The Magazine for Business Owners
FLUIDBUSINESS MAGAZINE
AUTUMN 15
te! s 1 issu
015 Autumn 2
Inside This Issue!
FOUR KEYS TO BUSINESS SUCCESS! 14 YEARS SINCE 9/11
THE IMPACT FELT BY BUSINESSES
FOUNDATIONS PROGRAMME
FIND OUT MORE INSIDE
ESSEX BUSINESS
new research reveals the county is booming!
Discover our
FOUR KEYS TO SUCCESS!
CONTENTS
03 FLUID INSIDER A look into what we have been getting up to recently.
05 QUESTION TIME We ask the experts, what is the key to owning a successful business?
06 THE BUSINESS SHOW An update from The Business Show 2015 and 5 tips for exhibiting your business.
10 TIME FOR FREEDOM? We speak to Ray Moore about succession planning.
14 BUSINESS REPORT The Essex Business Landscape, how 2015 is fairing for business in Essex.
08 14 YEARS SINCE 9/11 Important business lessons learnt from the worlds worst terror attack.
FOUNDATIONS 18 SOLID 03
08 LEAN MANAGEMENT: WHO IS RESPONSIBLE? Andy Sleet discusses the importance of being lean in business starting on page eight..
We will show you how to build your business on solid foundations.
NATALIE MOORE Managing Director of Fluid Business Coaching.
Welcome to the first issue of Fluid Business Magazine, the quarterly publication for business owners. In this issue we talk with Ray Moore on the issues some business owners face when it’s time to retire or sell up. We also hear from Andy Sleet, lean business management expert, on how important it is to make your business lean (page 8). The Fluid Business Coaching Foundations programme has been designed by our Levels Certified Business Coaches and is a sure way to get you and your business on the move (page 18) and we
also run through our experience at The Business Show 2015 (page 6). We hope you enjoy this first issue of the Fluid Business Magazine. For further ways to get involved with Fluid Business Coaching, you can subscribe to the weekly Podcast on iTunes, SoundCloud, Stitcher and our website.
“From this issue you can expect real business insight from our expert business coaches”. - Natalie Moore FBM MAGAZINE 2015 | 3
FLUID INSIDER!
Fluid Insider y CRONEY BLAURA MARKETING ASSISTANT
We have had an extremely busy and exciting first half of 2015 at Fluid Business. Most significant was the company re-brand from Team Results to Fluid Business Coaching on 10th March.
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ay saw us exhibit at The Business Show at London ExCeL (full update on page 6) which was our first experience at a national exhibition and great exposure for the newly-formed Fluid Business Coaching brand. We had an excellent time and it was really great to meet you all. On 1st July we launched the Fluid Business Podcast. You can expect weekly episodes from David Sargant and myself with the
Fluid Business Levels Certified Coaches. Each episode approaches a key topic and issues affecting business owners and their businesses including; efficiency, team, communication, business growth and succession planning. If you haven’t done so already, you can subcribe to the podcast via iTunes, SoundCloud, Stitcher and our website: www.fluidbusiness.co.uk/FBP.
Laura
Meet the Team
DAVID SARGANT
LYNSEY SMITH
CHERI MILLGATE
Marketing Manager at Fluid - David is a digital marketing expert and heads up the marketing team. He is Editor of FBM along with myself.
Administration at Fluid - Lynsey keeps the office running and is the first point of contact for our clients on a day-to-day basis.
Office Manager at Fluid - Cheri makes sure that everything in the office runs smoothly from Admin to Accounts, managing various projects for Natalie
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COACH QUESTION TIME: THE FOUR KEYS TO SUCCESS
What is the key to a successful business?
ANDY SLEET
HUGO HEIJ
PETER BOOLKAH
Expert in lean management and business development strategies.
Team expert. Leading and developing teams on an international scale
Expert in rapid business growth.
One of the keys to business success is the consistency of delivery of a service / product. It is important when we grow, and more people get involved in delivering customer ‘experience’, that we develop systems that record how we do things and ensure that these systems are followed by all. This consistency is the cornerstone of great client retention and the way to owning a successful business.
One of the major keys to a successful business is having good relationships with employees, customers and suppliers. If all these relationships are well developed a level of trust is created and therefore a good foundation for a sustainable business. Good relationships are built on good communication. It’s the magical component that binds teams together and the life blood that inspires and enthuses all team members.
If a tree isn’t growing, it is dying. In order to build a successful business we must continue to grow year on year. It is essential to have a strategy in place for growth so that you are always one step ahead of the ever-changing game. Demonstrating how your business is likely to grow in the future is one of the keys to driving a premium price for your company when it’s time to sell.
