Avoiding man-made disasters like Grenfell could be helped by holding executives more accountable
FOCUSHow Apple successfully rebranded to prevent failure
4 signs your business is guilty of 'wellbeing washing' and how to avoid it 34 30 27 24 18 15
FEATURERuthlessness: Business weakness or your secret weapon?
FOCUSWhy your social media feels empty and how to revive it
Four ways businesses can adopt AI to connect successfully with Gen Z
From 9-5 to CEO- Is it time to ditch your day job for entrepreneurship?
Taking your business to the next level
Avoiding man-made disasters like Grenfell could be helped byholding executives more accountable
All of the 72deaths caused by the fire at Grenfell Tower in 2017were avoidable. The same could be said of the 346 people who died in two separate Boeing 737MAXcrashes in 2018 and 2019 And the the 47people killed in 2013 by atrain derailment in Canada, or the 116 children and 28 adults killed in the Aberfan mine disaster in 1966
These were not unforeseeable events In all of these cases, and many many more, people knew that things could go wrong, but nothing, or too little, was done
With Grenfell Tower, for example, it was no secret that the building?s cladding material was a fire hazard At Boeing, at least some
Credit
to source:
managers and engineers knew that the landing system was a cause for concern. Residents of Aberfan has also expressedconcerns to the authorities
So given that some peope had an inkling that things might go wrong, why did no one take preventative action?
In some instances it may be that people did not fully understand the implications of their decisions In the case of Boeing, aeroplane technology is complex, and regulatory standards rest on assumptions that are discussed and debated (albeit not in public).
Akhil Bhardwaj Associate Professor (Strategy and Organisation), School of Management, University of Bath
Reasonable people can disagree on whether a particular safety measure is adequate or not Understanding the link between those standards and potential future events can be difficult, and questions about technology are not easily settled.
As far as the Grenfell Tower fire is concerned, there have been accusations of deceit and a lack of due diligence from various groups.
It is also possible that corporations (in any industry) can fall into a?confidence trap?? a mental bias which means that companies become overly confident if they have avoided disasters in the past after risk-taking If those risks have not led to any serious issues, the reasoning goes, why change?
Each instance of successful risk-taking causes them to discount new information suggesting they might be wrong For example, Boeing saved money by eliminating hundreds of quality control inspections, and the company may have just believed it was?too big to fail?
Accountability
Meanwhile, the public regulators tasked with keeping a check on things, are starved of resources and do not possess the expertise to unpack the implications of every decision that private contractors take
Some are even expected to raise funds from the industry they regulate, while others have to reduce staff levels
So what can be done to prevent similar tragedies happening again?Certainly, we cannot rely on self-policing and honesty on the part of private contractors
Nor can we realistically expect government agencies to monitor everything that private contractors do, or keep up with every industrial and technological development
Perhaps part of the solution lies in injecting real accountability by introducing executive skin in to the game Pinning down blame tends to be a notoriously difficult activity
For even when blame is apportioned after disaster strikes, companies rather than executives tend to be held responsible Boeing is paying hundreds of millions of dollars in fines while the CEOis leaving with tens of millions of dollars in remuneration The Grenfell inquiry revealed various contractors trying to pass the buck
As a result, CEOs and senior executives tend not to experience any downsides to poor decision making when it comes to improving safety. But they may have all the upsides of improved financial performance as a consequence of undermining it, whether that?s by using cheap materials or cutting jobs in quality control.
It seems strange then, that leaders are often severely punished for transgressions in their
personal lives, even when the consequences of those actions are far less damaging than plane crashes or burning buildings Former USpresident Bill Clinton?s affair which led to his impeachment is perhaps the most famous case.
Closer to home, BPclawed back £18 million from sacked CEOBernard Looney, who left after failing to disclose personal relationships with a colleague to the company?s board after a tip-off from a whistleblower
Apparently, while such personal ?failings? can lead to harsh penalties, the same is not true when the failure leads to the loss of lives But if financial clawbacks can be imposed for a CEO?s love life, surely a similar consequence could be introduced when it comes to disasters
Holding executives accountable in this way might just make them reconsider their approach to decision-making, and encourage them to pay more attention to safety instead of just profit. And perhaps that could prevent another tragedy from unfolding.
