The
Spring 2020
Business Growth Magazine Corporate Social Responsibility An affordable luxury FEATURE
The return of the direct marketing campaign Managing strategy and innovation A balancing act FEATURE
How to invest in start-ups Spring 2020
1.
4
ARTICLE
CSR - An affordable luxury
7
David Greyson CBE, Emeritus Professor of Corporate Responsibility, Cranfield University
9
Upcoming programmes
10
CASE STUDY
Guy Blaskey CEO Pooch & Mutt FEATURE
The return of the direct marketing campaign Robin Sumner, CEO, Romax Marketing
Contents
13
2.
ARTICLE
Innovation and strategy: a balancing act
14
Upcoming events
Mark Jenkins, Professor of Business Strategy, Cranfield University
16
22
CASE STUDY
Debra Charles CEO Novacroft News from around the School of Management
The Business Growth Programme Magazine
20
FEATURE
Investing in start-ups Jamie Waller
Welcome
Welcome to the first edition of the Business Growth Magazine. We are so lucky to have had so many businesses from such a diverse range of industries come through the Business Growth Programme, and to be able to reconnect with them and draw upon their knowledge and experience to put together this magazine is such a privilege. While the BGP has contributed to a number of household brands, the grand majority of BGP businesses actually operate in the B2B space and support the backbone of the economy with their niche areas of expertise. This means there is a wealth of knowledge in the BGP family, thousands of stories of business growth, successes to aspire to, and failures to learn from. In this first edition we have spoken to four members of the BGP family about their stories and about their specialisms, each providing invaluable insights into what the Business Growth Programme is all about – learning, failing, laughing, crying, succeeding, dreaming and achieving. We have also given space to our own academics from within the School of Management to share their latest thinking in matters regarding business growth: a piece on a key theme in business today, corporate social responsibility, and a piece on innovation and technology. I also invite you to take a look at our schedule of upcoming events, on which you’ll find more up to date information at www.cranfield.ac.uk/som/events/, and on our calendar of upcoming executive education programmes on page 9.
Violeta Da Rold Marketing and Communications Manager, Cranfield School of Management
Spring 2020
3.
ARTICLE
CSR An affordable luxury
Larry Fink, CEO of the world’s largest money management firm and with $6.5 trillion in assets to play with, says every business has to have a social purpose. So when entrepreneurs and small business leaders talk about corporate responsibility as a luxury, you know there’s something wrong. There’s misunderstandings and missed opportunities. Language is a big part of the problem. Corporate Social Responsibility (CSR) has been degraded as a term. Many people still think of ‘CSR’ as being about corporate philanthropy, employees volunteering to do some work in the community, a chance for a press release. That’s not what ‘responsible business’ is about: it’s the totality of how a business is run, how we conduct ourselves, what impact our business has on the environment and the world around us. In other words you can’t support an environmental cleanup when you know you’re an inveterate polluter. There’s no picking or choosing, no making token contributions, either you take responsibility or you don’t. And it’s a fantastic opportunity for entrepreneurs and for new and recent start-ups in particular. They don’t have to worry about retrofitting a sense of purpose on top of an existing business and its operations. It’s like the telecoms system in Africa: they didn’t have to worry about introducing fixed line telephone systems and all the infrastructure costs involved, they jumped straight to mobile phones. 4.
The Business Growth Programme Magazine
For smaller firms, again, it’s much easier to marshal ideas and support for change compared with large multinationals with thousands of employees and their hearts and minds to engage. You can leapfrog into doing business the 2020s way not the 1980s. The first step is to think about what the real purpose of the business is. During all my time working with national enterprise support agencies, talking to start-ups, meeting successful entrepreneurs, I can’t remember anyone ever saying their purpose was to get rich. Sure, most hoped to make decent money, but that wasn’t their purpose in starting up. Money was the by-product. The business had been set up because they’d spotted an opportunity. There was a need, a benefit there, which they had worked out how to meet profitably. And as Peter Drucker famously said: “Every single social and global issue of our day is a business opportunity in disguise.” Carry out a scoping exercise, looking at all the impacts your business has: social, environmental and economic. The issues will be very different depending on the sector. A design consultancy will have other concerns from a food company or clothes retailer. There’s lots of freely available guidance out there whatever the sector. The Sustainable Accounting Standards Board (www.sasb. org) shares resources, for example; and most large organisations are either choosing or are required to include sustainability as part of their annual reporting process which are publicly available. It’s then important to reflect on how you want your business to be run - how you want others to experience the business: employees, customers, suppliers, maybe your neighbours on the same industrial estate. What
do I want people to think and say about me and the company? So much flows from this in terms of decision making. If I really want there to be long-term relationships with employees and partners, what’s involved in making that happen? Effort is needed to create a culture where people are treated the right way, protected from inappropriate behaviours, maybe opportunities for profit share, making sure suppliers are paid on time. If you have an established company and it’s a case of retrofitting a responsible model, then this can be started with a simple consultation exercise. Ask all employees what they appreciate about the way the business is run: what parts of the culture they want to keep, and then what aspects and behaviours they don’t like. Responsible business is as much about avoiding a bullying culture and ensuring there’s good diversity among staff as reducing carbon emissions. More firms are making use of external frameworks and accreditation to make sure they’re meeting best global practice. More than 3,000 firms have gained Benefit Corporation (B Corp) certification (https://bcorporation. uk). That includes giants like Danone, Natura & Co and The Body Shop - but many small firms too. Becoming a B Corp is based around a points score against questions that help to assess the overall positive impact of a company. For instance, the level of diversity in the workforce, whether there’s been attention to making sure there’s no modern slavery or polluters in the supply chain. It’s not an instant tick in the box for any business, there’s a need for an action plan over time. B Corp is intended to be a tough process, and they are continuing to raise the bar. What was okay in 2013 won’t be good enough tomorrow; responsibility is seen as being an important part of continuous improvement.
