Sussex Business Times Issue 362 2012

SBT SUSSEX BUSINESS TIMES

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ISSUE 362: FREE

THE APPRENTICE’S KARREN BRADY EXCLUSIVE INTERVIEW WE EXPLAIN THE FACTORING FACTOR CAMILLA STEPHENS REVEALS THE SECRETS TO HER SUCCESS WITH HIGGIDY PIES WE FIND OUT THE TRUTH ABOUT INSOLVENCY AND ANSWER YOUR BUSINESS QUESTIONS IN OUR NEW SBT Q&A SECTION

GETTING THE SUMS RIGHT

WE GIVE YOU THE FINANCIAL INFORMATION YOUR BUSINESS NEEDS

SBT THE MAGAZINE THAT MATTERS

Local Innovation, Global Ergonomics The UK’s leading ergonomics company is based in Berwick, East Sussex.

Ergonomic solutions, office design and furniture, training and consultancy, workstation accessories and Health and Safety E-learning.

t. 0845 345 0010

www.posturite.co.uk

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SBT Welcome Photography © Grant Scott

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“This issue brings you our new finance pages, which are geared to making money matters accessible” - SBT

It’s finally summer in the SBT office, but for us, like many of you, that means business as usual. We understand that in the current marketplace there’s not such a thing as a slow season or space to take your eye off the ball, which is why this issue is as packed full of inspiration and advice as any of our others.

To motivate you whilst others may be hitting the Sussex coast, we have advice from the leading businesswoman and face of Alan Sugar’s boardroom Karren Brady, the inspiring story of Higgidy Pies; a multi-million pound business based in Shoreham and a profile on Bowers and Wilkins speakers who are enjoying global success through a collaboration with Apple from their roots in Worthing.

This issue also brings you our new finance pages, which are geared to making money matters accessible.

In tough times, we’re never afraid to tackle tough subjects, and so we reveal the inside track on invoice factoring and insolvency, because whatever the state of your business today or in the future, knowledge is always power.

Of course, we do hope that all of our readers are enjoying prosperity and so we bring you a little light relief with our buyers guide to premium cars, reveal the best place to take your boss for a business lunch designed to impress and keep you up to speed with luxury brand Rolls Royce, who now have their headquarters at Goodwood. So whilst you might be spending the majority of the season at your desk, SBT should offer some escapism, as well as an indispensible guide to business.

Editor Samantha Scott-Jeffries

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Contents SBT Issue 362

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SBT SUSSEX BUSINESS TIMES

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EN SP IN EC BU IA SIN L! ES

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ISSUE 362: FREE

THE APPRENTICE’S KARREN BRADY EXCLUSIVE INTERVIEW WE EXPLAIN THE FACTORING FACTOR CAMILLA STEPHENS REVEALS THE SECRETS TO HER SUCCESS WITH HIGGIDY PIES WE FIND OUT THE TRUTH ABOUT INSOLVENCY AND ANSWER YOUR BUSINESS QUESTIONS IN OUR NEW SBT Q&A SECTION

GETTING THE SUMS RIGHT

WE GIVE YOU THE FINANCIAL INFORMATION YOUR BUSINESS NEEDS

SBT THE MAGAZINE THAT MATTERS

Cover Image: © Dreamstime.com Sussex Business Times Managing Director/Publisher: Lee Mansfield lee@lifemediagroup.co.uk Commercial Director: Simon Skinner simon@lifemediagroup.co.uk Commercial Business Manager: Luke Mould luke@lifemediagroup.co.uk Editor: Samantha Scott-Jeffries samantha@lifemediagroup.co.uk Editorial Director: Grant Scott grant@lifemediagroup.co.uk Sales Executive Leanne McConnell leanne@lifemediagroup.co.uk Design: Harriet Weston harriet@lifemediagroup.co.uk Media Director Linda Grace linda@lifemediagroup.co.uk Accounts: Clare Fermor/Amelia Wellings clare@lifemediagroup.co.uk amelia@lifemediagroup.co.uk Published by LMG SE LTD Park View House 19 The Avenue, Eastbourne, East Sussex BN21 3YD 01323 411 601 Printed by Gemini Press, Shoreham-by-Sea, West Sussex, BN43 6NZ All material in this publication is strictly copyright and all rights reserved. Reproduction without permission is prohibited. The views expressed in Sussex Business Times Magazine do not necessarily represent the view of Life Media Group LTD. Every care is taken in compiling the contents but the publishers of Sussex Business Times Magazine assume no responsibility for any damage, loss or injury arising from the participation in any offers, competitions or advertisement contained within Sussex Business Times Magazine. All prices featured in Sussex Business Times Magazine are correct at the time of going to press.

