy by even a few months condemns us to years of misery - this is no time to play party politics.

Can The Apprentice teach us anything?

2009-04-18T14:12:00.004+01:00

So we are in the throes of another series of "The Apprentice" and I am still undecided - is it a good thing for encouraging enterprise or not? Without doubt it is compellingly entertaining and "good television" but is it giving prospective entrepreneurs the wrong impression of what it takes to start up in business?

In favour:

- There are good lessons to be learned from the exercises and "one liners" from Alan Sugar
- It highlights personal characteristics and the importance of teamwork
- It forms an excellent training aid on how NOT to do things!
- It raises the profile of business

Against:

- The participants are selected to represent the most divisive in society to engineer conflict
- Without exception the candidates are self deluded as to their skills and abilities
- Sir Alan is not looking for an "Apprentice" but a competent manager
- The programme is unclear as to its purpose - is it seeking a leader, apprentice, manager or entrepreneur?

I believe that the viewing public are generally astute and can see from an early stage those who are out for a "media career"; Z list wanabees; nasty personalities and hopeless inadequates. Once these are eliminated there are few if any credible candidates left to assume the mantle of a true business person.

The tasks are appropriate to determine any potential leadership qualities but as each candidate is solely out to destroy their competitors the result is usually determined by who can wriggle their way out of any blame the best. Perhaps if Sir Alan was to fire people who portrayed an obvious aversion to teamwork, truth, hard work and intelligence we would see someone win who was worthy of the title.

Think back - how many of the candidates would you want to employ or work for? None probably!

So The Apprentice is probably best watched for purely entertainment purposes and as an example of how NOT to behave in business. Then it may play a useful role.

You've got to be in it to win it

2009-04-14T07:02:00.004+01:00

I was talking to one of our tenants last week about the effort involved in entering business competitions and if it is worth it. They are a successful business and indeed won three awards last year but were questioning the point of entering more at a time when maximum effort is being put into growing the company.

Applications to the various competitions advertised can be time consuming and it is easy to overlook or ignore them in favour of more pressing items; however I believe that this is a mistake. The issue at hand is not about time available but one of strategy. Why are you entering the competitions? If it is solely for personal vanity then perhaps it is a low priority but if it forms an integral part of your marketing and business strategy then there is a compelling argument to pursue these opportunities with gusto.

At NWES we have always considered the entering of appropriate competitions as an important activity and on analysis I would categorise the following as sound reasons for incorporating this into your plans:

1. It amounts to low cost marketing and advertising. In a time when every penny counts it is vital to account for every penny of your marketing spend. Competition entries take up time but not money (usually) and assuming that you make it to the final short list can provide valuable publicity on a wide scale. A good example is the Barclays "Trading Places" awards which are currently looking for entries. Here previous winners are featured on national publicity, there are articles in heavyweight papers and trade magazines and all for free! This level of exposure would be beyond all of the winners and can only accelerate the growth in their businesses.

2. It improves staff morale, retention and recruitment. A little thought through by product of winning competitions is the effect that it has on staff members. Everyone likes to be associated with success and feel pride in working for their company. At NWES we focused on a particular category for three years which was the EDP "Staff Care" award sponsored by the Learning and Skills Council.. After being in the final three for two years we won it on the third attempt in 2008. In essence this was won for being the company in the region which does the most for staff through induction, support, training and reward. We have always felt that we care about every member of staff who works for us but winning this award demonstrated this to the outside world. In the current climate staff loyalty is key and by winning this we have shown that NWES is an excellent company to work for - it makes retention and recruitment much easier.

3. The "feelgood factor". Winning is addictive! Without doubt it engenders a lift within a company and an added "spring in the step" when going about daily duties. At a time when all around seems doom laden this is a quick and easy way to lift spirits. This should never be underestimated. I am a great believer in that the general tone of a workplace is reflected in the work produced. A demotivated or unhappy workforce are not productive and can spell the end for many companies. Happy people work better!

4. It leads to more business. Everyone likes to be associated with success and the same is evident within the business community. At a time when supply chains are crucial, businesses will wish to ally themselves with "award winning" companies. The publicity from my first point and the added prominence within your sector can lead to new business. We use our award winning status in bidding for new contracts to establish our credentials and demonstrate our ethos. I cannot say for certain that it leads to new business but I would like to think that it plays its part.

5. Awards ceremonies are fun! Do not underestimate the restorative powers of a good night out - especially when someone else is paying! Enjoy it you have worked hard enough for it.

In summary a carefully planned awards entry strategy can have many benefits to your company. Next time you see an appropriate competition enter it because "you have to be in it to win it"

Do we really have "Solutions for Businesses"?

2009-04-07T07:02:00.003+01:00

The government has recently launched its "Solutions for Businesses" product portfolio which is the result of much consultation under the Business Support Simplification Programme. On reading the proposals it is difficult to see much to argue with; the product range is rationalised, it hits the main elements of support that a new, growing and maturing business will need and it is simple to understand. So why is it that I still retain some element of doubt that we will see real change?

Perhaps it is because the path of history of successive governments is littered with good intentions. So often we see attempts to improve the way that things are done in many areas but unless you alter the mindset of those charged with administering the delivery then little will change for the end user other than the "spin".

In "Solutions for Business" we have a good framework from which to start really building a business support arena worthy of the ambition to make the UK a leading place to start and grow a business. The big test is can different government departments resist the urge to add pet projects, create new streams and smother with bureaucracy? Already the initial portfolio has had an addition with the advent of a "Support for the Automotive Industry" product. Why this funding could not have been added to an existing strand such as the excellent Manufacturing Advice Service (MAS) I do not understand. The desire to create a headline with something "new" overrides the common sense approach every time. Hence my concern and doubts.

To make this work we need real leadership at the top in government with a firm pledge that no new products will be launched for a given period at which time the portfolio will be reviewed to assess the impact and need for change. Of course there will be times when it is right to support a sector or industry undergoing change but this can be done within the existing framework. An announcement of extra funding into an existing product may not gain the attention as much as a "new" launch but it is what business needs and wants and if government is to retain any scrap of credibility it is a change in the mindset of policy makers that is required.

Solutions for Business needs to be seen as the government vehicle for all help and not just a BERR initiative. Perhaps the Treasury could "fine" any department/authority that announces an initiative which does not fit any funding stream into the existing portfolio and that creates a new "brand". A fine equivalent to the amount pledged should concentrate the mind! As we have finally got to the stage where there is a credible support package it would be madness not to give it wholehearted backing for a given period to determine its impact.

Full adherence to the scheme is envisaged from 2010 onwards but I would hope that all delivery programmes are matched as soon as possible. We do not have the luxury of time in the current climate - what is needed now is immediate action.

That's the way to do it!

2009-03-23T08:25:00.004Z

Last week I encountered the two extremes of customer service - exemplary to diabolical. It was interesting that three examples of service to the highest level were from private companies and that of the lowest level was from a monopoly.

