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Be the one who puts you out of business…

I read an interesting article from Gary Turner (MD of Xero UK) about the iPhone 7, in which he mentions that the small update was effectively a tell for a much bigger impact next year. As someone who often guesses the “second bounce of the ball”, I have every reason to believe he might be correct, and here is my take on it.

As we stand today, we are entering a period of disruption. The last one has been and gone, over the last decade. Apple intentionally destroyed it’s iPod with the iPhone. Netflix and Lovefilm destroyed their postal model with online streaming. It could be argued that iTunes is being destroyed by Apple Music (although I’d contend that it’s potentially too little, too late).

Businesses that haven’t embraced this “disruption” stuff are suffering. Sage – once the UK leader for accounting software, was too heavily dependent on box sales, and too certain about it’s profits continuing. It might still make a recovery from a strategic perspective (the share price is certainly doing OK); although I suspect that this will be via acquisition and a wholesale shift in direction.

Perhaps the worrying thing about this all for stale businesses is that the pace of disruption is ever increasing. I often rake through the crowdfunding sites, trying to sort the wheat from the chaff and seeing what’s out there. Some businesses truly are turning existing models on their head. Any business with independent distribution, few dominant players, and a “1990’s” experience is ripe for disruption. Taxis. Bed and breakfasts. You get the drift…

Exciting times for those at the front of the curve. Are you prepared to do yourself out of business?

from Be the one who puts you out of business…

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What stops a company in its tracks?

I’ve recently been looking at new mobile phones for my wife and noticed that Motorola are back on the scene. Yes, Motorola – the mobile phone company that I grew up with – in fact my first mobile was a brick-sized lump of plastic from them!

I understand that they are currently owned by Lenovo, the same company that bought another company from my childhood – IBM. For all intents and purposes, it appears that for IBM and Motorola, they follow a Sports Direct style model of acquiring brands, manufacturing, and retailing (albeit on a website rather than in a physical store).

The question I had to ask from this is simple. What is it that keeps a company in business?

Motorola appears to have suffered the same plight as Nokia. That is, it hadn’t done anything wrong as a business, but hadn’t done enough right things to survive and thrive. Much like BHS, who have closed their last store on the day of writing. Compare these businesses to BlackBerry, whose stubborn reliance during 2005-2015 of sticking to their formula of software + hardware led to a market high in 2007, followed by a dramatic slump in their share price.

So what sets apart the winners?

A core brand definition – The current market leaders have a very strong identity both within and outside their organisations. Apple is synonymous with design. Samsung leads with innovation. What did Motorola and Nokia stand for? Good mobile phones? It doesn’t really stack up. The same can be applied to the retail sector. Zara and H&M stand for fast, disposable, fashion-led clothing. Aldi and Lidl stand for no-frills value. What did BHS, or indeed Woolworths, stand for?

Vision beyond the plan – Another differentiator appears to be the vision of these companies. Successful companies think far beyond their current operating plan, and far beyond their current product cycles. They look for the “second bounce of the ball”, and are anticipating where market demands would be in 20-30 years time. The likes of Apple had clearly mapped out where they saw music when they bet the company on the iPod, and in turn their future development of music consumption. Yes, I know there were MP3 players available before (I had one myself), but no company had placed so many chips, so visibly, on the success of the format.

Acceptance that they won’t be the safe bet – Following on from the last example, the latest shock from Cupertino is the removal of the headphone jack from an upcoming iPhone. Hands up who misses their LAN socket, floppy disk drive, CD drive, VGA socket… Innovation requires change, and it often isn’t comfortable. The successful companies make the right changes and don’t – or won’t – look back.

Now I’m sure that there are a lot of other factors. And of course, funding, management, structure, product and luck all play a good part in this! But – I would happily bet that a company which works to the three points above will perform far better than a company who just does a good job, for its current customers, and tries to keep everyone happy.

from What stops a company in its tracks?

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6 – WIN: Thoughts on the why, the how and the who.

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Vision, values and stakeholders. The why, the how and the who. I explore what they mean for my business, and how we established clarity on them.

Please note the tagging used in episode names:

START – Ideal for startup businesses (but a great refresher for existing too!)

