The Business Clinic

May 21 2008 By Iain Laing

PROBLEMS: even the most successful business has them and the ability to come up with creative and practical solutions is a good measure of a boss. And to some extent all businesses have similar problems. For instance, how to market,how to raise money, how to keep shareholders happy or recruit the right managers. At nebusiness, we decided we wanted to help our readers overcome their problems and thought that we might call in a little expert help to do so.

And so we called on the Entrepreneurs' Forum, a North-East membership group devoted to bringing together the bosses of companies large and small to share advice. Now every month, more frequently on our website, we will get 50 handpicked entrepreneurs to answer your queries.

Our agony aunts and uncles range from the boss of FTSE 100 company Sage to managers of the smallest operations – so in theory there should be an appropriate expert to answer every conceivable inquiry.

To get access to this extraordinary array of talent, all you have to is to drop me a line at iain.laing@ncjmedia.co.uk or if you are not online, call me on (0191) 201-6429 and tell me your business problem.

We are quite happy to deal with anonymous problems, but if you want to share a few details about your company and why you need help, then that may well help other businesses in the same position.

MAY

IF you had the power to get rid of one rule that significantly affects your business, what would it be?

Ian Baggett, managing director of property investment, development and management company Adderstone Group and the Forum’s reigning Entrepreneur of the Year:

DIFFICULT one – I can be a bit of an anarchist when it comes to rules and red tape for business but if I had to choose one, it would be planning consent.

Any system which gives power and ultimate authority to people who prefer to stop things from happening is doomed to failure.

Quite simply, the planning system has cost our business millions and prevented us from creating hundreds of jobs, homes and commercial work space. We are a microcosm of what is going on around the country and for everyone who complains, there are dozens who don’t even bother to try and develop or take on projects because of the way things are. Certain controls on development are obviously needed but the emphasis should be on facilitation and progress. An understanding or appreciation of the implications of their decisions should be a pre-requisite to employment within a planning department and the presumption when considering an application should always be in favour of progress.

When was the last time anyone heard of a planner popping out to see a business owner to ask how they could help them expand their premises?

A culture of ‘can’t do’, ‘problems’ and ‘no’ is pervasive within the planning system and the ultimate knock-on effect is nothing short of homelessness, house price inflation and unemployment.

I vote for getting rid of planning consent!

Paul Callaghan is chairman of Sunderland-based software firm Leighton Group, One NorthEast board member, chairman of RTC North, chairman of Sunderland Software City and a founding board member of the Entrepreneurs’ Forum:

IF there is one thing that is holding back business in the North East, it’s planning regulations.

The time it takes to get planning approval and the power that sits within planning departments are having a negative impact on business growth.

Clearly there needs to be planning control, but a simplification of the process would be a major step forward.

FEBRUARY

Welcome to the fourth Business Clinic. In this regular column, established and emerging business owners from the Entrepreneurs’ Forum offer advice and personal insight into a range of business issues raised by our readers. In bringing together more than 250 entrepreneurs, and hearing about the experiences of many others at Forum events and conferences, it’s clear that there are issues common to many businesses. Through those who have already been there sharing what they have learned and offering their take on the challenges and opportunities faced by business owners and managers in our region every day, we can help each other overcome the same issues more easily. So, if you’re thinking of starting a business, are already established and want some ideas on how to grow or if you’re facing particular challenges, send your questions to: iain.laing@ncjmedia.co.uk marked Business Clinic in the subject. To learn more about the Forum visit www.entrepreneursforum.net

Q: We have grown as big as we can get in this region. We are thinking of bringing in someone to open an office for us elsewhere. Is it a good idea?

Paul Callaghan – Chairman of the Leighton Group, one of the North-East’s leading software development groups, which now includes Leisure Travel and Tourism, a new company providing specialist software to the sector. Paul is also chairman of Business Link, is on the board of One NorthEast, is Chairman of RTC North, Chairman of Sunderland Software City and a founding board member of the Entrepreneurs’ Forum.

“After we launched domainnames.com in the 1990s we sent people all over the world to open offices for us. We have decided that that’s not going to be our approach now because we’ve found it’s better to form partnerships with people in other countries who are effectively re-sellers. They already understand the local market and the way business works in their location. It means you get a smaller margin because you have to share profit, but it’s a quicker, more effective way of building a business overseas if you can find the right partner.”