There’s not enough attention paid to organisational culture, because yes, culture really does eat strategy for breakfast. If people’s attitudes and behaviours aren’t right, if they don’t instinctively know what the right thing is to do, then the purpose and the plan aren’t going to be implemented in an optimal way, they’ll be thwarted. The culture of a responsible business is founded on its leadership. In our book, All In: The Future of Business Leadership, we set out the four key dimensions of sustainable culture: being innovative (where sustainability is the driver and also the main decision stage-gate to assessing ideas for change); engaging and empowering employees so they feel able to take the initiative; and being open and transparent - humble enough to admit we don’t know all the answers and want to listen to thinking from staff and others externally. Why do small business leaders assume that being socially and environmentally responsible comes with big costs? It’s going back to the old associations that come with the CSR label. In reality, a new sense of purpose and direction costs nothing; businesses will make savings from cutting back on energy use and waste. And when there is the need for capital expenditure, it’s generally a small commitment in the context of ensuring they are part of our very real new world: they are a business that people want to work for and buy from. David Grayson CBE, Emeritus Professor of Corporate Responsibility. @DavidGrayson_
Spring 2020
5.
6.
The Business Growth Programme Magazine
Case study
Guy Blaskey
Founder, Pooch & Mutt (Business Growth Programme, 2017)
The biggest barrier for Guy Blaskey in building his enterprise, Pooch & Mutt, was his own expertise. The Pooch & Mutt business had plenty of potential on paper but needed new impetus from a broader outlook and set of skills. “It was James Averdieck, the founder of Gü, who’d recommended the Business Growth Programme to me, along with some other entrepreneurs. I thought it was expensive to begin with, but in the grand scheme of things it’s the best money I’ve spent.” Starting out in marketing and brand consultancy, Guy had the nagging feeling that running his own enterprise was the only way to have the kind of working life and rewards he wanted. “It was arrogance mainly. I felt my clients were getting a lot more benefits from me than I was getting from the work. And it was true up to a point - I certainly wasn’t charging enough. Something I’ve learnt since becoming a client of consultants myself.
“It’s the kind of tired market that’s ripe for disruption, not just commercially, but for the sake of dogs and their owners. 76% of dog food sold in the UK is made by Mars and Nestlé, giant operations where health can be low on the list of priorities. There’s not enough good-quality food for dogs getting out there, and Pooch & Mutt wants to lead the pet food revolution."
“The desire to start a business in 2007 coincided with finding the business idea. A vet had told us that the family puppy, Cookie, would need a full hip replacement operation within three years. I thought we’d try using the joint supplement made by my mum’s company, Blue Chip Feed intended for horses, but with all the right nutrition to help.
“The first few years were very slow - and I kept seeing everything as having a marketing solution. You stick to what you’re good at for as long as possible,” says Guy.
“With this supplement, Cookie didn’t need a hip operation at any point during her long life. The initial success spurred me on to come up with a range of supplement products for dogs, applying the principles of sports nutrition to dog food.
The BGP was critical to the making of a new foundation for ongoing growth and realising the potential of the idea - particularly after an initial attempt at selling the business had fallen through.
Spring 2020
7.
Case study continued… “One of the most important lessons from being at Cranfield was that you don’t know what you don’t know. So I’d bring in a part-time Financial Director, and the first thing they’ll say is ‘what do you need help with?’, and, actually, I wouldn’t know. We all tend to come to entrepreneurship from one discipline, so we have to learn where the gaps are.
involvement of investors. “BGP enabled us to do that, with more focus on strategic positioning and which markets to go for. It’s also helped in making sure we have the right people. We use a lot of outsourcers so only have nine staff - but they’re exactly the right nine for us, bringing the expertise I need.”