GROW – Ideal for growing businesses (and some points that startups can learn from)

WIN – Ideal for any business that wants to win!

Let me know your thoughts – on Twitter or Facebook

from 6 – WIN: Thoughts on the why, the how and the who.

#6 – WIN: Thoughts on the why #the how and the who.

Integrity in business

Yesterday, #TrainGate has dominated the news, and I’m sure that Jeremy Corbyn will be the butt of many jokes in Westminster.

Regardless of your political views, one thing that is absolutely clear from this is that leaders need to demonstrate utmost integrity at all times. By this, I mean that they need to not just say the right words at the right times, but live them as well, at all times. As business owners, we are leaders in many ways – of our businesses, our teams, and also in our personal lives. Our families, our friends, and our industry colleagues look towards us; and we have a duty to do the right thing and set the right example at all times.

So how can a business owner truly live with integrity?

Doing the right thing. If something doesn’t feel right, don’t do it. Simple.

Do unto others as you would have them do unto you. Don’t take unfair advantage of those in difficult situations, don’t try to screw every last penny out of suppliers, don’t abuse your market position, and don’t abuse payment terms. It hurts when it comes back, and as they say – what goes around, comes around.

Be honest and transparent. Whilst there are always things that require commercial sensitivity, be as open and honest as you can be with every stakeholder in your business. Let them know your vision, and how you plan to drive your business forwards.

Follow through. Be a man (or lady) of your word. If you say you are going to do something, do it, and do it quicker and better than expected.

And finally, don’t walk past empty train seats and claim that the train is rammed!

from Integrity in business

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5 – GROW: Scaling a business

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Some thoughts on scaling a business

Please note the tagging used in episode names:

START – Ideal for startup businesses (but a great refresher for existing too!)

GROW – Ideal for growing businesses (and some points that startups can learn from)

WIN – Ideal for any business that wants to win!

Let me know your thoughts – on Twitter or Facebook

from 5 – GROW: Scaling a business

#5 – GROW: Scaling a business

Press Coverage – The Guardian

“First mover advantage doesn’t go to the first company that launches,” LinkedIn founder Reid Hoffman once said. “It goes to the first company that scales.”

Successful entrepreneurs know that this is true; starting a business is only half the battle. The real challenge is scaling up.

That means growing an enterprise beyond a few staff, or perhaps just a founder. It means breaking new ground and reaching into new markets. It means raising finance and outstripping the competition.

Growing a business is never boring and can be addictive. That’s why entrepreneurs often sell up as soon as their venture reaches scale, moving on to set up new enterprises for the thrill of going through it all again.

Read more: http://ift.tt/2b2msUc

from Press Coverage – Mail on Sunday

#Press Coverage – Mail on Sunday

2 – START: The difference between self employment and running a business

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Looking at the differences between self employment and running a scalable business, and touching on the importance of goals.

Please note the tagging used in episode names:

START – Ideal for startup businesses (but a great refresher for existing too!)

GROW – Ideal for growing businesses (and some points that startups can learn from)

WIN – Ideal for any business that wants to win!

Let me know your thoughts – on Twitter or Facebook

from 2 – START: The difference between self employment and running a business

#2 – START: The difference between self employment and running a business

Press Coverage – Startups.co.uk

Originally posted at http://ift.tt/2awkQpr

On Wednesday 13 July, former home secretary Theresa May became prime minister of the UK.

The second only female in Britain’s history to take leadership of the country, new Conservative leader May has already announced that she intends to “change the system”as prime minister and will be hitting out at “big businesses” but much less is known on how she plans to nurture and support the country’s start-ups and small businesses.

We wanted to find out how the UK’s start-up community have reacted to May’s premiership. Our question being; does May have the backing of start-up founders?

Having spoken to a number of business owners of fast-growth start-ups and small business from a cross-sector of industries, the answer to this question was a resounding ‘yes’. With an overwhelmingly positive reception, here’s what UK entrepreneurs had to say on May as prime minister…

“May will be a great female role model”

Debbie Wosskow OBE, CEO of Love Home Swap and founding chair of Sharing Economy UK:

“This is excellent news for two reasons. It puts an end to all the uncertainty and Britain can start to get back to business as usual but, most importantly, it is going to be great to have a female role model in power. Her steely character and pragmatic approach will set a good example to many female founders in business.”