Matthew James – founded UK Biometrics in 2000 with minimal capital, a laptop and a vision. Today, UK Biometrics is the UK’s leading biometric solutions provider with offices in Newcastle, Glasgow, Leeds, Manchester, Liverpool, Birmingham, Swansea, London and Dorset.

“If you have reached saturation point in the region, you are looking at a declining share of a static market so I would suggest expansion through new offices is essential.

You should be aware of the hidden cost of opening another office. Someone will be spending at least six months offering support, mentoring and trouble shooting. This is expensive, it removes workers from their core function and it can be stressful for both the workers and their families if they are away from home for extended periods.

The key is forward planning. Who will be supporting your new office? What is the real cost to your business in terms of head office staff supporting your new office? What communications and logistics protocols need to be in place and who will have ownership of these tasks?”

David Gillam– co-founder of Spinnaka in December 2002. From its head office in Newcastle, Spinnaka monitors and co-ordinates a nationwide network of more than 700 surveyors who survey and value homes on the instruction of lenders, packagers and brokers.

“I would say only if you know this someone really well and trust them to run the business with limited involvement from yourselves.”

Danielle Dunn – founder of North Shields-based bath and bodycare company Fresh Deli, best newcomer in the North-East Woman Entrepreneur of the Year 2006 awards and most recently runner-up for Young Women Entrepreneur of the Year 2007.

“I am always reluctant to enter new markets or start new projects unless I have tackled them myself, this will only create problems from the beginning. Always go in yourself first then build a team to take over once it’s set up and running.”

Adam Thorpe – has run a concierge business in London and a property development company in the Yorkshire Dales. His latest enterprise, launched in Harrogate, is www.SuperiorStay.com offering stylish rental accommodation to business users for weekend or weekly lets as an alternative to hotels and achieving high income returns for landlords on premium residential property.

“It depends very much on not only your business product and model, but also on you as an operator. If it is a good idea, the question shouldn’t be raised in your mind, it should be more a case of when can we get a new satellite office opened in a new area.

My business, SuperiorStay.com, is clearly set out from the start as a business model which will prove itself in a pilot town and then be replicated elsewhere.

“However, my property development activities could not be replicated elsewhere because the expertise and skills set essential to the development (ie me) can’t be in two places at once.

“Even when the decision has been made, it is important that the business already established is not affected by the new venture in too damaging a way. It is also essential that the staff are well chosen, highly trained and watched and mentored closely in the new venture. Become complacent at your peril.”

JANUARY

WELCOME to the third Business Clinic. In this regular column, established and emerging business owners from the Entrepreneurs’ Forum offer advice and personal insight into a range of business issues.

In bringing together more than 250 entrepreneurs, and hearing about the experiences of many others at Forum events and conferences, it’s clear there are issues common to many businesses.

Through those who have already been there sharing what they have learned, we can help each other to overcome the same issues more easily. So, if you’re thinking of starting a business, are already established and want some ideas on how to grow or if you’re much further down the road and facing particular challenges, send in your questions to: iain.laing@ncjmedia.co.uk marked Business Clinic in the subject.

If you’d like to know more about the Forum, visit www.entrepreneursforum.net

Q We are a business of creative brains dedicated to staying ahead of the game in a market with increasing competition, consequently we don’t always have the time to concentrate on paperwork and processes. What should we do?

SIR PETER VARDY – former chief executive of Reg Vardy plc and co-founder and board member of the Entrepreneurs’ Forum. He is chairman of the Vardy Group of Companies and the Emmanuel Schools Foundation.

“People glibly say their people are their greatest strength. This is not strictly true.

“What is true is that their people’s strengths are their greatest asset. But not often enough are people playing to their strengths. They feel that by working on their weaknesses, the organisation will be better. What they must do is to allow people to spend most of their time playing to their strengths, doing what they like doing, doing what they do best. Only then will the organisation reach its potential.

“What this organisation needs to do is to find the counter balance. Find someone who has the strength that is the weakness of others in the team. By having this balancing of strengths and weakness the organisation will flourish. Don’t say you can’t afford the cost! If all are playing their best roles, the business will fly.”

DANIELLE DUNN – founder of North Shields-based bath and bodycare company Fresh Deli, best newcomer in the North East Woman Entrepreneur of the Year 2006 awards and most recently runner-up for Young Women Entrepreneur of the Year 2007.

“Being in a creative business it’s easy to get carried away with staying ahead of the game.