How to get it right - Lesson 1: I stayed in London at the Chesterfield Hotel which is part of a small chain (Red Carnation). I was first alerted to them via the Tripadvisor website which I have used for many years in deciding where to stay in the world (millions of reviewers cannot be wrong) and have never been disappointed. The hotel is a model of how to treat its customers well and ensure loyalty and recommendation. It is the little things such as a pre-stay questionnaire to determine your needs and preferences which will make your stay more enjoyable e.g. duvet or sheets. The hotel exuded service at every juncture. From the chambermaids who always had a cheery smile and the highest of standards to the front desk who remembered your name, from the restaurant who would accommodate any request ( I overheard an American family order their breakfast and apart from being amazed at what they wanted I was impressed as the hotel delivered without raising an eyebrow!) to the slick service at the bar. Congratulations to a group who deserve to thrive.

How to get it right - Lesson 2: Have afternoon tea at The Lanesborough. Perfection. Enough said!

How to get it right - Lesson 3: For a special occasion we had dinner at Le Gavroche. As you would expect the food was of the highest order and presented with elan. Once again though that was probably to be expected at a 2 star Michelin restaurant but the service stands out. The waiting staff are trained to the highest standards but performed with a smile and refreshing mixture of professionalism and friendliness which sets them apart from the often stuffy and detached service seen in other top restaurants. A team at the top of their game led by Michel Roux who was there on the night and took time to visit every table.

How to get it wrong - National Express East Anglia step forward as a company who do not care about their paying passengers. I could go on for pages with a diatribe of their shortcomings but to mention a few; Filthy train, overcrowded (just how safe is it for trains to be packed with standing customers?), no catering, no conductor, no policing of some passenger behaviour which was appalling and whilst not the fault of National Express, if they had a conductor going down the train it may have helped curb some excess. I have always found the service on this line to be bad ever since Anglia Railways lost the franchise. I know that National Express will take no notice of mere fare paying customers as they could not care less about us or they would change the way that they do business. It just goes to show that competition (especially in a recession) raises standards and monopolies lower them.

Good luck to Red Carnation, The Lanesborough and Le Gavroche - you deserve to succeed. National Express I hope that when the day of reckoning comes that you are held to account for your greed and failings.

Where history can help the future

2009-03-16T06:50:00.003Z

Can we learn from history? That we are in difficult times is obvious to all but apart from policies designed to meet day to day problems as they occur has anyone given much thought to how we will extract ourselves from this recession? We are entering a new world - one far removed from Whitehall and I believe that the ruling classes have misunderstood the prevailing mood "on the street". Even today, from very senior personnel, I have heard predictions that we will all be back "to normal" in 18 months time. But exactly what is normal? Certainly not the unrestricted consumer borrowing and spending of the last 10 years. That was an artificially created boom built on sand and which will take far more than 10 years to correct.

Patterns of behaviour are changing as jobs are lost and more importantly the fear of losing your job increases. This caution and desire to restrict and repay borrowing will - hopefully - lead us back to a more sustainable way of living within our means. But who is it that will lead the comeback; be the driving force for future growth and job creation? Not, in my opinion, the large multi national firms. Many of these resemble the last days of the dinosaurs - large, unwieldy creatures unable or unwilling to adapt to the quickly changing climate. Real growth will occur from the small business sector, new start ups and enterprising individuals with the ideas, passion, belief and knowledge to exploit the rapidly changing market.

So what are we doing to encourage these future "white knights" to ride to our rescue? Not a lot as far as I can see. Central government still fails to understand the significance of this sector of the business community and caves in to sophisticated lobbying by "big business" with handouts remarkable in their size. As usual politicians want an immediate headline, an easy solution and fail to show the leadership and vision necessary to safeguard our future.

History can teach us lessons and help us in determining our future. So let us look back 30 years to the recession of the early 1980's. Then an innocuous, low cost and unheralded scheme had perhaps the largest influence on providing 20 years of prosperity. The Enterprise Allowance Scheme. Much derided, it acted as the catalyst for literally tens of thousands of new businesses to be created, hundreds of thousands of new jobs and lifting millions out of disadvantage.

A simple scheme it offered a meagre allowance of £40pw to unemployed individuals to start up in business. Combined with training and support it spawned an increase in entrepreneurial culture at a rate not seen before or since. Of course some people played the system just to get an increase in benefits but these were a minority and due to the amount of work required to start up in business were soon identified. But it gave just enough support to encourage those who would otherwise have not taken the plunge and started their own business, it allowed the family to survive in those first few crucial months as the business was created and more importantly than ANY other benefit it gave the prospect of helping others with no cost at all as employees were taken on by these fledgling businesses.

The time is right for a new Enterprise Allowance Scheme to combat what may become the worst downturn in living memory. Taking into account inflation since 1980 offer say £100pw to anyone who is unemployed undergoing training to start in business. Guarantee this for 12m and watch the number of starts rocket and revenues increase. Without putting exact figures on the benefit to the UK it can be seen that this is a true "win-win" situation. Jobs are going to be harder to come by and so people will sit on unemployment benefit for longer without this positive action. Whilst the allowance would be c£5k pa extra the number of people coming off benefits will increase as they start up in business, making a positive contribution by paying taxes and creating more jobs via their growth.

The benefit to society would be immense and I would estimate that the cost to the public purse would be negligible. What is there to lose? If no-one starts in business then there is no cost to the exchequer, for every business that does start there is a £5k pa cost but savings on benefits as they come off these quicker than would otherwise be the case and the added benefit of new jobs being created. This is the kind of solution that we need in these troubled times, but who has the vision to make it happen?

One for all and all for one.

2009-03-10T07:11:00.004Z

For many years I have been a part of a small peer review group that meets up a few times each year to assist each other on a variety of different subjects. I rate the importance of these meetings extremely highly and they have proved to be of immense worth to each of the participants.

So how do they work? I would venture that for a successful group to operate there needs to be a few clear ground rules:

1. Each of the participants is from a seperate region to bring differing viewpoints to the debate and ensure that there is no competition issues.

2. The participants need to be of a similar mindset to enable appropriate open discussion.

3. You need to be prepared to be entirely open about all aspects of the business - from finances to people, systems to service.

4. You agree to rotate meetings with the host dictating the agenda as relates to their company and any specific problems they are facing.

5. You meet 3 or 4 times a year.

Our group has consisted of 4 or 5 agencies with a core of three ever present members. As you would expect there are some changes which occur as people move on but the guiding principles remain unchanged - a desire to learn, assist and support without passing judgement. It is no co-incidence that the members of this group are amongst the very best agencies in the country and have grown at a rate far in excess of the average. Where others have declined and failed we have prospered due in no part to the advice and support that we can call upon from each other to make the most of opportunities that are presented to us.

A visit typically lasts two days - starting at lunchtime, working right through dinner and finishing in the early afternoon the next day. At our early meetings we learnt about the general position of each agency and the issues which they were facing; this is vital background information which assists as we have moved on to helping solve specific problems identified by the host.

The range of topics discussed over the last 5 years is wide and varied and includes staffing; financial control; service offering; diversification plans; strategic direction and succession planning. In visiting an agency I get as much as I would as host. I learn someting new, get a chance to compare important issues and potential solutions, understand the thinking behind decisions and perhaps most importantly come back keen to implement what I have learned.

Our review group is a source of expert consultancy advice, available free as and when needed and perhaps most importantly it is objective, based on experience and cuts straight to the point! No allowances for ego's or sensitivities made!