“It’s a relief”

Company Check operations director, Chloe Webber:

“I think that many in the start-up community, regardless of their politics, will feel relieved that two months of political uncertainty at the heart of the Tories has been avoided. As for early elections, opposition leadership contests and Brexit deals, all of that comes next. Right now, I for one am pleased to see some semblance of stability return to the government after weeks of upheaval.

“To continue David Cameron’s metaphor, every ship needs a captain and the future looks more certain now we’ve got one. The fact that the captain is a woman after half a century of male dominance is significant. Within six months we could be in the unprecedented position of having women leading the UK’s two largest parties.”

“May brings clarity and decisiveness but her stance on immigration is concerning”

GROW@Green Park co-founder, Louize Clarke:

“The good news for start-ups is that Theresa May’s appointment should settle this period of uncertainty that has impacted confidence so much. As prime minister, she’ll bring clarity to the post-Brexit business road-map and what this means for start-ups – not just those in London and the Northern Powerhouse but across the country. This government has been supportive of the tech and digital industries so I’d hope this will continue.

“We also know she recognises the importance of supporting female entrepreneurs, through the mentoring scheme she introduced. There’s still work to be done here, via policy or otherwise, but having a woman PM sends out a positive message in itself.

“On the flip side, I know colleagues are concerned about her backing of the Tier 2 Visa scheme and her stance on immigration. Our start-ups’ success is massively dependent on access to great talent. Ultimately, May’s reputation for being decisive will be paramount for business stability in coming months.”

“May is a real negotiator”

Amy Harris, co-founder of CrunchBoards:

‘Having a strong female prime minister of Theresa May’s stature at the helm will add much-needed stability in a time of uncertainty and provide clarity in murky waters. For UK startups and small and medium enterprises to thrive, negotiating areas like trade and access to international talent are key.

“From what we can see, May is a real negotiator – and we are confident that she will make the right decisions to help startups in the UK grow and prosper.”

“The best politics news in days”

Ben Wynn, founder of DAD:

‘Come what May this has to be the best politics related news in recent days. We now have an experienced politician in charge who is renowned for being morally driven and consistent. It is the unknown that creates fear and uncertainty and that can be highly destructive for startups and small and medium enterprises.

“I believe we face some tough times ahead but at least we are now a step closer to knowing what’s next. That’s a good thing.’

“May will stick to supporting businesses but she needs to consider business needs post-Brexit”

Carl Reader, author and director of d& t chartered accountants:

“I believe that May will stick to supporting business, as it is the cornerstone of the Conservative grass roots support. My hope would be for her to continue making Corporation Tax as competitive as possible, and to replace the Dividend Tax with something that penalises tax-driven incorporation, yet rewards those who create jobs and take the risks to make their business successful.

“Also, given the Brexit negotiations, I’d like to see her consider the needs of small business, by reducing the obligation to adhere to onerous new EU legislation, and by providing support to the banks to help continue servicing the funding requirements of start-ups and small businesses.”

The dissenting view: “May could be catastrophic to entrepreneurial culture”

Audrey McNaughton of McNaughton MacGregor:

“Steely, tough cookie, single minded, decisive – all words used about Theresa May. They have an appeal of course in the current revolutionary mood but to build an entrepreneurial culture across all parts of the country they will be catastrophic in the leadership.

“It will be mandatory for her to say she’s on the side of start-ups but I predict her version will be a return to the old party view that enterprise will just happen when people with the wherewithal take advantage of market opportunities rather than it being linked to social change and raising aspirations of communities.

“Intelligent funding and resources to support businesses at all stages of scale up are crucial especially when this can be finessed at the local level by the devolved regions. That work needs to continue and be accelerated.”

from Press Coverage – Startups.co.uk

#Press Coverage – Startups.co.uk

1 – START: Are you ready to start a business?

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Are you ready to start a business. We will look at the realities of being in business, how to perform a personal financial review, motivations, and the three different types of business owners.