“The experience of BGP changed me 100%. To begin with I looked around and saw there was no-one else from FMCG. Someone with an insurance business, internal comms, printing. How could we learn from the same programme? But we all had common challenges and brought different strengths to the tutor group. The man in printing turned out to be a very experienced sales director; there was a concrete business that I thought would be boring, and I really found myself getting into it. The best people to get help from aren’t necessarily mega-successful but represent where you want to be in a couple of years, because they
The experience has allowed Guy to stick with a business that’s allowed him to put his own personal philosophy into practice, turned into a day-to-day reality. “The rewards from being an entrepreneur aren’t just financial. But I like to think in terms of a life-work balance, not the other way around. I come from an ad agency background where it was normal to work until 10pm at night and on Saturdays. Pooch & Mutt is a health brand and I want the people who work with me to have a healthy lifestyle, for there to be a healthy ethos that we can all be proud of. It’s wrong when employers put so much effort into making workplaces somewhere people want to live in, not just work. It’s important to have a great work place, but more important
“The best people to get help from aren’t necessarily megasuccessful but represent where you want to be in a couple of years...” understand the journey you’re about to go through. I’d not been in a lecture for 15 years. But the BGP is different, especially in the level of interactivity; with academics and guest speakers, between participants, but most importantly its interaction about your business. The six month review, in particular, was useful. There’s a big difference between putting together a plan, and knowing it’s going to be reviewed and you’re going to have to report back.”
8.
“There were a number of Eureka moments in there. Finance especially. Not just learning about cashflow but how to actually have the competence and confidence to manipulate the cashflow and do something when there’s nothing in the bank. Cranfield talk about kissing frogs, doing the stuff that’s a challenge, that you don’t want to do. I realised how much I didn’t know, where I needed help and when to ask. It made me far more rounded as an entrepreneur. You go from a situation where it’s all trial and error with the business where you know you’re doing things properly.”
that people have a healthy life outside of the work place. I do 99% of my daughter’s bath times, I’m there for breakfast with her, I’m back for dinner, and that’s how it should be.”
Pooch & Mutt has continued to have strong growth, at around 70% each year, reaching revenues of around £5 million - and it’s growth that’s been achieved without the
Guy Blaskey completed the Business Growth Programme in 2017. www.poochandmutt.co.uk www.instagram.com/poochandmutt/
The Business Growth Programme Magazine
Executive Development
Upcoming
programmes 4 Feb 2020
27 April 2020
7 Feb 2020
28 April 2020
11Feb 2020
19 May 2020
24 Feb 2020
16 July 2020
Finance Fundamentals Business Growth Programme Customer Experience Strategy Sales Directors Programme 23 March 2020
Essential Management 25 March 2020
Marketing Strategy and Planning 20 April 2020
Sales Essentials for Success
Marketing Directors Programme Cranfield Women as Leaders Developing Leadership Practice Selling Your Business Masterclass 24 June 2020
Key Account Management 26 June 2020
Digital Marketing Masterclass Details correct at time of printing.
27 April 2020
Non-Executive Directors Seminar
For further event dates see our website
www.cranfield.ac.uk/som/oep
Spring 2020
9.
Feature
The return of the
direct marketing campaign The marketing industry has undergone huge changes over the years, particularly with the advent of the internet and email. BGP past participant Robin Sumner, founder and Managing Director of datadriven marketing services company Romax, explains how it has managed to weather the storm, and discusses the resurgence of direct marketing methods… Direct mail, direct marketing – these terms have historically had something of a bad reputation, wouldn’t you say? Yes, that’s true; direct mail has had something of an image problem. There was a time when just the mention of terms like ‘direct mail’ turned people off as they felt they were being somehow misled by overtly salesy messages. Don’t get me wrong, ‘junk mail’ does exist, but it exists because people don’t use data properly to ensure they are sending their message to the right people at the right time. With the advent of email, social media and online marketing, direct marketing – by which I mean data-driven marketing – took something of a back seat, but recently there’s been a bit of a resurgence back to it – rightly so, in my opinion. Electronic communication, particularly email, is going through now what direct mail did in the late ‘80s and early ‘90s. So, why should businesses be thinking about direct marketing? We’ve all only ever had one mailbox. Since the advent of the internet we’ve been bombarded with electronic methods of marketing through search engine optimisation, cookies and the like. These are all very good tools, but sometimes it’s hard to see the wood for the trees. Direct mail, for example, now stands out quite substantially 10.
