By that other one I mean the common concept that either you are in business to make money or you are there to serve a higher calling to staff, society and the environment. Lord Browne - Group Chief Executive of BP - in a lecture to MIT suggested that actually these are too simple. Pure profit is short term by nature and the higher calling is too often a PR gloss put on top or even distracting such as the "Triple Bottom Line".
The more complex idea is that a good business fulfills it's purpose "by supplying goods and services at a price people can afford in a manner which makes the activity sustainable".
So where does that leave the (serial) entrepreneur?
Tuesday, 23 June 2009
Monday, 15 June 2009
Growth - now?
Interesting discussion at a workgroup this week, which followed a theme from MDHUBAlpha. What is a serious expectation of growth for our businesses both in the current climate and going forward. We have seen MDHUB members achieving serious growth rates of 50%-150% per annum over recent years but is it realistic to hit an exit target of £5m-£10m over say, a five year period.
Many entrepreneurs have set up businesses in the last 10 years with a very specific "build and sell" model, I'm pretty sure that what would have to have been extremely strong business models, specialist market niches or just brilliantly marketed companies will now have to be truly exceptional businesses to fulfill that dream over the next few years.
The other angle of the discussion was not new, but perhaps being re-visited, the changes needed to move from a £500k turnover company to a £10m turnover company. The key thoughts being: How do we keep the atmosphere, the small company enthusiasm, the personal customer service and what kind of management team do we need? With perhaps a more focused question of - am I really the MD to do this move?
I know one MD who was absolutely rigid about his abilities - he could take a company from £5-£15m but after that he wasn't the right person. He had achieved it at least a couple of times but I could never quite get at what ingredients worked and what was missing.
So is the time right for "build and sell" or do we need something else?
Many entrepreneurs have set up businesses in the last 10 years with a very specific "build and sell" model, I'm pretty sure that what would have to have been extremely strong business models, specialist market niches or just brilliantly marketed companies will now have to be truly exceptional businesses to fulfill that dream over the next few years.
The other angle of the discussion was not new, but perhaps being re-visited, the changes needed to move from a £500k turnover company to a £10m turnover company. The key thoughts being: How do we keep the atmosphere, the small company enthusiasm, the personal customer service and what kind of management team do we need? With perhaps a more focused question of - am I really the MD to do this move?
I know one MD who was absolutely rigid about his abilities - he could take a company from £5-£15m but after that he wasn't the right person. He had achieved it at least a couple of times but I could never quite get at what ingredients worked and what was missing.
So is the time right for "build and sell" or do we need something else?
Thursday, 23 April 2009
St. George's Day & Shakespeare's Birthday
St. George's day and we hear that our Prime Minister is proud of what England has given the world - in particular our language and Shakespeare's phrases now in common usage. He particularly mentioned "a pound of flesh", something the ex-chancellor knows a lot about and a theme continued by his own chancellor yesterday.
The "green budget" barely raised it's head again beyond justifying an increase in fuel duty but there was a whack to those of you earning over £100k with reduced personal allowances and if earning over £150k an extra 10% income tax on the top slice from April 2010. Add in the messy return to 17.5% VAT on 1 Jan 2010 increased penalties when we get things wrong (although nothing for when they do).
The good stuff was restricted to the "Old Banger" relief for scrapping a 10 year old car, the stamp duty maintained at nil up to £175k, re-introduction of 40% capital allowances for a year from April 2009 and confirmation that we can carry back losses for 3 years (limited to £50k pa). Talk to your accountant about how all this affects you.
As for Alastair Darling - the IMF have already said that they don't agree with him - is he trying to put too positive a spin on things? You undergo too strict a paradox, Striving to make an ugly deed look fair. (as Shakespeare also wrote, Mr Brown).
The "green budget" barely raised it's head again beyond justifying an increase in fuel duty but there was a whack to those of you earning over £100k with reduced personal allowances and if earning over £150k an extra 10% income tax on the top slice from April 2010. Add in the messy return to 17.5% VAT on 1 Jan 2010 increased penalties when we get things wrong (although nothing for when they do).
