You are a great MD but in how many different way? Please send us your thoughts on even more ways.

You are a great MD but in how many different way? Please send us your thoughts on even more ways.

1.     Admit when you are wrong

2. Recruit people who have better skills than you

3. Take holidays

4. Take responsibility

5. Understand your Leadership style 

6. Keep on learning and improving

7. Laugh

8. Keep a sense of perspective

9. Be inspirational

10. Have a clear Vision

11. Truly understand how the numbers work 

12. Know how to make a profit

13. Trust your instinct

14. Make mistakes and learn from them

15. Live and breathe your Brand

16. Know when to walk away 

17. Be Passionate and convey this to your team, customers and suppliers

18. Prioritise what really matters

19. Understand yourself and how you come across to others

20. Love managing and leading

21. Understand what makes high performing teams

22. Be tenacious

23. Innovate wherever you can but not just for the sake of change

24. Devour new ideas and technologies

25. Network – appropriately

26. Create “no blame” cultures where people try things

27. Trust people

28. Can sell their business concept

29. Problem solve

30. Break down barriers 

31. Spend more time on strategy and the future than the day-to-day

32. Believe in themselves, their product/service and their people

33. Maintain a healthy optimism

34. Develop others as a way of developing their business

35. Coach problems away

36. Be a Great Listener

37. Keep perspective on everything and constantly review

38. Build relationships for the present and potential future

39. Experiment and play with ideas and concepts

40. Bring energy to what they do and energise others

41. Provide structure

42. Are constantly curious 

43. Question the things that others don’t

44. Keep themselves and their businesses healthy

45. Know when and how to say “ No”

46. Cut down the working hours in your day

47. Take time out to think

48. Have times when you are not available to anyone

49. Understand how to communicate in different ways with different people

50. Know and use the strengths and weaknesses of your team.

51. Delegate effectively

52. Be Flexible

53. Don’t procrastinate

54. Keep exploring

55. Push boundaries

56. Ask Why Not?

57. Have Fun

58. Be Proud of what you do

59. Respect yourself and others

60. Create a business that can run without you

Fiona Shafer

From Brighton to Bognor with Love

 

The MDHUB was launched in West Sussex last night at the magnificent Dome Enterprise Centre, at the Bognor Campus of the University of Chichester

In partnership with the University of Chichester, the launch saw a gathering of growing businesses from coastal and central west sussex and members of the business community.

The audience were treated to three inspirational stories from long term MDHUB members - Rosie Freshwater - MD of Leapfrogg in Brighton who described her relationship with us as a " fine romance ", Steve Hayman and Terry Nitman of Cheesmur Builders at Beddingham,near Lewes and David Ward - MD of VW Heritage in Burgess Hill. 

They shared all of the highs and lows of their business histories and how working with the MDHUB has significantly benefitted their business growth - thanks guys - we love you to !

The business owners who attended also had a chance to attend one of our confidential Peer to Peer workgroup sessions - the back bone of the MDHUB - to share their business issues and to provide solutions for one another.

Further " Taster " workgroups are going to be held on Monday 7th October and Monday 14th October - 3. 30 - 5. 30 p.m at the Bognor campus. If you are interested in coming along please contact : Kerry Kyriacou - Project Manager  - kerry.kyriacou@mdhub.co.uk

Coming in from the Cold……the rise of the Icelandic Star.

At long last! access back to our blog - thank you Google.

The sheer wonder of the Aurora Borealis aside, I did not expect to be quite so commercially inspired by a recent trip to Iceland, certainly not enough to be sharing some encouraging economic facts and stats with you .

After about 24 hours in Reykjavik, I found myself casting my mind back to the Icelandic crash of 2008 , remembering the catastrophic effect that it had not only on the Icelandic economy but on many British Savings and investment accounts with Icesave. I actually wished I had paid more attention to the history of the economic collapse of this north atlantic island at the time but I suspect that our own economic woes at the time took precedence.

Amongst my travelling companions was my friend Chris Lee ( ex BBC Journalist and PR consultant) and what we experienced did not feel anything like a bruised and battered economy but the early stages of an impressive and stoic return to trading and growth. She wrote this article for us.