The Business Growth Programme Magazine
compared to what it did 20 or 30 years ago, because the volume of physical mail we receive through our letterboxes is so much reduced. I hardly ever receive any mail unless it’s a bill or an invitation to open a credit card. When I do, as long as it’s from an appropriate brand, I generally react positively to it. Think about it this way: there are so many businesses out there selling their products and services. How are people going to know what you do, until they know you exist? If you’re lucky, a random search on the internet might turn up your name but, in reality, they’re looking for someone to say: ‘Hey, this might interest you’, and to put something in front of them that their age, gender or another criteria suggests they might want to see. What are your top tips for success? The first thing to do is some data analysis to find out who your target audience is. You may think you know, and 90% of the time you’ll be right, but it’s important to make sure you’re talking to the right people before you do anything else. Next, you’ll need a list of potential prospects. Make
“...‘junk mail’ does exist, but it exists because people don’t use data properly to ensure they are sending their message to the right people at the right time.” sure this is from a reputable company, ideally one that is a member of the Direct Marketing Association. They audit their members to ensure their data complies with GDPR and is secure. Always question data compliance around
Related courses:
• Key Account Management Best Practice • Marketing Strategy and Planning • Digital Marketing Masterclass Visit www.cranfield.ac.uk/som/oep
any list: can you communicate freely with these people, and how have they opted in to this? Ensure any communication you send out allows people to opt out with ease. When you start to expand on your data, you’ll need to make it either someone’s full-time job or a key part of their role to keep on top of it. In any type of marketing you will get gone-aways; people move or change job roles. If you don’t keep on top of your database, you could potentially be wasting a lot of money. Finally, always test your approach. Don’t just do one type of communication, plan different ones with different content and see which one works best. Make sure the pool you’re testing is large enough – 1,000 people isn’t enough. You want 5,000 people receiving one message and a further 5,000 another.
reason, we’ve recently re-branded as a communications company that offers both on and offline marketing services. We encourage our clients to unify their efforts, preaching the same message and using a similar style across all the different marketing channels so that everything works together, the idea being that you might send an individual a direct mail piece four times a year, which reminds them of an article or an advert they might have seen in the trade press, or something they saw on social media. We’re about communications, driven by data, using the right medium, at the right time.
How important is the creative? Do you have to have a really brilliant, original idea to make an impact? If you asked me which was more important, creativity or data, I’d say they are equally so, but you start with the data. Good creative – and, more importantly, good copy – is what drives your message home, but too many times I’ve had clients explain a great idea to me without knowing who they’re sending their communication to. The creative should be based on who you’re targeting. There are so many companies out there shouting about the importance of digital marketing. I haven’t got the budget to do both, so which is best? I sympathise with businesses that have a slim budget, but the reality is that anyone who thinks any single marketing channel – whether that’s direct mail, social media, magazine marketing or whatever – is going to get them a good return is fooling themselves. Companies looking to grow need to put a lot of money into marketing and, for the first two years or so, they’re probably not going to see a lot of return on that. But then all of a sudden that investment starts to pay dividends. When it comes to which type of marketing to choose, it’s about how and when those people you’re talking to wish to be communicated with. For this
Robin Sumner completed the Business Growth Programme in 2006. twitter.com/RomaxMarketing www.romax.co.uk
Spring 2020
11.
Welcome to the Future of Data-driven Communications We help you think smarter to build more meaningful relationships
www.romax.co.uk 12.
The Business Growth Programme Magazine
+44 (0)20 8293 8550
hello@romax.co.uk
ARTICLE
Innovation and strategy
A balancing act
Professor Mark Jenkins and Professor Patrick Reinmoeller
Technology is all around us, at work and at home. So, for companies whose business centres on technology provision, the opportunities are huge. Get it right, and the potential growth is exponential. Get it wrong, and you risk falling by the wayside.
something you’ve never seen before? Making the right moves in the rush and enthusiasm and excitement is very difficult, and it’s easy to make commitments that are a little bit too large or long-term to safely shoulder.
If you want proof, look no further than the likes of BlackBerry, AOL and MySpace. Small and mediumsized enterprises (SMEs) focused on technology have a unique opportunity. Despite having fewer resources at their disposal, their relatively compact size and more streamlined operations allow them to have a greater focus. With less bureaucracy, they can be more agile, reacting quickly to remain at the forefront of new technology as it emerges and evolves.
Strategy is not a silver bullet
But, in order to harness their potential and fuel growth, SMEs need a solid business strategy underpinning everything they do. Without a framework to guide them, it’s very easy for SMEs to get caught out by their own success. When your product starts selling like hot cakes, what do you do, exposed to a growth rate that is
Remaining responsive to mercurial markets and the tantalising speed of technological change requires companies to stay alert to new opportunities and to search what might matter next. Success comes from exploiting what works over time. Good strategy is a hybrid of both. It is about searching for problems that need to be
Agility and strategy – those two concepts might seem at odds, particularly if one considers strategy as a recipe that doesn’t change.
But strategy is not a silver bullet. It is not something you find and can use forever without ever changing it. It is not a mathematical solution where there can only be one answer. The context is always shifting, meaning that what led to success yesterday may not today. Businesses must constantly reappraise what they are doing and adapt as they go to keep their strategy relevant.
Spring 2020
13.