RAY MOORE MANAGING COACH Expert in family business, succession planning and author of The Levels.
What’s the difference between ventures that commercially fly and those that barely get off the ground? Well, nothing in this life is for certain and business is a risk.
delivers these with great service. Even with all of these things in place, an enterprise cannot stop there. The final ingredient for continued growth is adaptability.
Growth is something that is driven by many different factors but in a nutshell, an enterprise will experience growth if it is wellstructured, employs the right combination of talent, offers the right products or services for the market and
Growth will always bring challenges and a business must change to benefit from new opportunities that come along. That is when a business owner will see true success.
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BUSINESS EVENTS
THE BUSINESS SHOW EXCEL LONDON Fluid Business exhibited at The Business Show 2015 for the first time. We announce the winner of the iPad competition, run through the event and give you five tips when exhibiting at large-scale exhibitions. BY LAURA CRONEY
HIGHLIGHTS
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#FLUIDBUSINESS IPAD COMPETITION Congratulations Ina Spellings! Who won herself an iPad Air with her Stormtrooper selfie on Twitter using #fluidbusiness during The Business Show.
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THE BUSINESS SHOW 2015 was at the ExCeL London on 13-14th May
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STORMTROOPERS MET BRAD BURTON Brad Burton, UK’s #1 Motivational speaker, loved our Stormtroopers at The Business Show. The force is strong with you, Brad.
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FEATURING IN THE OFFICIAL VIDEO Great further promotion for the Fluid brand by featuring in The Business Show official promotional video!
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ore than 25,000 people descended on the ExCel Arena on 13-14th May for the country’s largest business exhibition. For us here at Fluid Business it was the first time exhibiting at the show and an excellent opportunity to cement the Fluid brand within the coaching industry. We decided to think outside the box when it came to brand promotion and we hired two Stormtroopers to create buzz on the day. We didn’t anticipate quite how much buzz we would create though - the troopers went down a
storm with brands such as TNT UK, AlldayPA and 4Networking founder Brad Burton getting involved in the ‘Stormtrooper selfies’. After the show we reflected and reviewed how we thought the event went. As with any major project or event, you should always make the time to stop, reflect and review how it went so that you can learn from mistakes and build on successes next time. Below we have compiled a list of tips for exhibiting at a national exhibition like The Business Show.
5 THINGS TO REMEMBER! DEFINE YOUR KEY OBJECTIVES Seems obvious, but it is imperative this is done before you start planning too much of the details. For example, are you attending to network and find leads to follow up after the show? Or are you going to sell a product or service there on the day? Whatever your objectives are they need to be your first step, then you can get into the details.
CHOOSE YOUR TEAM CAREFULLY Make sure the team you choose to represent your company are confident, enthusiastic and sales driven. They also need to be fully knowledgable about the company and products/ services you offer and aligned to the key objectives - this is especially important if you are out-sourcing staff for the event.
DATA COLLECTION If one of your key objectives is to generate new leads, the most important part of the show for you is how you capture data. Make sure the data you aquire from potential leads is accurate and complete so that after the exhibition you
can follow up correctly. As a basic rule of thumb; name, job title, telephone number, company and website are essential. Also think about how you will collect the data. Often shows will offer the use of scanners for data collection or consider using software such as Infusionsoft or Salesforce.
HOW TO GET INVOLVED Sit Down with a Coach
DONT MISS the opportunity to sit down with one of our business coaches for a chat about your business. All of our coaches are Levels Certified and have experience owning and running their own businesses. Visit www.fluidbusiness.co.uk for more information or call Lynsey on 01245 423377.
Fluid Business Podcast
GETTING THE RIGHT LEADS Have a no-nonsense approach when talking to people at the event. The last thing you want is to be stuck talking to a timewaster who isn’t in your target market but wants to sell you something or tell you every detail about their business. Have a strategy in place for these time-wasters so you can focus on your target market to help you reach those key objectives.
OUT NOW weekly advice and insights from the business experts on topics such as business growth, family business, team and efficiency. Available on iTunes, Stitcher, Soundcloud & fluidbusiness.co.uk
The Foundations Programme
COMPANY LITERATURE Make sure it’s to the point and eye-catching. Don’t make it specific to the event unless you have to so nothing is wasted. Also, something to note; 90 per cent of all literature handed out never makes it back to the visitor’s office! (Prysm Group statistics).