HowApple Successfully RebrandedtoPrevent Failure
In the world of business, few stories are as compelling as Apple Inc's remarkable turnaround Once on the brink of failure in the mid-1990s, Apple transformed itself into one of the most valuable and influential companies globally. This transformation is a textbook example of how strategic rebranding, coupled with innovation and visionary leadership, can rescue a company from the edge of collapse
The Challenge: A Company in Decline
By the early 1990s, Apple was struggling Founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne, Apple had initially achieved success with its innovative personal computers, such as the Apple II and Macintosh. However, the company faced several challenges as the technology landscape evolved
The release of Microsoft?s Windows operating system, which became the dominant platform for personal computers, led to a decline in Apple?s market share Apple?s Macintosh computers, while technologically advanced, were often perceived as expensive and incompatible with other software The company?s product lineup became cluttered, and it lacked a clear strategic direction. By 1997, Apple was in a dire financial situation, with a market capitalization that had dropped significantly
The Rebranding Strategy: A Return to Innovation
Apple?s rebranding success can be attributed to several strategic moves made under the leadership of Steve Jobs, who returned to the company in 1997after being ousted in 1985 His return marked the beginning of a transformative phase for Apple
Streamlining the Product Line:
One of Jobs?first actions was to simplify Apple?s product lineup The company had previously offered a confusing array of models with overlapping features Jobs streamlined the product range, focusing on a few core products that exemplified Apple?s commitment to innovation and quality This move helped to clarify the brand?s identity and improve operational efficiency
Embracing Design and User Experience:
Jobs recognized that design and user experience were crucial to Apple?s success Under his leadership, Apple placed a strong emphasis on creating aesthetically pleasing, user-friendly products. The introduction of the iMac in 1998, with its distinctive, translucent design, marked a turning point. It was not just a computer but a statement of Apple?s new design philosophy This focus on design continued with subsequent
products, such as the iPod, iPhone, and iPad, which combined form and function in ways that delighted consumers
Reinventing Marketing:
Apple?s rebranding also involved a significant overhaul of its marketing strategy The ?Think Different?campaign, launched in 1997, played a pivotal role in redefining the brand?s image. The campaign celebrated creativity and innovation, positioning Apple as a company for ?crazy ones?
who wanted to change the world This campaign resonated deeply with consumers and helped reposition Apple as a brand that stood for innovation and excellence
Creating Ecosystems:
Akey element of Apple?s rebranding strategy was the creation of integrated ecosystems. The introduction of products like the iTunes Store, iPhone, and App Store allowed Apple to offer a seamless experience across devices This ecosystem approach not only enhanced the user experience but also created multiple revenue streams, making Apple?s products more indispensable to consumers
Fostering a Culture of Innovation:
Jobs fostered a culture of innovation within Apple, encouraging employees to think outside the box and challenge the status quo. This culture was instrumental in the development of groundbreaking products that set Apple apart from its competitors The company?s commitment to research and development led to
"Innovation distinguishes between a leader and a follower."
the creation of revolutionary products and technologies that kept Apple at the forefront of the industry
The Outcome: A Resounding Success
Apple?s rebranding efforts were incredibly successful. The company not only avoided failure but also achieved unprecedented growth and profitability. The launch of the iPod in 2001, followed by the iPhone in 2007and the iPad in 2010, revolutionized the technology market and established Apple as a leader in consumer electronics
Apple?s market capitalization soared, and the company became one of the most valuable and influential brands in the world Its success story is a testament to the power of strategic rebranding, innovation, and visionary leadership.