Our experience has inspired other such groups to set up, from gender specific to role specific, and it has provided a ready source of help for our staff on any specific issues that they may face. A most useful network to tap into and a real example of collaborative working with no hidden motive.

I would exhort others to follow this example if you are serious about improving yourself and your business. The model can work in any industry and at any level. The most important thing is trust - do you still have the capacity to trust and be trusted?

Can we get back to common sense banking?

2009-02-25T16:50:00.002Z

Exactly a month ago I wrote about the banking crisis and I was suggesting that we need to rebuild trust between bankers and their clients. Looking over the last four weeks many initiatives have been announced, record losses are in the public domain and we are on the third (I think!) banking bail out. All of this but we do not seem to be learning from the mistakes of the past. This is so frustrating and leads me to believe that some people think that a political solution is more important than a real solution. We have an excellent opportunity to reign back the credit culture fuelled by the "must have now" demands of people who do not know what it is to work and wait for something.

Perhaps I am showing signs of old age but I was brought up to appreciate the need to save and avoid the misery of too much credit. My background is very much blue collar working class but we never lived beyond our means - yet I never felt deprived in any way. The country would have a much sounder platform from which to grow and thrive in the future if we started to choke off the easy credit culture so prevalent.

What frustrates me is that Banks and others are being pushed to maintain historically high levels of lending and, for example, it is made easier to get 100% finance on a new car just when we need to stop and return to normal.

If we laid down in law that a deposit of at least 10% was required for a new house and no mortgage lender could exceed these levels then house prices would normalise and people would not be faced with a desperate need to jump on the roller coaster ride for fear of being left behind. It would reduce the numbers of repossessions as people would only take on a mortgage when they have shown an ability to save. Undoubtedly some speculators would be unhappy but we should not base a housing market upon the gamble of potential capital gain. Similarly with say a 25% deposit on any new car.

The same is also true of businesses. Whilst I have sympathy for workers at LDV, the truth is that the company has not made a profit in four years and if it needed cash to stay in business then its owner need only sell one of his yachts - not appeal for a government bail out. Businesses need cash to survive as I have previously pointed out and banks have an important role to play with short and long term lending - but only to viable businesses. The recent story about a pampered celebrity chef left me very annoyed. Here was someone wanting the bank to put in 100% of the money needed to keep his restaurant chain going but refused to place any of his own wealth at risk either in cash or security. Exactly why does anyone think a bank should take this action? If the chef in question was confident of success then he should have backed his feeling like any good entrepreneur with his own cash. Not to do so and then go on a public whingeing session is doing a disservice to real business people.

So I am advocating a return to good old fashioned lending combined with a savings culture. It will mean a perod of decline whilst the markets readjust but in the long term it is the only way forwrad for the country. Whilst we are at it perhaps we could cap the ability of governments to borrow too! It saddens me the levels of debt that our children will inherit through the selfish actions of our generation.

The lonliness of the long distance runner

2009-02-20T16:24:00.000Z

Being an entrepreneur, running a business, is inherently a lonely existence. Whilst you are at the centre of everything that is happening in your company and aware of changes within your industry, all too often there is no-one to turn to when making vital decisions. I equate running a business to completing a marathon – it is a long journey; at the start there are high levels of enthusiasm, excitement and anticipation; difficult challenges to encounter and overcome but there is always a goal in sight and the sense of achievement in reaching it is difficult to describe to anyone who has not run the race.

Any serious and dedicated athlete realises the need for a coach and mentor to help them reach their goals and yet in business so few entrepreneurs follow the same path. No doubt without a coach you could run a marathon but will you ever realise your true potential? Why is it, when it has been proved that businesses which take advice and support fare better than those which do not, that there is an inherent reluctance to access these extra “tools” which may give you a competitive advantage?

Perhaps it is the popular hunt for instant success that makes many people treat business like a sprint. I would argue that, in business, long term sustainability is far more important than short term glory. The current example of many banks should highlight the damage that can be done by the lack of long term planning – learn from their mistakes.

So how can you help combat the feeling of isolation and tone your entrepreneurial abilities ready for the marathon ahead? Accessing help is easier than you would expect – finding quality support is slightly harder.

Firstly do not get hung up on the definitions of advice, mentoring, support, incubation etc – let the academics worry about such minutiae – most people want a combination of all of these at different points in their business life. You need your own personal “coach”. Source someone who you can trust; they should be independent, impartial, experienced and most of all approachable.

The next step is to use them effectively. They are not there to run your company but to help you develop your skills, hone your decision making and to bounce ideas off. Their role is essentially passive and most of the effort should be made by you but through their guidance you will develop solutions to business issues.

So being an entrepreneur can be lonely at times but those who seek out help and support along the way will develop faster and most importantly reach their goal before their competitors beat them to it.

How do you start such a search? Scour your networks to find someone who meets the above criteria or contact a leading independent business support organisation such as NWES who can help you.

A hive of ACTivity?

2009-02-19T15:05:00.000Z

I was intrigued to read about the latest initiative from the National Federation of Enterprise Agencies (NFEA) - ACT a network for enterprise support individuals. Drawing from their website ACT is "Especially developed for individuals working within the enterprise sector....... a unique network for like-minded professionals who offer services such as advice, coaching, mentoring and training to those starting and running small businesses".

It is certainly an interesting development from the NFEA which is aiming at the individual rather than the organisation, which it has traditionally represented. I do believe that there is a gap in the market for such a venture. I was an outspoken critic of much of what the old "Institute of Business Advisors" provided but without doubt there was a role there which needed to be filled. From my perspective since the merger of the IBA with the Chartered Management Institute the needs of the sector have taken a back seat.

Anecdotal evidence would suggest that there is some dissatisfaction amongst previous IBA members so perhaps the NFEA has stumbled across a real opportunity. However there is a danger that they are entering a crowded marketplace without the resources to achieve market share.

Again according to the NFEA website - "ACT members will be able to benefit from a full programme of dedicated activities including training events, CPD, locally-based networking as well as an annual conference." Using its organisational member base the NFEA has access to many hundreds of business advisors and so if this is exploited well there is a potential for real momentum.

I have previously expressed my frustration at the lack of bespoke support for my trainers and advisors (c30 at NWES alone) and so if the NFEA can produce a compelling programme of events we will certainly participate. So what would I like to see? I do not want a repeat of what is already out there so relevance is of prime concern. Regular bulletins are of use as would be some form of formal induction for people new to the profession. Local networking is always welcome but again it needs to be appropriate. High quality speakers that can enthuse and impart knowledge are vital at any event. Most importantly I would like to see the standards in the industry raised with some nationally recognised and policed qualifications.

With the advent of BSSP some industry focus is welcome and so we will be at the inaugural conference in Nottingham on 28 April. Perhaps we are seeing the beginning of a major new force in the industry. Sign up for the conference and you will find out!

www.nfea.com

Where has all the cash gone?

2009-02-19T07:03:00.000Z

Cash Flow - two simple words but they are probably the most important to any business wanting to succeed. In dealing with hundreds of aspiring entrepreneurs every year we see many who are passionate about their product, the exemplary service to their clients or the impact that their idea will have on the community. Few, if any, ever talk about cash flow and yet it is the single most important reason why businesses fail.