The good stuff was restricted to the "Old Banger" relief for scrapping a 10 year old car, the stamp duty maintained at nil up to £175k, re-introduction of 40% capital allowances for a year from April 2009 and confirmation that we can carry back losses for 3 years (limited to £50k pa). Talk to your accountant about how all this affects you.
As for Alastair Darling - the IMF have already said that they don't agree with him - is he trying to put too positive a spin on things? You undergo too strict a paradox, Striving to make an ugly deed look fair. (as Shakespeare also wrote, Mr Brown).
Thursday, 9 April 2009
Following another good MDHUBAlpha session some of Michael Porter's thoughts on strategy were discussed, I had a chat with another business who is focussing their strategy on "exceeding client expectations".
My view is we should first aim to agree expectations so we both know what that means and then strive to deliver what we've agreed to a very high standard. There is also an ongoing process of educating and being educated with the client to develop more ideas and ideally deliver more for them.
Certainly a strategy of exceeding expectations is neither a strategy - taking Porter's view that the worst error in strategy is to compete with rivals on the same dimension ie competeing to be the best rather than his choice competing to be unique - nor is it an easily achievable goal as so often we do not really understand our clients true expectations.
My view is we should first aim to agree expectations so we both know what that means and then strive to deliver what we've agreed to a very high standard. There is also an ongoing process of educating and being educated with the client to develop more ideas and ideally deliver more for them.
Certainly a strategy of exceeding expectations is neither a strategy - taking Porter's view that the worst error in strategy is to compete with rivals on the same dimension ie competeing to be the best rather than his choice competing to be unique - nor is it an easily achievable goal as so often we do not really understand our clients true expectations.
Friday, 6 March 2009
Keep on running
Great session with the Alpha group, sparked me into thoughts about leadership at the moment. I have often thought it's your bloodyminded stubbornness that marks the MDHUB Mds. Got an e-mail this morning that included a quote from Calvin Coolridge which seemed to fit the bill.
Nothing in the world can take the place of Persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent. The slogan 'Press On' has solved and always will solve the problems of the human race.
Calvin Coolidge30th president of US (1872 - 1933)
Obviously you need to know where you are "pressing on" to but most of you do.
Nothing in the world can take the place of Persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent. The slogan 'Press On' has solved and always will solve the problems of the human race.
Calvin Coolidge30th president of US (1872 - 1933)
Obviously you need to know where you are "pressing on" to but most of you do.
Friday, 13 February 2009
Seminar and BERR
Good session at the seminar this week and I believe that some of you gave those nice people from BERR a tough time. Thanks for the involvement they seem to be genuine about finding out about small businesses but no idea what happens next.
On the business front a couple more Hub companies reporting that business is holding up well and another who has seen business slide at the end of last year but now holding level and feeling a little more confident.
Also an interesting discussion about keeping staff in the loop and one important point if you are doing most of the new business for your company, don't forget to let them know how it's going. You may have a positive feeling after a pitch but they may just have seen all the hard work and not know how it went. Generally the feeling is that you should be monitoring the pipeline and be transparent about it.
Still finding HMRC helpful with tax re-scheduling but they are asking for a business case to back it up so expect a few more questions but still a useful way out of a cashflow hole and yesterday a bank said to a client "we are going to help you through this"!
On the business front a couple more Hub companies reporting that business is holding up well and another who has seen business slide at the end of last year but now holding level and feeling a little more confident.
Also an interesting discussion about keeping staff in the loop and one important point if you are doing most of the new business for your company, don't forget to let them know how it's going. You may have a positive feeling after a pitch but they may just have seen all the hard work and not know how it went. Generally the feeling is that you should be monitoring the pipeline and be transparent about it.
Still finding HMRC helpful with tax re-scheduling but they are asking for a business case to back it up so expect a few more questions but still a useful way out of a cashflow hole and yesterday a bank said to a client "we are going to help you through this"!
Wednesday, 4 February 2009
They're coming to get me
Our house (and part of the village) was cordoned off due to a rumoured cache of explosives being found up the road. Unfortunately they neglected to check the house first so Gill dragged out a couple of bemused teenagers and a sleepy dog leaving the security experts to blow things up. That excitement over back to business.
Interesting offer from a bank at 0.5% over base on what is admittedly an excellent covenant but there are some deals out there.