Lessons from Apple?s Rebranding Success
Apple?s rebranding journey offers several key lessons for other companies:
1 Clarity of Vision:Streamlining product lines and focusing on core strengths can clarify a brand?s identity and enhance operational efficiency
2. Design and User Experience:Prioritizing design and user experience can differentiate a brand and create a strong emotional connection with consumers
3 Innovative Marketing:Effective marketing campaigns that resonate with consumers can redefine a brand?s image and position it for success
Steve Jobs
4 Integrated Ecosystems:Creating a seamless ecosystem of products and services can enhance user loyalty and generate multiple revenue streams
5 Culture of Innovation:Fostering a culture of creativity and innovation can drive product development and keep a brand at the forefront of its industry.
Apple?s successful rebranding is a powerful example of how a company can overcome significant challenges and achieve remarkable success through strategic vision, innovation, and effective marketing The lessons learned from Apple?s transformation continue to inspire businesses around the world
4 signs your business is guilty of 'wellbeing washing' and how to avoid it
Credit to source: Leisure Lakes Bikes
It?s not rocket science that if employees feel valued and heard, they are more likely to engage in organisational goals, collaborate effectively, and do their best High wellbeing results in workplace retention and serves as a talent magnet
However, with the rise of wellbeing initiatives, there?s also a growing concern about "wellbeing washing" ? the practice of giving the appearance of prioritising employee wellbeing without making meaningful changes
According to a survey of 1,000 people by Claro Wellbeing, more than a third (35%) of businesses do it Although seven in 10 workplaces celebrated mental health awareness days, only a third of organisations?mental health support was deemed good or outstanding by their employees
Identifying the signs that your business might be guilty of wellbeing washing and providing actionable steps to ensure your efforts are genuine and impactful is therefore crucial.
Scratching the surface
One of the obvious signs of wellbeing washing is the existence of initiatives that are superficial or purely performative Such initiatives may look great on paper or in some company newsletter but actually hold no substance or effectiveness in truly supporting staff.
For instance, running a Mental Health Awareness Week with only a few posters and emails while doing nothing to really fix ongoing mental health challenges at work does not help. Employees must be heard Whether it is through questionnaires or targeted focus groups, find what they individually need for wellbeing. Rather than shallow blanket initiatives, design your programs to really respond to the needs of your workers For example, if a lot of people express feeling stressed, consider offering access to professional counselling or flexible working hours.
Not leading by example
If management isn't genuinely invested in wellbeing programs, employees notice. For wellbeing programs to truly succeed, they need strong engagement and support from top management By making the employee wellbeing component an integral part of your business strategy, where clear goals and metrics for success can be spelt out, employees are more motivated to engage with programs when they find interest in developing in the leadership itself.
No Long-Term Commitment
Wellbeing washing frequently appears in terms of short-term commitment. If your business only does wellbeing at specific periods within the year or as a reaction to certain events, it most likely is not genuine Establishing a long-term well-being strategy and a budget for employee well-being activities, as well as creating a team responsible for such initiatives, can make a big difference Regularly review and check
how effectively the programs work and make adjustments if need be. Acknowledge that employee well-being is not in itself a one-off project; the commitment remains to be followed up on.
Make a difference
One example of a wellbeing initiative that can have a long-term impact is the Cycle to Work scheme. This is an excellent way of improving physical health and stress and can be nothing but beneficial Just offering it however will not be enough, and employers need to make some efforts towards encouraging participation.
Ben Mercer of Leisure Lakes Bikes, a leading UKroad bikes supplier, agrees:
?In recent years, we?ve seen a real upswing in cycling to work and the Cycle to Work scheme has undoubtedly played a massive role in this.
?Given the nature of our business, we're big advocates of it and I would encourage all business owners, small or large to add the scheme to their employee benefits
?Cycling to work is the perfect way to encourage bike enthusiasts and newcomers alike to cycle more and make the most of their commutes. You can even introduce bolt-on incentives like vouchers, rewards and charity events, which our team are always keen to take part in?
Conclusion
Incorporating such ideas may have been the big leap that turned your well-being activity from the tick-in-the-box type into creating an engaging and supportive work environment. It all comes down to making sure your action matches your intention Get it right, and you'll be reaping dividends across your people and all parts of your business with your culture of wellbeing.