BOOKING NOW! You must be an established
business looking to grow - the programme will show you how to prepare your business for growth using The Levels model. For more details please visit;
www.fluidbusiness.co.uk/foundations
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COACH FOCUS
LEAN MANAGEMENT: WHO IS RESPONSIBLE? Andy specialises in incorporating lean strategies in the work place to get the best results out of the business owner and their teams.
LEAN MANAGEMENT How to reduce waste in your business
What’s stopping you from reducing waste in your company? So what’s stopped you so far? Generally this is because we don’t know what to do or how to do it. Now contrary to popular belief, Lean Management doesn’t have to be complicated and full of ‘management jargon’. All that is needed to start is a commitment from the top and getting the team engaged and enthused about it. So who should be responsible for the programme in your organisation? Many large corporate organisations believe in having a formal structure; meetings, reports etc and in my experience this just tends to bog the whole process down in red tape. The
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simple answer is that every member of the team can have a healthy impact in removing waste from the organisation if they are ‘fired up’ and pointed in the right direction. The best ideas generally come from the ‘doers’, after all these are the people that are doing the job day in, day out. To implement, we first need to educate the team about what we are trying to achieve. The ‘Goal’ of a business is to reduce operational expense AND reduce inventories AND increase throughput simultaneously. Simply put ‘reduce the waste’. The following are common areas we see waste:
TRANSPORT Items are frequently picked up and put down many times throughout their process. If we truly mapped the route and distance travelled by items within the business we would find out just how much double handling is going on. Every time items are moved there is an increased opportunity for damage to occur.
WAITING This is where people are held up from getting on with the job because either: they aren’t sure what the next step is and are waiting for instruction; maybe the previous process has not been completed or carried out in time either internally or externally; there are shortages of parts; or unbalanced workloads.
OVER PRODUCTION A classic situation in many organisations. To save set up costs, whilst I’m doing one I may as well do a few as this will save time later on. This action has many repercussions like increasing the amount of money we have tied up in inventory, the consumption of raw materials, the cost of the labour to produce the extra and extra storage costs.
DEFECTS If we do work without the ‘right first time’ approach there are increased costs to the business. We have to rework the process a second time or scrap off the work already done. Maybe we would have to go through a concession type process either internally or externally within the business and along with this if the situation goes outside the business we have to deal with the potential harm to our reputation. All these factors will increase costs within the business.
ANDY SLEET Business Coach Lean Management and Business GrowthExpert
INVENTORY This is similar to over production. Money has been tied up in producing. The extra produced is always at risk of damage. Floor space has to be found to store it all and generally means the work area becomes cluttered and now more difficult to work in. Some of the work done could become obsolescent if customers requirements change and of course there’s always the management information system that needs to be kept up to date to track and control all that’s been made for both logistical and accounting purposes.
EXTRA PROCESSING We should always study what is actually going on in our organisation as often there are many processes that are not adding value to anyone. If asked why it’s being done, the response is often, ‘I’m not sure, it’s how I was taught to do it when I joined’. Sound familiar? Once our team is educated and knows what to look out for we can then get them to go back into their work space and challenge themselves and others around them as to where the waste is and start to eradicate it. As with all of these types of initiatives they are easily started and early results gained, but like so many they quickly fall by the wayside when things get busy, so putting in a system to ensure that the good work is maintained is the key to success.
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FEATURE
TIME FOR FREEDOM? Ray Moore discusses when is the right time for the owner to step aside and hand over to the next generation?
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One of the most difficult challenges facing a successful owner of a growing business is that of succession.
I
n a family business when is the right time for the owner to step aside and hand over to the next generation?
Naturally, the fear of the unknown can cause the owner to delay this decision. So why is it that so many family businesses build succession into such a torturous event, a real minefield. Let me say right up front, succession should be considered a process not an event. It should to be planned well in advance to ensure each generation can finish the business before handing over to the next generation. So, here are four critical areas that should be considered; 1. Have a clear common family vision for the business. Decide as a family whether the business is going to be multigenerational. Understand why it is important to the family for it to remain a family business. Without a clear family understanding the incumbent owner/manager can wrongly assume that the next generation of the family will want to continue in that role. Do not allow misplaced family loyalty to place undue pressure on the next generation to take on an unwanted role.