Also looked at a couple of good business performances - their secret? - Good management, good basic product, a good share of their market and a history of aggressively paying off debt.
Gordon Brown (by accident?) called it a global depression today. Avoid depression - keep talking to your peers and look after each other when things are tough, sometimes we need someone else to remind us to keep going for it.
Interesting offer from a bank at 0.5% over base on what is admittedly an excellent covenant but there are some deals out there.
Also looked at a couple of good business performances - their secret? - Good management, good basic product, a good share of their market and a history of aggressively paying off debt.
Gordon Brown (by accident?) called it a global depression today. Avoid depression - keep talking to your peers and look after each other when things are tough, sometimes we need someone else to remind us to keep going for it.
Monday, 2 February 2009
End of January
Back from Christmas and a broken laptop - realised how much I use the laptop out of the office.
Still getting patchy stories out there - one company had their best month ever in January, another has this year's target turnover 70% booked already, another won 4 straight pitches as clients move from larger suppliers. However also heard of orders drying up in the space of a week and of course everyone is hanging on to their cash. Still no movement on the Government's secured lending to business which is not due until end of February but one bank I spoke to said it still did not mean that money would come easy, they would still want to see financials and a plan.
Key things to concentrate on - Cash of course - offer discounts for quick settlement, get people on standing orders where they pay regular fees. Look at your cashflow and budgets regularly and now of all times know your pipeline of business and set costs accordingly. re-do your business plan it needs to be a working tool.
Can you make your costs more flexible? - I have heard of companies reducing working hours and therefore pro-rata salaries, others changing to production linked pay - make sure you get good HR advice first. Above all keep your staff involved and let them know how things are, they might have some good ideas for you.
....and finally - look after those customers, call the ones you haven't spoken to in a while and don't forget to ask for more work.
Still getting patchy stories out there - one company had their best month ever in January, another has this year's target turnover 70% booked already, another won 4 straight pitches as clients move from larger suppliers. However also heard of orders drying up in the space of a week and of course everyone is hanging on to their cash. Still no movement on the Government's secured lending to business which is not due until end of February but one bank I spoke to said it still did not mean that money would come easy, they would still want to see financials and a plan.
Key things to concentrate on - Cash of course - offer discounts for quick settlement, get people on standing orders where they pay regular fees. Look at your cashflow and budgets regularly and now of all times know your pipeline of business and set costs accordingly. re-do your business plan it needs to be a working tool.
Can you make your costs more flexible? - I have heard of companies reducing working hours and therefore pro-rata salaries, others changing to production linked pay - make sure you get good HR advice first. Above all keep your staff involved and let them know how things are, they might have some good ideas for you.
....and finally - look after those customers, call the ones you haven't spoken to in a while and don't forget to ask for more work.
Wednesday, 21 January 2009
MDHUB Seminar - February
MDHUB Seminar – 11th February 2009
Marketing your company during a recession
The seminars are monthly informative sessions delivered by MDs and based on their practical experience of their subject. We are pleased to announce that on the 11th February, Kate Burgess from KBC Public Relations & Marketing Ltd will be our guest speaker. She will be bringing her associate Neil Edwards of The Marketing Eye.
In addition, experts will be able to answer individual questions, develop open discussions, followed by valuable speed networking opportunities.
The seminar will take place at the Royal York Hotel, Brighton, 3pm. If you have not already confirmed your attendance to this event please reply to this email: editor@mdhub.co.uk or call 01273 311220.
Seminars come free with MDHUB 100 & 250 membership but cost £30 for non-members.
Marketing your company during a recession
The seminars are monthly informative sessions delivered by MDs and based on their practical experience of their subject. We are pleased to announce that on the 11th February, Kate Burgess from KBC Public Relations & Marketing Ltd will be our guest speaker. She will be bringing her associate Neil Edwards of The Marketing Eye.
In addition, experts will be able to answer individual questions, develop open discussions, followed by valuable speed networking opportunities.
The seminar will take place at the Royal York Hotel, Brighton, 3pm. If you have not already confirmed your attendance to this event please reply to this email: editor@mdhub.co.uk or call 01273 311220.
Seminars come free with MDHUB 100 & 250 membership but cost £30 for non-members.
Subscribe to:
Posts (Atom)
Posts