Too many people confuse cash with profit and they most definitely are not the same thing. There are many profitable companies who have gone into insolvency through lack of cash flow. If your customers start to delay the flow, through late payment or bad debts, then the money that you have available to pay your creditors is of course reduced. If the creditors will not wait for their money then you may have to enter insolvency if your bank will not step in to inject funds via an overdraft.

Whilst some businesses will produce budgets few compile a cash flow forecast (CFF) and yet in most cases this is just as important. We hear many stories about banks not providing short term finance but this is sometimes due to any lack of information provided by the borrower in the form of a CFF or budget - you have to at least give the impression that you will pay the bank back at some point!

By comparing what actually happens with cash flow against the forecasts it is a useful tool for business owners and can aid planning decisions. It also acts as an early warning system for potentially difficult times ahead. When combined with an analysis of debtor and creditor control it should enable a business to overcome any temporary constriction in cash coming in to the company.

So far, so easy! So why do businesses continually fall into the cash trap? I believe that it is poor planning; effective financial control should provide time to address the issue at hand - too often the first time that a business takes it seriously is when the cheques are being bounced i.e. when the cash has run out. Cash is the oxygen which allows a company to breathe; restrict this and the company will suffer and eventually die.

The old adage that "Cash is King" will always remain true. Perhaps in our credit obsessed culture we have forgotten this but it will be those businesses which adapt quickest that will survive. There are many ways in getting cash to flow. We see it every year in the shops when the sales start - this is merely a cash generating activity designed to overcome traditionally quiet periods. Much stock will be sold at a "loss" but this can be acceptable if margins overall are maintained and it frees up much needed cash.

The High Street is very adept in understanding the importance of cash flow and always quick to react (unmoving stock is "dead" money) but some other sectors have been caught cold by the sudden slum into recession. A good example is the car manufacturers. All have huge stock piles of cars which they cannot sell, expensive work forces to maintain and yet none has taken the bold step of really seeking to reduce this stock level and promote demand by vicious price cuts. There are bargains to be had if you know where to look and how to negotiate but each manufacturer wishes to maintain a price position and yet asks for government help to ease their cash flow!

We need to protect a quality manufacturing industry but if I was in power then I would want to see what the companies are doing to help themselves. Cutting costs is one side of the equation but cutting prices is the other side. Profitability may stall for a year or two with this approach but better that than shutting down completely or saddling the general public with debt for generations to come. I know that if say Land Rover, Jaguar or Nissan were to offer a new car at 50% off then I would be in the queue to buy!

The laws of cash flow and supply and demand are closely linked so why have these basic rules been forgotten in so many struggling companies?

Can you work with the public sector?

2009-02-09T11:27:00.000Z

I am often asked if it is worth - as a small business - trying to gain business from the public sector. It is not an easy question to answer as it comes with many caveats. I thought that I would outline a few of the main considerations:

- Are you credible? The public sector is very conservative in its procurement and you will not even stand a chance of winning a contract unless you have a credible story to tell. A sole trader is unlikely to make it past the first sift of tenders for say the cleaning of a hospital if they have only ever cleaned domestic properties.

- Why is the tender being publicised? Do your research and find out why the work is being put out to tender. Is it merely a cosmetic exercise done every two years where the existing contractor has been continuously employed for say 10 years. If so you need to carefully work out your chances of succeeding before spending a lot of time on drawing up your bid.

- Is TUPE involved? This element is often overlooked when bidding for a contract. It is a vital consideration as you could end up with a huge extra overhead which is not needed. The rules on TUPE are reasonably clear but do not forget to include this contingent liability in your calculations.

- What is the history of the tendering organisation? Not all public sector organisations are the same and they certainly do not all work in the same way. Has the tenderer a good reputation for working with its chosen contractors or are they constantly re -tendering as business finds it difficult to work with them? This is no different to working with the private sector - there are good and bad people to work with!

- Can I deal with the bureaucracy? Do not underestimate this element. There is no doubt that the public sector has a different way of working which is definitely different to the private sector! It is dangerous to generalise and again good research should help you to determine the reputation of the tenderer. Be aware that decision making is often slow, unclear (try and get someone to admit to being a decision maker!) and frustrating! If you are successful in winning a tender the documentation will be onerous. Before signing any contract ensure that you have had the best advice possible to understand your rights and obligations. Be prepared for interference! Do not expect to get a contract, deliver it accordingly and then get paid! The public sector is notorious for "monitoring", "reporting", "liaison meetings", "interim reviews", "steering group meetings" etc. Factor this into your bid. It will happen so you need to be prepared for it.

- The effect on your cash flow. This is a vital element for any small business. However with a few notable exceptions the public sector is notorious for taking a long time to pay. We have several contracts paid quarterly in arrears which can mean up to 5 months before receiving funds due. Whilst there may be profit in a contract can your business afford the cash implications? Try and negotiate more regular payments. We have found some organisations to be excellent in realising the impact on small businesses and if they trust you there can often be payments in advance or at least "profile payments".

- What is the impact on the remainder of your business? Do not put all of your eggs in the public sector basket. Political changes can mean radical rethinks and so you must retain a balanced portfolio to minimise potential risk. I have seen several companies "crash and burn" due to over reliance on one income stream. Spread your risk!

It can be very rewarding to work with public sector bodies but you need to be aware of the potential impact on your business. As I mentioned it is wrong to generalise but the above points are things that you should consider when an opportunity presents itself. If the conclusions are that it is still worth it then go for it with all you have as it can be a great boost for your business. NWES has many contracts with the public sector and we are delighted with how it has worked for our business. We have had one or two issues with some bodies but the overwhelming majority have been and are a pleasure to work with.

So do your homework and the risk is reduced.

A waste of our young talent?

2009-02-05T15:02:00.001Z

"Enterprise in Education" is an area which has always facinated me - ever since my time in school! There is no doubt that the concept of ensuring that our young people are shown the benefits of enterprising behaviour is a good one. My problem is with how it is being implemented. Like so many initiatives it gets watered down as it passes through various bodies until it is no longer recognisable.

I have come across several schools that display truly inspirational leadership in this field and I will return to them in the future. But why is it that so few schools want to embrace what is one of the key skills required for any job seeker or fledgling entrepreneur?

I can only speak in broad terms on this subject and I acknowledge that there will always be exceptions. Each secondary school has a budget for enterprise (c£15k on average) and as befits the subject has full authority to spend it as it sees fit. If you look at the Teachernet site which gives guidance on the subject it is enough to drive any businessman to tears of frustration. There is little innovation evidenced, a propensity to gravitate to links with other educational institutions, and well worn tilts towards "ticking the box".

This is a subject where the major industry bodies, BERR and individual companies need to wrestle the agenda away from DCSF. There needs to be fresh thinking in this arena and more political will expended to become a truly enterprising society. So many children are enterprising in different ways and yet instead of harnessing this we seek to squeeze it out of them in an attempt to conform.

How many successful entrepreneurs were "straight A" students at school? How many were considered "troublesome"? I will bet that the latter far exceeds the former. Now is the time for us to develop the type of individuals who will make a real difference to our future by fostering and encouraging enterprise in its varied forms. EVERY school should have a clear enterprise programme which is evidenced day by day in the ethos of the school.