EVENTS
Upcoming
events 22nd January 2020
Grant Funding Workshop with GrantTree Barclays EagleLab, Cranfield Campus, 8:00 - 9:30
5th February 2020
How To Understand What Your Customers Really Want Barclays EagleLab, Cranfield Campus, 8:30 - 10:00
6th February 2020
Entrepreneurship Speaker Series: Hugo Spowers Building 38, Cranfield Campus, 18:00
13th February 2020
Entrepreneurship Speaker Series: Simon Biltcliffe Vincent Building, Cranfield Campus, 18:00
20th February 2020
Entrepreneurship Speaker Series tbc
14th May 2020
Venture Day
Vincent Building, Cranfield Campus, 8:30-18:00
10th July 2020
Investor Day
CMRI, Cranfield Campus
More events and details: www.cranfield.ac.uk/events/ 14.
Details correct at time of printing.
The Business Growth Programme Magazine
Innovation and strategy continued… solved, exploring possible solutions, and implementation after thorough investigation. For it to work in the long-term, it needs to be constantly challenged in the short-term, and this requires agility, know-how and resilience. Think of it as a continuum – too far down the long-term, fixed view is problematic, as you won’t keep pace with the rate of change, as is a business plan that is too reactive, constantly shifting focus to whatever is new and exciting. Too much focus either way opens the door to competitors who are able to combine both and deliver value for customers by understanding what they will need tomorrow as well as fulfilling what they want today. The key to success is to see strategy as a guiding framework that can be flexed, adapted and changed as necessary to suit new opportunities, rather than as a straightjacket that constrains or limits you to a set path. A long-term view of where you are heading, an openness to change, and an understanding that this change may alter that long-term goal at some point, and that you need to be constantly examining, questioning and exploring to determine at what point that needs to happen – that is a business strategy. Businesses should set out clear priorities around where they compete in their marketplace, what their competitive advantage is, and the capabilities they both have and need to develop in order to deliver that strategy. The framework should acknowledge that there will be choices to make along the way, and offer a guide on how to
approach such decisions with the long-term goal in mind. It should also allow for experimentation, for testing new ideas.
Differentiation is key The high-tech sector is changing rapidly, with new innovations emerging all the time. Organisations need to have their eye on the pulse and make quick but sound decisions on where to invest their money and focus for the best long-term reward. Without doubt, the winners among SMEs operating in this sector will be the ones who make a better job of exploring technology innovations as they evolve, understanding what makes them different and evaluating what different angle or knowledge of application they can bring to the table to offer value to their customers. It is easy to imagine that technology is universally good or universally useful, in other words that there is some value or opportunity for all the technological innovations out there. That may be true, but not all will represent the right avenues for any given business to pursue. And, if there is value or opportunity to be gained, it may not always be apparent on first inspection. It often has to be discovered through further analysis. By following a good business strategy that has innovation at its heart, and a clear set of priorities around where and how to compete as the ‘head’ to guide that heart, businesses won’t go far wrong.
Case study Mercedes Formula 1 team As multiple world champions, with two top tier drivers on the books, Mercedes need to keep making strides in the here and now to stay in front of their competitors and to take home the silverware at the end of the season. But they also have an eye on what is coming next. They are already recruiting and investing in artificial intelligence and machine learning, building new capabilities now in preparation for where they believe they will need to be in three or four years’ time. Top tips for balancing innovation and strategy: • Understand the value technology has for your customers, and appreciate that the technology, their needs and your customer base may evolve over time • Build diverse teams and encourage colleagues to share fresh perspectives and new ideas • Build a strong network: partnerships and alliances may offer opportunities for faster, cheaper and safer success • Support your employees through periods of change – they are your most important asset • Develop a system for analysing new opportunities and follow it each time • Consider expanding into adjacent markets – think Dyson with hand dryers and hair dryers • Be innovative with your business model • Imitation is ok – just do it better. Most of the world’s most successful technological innovations were not the first of their kind • Don’t be afraid to fail but, if you do, learn from it quickly and move on.
Spring 2020
15.
Case study Debra Charles CEO, Novacroft
(Business Growth Programme, 2007)
“The first major ‘sh*t happens’ moment after starting my own business led to me losing £90,000 on a deal,” says Debra Charles, founder and CEO of Novacroft. “Naively, I’d contracted out a piece of work to someone with their own views on what a database spec should look like. Much worse: this was my mum and dad’s money. They’d both died the year before from cancer. It was the money they’d worked hard all their lives for, and it felt like it had been squandered.” Debra was determined that Novacroft - a smartcard technology and software systems customer care company named after her mum’s long-established dog kennels business - would survive the loss, drive forward and make sure her inheritance would mean something. “I brought in Daryl Hurst to re-design the offering, someone who could talk in layman’s and technical terms, and he still works here as R&D manager. By 2007 I’d reached the point where I needed assistance to grow, and that’s when I chose to join Cranfield’s Business Growth Programme (BGP).” Within 12 months of completing the BGP, Novacroft had won a £48 million contract and increased the size of business by 150 people. “I believe that if it hadn’t been for the BGP I wouldn’t have been equipped to bring the team together to achieve those things. It’s the best money I’ve ever spent in terms of ROI value.” The original idea for the business, and motivation to become an entrepreneur, came from seeing how the IT industry could work differently, in more open and honest ways, making use of the emerging Internet technologies. “I’d had managerial roles at Apple and Westinghouse, but it was when I was seconded to another organisation, less than transparent in how they operated and working on a contract for central Government, that I saw an alternative: the opportunity for an online, transparent database that provided really useful data. I’d also seen how people were not always treated as they should be, like numbers. I remember in my first ever job, in retail, there were separate dining rooms and toilets for management.” 16.