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2. Choose the right successor. Discuss the roles and responsibilities openly. Agree the experience, education, skills and abilities required. Make it clear that it has to be a mutual decision and not a forced marriage. Agree the rules of selection in advance and stick to them. Choose the best person for the job based on suitability and ability not on age (luckily family businesses are not like a constitutional monarchy – the crown does not have to pass to the eldest). If necessary appoint outside mediators to help in the selection process. 3. Know the right time and stick to it! Agree the parameters to know when it is time for the change in management. Plan and execute the process in good time to make the handover smooth and seamless. The business should not miss a beat, the momentum of growth should be unchanged. Have clear KPI’s to measure the time has arrived and step aside gracefully.
good time so that the business and family capitalises on the energy and drive of a motivated next generation. Use the process leading up to handover to build trust between the generations.
4. Avoid, standing in the way of the next generation.
Do not change the rules. Mentor and help the next generation. Stick to the process and the timing.
Allow the successor to step up in
Do not meddle or interfere!
TIME FOR FREEDOM? Ray Moore, family business expert discusses the importance of having an exit strategy
“If a business owner is thinking of retiring they need 3-5 years worth of planning and putting in strategies before exiting the business. Remember, succession is a process, not an event.�
- Ray Moore
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BUSINESS REPORT
75% OF FIRMS POLLED WANT TO STAY IN THE EU The overwhelming response when we asked business owners if they would like to see the UK remain in the EU was a resounding Yes (75%). Interestingly business owners also cited overseas trade as the most popular area for growth in 2015.
50%
the number that businesses polled expect to grow by.
BUSINESS RESEARCH Recent poll carried out with 60 SME business owners from across the county of Essex. We look at their predictions and the incredible optimism that pervades them.
SIMON BURNS MP FOR CHELMSFORD “The research carried out by Fluid highlights the buoyancy of the local economy in Mid-Essex. It is encouraging that so many firms anticipate creating more jobs in the next 12 months. It is also heartening the commitment that local businesses have in taking on appretices, as this is helping to train the next generation skilled workers and entrepreneurs”.
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As passionate facilitators of business growth in Essex, we at Fluid Business Coaching wanted to undertake research with businesses in Essex to discover more about the predicted growth & also challenges to business in 2015. 60 SMEs took part in the poll, which uncovered incredible optimism for 2015 and beyond from the Essex business community. Half of the respondents predicted their business will grow by at least 50 per cent in the next 12 months and encouragingly 90 per cent of businesses will be increasing
wages across the board. There’s good news for apprentices too as half said they will be creating, or adding to their apprenticeship scheme this year to encourage young people in to the workplace. Looking at the wider business landscape when asked where they saw the most potential for growth in the next 12 months 30 per cent attributed it to overseas trade with other reasons sited being organic growth via sales team (5 per cent) & the growth of the UK building industry (10 per cent).
A BUSINESS OWNER’S PERSPECTIVE
NATALIE MOORE Managing Director Fluid Business Coaching
“According to the Fluid Business report, Essex is definitely a healthly landscape for all types of businesses” said Natalie Moore, MD at Fluid Business Coaching.
National figures for Start Up Britain listed Chelmsford at #20 in their most entrepreneurial cities and this research certainly reinforces this.”
“We’ve been working with individuals and businesses (as Team Results and now as Fluid) for eight years now and I am delighted that things look so positive.
The biggest single barrier to growth was seen as company culture at 40 per cent, with a third also citing cashflow and funding as the largest obstacles. Business leaders also called for faster Wi-Fi and more support for start ups. “The challenge now is for Essex businesses to step up to the growth challenge, and to strive to increase the number of 250+ employee firms based in the county. To this end we intend to maintain a focus on ensuring Essex has a clear template for growth, and will continue to work with our clients and colleagues in local government to achieve this.” Said Ray Moore, Founder of Fluid Business Coaching.
50%
the number that businesses polled expect to grow by.
One of the businesses which took part in the research was Cycles UK, which has 14 UK branches across the UK. Owner Richard Schofield said: “The findings of the report really mirrors the shape of our business. “2015 looks incredibly rosy and we’re set for real growth”. To read the full report visit www.fluidbusiness.co.uk
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It’s been 14 years since the the terrorist attacks on the United States in 2001 changed the world forever. The shocking events were noted not only for the horrors that accompanied the ruthless act of terror, but for the impact they also had on businesses across the world.