In this feature article, Craig Sergeant of Advance Copy Ltd, delves into the controversial yet often effective role of ruthlessness in business, exploring how it has famously shaped global business leaders and how a little ruthlessness could go a long way on the path to success.
Rut hl essness: businessweakness or your secr et weapon?
Would you be willing to fire your own mother?
According to entrepreneur Kevin O?Leary, famous in Canada for appearing on Shark Tank (their version of Dragon?s Den), if you wouldn? t fire her, then you and your business will fail
During an interview with Incmagazine in 2016, he said: ?Some people might say that?s evil, but I think it?s wonderful ? O?Leary continued: ?Do you need a social mission?Hell no Profit is the mission?His appearance on the front cover was even emblazoned with the headline, ?Go ahead, be evil.?
This all should come as no surprise. The image of the ruthless fat-cat businessman sitting at the top of the tree stretches back to the birth of the Industrial Revolution, through the conquering and building of empires? first the British and then the USA? right up to the present day.
From CEOto star turn
Look at some of the major movies of relatively recent years The Wolf of Wall Street is a fun whirlwind of a flick based on the true story of Jordan Belfort, an NYCstockbroker. It?s testament to director Martin Scorsese?s
skill that the black comedy format masks how cold and ruthless Belfort was as he engaged in corruption and fraud on a massive scale
And there have been movies made about tech oligarchs Steve Jobs of Apple (Steve Jobs) and Mark Zuckerberg of Facebook (The Social Network)? more on him later The fact that films with real-life CEOs as the protagonist even exist at all shows how much business success is venerated in Western culture The take-no-prisoners approach is portrayed as something to aspire to have? which we see on the small screen, too
Take this short and simple test When you read this next phrase, who springs to mind? ?You?re fired!?
Now, we can pretty much guarantee that, if you?re British, the businessman and star of The Apprentice, Alan Sugar, appeared in all his grizzled ?glory.? The show has been a long-running UKTVinstitution? a cutthroat competition that pits walking egos in suits against each other.
Many contestants are brash and show ruthless traits, and while the producers
probably pick such personalities to create conflict and boost viewer numbers, it still shows how accepted and ingrained in society such business behaviours are.
The spread to socials
In recent years, that?s splintered into a new, perhaps insidious form of ruthlessness that?s propagated through social media, where people have turned their commitment to work into their entire personality.
Sometimes called ?grind mindset,??grindset? or ?hustle,?you?ll have likely come across people spouting online about it? the funniest often being the absurd daily schedules they post about waking at 3am after two hours? sleep to hit the gym
While it inspires some people, it also invites mockery But why?
Well, that will vary from country to country and from person to person For example, in the US, there is the concept of the American Dream? the idea that it?s the land of opportunity where anyone can make it big In America, individualism comes above all
And while this is a generalisation, it?s probably more acceptable on a societal level there than it is in the UKto be ruthless to succeed
On these shores, we still have workers?rights, some socialist institutions, and maybe even the British concept of ?fair play?in our nature
So, as a nation, we may be less comfortable with the win-at-all-cost ?grindset?mentality of our American cousins But since the economic deregulations of the 1980s, the UKhas been catching up Fast
Matters of life and death
For those reading of a certain vintage, you may remember the once-ubiquitous store, JJB Sports Its owner, Dave Whelan, is a self-made man from the North and a former footballer who was never shy about publicity? despite the (allegedly) rather dim view of him by many of his former employees
Whelan was once interviewed by Ruby Wax for a BBCdocumentary about him It revealed an awful lot (or should that be a lot of awful?) about the man
" ... you can be unethical and still be legal ... "
Whelan?s son suffers from schizophrenia, and his son-in-law sadly took his own life in 2004 due to the stresses of working for the family business. During the interview, Wax was masterful in putting Whelan at ease, so was able to ask blunt questions, which Whelan couldn? t bat away.
She asked him whether he?d give up everything? his business empire and his lavish lifestyle? to swap it all for his son to be healthy and his son-in-law to be alive
Easy one, right?