The Business Growth Programme Magazine
Debra knew Novacroft could offer better for both its staff team and clients’ customers.
“I worked my socks off, doing all-nighters to start off with, to make Novacroft happen and be able to create a different kind of operation that could be more like a family.” “I really believe that there’s something amazing in everybody. I worked my socks off, doing all-nighters to start off with, to make Novacroft happen and be able to create a different kind of operation that could be more like a family. It wasn’t an easy start. I remember going along to my first client meeting, going to reception and signing in - I looked at the name and thought I was an imposter. I was used to writing a big company name alongside mine, and this was just a name that had been made up.” BGP delivered an increased sense of confidence in herself, and clarity in terms of business direction. “I’ve always seen learning as an important part of happiness. BGP meant I could mix with people in the same scenario, get inspiration and a real boost to grow and thrive.
In these unpredictable times, our capabilities will enable you to be fit today, to thrive tomorrow. By 2030, the Fourth Industrial Revolution will see the blurring of lines between physical, digital and biological. This brings with it huge opportunities to change the way we live and work. Only the fittest of organisations will survive. We are on a mission to help our clients in charity, transport and local government get clarity of vision, understand the barriers, risks and opportunities, and rise to them. We have expertise in integrating people, business processes, and technology to help transform your business.
Saved the transport sector ÂŁ25m 32,000,000 people use our technology solutions Delivered ÂŁ55,000,000 energy grant funding Enabled 70,000 volunteers to support 14 million visitors for London Organising Committee of the Olympic and Paralympic Games
Get ready for the future, get fit today. Get in touch: David Oladiran
07826 357 910
www.novacroft.com @novacroft
The Business Growth Programme Spring 2020 17.
Case study continued… It didn’t matter what sector or type of business people were coming from, there was a commonality in terms of what we were all trying to do. We were like-minded people and I still have great friends from that time. “The best thing about Cranfield is the authenticity. The expert speakers and academics come in and they all do a great job, bring everything alive - but most importantly you’re all on a level, you’re working side by side. The team go out of their way to support you and ensure you go away with a strong business plan.” The main barrier to getting involved with a programme like the BGP tends to be the time commitment.
“As the organisation grows it’s more important than ever to have values that people live and breathe, values that are developed together.” “Entrepreneurs tend to be addicted to ‘making a difference’. So they confine themselves to only doing things in the business. But as a leader and entrepreneur, you need to work on the business, only partly in it. BGP is great because it’s hugely valuable time working on the business. It’s time
18.
The Business Growth Programme Magazine
that’s gone into a huge energy battery. One day will have the productivity value of 40 days. “It gave me the confidence to be the kind of leader I wanted to be. You have to be flexible, adaptable, give a sense of belonging and purpose, and know when to let other people do the leading. Cranfield made me see it was okay to be doing things differently and how to really harness that approach, how you can make anything happen if you want to.” Debra has seen the importance of knowledge, learning and networks that stick for the longer-term. “I still use a lot of what I learnt on the programme in my thinking, as well as using the same tools for my own team development. I joined the BGP club and stay in touch with the people to talk about business and ever-changing challenges. Growth brings its own issues. Going from two people to five, then 10, then 38, I started to see how the company team dynamics had changed. People get up from their desk and say goodbye and go - it wasn’t the same as when we all used to sit together around one table. As the organisation grows it’s more important than ever to have values that people live and breathe, values that are developed together. “I think there will be massive opportunities over the next decade for those businesses and new en-trepreneurs ready to take them. But they need to get fit for purpose - and the BGP is the way to do that.” Debra Charles completed the Business Growth Programme in 2007. twitter.com/novacroft www.novacroft.com/
THE ENTERPRISE NETWORK Inspiring the next generation
WE ARE AN ENGAGED COMMUNITY OF PHILANTHROPIC ENTREPRENEURS WHO SUPPORT THE PRINCE’S TRUST TO CHAMPION YOUTH ENTERPRISE AND HELP YOUNG PEOPLE GET INTO BUSINESS Join our exciting new network, meet some excellent connections, make friends and start developing your legacy by supporting the next generation of entrepreneurs
THE PRINCE’S TRUST ENTERPRISE PROGRAMME HELPED ME SEE THE BIGGER PICTURE AND MAKE A BUSINESS OUT OF MY PASSION. - JAZMIN LEE, PRINCE’S TRUST SUPPORTED YOUNG PERSON
Contact: JAMIE WALLER Chair of The Prince’s Trust Enterprise Network Patron of The Prince’s Trust 07779 714 390 | jw@jamiewaller.co.uk | princes-trust.org.uk/enterprisenetwork DSN4309 © The Prince’s Trust 2019 – all rights reserved. The Prince’s Trust is a registered charity, incorporated by Royal Charter (RC000772). Principal office: Prince’s Trust House, 9 Eldon Street, London, England EC2M 7LS. Registered charity number in England and Wales (1079675) and Scotland (SC041198).