The impact was felt on a global scale and across a variety of different economic sectors, especially the American economy and the defence industries. The American response to the attacks took the U.S. into a series of wars - of which the then Prime Minister Tony Blair supported - and those also had lasting consequences for businesses worldwide. While the world of business is still learning more about the long-term effects of the 9/11 attacks, there are several important lessons that can be drawn from them. Cash Is Still Definitely King The attacks instantly triggered a negative run on stocks worldwide, and this run was accompanied by the closure of a number major air travel routes. Security at ports was stepped up in the weeks following the attacks and the net effect of these changes was a significant worldwide stagnation in trade. The businesses that fared the best in the months following the terror attacks tended to be those that had cash on hand. While the global economy did recover following 9/11, cash-poor companies struggled to cope in an environment where fulfilment was now delayed and new regulations were shooting up all over the place in almost every major trading country. For companies that lacked significant reserves, these were trying times. The 9/11 attacks helped reinforce one of the most important lessons in all of business: it is critical to have cash on hand in case of a crisis - in this case, 9/11.
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Gold and Commodities Not surprisingly, in a crisis that triggered a retreat to safety and quality, the price of gold spiked. Prices for gold in London trading rose from $215 USD to $285. Oil prices also rose sharply in the days following the attacks. The U.S. dollar took a dive in the foreign exchange markets, giving up a lot of ground to the Yen, the Euro and the British Pound. Stock Market Crashes Almost every major stock index on the planet experienced a significant drop following the attacks, and most saw losses of at least 5 percent. Within hours, a majority of global exchanges had halted trading, and the New York Stock Exchange would not resume trading for weeks following the attacks. Insurance Losses The insurance industry was able to weather the terrorist attacks better than might have been expected. Most of the major insurers across the globe saw significant drops in the share value of their stocks, but the insurers on the hook for losses from the attacks did have enough reserves to pay out claims. The biggest impact came after the attacks, as insurers began to reevaluate their exposure to events such as acts of terror. This led to a significant reduction in their willingness to offer coverage for any future terror-related attacks. Impact on New York City New York is home to one of the greatest concentrations of businesses in the world, and it would be remiss to not address
the cost of the attacks there. GDP for the City of New York reportedly decline by more than $30 billion for the final quarter of 2001. The city also received more than $11 billion of assistance from the U.S. federal government. In terms of business impact, the greatest effects were felt by exporters. Aviation and Tourism The stoppage of all flights into and out of North American airspace had a lasting effect on the travel industry. Not only were air carriers subjected to new security requirements at the tip of a hat, but the public’s view of air travel changed dramatically. A number
How 9/11 Impacted Businesses Across the WorlD By David Sargant
of airline companies ended up in financial trouble, and the process of consolidation within the industry is still ongoing more than a decade later. Defence Spending Globally, an increase in defence spending followed the attacks, but the increases varied in size. While the U.S. ramped up defence spending massively following the attacks and while going into the Global War on Terror, other NATO members have maintained spending levels that are still below the organisation’s requirements. While American defence companies have always been
sturdy investments, they have been especially good businesses following the 9/11 attacks. The U.S. wars in Afghanistan and Iraq respectively are estimated to have cost more than $5 trillion dollars, with much of that money flowing to external contractors for reconstruction projects and supplies. Conclusion Perhaps the most important lesson businesses can take from the 9/11 attacks is a greater appreciation for the resilience of the global economy. Black swan events, such as a successful terrorist attack of this scale are hard to anticipate,
but the majority of the worlds’ businesses were able to survive the attacks, adjust to the new economic climate and begin doing business again in a surprisingly quick fashion. The attacks did not dampen the long-term enthusiasm shared by participants in the larger, globalised economy.The biggest impact came after the attacks, as insurers began to re-evaluate their exposure to events such as acts of terror. This led to a significant reduction in their willingness to offer coverage for any future terror-related attacks.
DS
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BUILD SOLID FOUNDATIONS We will show you how to build your business on solid foundations with our Foundations Programme. Have you noticed how easy it is get caught up in the daily ‘doing’ and just forget the reason why you started your business in the first place? Are you looking to grow your business but don’t know how to make the progress you desire? The Fluid Business Coaching Foundations Programme has been designed by our Levels Certified Business Coaches and is a sure way to get you and your business on the move. The Programme lasts for 3 months and is made up of bi-weekly group coaching sessions covering topics such as Finance, Delivery and Marketing and much more. The Foundations programme is perfect for owners of small businesses ready to take their business to the next level. Unlike other training programmes, the Foundations Programme will hold you accountable to make the changes in your business. There is a total reality to this programe too, as your business is used as your case study.
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Plus, we have put together a bonus planning session to ensure that what you have learnt is applied to and really makes an impact in your business. The programme is offered at an affordable price, with a full money-back guarantee if you haven’t seen results within your business during the course of the 90 days. So if you are ready to grow your business the right way register your interest at; www.fluidbusiness.co.uk/foundations
The Foundations Programme has been written and designed by The Levels Certified Business Coaches