But Whelan said he couldn? t answer And while that might be shocking to some readers, it?s the same mindset that helped him make his millions in the first place
It raises the question, do such extreme levels of laser-focused commitment to success at the expense of empathy and humanity signify something far more sinister than ?hustle??
Psychopathic traits
Studies estimate that between 4% and 12% of all CEOs are psychopaths or people with psychopathic traits. Which mayseem like a small number? until you learn that the average in general society is only 1%whereas in prisons it?s 15%.
With CEOs so romanticised in our culture, does that mean we respect those most who have more in common with people so dangerous that they?re behind bars?
Something doesn? t add up with that idea, but it leads us back to a purported statement from Facebook?s Mark Zuckerberg that might shed a little light on it
?You can be unethical and still be legal? that?s the way I live my life,?he apparently said to a friend while at university Asentence like that blurs the line between what many may deem acceptable but is perhaps an insight into how and why people become billionaires
Though Zuckerberg?s quote isn? t an example of psychopathy per se, having such an emotional detachment can help people like
him make rational decisions that are the difference between failure and success
Now, the many allegations about the man might be another story, such as ordering the tracking of his employees?encrypted Snapchat data, hacking into and vandalising rival social network sites and more
Yet if directed in the right way, especially for small business owners, is ruthlessness always bad?
Maybe not.
The right balance
There are ruthless traits that are healthy? even necessary? to have. For example, giving a terrible employee chance after chance after chance with no sign of their improvement is not only a headache, but it also hurts your bottom line You have to be ruthless.
Not all the time, though? it?s all about balance You can look at titans of industry for lots of examples of what not to do, but many more of what you should do Those who lead and succeed never compromise on their objectives and values
To use ruthlessness to your advantage doesn't mean that you must be unethical or a tyrant It means being bold, making big decisions and holding firm in your beliefs. Plus, being balanced helps keep your team on side as you take action to achieve your goals.
Unless, of course, you really are a psychopath CEO. Because then you?ll just do whatever it takes.
Like firing your own mother.
Ghost Town
Breathenewlifeintoyour social mediaaccountswith theseessential tips
If your business isn? t getting the social media engagement you expect, you?re not alone. Many businesses struggle to connect with their audience online, and several factors could be at play. Understanding these common pitfalls can help you turn things around and build a more engaged online community
One of the main reasons for low engagement is a lack of relevant content Your followers want content that resonates with them? whether it?s informative, entertaining, or inspiring If your posts don? t align with their interests or needs, they?re unlikely to interact. It?s crucial to know your audience and tailor your content accordingly. This could mean sharing industry insights, how-to guides, or even behind-the-scenes glimpses of your business
Another common issue is inconsistency. Posting sporadically can cause your audience to lose interest Social media algorithms also favor accounts that post regularly, meaning inconsistent posting could result in your content being shown to fewer people. Create a content calendar to ensure you?re posting consistently, and stick to it.
Your content may also be too promotional While it?s important to showcase your products or services, social media users are often looking for value rather than a sales pitch. Strive to strike a balance between promotional content and posts that offer real value, such as tips, stories, or user-generated content
Engagement is a two-way street If you?re not responding to comments or engaging with your audience?s content, you?re missing out on building relationships Take time to interact with your followers by replying to comments, asking questions, and participating in conversations.
Lastly, consider the platform you?re using Different platforms attract different demographics, and what works on one may not work on another. Make sure you?re investing your efforts in the right place for your target audience.
By addressing these areas, you can start to see better engagement and a stronger connection with your social media followers
Four w ays businesses can adopt AI to connect successfully w ith Gen Z
Credit to source: SIA Austria
Wielding an estimated $150 billion purchasing power globally, Gen Zconsumers ? spanning those born between 1997and 2012? are a marketplace force to be reckoned with
This tech-savvy generation therefore deserves attention from businesses with authentic digital experiences dominating their decision making
56%of Generation Zexpect personalised content ? which harnesses the power of artificial intelligence (AI) ? tailored to their own unique interests and preferences
Ski and snowboard instructor course business, SIAAustria, explore how best to leverage AI for Gen Zsuccess.