 So what did we find out :

• Economic Growth of 2.5% is predicted in 2013.

• 4 Years post crash – Moodys have changed Icelands’ Baa3 credit rating to stable from negative. They complimented the Icelandic government for handling the financial and economic matters well, the financial situation has improved and the recession is over.

• The EFTA ( European Free Trade Association) Court ruled in Iceland’s favour in a historic verdict on the Icesave case.

• The economic crash has made the notoriously expensive island more affordable.

• Powerful and design led marketing campaigns are assisting - although a 2008 campaign which greeted visitors at the international airport did not go down well – “ Welcome to Halfpriceland” – are you here for the nature or the exchange rate “ – the ad was taken down a few months later after a number of icelanders took issue with the lack of tact rather than false marketing.

• Tourism reached record high of 700,000 visitors in 2012 - almost outnumbering the islands 321,857 inhabitants two fold .

• 1 million visitors are expected by 2016 to this truly beautiful island

• Green Tax Credit offered to islanders who leave their cars at home and find alternative methods of getting to work 

• Range Rover registrations ( a status symbol in Iceland ) – reached a peak of 259 in 2007 , dropped to 4 in 2011 and is slowly rising again to 24 in 2012……….maybe not such a great statistic ?

I'll be back................

Fiona Shafer

The China experience - part 1

Fresh from my MDHUBAlpha trip to China. A fantastic experience - eye and brain opening. We started in Hong Kong - slightly tropical feel to the weather, bright lights and designer shops everywhere - stayed in The Langham which was fantastic and the staff were genuinely friendly as were most locals we met.

A couple of useful presentations from UKTI and HK Trade Development Council - the general message was direct trade with Mainland China was difficult particularly getting money (Rmb) out, IP protection poorish, legal system not what we would be used to. General view at this time - operate through a Hong Kong based company and find a good local representative.

Advantages of Hong Kong - British based legal system, currency linked to US dollar, free flow of trade, good IP protection and a low tax system.

Key figures from the presentations -
1.5billion people - 55% of them under 24
4 million graduates a year
100 million bachelors
200 cities with population of more than 1 million
20 new airports and 20 new underground systems being built
400 million mobile phones
320 million internet users
50% of the world's pork eaten
33% of world's tobacco consumed - forgot what it is like to be in a smoky restaurant or bar.
More people speak English in China than America
GDP growth 9.4% over 10 years
Trade Growth 21% over 10 years
$1.5 Trillion foreign currency reserve - no wonder the US is sweating!
Growing middle class 300 million (although this number varied from presentation to presentation) and 18,000 billionaires.

- that's the numbers, more about the trip later.

The New Normal and other phrases of the year

So "The New Normal" topped the list for most overused phrase of 2009. I have used it myself and it was a good shorthand for the "unprecedented events" (second on the list) of the last 18 months.

I saw the phrase as a way of stopping any conversations that wandered off into fantasy scenarios of things getting back to normal (whatever that is).

What entrepreneurs are good at is seeing what's going on and doing something with it - whether that is improving their business model, their service or product or launching something new or into a new market.

The best companies that I see regularly have done just this and are better placed now as a result and certainly the worst option when things aren't working is doing more of the same.

The start of the year is a great time to review what you do, who for and why they should come and get it from you - the foundation questions for any business.

As ever come and talk to us and MDHUB members to get an honest and pragmatic view of your plans.

Here's to a good New Year and the latest "New Normal" (first mentioned in 2001 by Warren Buffet, so not that new.)

or that other business model?

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?

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?

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).

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.

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.

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"!

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.

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.

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.

Finance and things

A good session yesterday on raising finance - one thing that came through clear and strong is that at the sub £500k level Angel investors are the best option, and don't be afraid to approach people you think might be interested in your business.

If you are aiming to raise finance make sure you have your business plan ready and updated so that you can react quickly - it will be the first thing you are asked for.