The Business Growth Programme Spring 2020 19.
Feature
The UK start-up scene is booming. Government tax incentives mean investment is buoyant, and there are lots of exciting opportunities for those with money to spend. We asked experienced investor and BGP alumnus Jamie Waller for his top tips on getting started…
Investing in
start-ups What are the benefits of investing in start-ups over choosing to put your cash into more established businesses?
There’s no doubt that investing in start-ups is a risky business but, if they’re successful, the growth – and therefore the return on your investment – is so much more substantial. You often find, too, as an experienced investor, that there is so much more you can offer a business that is worth £1 million as it grows to £20 million than you can a more established business that is perhaps looking to grow from £200 million to a billion, for example. On top of that, of course, you have Government incentives offering tax efficient ways to invest in businesses and relief on any losses if your investments fail. Without doubt, they are a huge part of why UK investment is so buoyant at the moment and, without them, I think we’d be looking at a very different picture. Why do so many start-ups in particular need investment to get off the ground? Cash is king. Businesses always need cash. It’s very difficult to run a business without it unless you’re a platform like Amazon was for a while, where you don’t own any products and just introduce buyers to sellers, take a commission on top and can keep your costs low as you scale without taking on too much risk. If you’re running a retail business you can’t sell anything unless you’ve got it in stock. Some suppliers will do deals where they give you stock and if you don’t sell it you can return it, but no one is going to take that risk on a start-up.
20.
The Business Growth Programme Magazine
What are your top tips for getting started with investing? For starters, avoid platform-type businesses like Crowdcube and Funding Circle. To me, they are spread betting sites, not investor sites. You meet people who say: ‘I’m an investor in early-stage businesses’. What they mean is they put £1,000 at a time on businesses
“...there is so much more you can offer a business that is worth £1 million as it grows to £20 million than you can a more established business...” through these types of site, which is actually not that smart. They would probably be just as successful if they went on the Ladbrokes app and bet on 10 horses this weekend. Next, I’d say get involved in a sensible network or investment club. I’m a member of an investment house; we are 30 individuals who each put into a joint investment fund, look at assets together and collectively decide whether we want to invest or not. Having other people in the room who won’t just follow your lead, but from whose knowledge and experience you can benefit will massively increase your
chances of success. Doing due diligence on investment opportunities is very time-consuming if you do it alone. Investment houses are a great way to not only learn fast but also access some great deals with a reduced risk of failure. It won’t necessarily be easy to get in – many are entry by recommendation only – but you’ll be able to start somewhere. What should investors be looking for in a start-up entrepreneur, and what should ring alarm bells? Avoid anyone who is not taking a significant amount of risk themselves. I like to see that people have either put their own cash into the business, re-mortgaged their house or are going to work for free or a very small salary until the business is sufficiently successful to pay them. You get people starting up businesses who expect to pay themselves £100,000 a year as CEO. That’s just ludicrous. Owners should be struggling, should be taking home £10,000 or £20,000 a year. If they’re not prepared to do that then they haven’t got the drive or passion to make the business a success, which is the
“I like to see that people have either put their own cash into the business, re-mortgaged their house or are going to work for free or a very small salary until the business is sufficiently successful to pay them.”
creative to find solutions to problems. They just take money from other people and, if their business fails, just go at it again. When I’m looking to make an investment, I’m looking to see what risk the owner or founder is taking. It doesn’t have to be financial, it could be risking their name, their personal brand – they need to have something on the line. I also try to understand who the person is and what they are doing it for. I like to find people with a really deep reason for doing it, over and above just making money. Is failure inevitably part and parcel of being an investor in start-ups? The general rule of thumb is that if you’re investing, around a third will do well, a third will stagnate and you’ll just get your money back, and a third you will lose. I think the key is to know when to get out of assets; don’t follow bad money. You see a lot of investors who will say: ‘I’ve got £250,000 in now, I’ve just got to stick with it’. It’s a difficult decision, but sometimes you have to accept losing that money and move on. If you get out quicker you might have a higher failure rate than that one third, but hopefully you should also see an increase at the top too. Personally, I like to see around 60% or so of my assets doing well and then accept around 30% will have either crashed and burned, or I will have given up on them as I realised early on it wasn’t going to work. Jamie Waller completed the Business Growth Programme in 2010. twitter.com/jamiebwaller www.jamiewaller.co.uk/
reason a lot of businesses fail. People don’t personally have enough on the line to incentivise them to do what it takes – whether that’s getting up at 3am or getting
Related courses:
• Non-Executive Directors Seminar Visit www.cranfield.ac.uk/som/oep
Spring 2020
21.