The Digital Landscape
One of Generation Z?s defining characteristics is their impressive levels of tech-literacy.
Gary Clark, Academy Director at SIAAustria explains: ?Gen Zgrew up in an increasingly digital world, spending their formative years surrounded by smartphones, social media and its accompanying personalisation.
?From curated playlists on streaming platforms to customised, AI-driven product suggestions on e-commerce websites, they are accustomed to the tailored experience.
In fact, 89% of Generation Zare willing to pay for customised experiences using their data
?This expectation extends beyond mere convenience but is a fundamental requirement for engaging this audience?
Read on to learn more about how AI can enable this.
How can AI help?
With this desire for personalised communications, AI plays a pivotal role in meeting Gen Z?s expectations
Artificial Intelligence offers unparalleled capabilities in understanding and predicting consumer behaviour For Gen Z, this means
receiving content, recommendations and offers that resonate with their individual preferences and lifestyles.
Here?s how your business can use it to create impactful marketing campaigns:
Personalisation at scale
In a recent survey, Gen Zshoppers expressed the highest rate of approval for personalised marketing AI enables businesses to analyse vast amounts of data to discern patterns and preferences This capability allows for highly personalized marketing campaigns that can adapt in real-time to changes in consumer behaviour.
Predictive analytics
AI-driven predictive models can anticipate Gen Z?s needs Whether it?s suggesting the next binge-worthy show or predicting fashion trends, businesses can use these insights
Sentiment Analysis
Gen Zis vocal segment on social media AI tools monitor conversations, identify trends and gauge sentiment After analysing this, brands can adapt their messaging accordingly
Hyper-Targeted Advertising
AI enables precise audience segmentation Businesses can create hyper-targeted ads that resonate with Gen Z?s diverse interests whether you?re selling trainers or a gap year ski season
Gary Clarke Academy Director at SIAAustria
Strategies for success
Data-Driven Creativity: Combine AI insights with creative storytelling SIAAustria?s Instagram stories feature user-generated content, showcasing real experiences from their community
Interactive Experiences: Use AI-powered quizzes, polls and ARfilters. Gen Zcraves engagement, and such elements can go ?viral? - driving brand awareness
Ethical AI: Be transparent about data usage Gen Zvalues privacy and ethical practices. SIA Austria?s privacy policy is concise and accessible, earning trust
Conclusion
With impressive spending power and an influential online presence, Gen Zoffers plenty opportunity for savvy, forward-thinking marketers.
By harnessing the power of AI, businesses can create tailored campaigns that resonate with this digitally native generation
From 9-5
to CEO
Is it time to Ditch Your Day Job for Entrepreneurship?
Starting your own business can be an exciting and empowering journey, but it?s also a big leap from the security of a regular job. If you?re thinking of trading in your 9-to-5 for entrepreneurship, it?s important to carefully evaluate the decision before taking the plunge Here are some key things to consider before making the switch
1 Assess Your Financial Readiness
One of the most significant concerns when leaving a stable job is the financial uncertainty that comes with starting a business You?ll likely experience inconsistent income in the early stages, so having a solid financial plan is crucial. Start by saving an emergency fund that can cover at least 6-12 months of living expenses This buffer will allow you to focus on growing your business without the added pressure of making ends meet.
Consider your business's startup costs, too From initial investments in equipment,
marketing, and legal fees to operational expenses, it?s essential to have a clear idea of how much capital you?ll need Be realistic about when your business will start generating a profit, and explore potential funding options like loans, grants, or investors
2.Validate Your Business Idea
Before quitting your job, take the time to thoroughly validate your business idea. Does it solve a problem or fulfill a need in the market?Conduct research to understand your target audience, competitors, and industry trends You can also start testing your idea while still employed by offering your product or service on a small scale This way, you can gather feedback and make adjustments before committing fully
Market validation ensures that there?s a demand for what you?re offering and can give you confidence that your business has the potential to succeed.