“We have product reviews and collect great ideas and present them to each other every month. It allows us to get on with running the sales and fundamental parts of the business without becoming bogged down with thinking about the competition and also means we look forward to spending a few hours each month looking at new things.

“Sometimes you have to stick with one idea to make it work. My tip is to remember that your customer has not seen new products before so they’re always exciting and fresh to them.”

RON ELLIOTT – founder and Managing Director of Nte Ltd, a Peterlee-based communication solutions firm, providing installation and service to telephone systems, multi-site networks and a supplier of telephone lines in the North-East and the UK.

“Creativity and following up with paperwork do not always go hand in hand. If the processes are boring and tedious, it may well be that they need reviewing and possibly need to be scrapped.

“Why not use the creativity of the firm to provide a new way of doing things? Processes are always more successful if they have been created by the users of the system.

“For example, Nte had an internal process that was proving problematic.The manager of the division arranged for the team to start from scratch with a ‘brown paper exercise’ to create a new flow process. “The resultant process was much more efficient and the team was more interested in making the process work as it was ‘their baby’.

“The main theme being: keep the process simple with as little paperwork as possible.”

DAVID GILLAM – co-founder of Spinnaka in December 2002. From its head office in Newcastle, Spinnaka monitors and co-ordinates a nationwide network of more than 700 surveyors who survey and value homes on the instruction of lenders, packagers and brokers.

“Employ someone who does. I hate paperwork but you can’t work without it.

“After two years’ trading (year one without even headed paper or business cards), we appointed a Commercial Director and while I will never understand the fun he has producing graphs and spreadsheets we couldn’t have achieved the success we have without the knowledge his skills provide.”

NOVEMBER

November's question is about how non-communications ‘experts’ can communicate better with their customers.

Recently, the communications and creative industries themselves came under the spotlight at the forum’s Life’s a Pitch conference.

Speaker Rod Connors, a former marketing director of Nike UK who now runs his own marketing and branding company, said reaching customers had to be a two-way dialogue.

He warned the delegates that the days of one-way communications were over, and unless companies not only spoke to but also listened to customers, they would not maximise the opportunities that were available.

Q: Everyone in our company is a technologist and whilst we're successful we're not business people. What should we do to communicate better with customers?

Adam Thorpe– has run a concierge business in London and a property development company in the Yorkshire Dales. His latest enterprise, launched in Harrogate, is www.SuperiorStay.com offering stylish rental accommodation to business users for weekend or weekly lets as an alternative to hotels and achieving high income returns for landlords on premium residential property.

"I am envious in some senses as I am the opposite, hiring in the technical expertise whilst I package up the product and service my business generates. In terms of communicating with your customers better I would recommend simply speaking with your customers, focusing on how they find their experience in dealing with your company; is it easy for them to identify what they want?Is it easy to order?Is their order painlessly fulfilled?Do they desire further support after the purchase? I am sure they will appreciate the contact itself, then you can go from there."

Matthew James– founded UK Biometrics in 2000 with minimal capital, a laptop and a vision. Today UK Biometrics is the UK’s leading biometric solutions provider with offices in Newcastle, Glasgow, Leeds, Manchester, Liverpool, Birmingham, Swansea, London and Dorset.

"You are clearly communicating well since you are successful. The days when technology people were kept away from clients and presentation was undertaken by sales personnel are behind us. The only words of advice I would offer are these:

· Don’t get too technical. The complex algorithms that drive your technology may be fascinating but business people and the public are more concerned about the benefits your product or service can offer;

· My second piece of advice follows naturally from my first. Speak. Plain. English. Don’t use jargon, or worse, acronyms. You might know that PSU stands for Power Supply Unit, but will your customer?;

· Finally, the best way to find out if you are communicating well is to ask your customers, then act upon their answers."

David Gillam– co-founder of Spinnaka in December 2002. From its head office in Newcastle, Spinnaka monitors and co-ordinates a nationwide network of more than 700 surveyors who survey and value homes on the instruction of lenders, packagers and brokers.

"Spend time getting to know your customers better. Host an event which will be of interest (it doesn't have to be business focussed – do you know what your customers interests are? If not go and see them and ask them!) and then make sure that enough of your guys are there to speak to all of the guests.

Don't assume that you know what your customers want. Ask them. But if you can’t provide them with what they want, tell them and discuss alternatives.

It’s about knowing your customer."

See page two for October's Business Clinic.