Leading business figures celebrated June 2019
The achievements of Debra Charles, Founder and Chief Executive of Novacroft; Sacha Romanovitch, Co-Chair of the Inclusive Economy Partnership; and Simon Rowlands, Founder of Africa Platform Capital have been celebrated at Cranfield University’s 2019 graduation ceremonies. The trio received Honorary Doctorates from the University for their work shaping UK business. Professor Sir Peter Gregson, Chief Executive and ViceChancellor, said: “Debra, Sacha and Simon represent the very best of British business. All three have demonstrated that business excels when it is driven by a clear purpose that benefits all of us in society.” Debra Charles, Founder of Chief Executive of Novacroft, said: “It is with immense pride that I receive the Honorary Doctor of Science, particularly as it is from Cranfield University, which I hold in the highest regard. Cranfield is enabling and equipping our children to seize the opportunities of the coming decades. To me, that’s of significant importance, because my legacy is about ensuring that humanity thrives as we approach the fourth industrial revolution.” Sacha Romanovitch, Co-Chair of the Inclusive Economy Partnership, said: “The team at Cranfield have encouraged and supported me in my leadership journey which makes this honour even more special. Truly, thank you for lifting me up. I hope that in sharing the journey I have been on that it can be used to help others on their own paths to shape our collective future.” Simon Rowlands, former Founding Partner of private equity firm, Cinven, said: “It is such a privilege to receive this honorary degree from Cranfield University. The MBA teaching at the School of Management radically changed the trajectory of my career, moving from engineering into investment management. Cofounding, working and growing with a team of special people at Cinven has been a wonderful privilege, and 22.
The Business Growth Programme Magazine
News from around the
School of Management my contribution owes a great deal to the early teachings and mental models Cranfield instilled in me.
Cranfield and Saudi partnership to develop leaders of the future
lead organisations effectively and to progress in their own careers. The first cohort of 33 participants joining the course started on 1 September. Cranfield University is the awarding body for this executive development leadership certificate, which will be awarded on course completion.
September 2019
Cranfield University is partnering with the Human Resource Development Fund (HRDF) in the Kingdom of Saudi Arabia to deliver a two-year project, training the next generation of Saudi private sector leaders. The specialist course, which takes 12 weeks to complete, is aimed at executive leaders in the private sector. It is expected that 1,000 people will develop their skills in business and leadership by taking the programme, delivered with a blended method of online and face-toface learning. The participants will be supported by local business leaders who will act as mentors. Chief Executive and Vice-Chancellor of Cranfield University, Professor Sir Peter Gregson, said: “This exciting collaboration demonstrates Cranfield’s global experience and international reputation for excellent teaching. We are delighted to partner with the HRDF to develop the next generation of Saudi leaders for the region.” The Director-General of HRDF, Dr Mohammed A AlSudairy, said: “Through this programme, we aim to develop future leaders in the private sector. Participants will gain information and contemporary techniques to achieve optimal human development. The Academy is working to create effective leadership that has the potential to help companies become stronger, allowing for healthy competition in the marketplace. The Academy, through this programme, has achieved the identification and selection of leaders who have the ability to plan and innovate.”
Cranfield MBA ranked number one in the UK for increase in salary October 2019
Cranfield School of Management’s MBA has been named as number one in the UK for percentage increase in postMBA salary in the Which MBA? Full-time MBA ranking 2019, published by The Economist. This year’s ranking represents an increase in Cranfield’s position by 15 places. Cranfield’s full-time one-year MBA programme was also ranked second in the UK for Potential to Network and fifth in the UK for overall performance. In total, 100 business schools from across the world were ranked. Professor David Oglethorpe, Pro-Vice-Chancellor and Dean of Cranfield School of Management, said: “We’re delighted to see our full-time MBA named as first in the UK for percentage increase in salary. The ranking demonstrates the value of a Cranfield MBA to business and reflects how the course provides an acceleration in the career paths of our graduates. The hard work of our faculty and students is also shown in our improved rankings for networking potential and overall performance.”
Dr Imran Zawwar, Cranfield University’s Regional Director Middle East, said: “This partnership between academia and industry will support the Saudi Government’s Vision 2030 to build a thriving economy with an ambitious nation. Our world-class teaching will develop people to Spring 2020
23.
Transferring knowledge into action.
Cranfield Executive Development Cranfield University, MK43 0AL, UK T: +44 (0)1234 754500 www.cranfield.ac.uk/execdev @CranfieldExec /showcase/cranfield-executive-development 24.
The Business Growth Programme Magazine