As a company we find it very difficult to offer our help to schools as there is little desire to work with industry apart from the annual work experience request. So what is the solution? Well we need to start off by engaging the teachers, enthusing them and showing how it will benefit them and their students. Without the active support of teaching staff this experiment will go nowhere. The question is do we start with a few and then let the message spread or try all at once? I would suggest that the budgets are withdrawn and reallocated to schools who produce a plan of action on what they will do. Make it a competition and it will attract the enterprising schools who will get a decent amount of money to deliver their aims. Next year the winning schools have to partner with a non participating school and spread the practice and so on. Parents will soon get to know if their school is dragging its feet!

Too radical to implement no doubt!

One and a half cheers for Chris Grayling

2009-02-02T14:46:00.000Z

I was reading an article written a little while ago by Chris Grayling - the shadow work and pension secretary. There were some good ideas outlined, and if the political spin and point scoring is put aside, then the general thrust of potential future Conservative party policy on job creation is worth at least one and a half cheers! It was a relief to see it acknowledged that the growth in the economy is going to come from innovative small businesses and that they are the only real source of sustainable jobs growth. Too often we see undue emphasis placed on short term protectionism or assistance for uneconomic large players or the celebration of yet more public sector posts.

We need to rediscover the enterprise and entrepreneurial zeal which has made Britain "Great". Rather than spend fortunes propping up the past let's concentrate on the future. What I want to see from any government are policies which make setting up and running a business easy. REAL reduction in bureacracy, lower but fair taxation policies, incentives for job creation etc.

Chris Grayling referred to places such as Canada where new business creation from welfare to work programmes have been particularly successful. We have a version of this option now through the New Deal but it is very much the "forgotten option". The proposals to get 20,000 new businesses a year created are very much welcomed but some of the detail is suspect. It is the thought that he is expecting businesses such as ours to fund the programmes and then reclaim costs through benefits saved that worry me. Taking into account the average time taken to start a business and then the time for the benefit savings to be realised mean that it could be 12 months before we would be paid - not a model that we would recommend to our clients! How many people are going to put the time and effort into helping those who need it most when the financial pay back is so uncertain?

I have confidence in what assistance we provide to such clients and indeed we set up about 2.5% of Chris Graylings annual target and have done consistently for 27 years. So Mr Grayling if you want to get three cheers and help refine your policy into a workable process why dont you get in contact with me? As we are politically neutral I open this opportunity to any of the main political parties. Come and see what the experts "on the ground" actually do and it will probably surprise and enthuse you.

The answers are out there - you only need to ask the right questions.

Faces of the future?

2009-01-30T14:48:00.000Z

NWES is a sponsor of the EDP Future50 - an attempt to find the key people who will be shaping our region in the years to come. Yesterday we had the first meeting of the "wise men" (and woman!) who will be attempting to judge the applications. It was a fascinating meeting which had a considerable discussion on what we mean by "entrepreneur" and what (if any) criteria should be set for the Future50.

We agreed that in any list there has to be some criteria set to ensure that we compare like with like. In brief, the list should comprise of people not companies - i.e. individuals or teams - who demonstrate a number of characteristics which mean that they will make a difference. It is not all turnover or profit driven - a point which I was very vocal on as this is only one measure of success and not necessarily the best one. So those social entrepreneurs who will influence our future have a real chance to make the list.

This is shaping up to be a really interesting project and one which will set many people thinking. So what makes an entrepreneur? A library of books have been written in recent years on this subject and of course there is no single definition which encompasses all of the research and opinion. I would suggest that an entrepreneur is defined more by their characteristics. In my experience there is a degree of commonality which would encompass the following:

- A leader not necessarily a manager
- Driven by a desire to succeed
- Tough and with a fierce independant streak
- Opportunistic and often ingenious
- Optomistic sometimes bordering on over confidence
- Possessed of a vision and passion combined with determination
- A calculated risk taker capable of making quick decisions

Of course this is by no means a complete list but gives a flavour of the "spirit of enterprise" which flows through every budding entrepreneur. I will return to these characteristics in greater detail in future posts. What would you add to the list and do you know someone who should enter? If so encourage them to do so at:
http://business.edp24.co.uk/content/specials/Future50/default.aspx

Chickens Hugh and Tesco too!

2009-01-28T09:52:00.000Z

I was contemplating my last post when watching the TV programme "Chickens, Hugh and Tesco too". I have been following this intriguing position in the news since it started and watching the events as they unfolded on the small screen made me consider the ethics of Tesco in this case. I have always been a reluctant supermarket shopper preferring to shop at local independants - and indeed I refuse to buy meat from a supermarket as it is generally tastless, filled with unwanted supplements and usually more expensive than your local butcher.

The way in which Tesco has behaved in this instance is an example of everything which I hate about how some businesses operate. They have been obstructive, bullying, evasive, stretching of the truth and interested in nothing but profit. Those institutions which invest in Tesco on our behalf (pension funds etc) were spineless and whilst I acknowledge that TV editing can sometimes present a biased picture, in this case I think that the general message was acurate.

The disregard for their reputation by Tesco is worrying but I have the feeling that this may be of greater importance than they yet believe. No one likes a bully and Tesco exhibits all of the traits expected of the playground tyrant. They have their day but eventually someone stands up to them and once that aura of invincibility is punctured the decline has started.

I probably do not spend more than a few hundred pounds per annum in Tesco and so I am of no importance to their profits but from now on I will not use Tesco until they show some moral fibre, an understanding of the communities which they claim to serve and the highest ethical standards in their trading. My clubcard is being returned to Sir Terry Leahy with a request that any unused points are donated to Compassion in World Farming to support Freedom Food as a minimum industry standard. I will not register on his radar or probably get any acknowledgement but if everyone did the same then they would have to take notice.

In the meantime take my challenge - do not buy any supermarket meat for one week and use your local butcher instead. You will find a big difference in taste, a friendly smile and who knows maybe a few more pence in your pocket. Then see if you want to buy Tesco chicken again.

Businesses need ethics!

P.S. I highly recommend the butchers at Walsingham Farm Shop in Norfolk - superb meat all reared within a few miles of the shop!

A question of ethics?

2009-01-27T07:40:00.000Z

The current hot topic occupying much of the newsprint and airwaves is the revelation that certain members of the House of Lords (allegedly) were prepared to take money to make changes to the law. If this is shown to be true then to me it is much worse than the "cash for questions" affair as it involves changing the law of the land to benefit particular companies.

This raises the question of ethics in business and how/if they are applied. In my business life I have had dealings with companies as diverse as sole traders to multi nationals and in the overwhelming majority of cases I have witnessed the business conducted to the highest standard of business practice. I do understand the desire for a business to outshine its competition via any legal way possible, but to me equally culpable in the House of Lords case as the hapless peers, are the companies that sought to change the law of the state to their corporate advantage. To me this shows a complete lack of moral fibre, any semblance of business ethics and a total disregard for the welfare of the British public.