3.Understand the Lifestyle Change
Entrepreneurship isn? t just a career change? it?s a lifestyle change Being your own boss means flexibility, but it also means wearing multiple hats and working long hours, especially in the early stages Without the structure of a traditional job, it can be easy to lose the work-life balance you?re used to.
Ask yourself if you?re ready to handle the challenges that come with running a business, such as managing finances, overseeing marketing, and taking responsibility for every decision It can be incredibly rewarding, but it?s essential to have a realistic understanding of the dedication and persistence required.
4 Build a Support Network
No entrepreneur succeeds alone. Having a strong support system is critical when
launching a business. This includes professional mentors who can offer guidance, a network of like-minded entrepreneurs to bounce ideas off, and even emotional support from friends and family who understand the challenges you?ll face.
Consider joining entrepreneurial groups or networking events to connect with others who have been through the same process. Their insights and advice can be invaluable in helping you avoid common mistakes and navigate the transition
5.Plan for the Transition
If you?ve decided that entrepreneurship is the right path, plan your transition from employee to business owner carefully Quitting your job abruptly could leave you in a financially precarious situation Instead, consider transitioning gradually by working on your business during evenings or
weekends while maintaining your job. This approach allows you to build a client base and generate income without the full financial risk upfront
When the time feels right to make the leap, ensure you have all the necessary systems in place? such as business registration, website, and marketing materials? so you can hit the ground running.
6 Be Prepared for Setbacks
Starting a business comes with inevitable challenges and setbacks There will be highs and lows, and it?s essential to stay resilient through the difficult times. Success doesn? t come overnight, and you may face obstacles like slow growth, financial strain, or changing market conditions The key is to
remain adaptable, continuously learn from your mistakes, and keep refining your approach
In conclusion, leaving your job to start your own business can be a thrilling and life-changing decision, but it?s one that requires careful planning and consideration By assessing your financial readiness, validating your idea, preparing for the lifestyle changes, and building a strong support network, you can make the transition with confidence With the right mindset and preparation, your entrepreneurial dreams can turn into a successful reality
Taking your busin the next level
Benjamin Dyer, CEOof Powered Now, looks at how to grow your business
from a one-man band to having employees. Then to grow on further from a small to a larger company.
There?s a lot to be said for a lifestyle business. You can deal with the same pleasant customers that you have always have. Your overheads and risks are low You can make time to pick up the kids or grandkids if you want to But lifestyle businesses aren? t for everyone
This article is written for people who don? t want to be sole traders or even run small installer businesses all of their lives Instead they want to grow their companies and see themselves really prosper
The first thing to ask yourself is whether you will make it if you try to expand In reality, it?s hard Certain skills are pre-requisites One of these is skill at estimating and pricing Acritical capability is to be good a knowing how much effort jobs will take. Another is building rapport with customers If you?re no good at either of these, it will be very hard to succeed.
Marketing
It?s easy to think that the first priority when it comes to growing your business, assuming that your company does good quality work, is to find new customers Recommendation is still the prime way that new business is won, at least in the residential market But 30%of business comes from other routes. It?s exploring these that will really make a difference
Alot of this 30%now comes from the internet, but it?s complicated Some will arrive from having your own web site, although most likely not a huge amount As you probably know, most people report Yellow Pages as a complete dud Instead, Facebook, Google, Rated People, My Builder, Checkatrade and more are all trying to corner the market for people searching for installers and other trades
There is no magic wand for marketing and trying out some of these different channels to see what works for you may be your best approach
iness to
Sales
Marketing is hard However, when selling to the leads that have come your way there are a lot of obvious and easy things to do These should be a higher priority than marketing as they generally cost little or nothing So, converting a higher proportion of leads into orders will grow your business at a lower cost and risk
The first rule is to remember that people buy from people they trust So, the first time you meet a new prospect, you should do everything possible to build up that trust Here are some points to consider:
- Be totally professional ? my wife refused to give business to someone who was a bit fresh with her
- Offer to take off your shoes when you arrive at the house, it shows that you care
- Have a smart, clean, van and make sure you look smart too
- Try to reference your experience, qualifications and so on when you are talking to the customer, but without being too pushy
- Try to establish in the customer?s mind the likely ballpark cost ? people tend to react badly if your quote is in a different league to what they were expecting
- Make sure you produce your quote really quickly ? either the same day or the next day This alone will grow your business
- Always honour what you promised Turn up when you said and produce the quote when you said you would
Effort put into creating a good template for quotations will pay off handsomely over time. Once it?s set up, it?s normally easy to use again and again If people are spending a lot of money, they will feel more comfortable when the quote is more substantial, with pictures of previous work and so on
Make sure that you don? t under-price the job
Probably the biggest cause of business failure is not charging enough Remember that doing all of
the things to establish trust will help you to win business, even when you are not the cheapest quote.