Please note the tagging used in episode names:

START – Ideal for startup businesses (but a great refresher for existing too!)

GROW – Ideal for growing businesses (and some points that startups can learn from)

WIN – Ideal for any business that wants to win!

Let me know your thoughts – on Twitter or Facebook

from 1 – START: Are you ready to start a business?

#1 – START: Are you ready to start a business?

Press Coverage – Fresh Business Thinking

Originally posted at http://ift.tt/2ahK8UY

Anyone who has been in business knows that a key factor in being able to sleep at night is having enough cash to pay the bills. In fact, probably the most quoted business catchphrase is “Turnover is vanity, profit is sanity, cash is king”.

Given that cash is, quite literally, the lifeblood of business, here are a few simple tips to make sure that you are always on top of your bank account:

Plan in advance

Every day, you should be able to know how much cash you need to pull in by the end of the week and the month to pay the bills, your payroll, and leave enough for you to be comfortable. Without knowing what needs to come in and what goes out every month, you don’t know how to target your cash collection efforts.

Think about your payment terms

Most businesses automatically default to 30-day terms as some popular accounting systems default to this. You are free to set whatever terms you want, but make sure that your accounting system is able to report on overdue debtors as soon as they become due, rather than only after 30 days.

Chase your debtors

It might sound obvious (as most business tips are), but if you don’t chase your debtors, you are unlikely to get paid. The very best credit control systems remind customers to pay on a regular basis, often on the day of invoice and also before the end of the payment term period. Often, it is the “noisy” creditors that get paid – remember, the squeaky wheel gets oiled!

Plan when to pay your creditors

On the flip side, you will also get terms from your creditors. Rather than paying suppliers on the day of delivery, make sure that you use the credit terms that they extend to you. Unless they offer settlement discounts, this could prove to be a great way of effectively obtaining interest free credit.

Compare your cash position versus your plan

You have a cash flow projection, right…? If not, the first thing you need to do is map out your likely cash flows over the year. This will help you identify any upcoming tight months, and should you require it, it will provide you with the basis of your business plans for any external funding. Remember however that this plan isn’t just for the bank. You should monitor actual performance against plan, so that you can adjust accordingly.

Consider ways to make getting paid easier

Do you take credit cards? Direct debits? Online payments?

Think about the ways that you can make life easier for both your customers and yourself. Nowadays, sending a cheque is considered archaic in some quarters, and your ability to accept payments should reflect this.

Take payments in advance

Is there any way you can accelerate the payments into your business? Think about whether you could charge a deposit, or an upfront payment in advance of the service. A good way to look at this is to consider the difference between insurance brokers and accountants. Typically, insurance brokers charge at the inception of the policy, for the year ahead – whilst accountants charge for the year just passed and the work completed. One receives payment before any service is delivered, and one after all service is completed.

By Carl Reader, author of The Start Up Coach and The Franchising Handbook

from Press Coverage – Fresh Business Thinking

#Press Coverage – Fresh Business Thinking

Crowdfunding – an interview with Tom Britton, co-founder Syndicate Room

I’ve had the great pleasure of asking Tom Britton, co-founder of Syndicate Room, to answer some questions about crowdfunding. We all know that crowdfunding is the latest “buzzword” of alternative finance – here are some tips from a man in the know!

Firstly Tom, thank you so much for your time. Tell me a little about yourself:

I grew up in Los Angeles to an American mother and Scottish father so I got to spend time in the UK over summers and when I was done with my undergraduate degree I decided to move over and try my hand at playing football. The life of a third division footballer is probably as glamorous as it sounds, i.e. not glamours at all and to pay the bills I took up a job pursuing my second passion technology. A few years working for someone else made me realise I didn’t like working for someone else so I headed back to school and was studying for my MBA when I met Goncalo who introduced me to the concept of crowdfunding and his vision for what would become SyndicateRoom. We worked on the business while I was finishing the masters and then in September of 2013 we launched it to the public and have been growing it ever since.

In language an 8 year old can understand, explain Crowdfunding!

Crowdfunding enables companies to raise money from everybody from friends and family to business angels and venture capitalists. Think of your campaign as a shop window not just for the goods you sell but for your business itself. When done correctly, a crowdfunding campaign doesn’t just raise capital but builds a community of invested people around a business.