It is vital that busines is conducted to high ethical standards. This does not prevent successful companies from outsellimg poorer competitors or a constant evolution in the means of doing business e.g. internet trading. No business should be able to buy influence or changes to the law. This is quite frankly wrong in my opinion and debases the concept of enterprise in the minds of the general public. In recent years the thought of starting an enterprise has become more accepted as we have shaken off the "Del Boy" and "Arthur Daley" image of business people but this episode sets us back to the beginning.

We are told that there is no sanction for misbehaving peers other than a mild scolding and I am sure that the laws (if any) that were shown to have been changed will not be revisited. Again we are informed that reform to the House of Lords is too complicated but quite frankly these are excuses for inaction. How difficult is it to implement rules which absolutely preclude any such incentives for influence and have the sanction of a loss of title for peers and fines for companies? Common sense really but there will be an army of people looking at why it cannot be done rather than why it should be done.

Business ethics are vital to retain trust and confidence which are in short supply. Lets sort this matter out now - suspend any peer suspected of complicity and name and shame those businesses seeking unfair advantage banning them from both Houses and ensuring that any gains made are repaid into an industry fund for the benefit of all. I am tired of excuses for unethical practice - make the punishments sufficient to deter all but the crinimally insane.

A Banking crisis or the loss of common sense?

2009-01-25T12:13:00.000Z

Much has been written about the banks recently with some attempting to lay all of the blame for the current woes on irresponsible lending. To be fair many Banks and bankers deserve the brickbats being thrown their way. A crass rush for short term profit and individual reward at the expense of long held values, care for the customer and simple common sense has seen many of our most august institutions brought to their knees. The reality is that much of the cause for the recession can be pinpointed elsewhere but it is the rescue of the banks that holds the key to the speed in which we exit decline and experience growth.

Reading the plethora of comment would lead you to concur that the means of rescue are complex and beyond the understanding of "mere mortals". I would disagree. Of course some of the operations are fiendishly complex but the strategy should encompass a huge "dollop" of common sense. Much as Margaret Thatcher was derided by nearly every economist when she came to power with her household economics approach (remember the full page press adverts by the economists telling her she was wrong? I wonder what they felt seeing her policies transform this country in a way that no other person has in living memory - although I am the first to acknowledge that mistakes were made.) a clear, well thought out and comon sense plan is needed now.

The medicine is going to be nasty but I do not want to see constant PR exercises by the government with half thought out announcements. What due dilligence was undertaken with the first bail out of banks? Not a lot guaging from the current surprise at the level of bad debts. Lets have a clear, well articulated, simple strategy to sort this out and then stick to it. Encourage saving and well thought out business lending, curtail easy credit for personal purchases and outlaw trading in"financial instruments" that few understand and have no basis in the real economy.

When the time comes for recriminations then we can find out which executives were irresponsible, which Board members were asleep and failing in their duty and what the so called regulators were doing. Appropriate sanctions such as removal of titles and awards, freezing of pensions due to gross negligence and recovering bonuses paid under false pretences are some high profile solutions. The arrogance of those who played with and lost other peoples money cannot go unpunished or public confidence will not return. But first let us concentrate on sorting out the mess before we look for the culprits.

Banking has a huge role to play in our economic prosperity but it is based on 400 years of trust which has been lost in a few months and years. Rebuild that relationship and we can get back to building a country on a firm base not the shifting sand of easy credit.

Why bother having a strategy?

2009-01-23T15:52:00.000Z

Every year NWES holds a "Strategy Week" where all of the staff members within the company are involved in helping set our strategy, objectives and action plans. We have just completed this years'. Many people and organisations wonder why we:

1. Allow staff a say in the strategic direction of the company

2. Spend a week a year on it

3. Bother having a strategic plan

To me the idea of involving everyone in helping set strategy is common sense. It harnesses the thoughts and ideas of everyone not just a chosen few, there is a greater diversity of opinion and those operating "on the ground" know just where strategy falls down! This is the most important week in the year as far as I am concerned as we have the chance to analyse what works, what does not, what we can change and what we should leave well alone.

Spending a week a year is only 2% of the annual time available and this means that we do not have to spend copious amounts of time, energy and cost in communicating our ideas to all of the staff members - value for money!

Without a plan the business drifts and having firmly driven NWES to the top of our profession I have no intention of letting us drift anywhere!

We have finished the week with a set of organisational strategic objectives, team action plans to deliver those objectives and most importantly the desire of the staff to achieve them. I do not set any targets - the teams do that themselves and they invariably set levels at the top end of expectations, and yet they always deliver.

I will return to this subject in more detail in future posts explaining what and how we do during this important week. It's great having wonderful staff!

New Entrepreneur Scholarships

2009-01-17T10:57:00.000Z

A subject which I have been meaning to touch upon for a while is that of the New Entrepreneur Scholarship Fund (NES). This programme has run for the last 5/6 years and has been funded by the Learning and Skills Council. Run by the National Federation of Enterprise Agencies (NFEA) in partnership with the Princes Trust and Association of Business Schools it has been one of the most successful programmes that I have had the pleasure of being involved in.

In brief, individuals from the most disadvantaged areas of the country go through a programme of training and 1-1 support combined with a £1500 bursary to help them start in business. They even have the opportunity to gain an NVQ 2 or 3 qualification. The figures are impressive:

- 75% of participants start up in business
- 86% are still trading after 3 years and 76% after 5 years
- the majority were unemployed or economically inactive when starting the scheme
- over 5000 businesses started
- all this for a unit cost of £6500.

Unfortunately this programme has now ceased due to lack of funding - and it was only £5/6m per annum. In a time when jobs are being cut, self employment is an increasingly attractive option and of course it has the added benefit of creating even more jobs via business growth. The logic of stopping this in the teeth of the worst recession for a generation seems madness when we are spending billions on untried and intangible new projects.

Let us hope that there is someone with a modicum of sanity at BERR, government or in the Conservative party who will champion the return and indeed expansion of this scheme at a time when the country desperately needs it. "Tried and tested" is a sensible policy to have when all around are experimenting and mortgaging our future. Just think what £50m a year could do to regenerate struggling areas. Then again who said logic ever enters any political decisions!

You can't please all the people.......

2009-01-15T06:41:00.000Z

Yesterday NWES was successful in winning a contract to deliver support for hard pressed businesses suffering from the effects of the recession and credit crunch. The contract was the result of many long and intensive discussions with the East of England Development Agency (EEDA) over many months and years. NWES and some of its key partners in Enterprise East had been working to convince EEDA that we are a credible delivery group, able to meet EEDA and client needs in a cost effective and high quality manner. This we have done through the delivery of many contracts over a number of years.

You would have thought that this news, that EEDA had managed to allocate £250,000 of funds to support businesses in a recession, would have been welcomed by all. Not quite! I am dismayed that a few fellow enterprise agencies are angry that "they have not had a slice of the cake". How wrong and misguided these people are. The funding is going directly to help businesses and they are our prime concern - not the self interest of a few individuals. NWES and its proven delivery partners who have worked together for many years will deliver this programme across the region in a very short timescale (by the end of March). It will help businesses in all areas of the region and we are delighted to work with credible delivery partners which are members of Enterprise East.