On things in general - still the same mixed messages - a few companies tightening belts but others actively looking at opportunities to expand at home and abroad. But we are firmly in the "Decision in January" time where nothing will happen this side of Christmas on bids/tenders.

Remember to check your clients and potential clients - look at where the money is and position yourselves to get your share - the government has apparantly shortened it's payment terms and there are projects with committed funds to be spent, look out for those opportunities.

Keep talking to your existing clients, let them know that you are around and want to do business - in fact ask them how you can do more business with them - it's already worked for one Hub company in the last month.

The Banks - again

Another couple of meetings with banks this week.

For rock solid asset backed (60% of value) loan they are generally looking for a minimum of 2% margin and typically now on LIBOR not base - so with LIBOR only falling to 3.38% on Friday after the base rate cut you're looking at 5.58%. For unsecured money (still needs a minimum directors' guarantee) rates quoted are anything from BASE + 5% - Base + 12%.

The shift to LIBOR is not too suprising, remember this is the rate at which banks lend to each other (when they do) and also the government money into the bank is reported to be lent at 12% so they are being squeezed.

Best news is if you are a vet - the banks will probably lend you 100% of your cost for a new surgery at probably a margin of 1.5% over LIBOR or even base. The banks have always loved the white coat professions and things haven't changed there.

News from Hub members still mixed - some reporting strong sales, others getting through pitches but implementation not until the new year, others finding things tighter. The main message is people are holding onto cash so get tight on your debtors and remember historically January is the worst month for insolvencies so review your clients carefully.

On a final positive note - the best thing to do at the moment is remind your customers you exist and are still around foir business - make that phone call that you have been meaning to do, they'll appreciate it.

A niche and the DiMA:S

Interesting conversation amongst some of the HUB 250 MDs this afternoon about the need (or not) for smaller companies to strengthen their identification with a niche in their market. Overall feel was probably yes - in the face of broader base competitors buying in business but with a strong feeling that business was there to be won particularly from London based competitors at a decent price.

And talking of a niche - Brighton and Hove's not so small niche as the primary city for digital media was enhanced by an excellent inaugural Digital Media Awards: South at the stunning, if slightly cramped, All Saint's Church in Hove. An enjoyable evening with some well-deserved award winners and a great example of the talent in Brighton & Hove and beyond. Congratulations to Phil Jones, his team at Wired Sussex, Midnight Communications and the supporters and sponsors. It should help convince the doubters (and there still are some) to back Wired Sussex's campaign to make the area renowned for its creative digital skills.

I spent the evening in the, as always entertaining, informative and occasionally raucous, company of the Nixon McInnes types who sadly missed out on the Blog award. FTL! I guess this time chaps.

Well the answer is "we are still in the business of lending money" but strong message is for the right deal and with the right (i.e. strong) security at the right (i.e. higher) price. Let me know of any experiences you might be having.

BBC confirms VAT thought

I'm glad to see that the BBC have picked up the news of the potential VAT rise even though it's now being heralded as a mistake. As a sad beancounter this news had already been hawked around the trade press and I still say they will probably do it - whoever "they" are by that stage.

Any news from the banks? - RBS are saying that they are still lending and I'm meeting them tomorrow so I'll keep you posted....

Chancellor rides to the rescue of business?

or does he?

Widely touted and leaked package to "kick start the economy". From a quick glance it looks like the best news for smaller business is the delay to the increase in the corporation tax and a promise to allow us to spread tax payments to help cashflow, not sure what the second one means but the phone lines to the Revenue will already be red hot and I wonder if a certain Revenue employee will now hold off on action against a client struggling to pay PAYE?

The VAT adjustment won't help too many b2b service companies as it is just a pass through except for things like entertainment and car purchases where it can't be reclaimed. I guess it may help the retail sector to subsidise their discounts.

Watch out for the government's favourite stealth tax - National Insurance - will be going up for employers and employees from 2011. Don't bet against VAT following once it gets back to 17.5%.

The Chancellor says that the economy will recover in early 2010 - will it?

We are still getting very mixed messages some members are still seeing good business and in fact 3 recently reported October as their best months of the year.

Will it make much difference to you? What are the best bits?