Are all business suited for Crowdfunding? If not, which sectors / industries / types of business are and aren’t?

Most businesses can be crowdfunded, regardless of if they have a product that investors are ultimately able to buy. So long as the business is not doing anything deemed inappropriate, they could create a campaign. The type of crowdfunding that the business decides to use may be influenced by the type of business as will the stage of the business.

Businesses selling consumer goods or services may opt to do a rewards based crowdfunding campaign early on because they can effectively pre-sale their goods without giving up equity. Non-consumables may find it harder so will look at equity crowdfunding first as will later stage companies.

What should businesses considering Crowdfunding be wary of?

The amount of work that goes into the campaign before it actually starts. Businesses need to prepare incredibly well and build up their investor interest long before the campaign starts. The best campaigns do this, they build momentum before they actually launch the campaign and then absolutely kill it in the first few days. Most platforms will recommend businesses have anywhere between 30-50% of their funding already lined up so that as soon as they open the money pours in and the momentum builds off of that.

Most platforms provide some level of assurance to the investors by vetting the businesses. How can a business best prepare itself for a fundraise?

Take it seriously and build your campaign as if you were presenting to business angels. The crowd is more sophisticated than most believe so don’t think you can get away with shortcuts. If you’ve got the business model canvas use it as a template from which to build your pitch.

If there was one thing you could tell every business looking to crowdfund, what would it be?

Running a crowdfunding campaign is a full time job. Don’t underestimate the amount of effort it’s going to take and don’t be disappointed if it doesn’t work out. Some sources say that less than 30% of crowdfunding campaigns hit their target.

I have to thank Tom massively for his words of wisdom here – my main takeaway is that preparation is key: as with all fundraises, there are no shortcuts.

Let me know if there are any other areas that you would like subject matter experts to help with!

from Crowdfunding – an interview with Tom Britton, co-founder Syndicate Room

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Press Coverage – Telegraph

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Sole trader, limited company or partnership? Discover the pros and cons of each to help you make the right decision for your new business

Incorporating your first business can be tricky if you are not clued up on the jargon and the rules. There are plenty of online guides claiming that they can help you through these crucial first steps of registering a business at Companies House but few actually tackle the nuts and bolts, such as: How many shares do you need to create when you incorporate your business at Companies House?

Why might you want to be a limited liability partnership instead of a limited company?

I caught up with Carl Reader, author of The Startup Coach and boss of accountancy firm d&t, to find out exactly what you need to know in these early stages.

He says that the first thing to consider is whether you want to be a sole trader or a limited company. “As a sole trader, you are your business so you are liable for any business debts,” Mr Reader says.

“Because you are unincorporated, there are no documents to file at Companies House and there are no publicly available documents on your business. The only level of administration at this level is filing a tax return with HMRC.”

A limited company is a separate legal entity, which has its own debt and expenses. You are required to file annual accounts and annual returns and notify Companies House of any changes in the officers of the company. There are penalties to pay if you miss deadlines.

“It is worth naming someone else you trust as company secretary”

There is more red tape but there are also benefits. “If the business is dragged down by debt, the directors won’t be, unless they have acted fraudulently,” Mr Reader says. “Limited companies are also seen as stronger businesses to deal with by suppliers.” He adds: “If you want to raise venture capital, you must be a limited company.”

There are other options. A partnership is an extension of a sole trader – typically when Mr and Mrs X run the business together, for example. They will be jointly liable for any business debts.

An incorporated version of this – the limited liability partnership (LLP) – can be advantageous if you want to be flexible about how profits are distributed. “With a limited company, you’re tied to the structure of the share capital,” says Mr Reader. “The dividend payments are weighted to the ownership of the business.”

When registering a limited company with Companies House, you will need to allocate shares and to name your company directors. You can be the sole company director but it is worth naming someone else you trust as company secretary.

“If the business is doing well and you die suddenly, this will make dealing with assets easier,” says Mr Reader. You only need to create a single share if you are the only owner. Mr Reader recommends stating the value of the share as an easy round number: say £100. This is money that you technically owe the business but you will only pay this if the company goes bust.