The people who are complaining now are those who choose to resign as members of the regional body, conduct a campaign of agitation and who sought to undermine the collective well being of other enterprise agencies. To complain now that someone has not "favoured" them is very rich. Having said that, at NWES we always believe in doing the best for the client and so we are prepared to work with a wider cross section of delivery partners as long as they rejoin Enterprise East (it was the hard work of a few individuals who won this contract), demonstrate their ability to deliver a first class client service using qualified advisors and meet the contract conditions. I hope that this shows those people how misguided they have been and invigorates them to seek to work together where they will be welcomed back into the fold and treated like the prodigal son!

In these difficult times companies in our industry need to concentrate on the client - not petty internal disputes. Those who do will thrive and emerge even stronger, those which do not will fail. Finally a very big thank you to those individuals at EEDA who have fought to get this money, helped to put the case for Enterprise Agencies and fielded the whinges that have come their way. Rest assured NWES will not let you down.

What drives an entrepreneur?

2009-01-14T11:17:00.000Z

At a recent Charity Ball I was talking to a successful local entrepreneur about what drives him on in business. I was surprised that he answered exactly as I would - fear! He was in his mid thirties and has built up a sizable property and building empire. Like me he comes from humble origins but had a determination to better himself. The main thing that drives him on in growing his business is the fear of losing it all and returning to the council estate where he grew up. Indeed he said that if he has a bad day then he detours to his childhood home to remind himself of what is at stake and this always remotivates him. I would be interested in what drives on other entrepreneurs. Often money, success etc is quoted but I am not certain that this is the motivating factor for the majority of our entrepreneurs. The desire to create a better life for the family is high on my list and that fear of losing it all is what drives me on too. Many people ask "what makes an entrepreneur" and determination must be at the top of the list.

This is a subject which I will return to in later posts.

Belief, Passion and Drive

2009-01-07T07:56:00.000Z

I was talking to someone yesterday whom I have been helping on and off over the last couple of years. A fellow Enterprise Agency they were in some trouble having become reliant on a single Business Link contract for their income. A strategic change of direction was needed as their income line was at risk. In short they have embraced change, are looking at aquiring significant assets and their future looks much more secure now.

In talking I discussed with their CEO what drives them on. The reality is that a redundancy option was financially attractive but that their belief, passion and drive meant that they were willing to fight for what was obviously the morally correct outcome. This industry throws up many such people whose driving ambition is not personal fortune but a belief in helping others and doing the "right thing". In the public sector and much of the private sector this attitude is alien to many who cannot understand why someone would fight when an easier option is available.

As long as there are people like this CEO around then there will always be businesses such as ours and indeed in the teeth of what is going to be a really tough and prolonged recession perhaps we are about to see the rise of a new way of doing business - with sound business principles but where success is not measured on the crude bottom line but in what difference it makes to society, how it treats customers and staff and where there is a willingness to take the correct decisions not purely the most profitable.

I would hazzard that life and society would be much richer.

Celebrating Success

2009-01-05T15:12:00.000Z

We all seem to know how to celebrate Christmas in our own way and few have any problems in marking the start of the New Year but why do so many of us have problems in celebrating anything else?

NWES celebrated its 25th Anniversary a year ago and we marked the occasion with a glittering Black Tie “Silver Ball”, set in a stately home, with 200 guests, fine wine, great food, a seventeen piece “Big Band”, a casino, entertainers galore and topped off by a speech from me! In planning this event I had many people questioning the cost, scale and the “message which it would convey”. I understand their argument but they failed to see the real point of the event which was to celebrate reaching a key milestone, thanking everyone who had contributed to our undoubted success and reminding everybody why we exist.

In making it a memorable night for all concerned, ensuring that we invited past and present Board members, staff and supporters we now have 200 happy and enthusiastic ambassadors for NWES. Word spread about how enjoyable it was, how successful we are, what a great job we do and how we make a difference to so many people’s lives. It would have cost a fortune to buy that sort of publicity and goodwill – much more than the Ball cost!

The point here is that it really is alright - indeed vital - to celebrate success whenever it occurs….a milestone, contract win, successful start etc. By doing so you remind all concerned the reason why you are in business and you set yourself apart from the plethora of curmudgeonly people who only seem to revel in doom, gloom, despair and dismay!

At NWES we are proud of our company, what we do and why we do it. Make sure that you make the most of every opportunity to celebrate success big or small and see the difference which it makes to your business. The challenge to you is to celebrate something before January is over.

What is the direction for Enterprise Agencies?

2009-01-05T08:47:00.000Z

As we start a new year - which may be the most difficult in memory - how do Enterprise Agencies ensure that they survive and help our target market? Just before Christmas I heard from three different agencies that are either closing their doors for good or close to doing so. This is very sad news indeed and should be a wake up call for many of us - as if we should need it! In speaking to some of the individuals concerned I asked how they had come to this point. In each case they had predicted such a scenario up to 12 months earlier but had held on in the hope that “something would turn up”. I am afraid that I find this mindset very difficult to understand.

We would never advise clients to cling to forlorn hope or divine intervention and yet this is what several agencies are doing themselves. In the life cycle of every business there are downs as well as ups and it is how we cope with these that differentiates leaders from managers. I am returning to a subject that I have raised before but it amazes me how many agencies seem happier to close down rather than merge with neighbours or seek a “hub and spoke” type of arrangement to reduce operating costs.

Whilst some agencies are facing difficult times I am encouraged by how many are going from strength to strength and diversifying activity and income streams. Taking a football analogy – and don’t forget that I support Norwich City – agencies could perhaps be categorised as Premier League teams, Championship aspirants and Conference amateurs. This is not meant as any disrespect to agencies or individuals or that “Big is good, small is not” statement, merely an honest appraisal of where we are now.

It is incumbent on each of us – executive and Boards - to seek partnerships, explore joint working or merge rather than preside over decline. We have a proud history and I believe a glorious future but it needs people with vision, strategic direction and passion to deliver this. So are you an Arsene Wenger, Glen Roeder or a Mike Bassett? Have you built a strong team to propel you up the league or do you manage a group of overpaid, fading stars?!

One of the most pleasing things about being part of the NFEA is that there is so much mutual support, advice and assistance available when you need it; so my plea is that if the future is looking uncertain then speak to sister agencies or the NFEA at an early stage. The need for our services now is as strong as ever before so let’s ensure that we are fit for whatever challenges come our way.

Time to radically reform Enterprise Agencies?

2008-12-23T15:27:00.000Z

Now is the time to radically restructure the Enterprise Agency movement. Bold, ambitious, misguided, impossible – all of these may be true with regard to the previous statement. But has the time come for us to take a good look at what we do and how we do it? I believe that the answer to this is a resounding yes. For the past 25+ years we have performed an important role, helping to perpetuate one of the longest periods of economic stability through careful nurturing of new businesses. The world is changing however and unless we adapt – in a radical way – we will not be around as a group for too much longer.

We are undoubtedly threatened but at the same time there are wonderful opportunities opening up before us – do you have the desire, will and ability to grasp them however? Too often I see people in the industry trying to defend impossible positions and then shouting loudly when things do not go their way. Change is painful but necessary throughout the life of any business and we are no different. Complacency and entrenched positions are our biggest challenge not competition.