Moving beyond being a sole trader
Taking on your first employee is both the hardest and the most risky step that you will ever take Suddenly you have PAYE, Pension auto-enrolment, statutory sick pay, paternity and maternity leave and holidays all to think about. And that?s before you consider that you may need to double the amount of work coming in as you now have two mouths to feed!
This could be one of the reasons why so many installers settle for being sole traders
There are a number of ways that you can overcome the difficulties of that first hire. The first is to build up your business using subcontractors before you hire anyone permanently This means you take a lower risk
"there comesa timewhenif you don? t radicallychangewhat you do,youbecomethecorkinthe bottlethat preventsfurther growth."
even though you may have to settle for making less profit The only complication is that you must get to grips with the Construction Industry Scheme (CIS)
Eventually you will need to take on one or more employees. With a good bookkeeper to run the payroll and an HRadvisor to avoid the employment tank traps this can all be made much easier and smoother You may not want to pay out the money for these experts, but it?s much better to focus your time on the key business issues You are much more likely to be successful that way.
Scaling
Once you have the right formula for growth, there are a whole new set of challenges to do with scaling your business There are a number of points to think about:
- When a larger and more established business does their work, people expect and will be prepared to pay a bit more
- You will need to invest in various areas. Recruiting the right people, spending on
training, premises, tools and vans are some of the areas that you will need to address
The balance is not to be too tight with money but not to be too loose either
Control and efficiency
Of course, if you grow your business you need to reap the financial rewards To do this, you must keep control of your business as it grows and manage things efficiently Some of the pointers to achieve this are:
- Watch the cash You need to know how much you have, what?s due to go out e.g. tax, VAT, payroll and when money will be coming in. There is nothing more frustrating than going bust in a growing, profitable business because you run out of cash It does happen
- Focus on people management Ahappy, hard-working team makes a huge difference
- Implement the right system. Agood system will vastly influence your ability to stay in control and grow efficiently
Changing your role
As a hands-on manager that deals with most quotes and still gets on the tools, you can grow your business quite a bit However, there comes a time when if you don? t radically change what you do, you become the cork in the bottle that prevents further growth. It?s simple, once there is too much for one person to do in dealing with customers, delegation becomes the critical skill. Among the skills that you need to focus on to move from being successful to being very successful are:
- Recruitment ? avoiding mistakes and getting good people
- Managing managers ? you mustn? t micro-manage or you will discourage anyone who is really capable. This is a different skill than direct management It?s about setting goals and motivating
- Delegation ? letting go of some control is part of managing managers
- Envisioning ? deciding and then communicating the overall company strategy. This must be about talking about quality as well as outlining what type of jobs you will focus on and which geographies you will and won? t serve
The difficulty with making this transition is that the very skills that helped you to succeed previously can become a hindrance Sometimes being really good at what you should no longer be doing will actually prevent you from moving to the next stage It?s why so few companies can manage it.
The bottom line
For competitive people that like to win, running a successful business can be good fun But you will get a lot of hassle in growing your business so there should be financial rewards as well I hope that there has been some useful food for thought in this article Please just make sure that you are profitable enough to make it all worthwhile