You will need to give your address and this will be on public record, but you can use your accountancy firm or law firm address in place of your home address if you do not have a registered office yet. If you are a Scottish business, you are required to have a Scottish registered office.

Ordinary shares are the simplest kind of share capital to issue – this means that each share is ranked as equivalent to each other. Class A or B shares can vary on voting rights or dividend payments. If you are thinking of creating different classes, seek professional advice.

from Press Coverage – Telegraph

#Press Coverage – Telegraph

Press Coverage – Forbes

Originally posted at http://ift.tt/29OJRuy

Amid the predictable post-Brexit market volatility, economic uncertainty and business angst, there is one group of people who are refusing to panic or lose the plot, and instead are taking a pragmatic stance; the forward looking, glass-half-full entrepreneurs who are adept at spotting opportunity.

They are facing the same challenges and struggles as every other business leader; currency depreciation, possible inflation, labour market pressures, and uncertainties over the UK’s eventual EU exit deal, but regardless of how they voted, there is no doubting their belief that things will work out.

Entrepreneur and business advisor Carl Reader, author of The Startup Coach , views Brexit with guarded optimism, anticipating a bumpy road ahead for the next few months as the financial markets come to terms with the aftermath of the referendum, but also a future full of opportunities.

“One of the biggest opportunities open to us is to become leaders in innovation,” he says. “The driverless vehicle industry needs a tech-savvy, nimble country to adapt its legislation so that the innovation can be tested and implemented quickly. Free from the shackles of historic EU regulations and directives, I believe that the UK can quickly adapt and lead this field.”

The same applies to other industries where automation of things that previously required human effort, and the legislation surrounding these projects, will need to be amended quickly.

Reader adds: “The current structure of the EU, with the legislative compromises that hinder development, would not allow us to develop these industries as quickly as we would like. With the combination of a lean democratic government and a tech-savvy workforce, there is no reason why Great Britain cannot become great in these industries.”

Some see the future as a glass brimming over. When Laura Taylor started her painting and decoration business Decor Angels the last global recession was in full swing, so she has first hand experience of an unpredictable market.

She says: “We knew the referendum was approaching and we were prepared for either outcome. When the Brexit result was announced I confirmed six weeks of work across three customers, which will keep me busy until November. I’m usually booked at least two months in advance, so this tells me that people are carrying on regardless.

“In 2007 I said this was the time for small businesses to rise up and fight back against the big companies that have overstretched themselves. Nine years on they need to do the same. Every tradesperson I know is chock-a-block with work, and excited at the prospect of a busy few years. Determination and hard work will get us through Brexit.”

Elsewhere, entrepreneurs in some of the UK’s key sectors, including financial services, are echoing the upbeat sentiment. Icelandic fintech company Meniga, recently moved its headquarters to London. The firm offers digital banking/personal finance management services which are used by the likes of Santander, mBank, ING and Commerzbank .

CEO Georg Ludviksson says: “The UK’s EU membership played a role in our decision, but it was by no means the only reason. Meniga has benefitted from London’s vibrant fintech scene, rich talent pool, transport links, access to the financial ecosystem and generally a good business environment.

“As long as policymakers ensure these things remain intact, we and other UK-based high-growth companies will be fine. The focus now must be on protecting the landscape that nurtures tech and fintech startups so that we can continue to thrive here in the UK. We are confident the policymakers will do so, and as such we have no plans to leave London.”

Some see the way forward as connecting the 52% of Brits who voted to leave the EU. Gi Fernando, founder of digital transformation and social impact startup Freeformers, says: “They feared for their jobs, their futures, technology, globalisation and being left behind. We’ve unlocked Pandora’s box of extremes; racism, nationalism, fear of globalisation and international trade.

“With technology, AI, VR and the Internet of Things all connecting us more and more, we will continue to have opposing forces splitting apart society. We must therefore peg digital education and digital learning to solving the real world and personal problems of the 52%. We must inspire them to influence their futures by instilling digital skills throughout the nation, driving a new digital revolution that powers the economy and empowers those who felt they had no future of work unless things changed.”

from Press Coverage – Forbes

#Press Coverage – Forbes

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