On more than one occasion I have been told by agency executives and Boards that they would rather run down their reserves and close up shop than do what is necessary to change and survive – be that personnel changes, product offering, merger etc. To me this is the ultimate betrayal of the Enterprise Agency movement, where selfish and narrow interests take precedence over the needs of the clients that we serve.

I do not pretend to have a solution to meet every need and indeed it may be that in some cases there is no workable solution. What we must do though is look to continue our movement and enhance its strength through clear strategic thinking and with an open mind. Surely this is not beyond the ability of each and every one of us?

What I have just written may be seen as doom laden – I believe that this is far from the truth – we have many talents within the movement and they will ensure its survival. What I want to see though is more than mere survival – a thriving, innovative and effective Enterprise Agency movement. This needs urgent and open discussions to take place at a local, regional and national level to determine the best way forward in each of the sectors and areas in which we seek to be a major player.

The “new” network may be different to what we have now but the intention should be to help more people. If we do that then the structure, size and governance of agencies is a by product. I make no judgement on the best way to deliver our services; it could be through bigger and more efficient agencies, smaller but niche deliverers, a franchise arrangement or any other method. What I do urge however is that every effort is channelled into adapting to meet the challenges facing us rather than bemoaning our fate. If you lose a contract look at the reasons why you lost rather than seeking to lay blame elsewhere. If you do that and change the way that you do things then you have a good chance of winning the next contract and not making the same mistake!

Business Support Simplification Programme

2008-12-14T14:06:00.000Z

On Friday I was reminded that some agencies see BSSP as a spectre which threatens irreversible harm to their businesses. There is much speculation in the industry over what BSSP will mean when it comes into being. On the face of it a reduction in public sector funded schemes into simple "strands" which are easily understood by the businesses and entrepreneurs who are the target audience is hard to argue with. However many believe that it will mean the end for their projects and way of working and hence the series of defensive comments being made by those who are unwilling to change to meet clients needs.

Will government get it right first time? Of course not - that we can be certain about. However the general principles of BSSP are sound even if some of the detail does leave one concerned about gaps appearing. So should we fight it tooth and nail? Again a simple answer - NO! We should be at the forefront using our unique knowledge of client needs to influence strategy at both a regional and national level.

Unfortunately some organisations in the industry are taking a combatative role in releasing mischevious (and often wrong) press releases which will give them a moment of glory but burn bridges with the people that they are trying to influence. I hope that people think before dashing off a hasty press release which they will repent at leisure as contracts are lost and their business contracts.

I am a great believer in "telling it as it is", but to the people that matter directly, not through crass spats in the media. This is a last resort and once used your armoury is bare so use it carefully.

BSSP is a subject which I will return to several times as its impacts start to become clearer.

So what really is partnership?

2008-12-08T08:08:00.000Z

I was talking to a senior person in the public sector last week and the conversation turned to "partnership working". We had a difference of opinion as to what a partnership is and thus I thought it was a good topic to expand upon.

There is no doubt that “partnership” is an overused and often abused term, so rather than provide some technical description I feel that I can best illustrate my viewpoint through my own “golden rules” and practical example from my business. This is a partnership aimed at delivery of a contract.

Firstly a partnership does not have to be based on equality. Many people however seem to believe this to be the case – in my opinion this is better termed as a co-operative. In drawing together an effective partnership you should be looking to identify the strengths of each participant and then maximising these for the benefits of the client, funders and deliverers. Inevitably the contract value will not be split evenly but based upon levels of activity.

Secondly you always need a lead partner – someone who will take responsibility, financial liability, contract control etc. This partner should be rewarded for the risk and responsibility via a “top slice” of the contract value. Without a lead you are trying to run a contract by committee which is virtually impossible to do.

Next on my list is to establish a partnership before you need to! There is nothing guaranteed to put you at a contracting disadvantage more than a “partnership” hastily put together to win a tender. Start building good working relationships now and then when an opportunity presents itself you automatically have credibility. You are as strong as the weakest partner so chose carefully. I could go on but let’s look at effective partnership in practice:

1. New Deal – Almost three years ago over 20 enterprise agencies formed a partnership under the lead of NWES to win a multi regional contract which has been worth £1.5m each year. Our partnership was based on quality irrespective of traditional operating areas and we have not been afraid to police delivery and change operators if necessary to maintain the overall contract.

2. Thames Gateway – two agencies recently won an important contract by working in partnership with Business in the Community and a professional drama group to bring enterprise to life in a disadvantaged area. The partnership recognised the individual partner strengths to deliver something new and vibrant. This partnership however has been a long time in its formation and has been trialled in other areas before tendering for this contract.

There are many more examples of course so if you have yet to be a part of a winning partnership look to emulate your peers and secure your future.

11 Things they do not teach you in schools

2008-12-03T19:37:00.000Z

I thought that I would start off with the tale of what Bill Gates allegedly said to a High School class when asked to give a talk. This may or may not be true but I think that a few more talks like this in schools could be very useful! He talks about how feel-good, politically correct teachings has created a generation of kids with no concept of reality and how this concept set them up for failure in the real world. He had 11 lessons that you will not learn in school:

Rule 1: Life is not fair – get used to it!

Rule 2: The world won’t care about your self esteem. The world will expect you to accomplish something BEFORE you feel good about yourself.

Rule 3: You will not make $60,000 a year right out of high school. You won’t be a vice-president with a car phone until you earn both.

Rule 4: If you think your teacher is tough, wait until you get a boss.

Rule 5: Flipping burgers is not beneath your dignity. Your grandparents had a different word for burger flipping: they called it opportunity.

Rule 6: If you mess up, it’s not your parents fault, so don’t whine about your mistakes, learn from them.

Rule 7: Before you were born, your parents weren’t as boring as they are now. They got that way from paying your bills, cleaning your clothes and listening to you talk about how cool you thought you were. So before you save the rain forest from the parasites of your parent’s generation, try cleaning the closet in your own room.

Rule 8: Your school may have done away with winners and losers, but life HAS NOT. In some schools, they have abolished failing grades and they’ll give you as MANY TIMES as you want to get the right answer. This doesn’t bear the slightest resemblance to ANYTHING in real life.

Rule 9: Life is not divided into semesters. You don’t get summers off and very few employers are interested in helping you FIND YOURSELF. Do that on your own time.

Rule 10: Television is NOT real life. In real life people actually have to leave the coffee shop and go to jobs.

Rule 11: Be nice to nerds. Chances are you’ll end up working for one.

Some sage advice! In future posts I will be giving some examples of how enterprise is being taught in schools (or not) and provide some suggestions for nurturing the creativeness of children.

Hello and welcome

2008-12-02T16:35:00.000Z

Welcome to my blog where I will be looking at a variety of topics under the banner of enterprise and business. This blog is aimed at anyone thinking of starting a business or for existing companies wishing to grow, survive and thrive in what is a very uncertain economic climate.

Enterprise means different things to different people and thus I will explore what enterprise means from the education system through publicly funded support to private sector provision.

I have run my own business for the last 15 years and so have experience in a number of fields and I will use this to flavour future posts.

If there is a specific topic that you would like to see me cover then do let me know. For now if you want to learn a little more about my company then visit the website www.nwes.org.uk