Copyright Life Media Group LTD 2012 ©

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Welcome

Discover how this issue of SBT will inspire you to keep driving your business forward as well as provide escapism.

Spending It! Our ultimate compilation of the latest premium cars showcases some of the smartest ways to travel. Which would you choose?

Working Lunch Need to know where you can impress a client or colleague with the best business lunches in Sussex? SBT visits Gravetye Manor near East Grinstead and brings you three further recommendations.

The Sound Of Success Bowers & Wilkins provide audio speakers for Abbey Road recording studios, Jaguar cars and millions of homes.

Discover the Sussex brand who collaborate with Apple.

An Entrepreneur’s Story Meet Camilla Stephens. She launched Higgidy Pies from a kitchen in Shoreham-on-Sea and now enjoys a £15 million business. We learn how her brand grew 900% in four years.

The Secrets Of My Success Renowned businesswoman and star of the BBC series The Apprentice Karren Brady reveals how to excel in your field.

Brand Focus With new prestgious headquarters at Goodwood, SBT explores how and why Rolls Royce motor cars have come to be based at the home of motor racing in Sussex.

What Do You Do When All Else Fails?

Three Sussex based experts deliver essential advice for businesses facing financial distress and insolvency.

The Factor Factor Invoice factoring can prove vital to the stability of companies suffering from weak cashflow. SBT reveals what factoring could mean for your business.

SBT Q&A In the first instalment of our new series, SBT asks a range of industry experts to answer our burning business queries.

Made in Sussex We learn how Posturite has become a market leader in ergonomic solutions with a £14 million business.

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Full P

1976

Trek makes its first bike, the 520. A high-tensile, double-butted steel frame built in a barn in Waterloo, Wisconsin. It’s still under warranty.

520

Madone 6.9 SSL

2012

Now a top performer in the Tour de France, the Madone combines aerospace technology with ultimate comfort. Now designed by bona-fide rocket scientists at Trek HQ in Waterloo, Wisconsin, just minutes from the same barn where it all began.

Technology has changed a lot in 35 years. Our goal has remained the same: Build The World’s Best Bikes.

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Full Page.indd 1

24/11/2011 15:46

I AM CHANGING EVERYTHING

I AM THE NEW NIKON 1 V1.

I am an intelligent camera built from scratch.

With my pre and post capture technology, I take pictures before and after you’ve fully pressed the button, meaning you will never miss a moment again. I am a small system with interchangeable lenses and innovative features, an electronic view-finder, and a super high-speed autofocus system. I am a new era of imaging. www.nikon.co.uk

I am your colour of choice: For 2 year warranty on any camera and lens kit simply register your new Nikon

6 www.sussexbusinesstimes.co.uk within 30 days of purchase. Call 0800 408 5060 or visit www.nikon.co.uk/register.

Spending It!

Fully Loaded At SBT we’re always searching for ways to make the commute to the office run smoothly and add a sense of adventure to leisure time. Whether you’re in a position to invest, or just dreaming of the best way to travel, we share our essential guide to the premium cars that really deliver on va va voom.

PREMIUM CARS Their first ever model with fourwheel drive, this four seater with a mid front V12 is the most powerful and versatile car they have built, claim Ferrari. The Ferrari FF, £227,107 www.ferrari.com

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Spending It!

PREMIUM CARS TOP LEFT: The F Sport 450h with its enviable Dynamic Handling System £50,995 www.lexus.co.uk TOP RIGHT: Improved performance and 30% lower fuel consumption make the Mercedes-Benz SL 63 AMG, a desireable Roadster £128,000 www.mercedes-benz.co.uk MIDDLE: 50 years after it launched the original, Alfa combine sporty looks and accessible pricing with the new Giulietta, from £17,760 www.alfaromeo.co.uk BELOW: The Bentley V8 GT snarls gloriously as it accelerates, prices from £125,000 www.bentleymotors.com

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The Ocean Suite on Eastbourne Pier offers a unique and breathtaking setting for civil ceremonies and civil partnerships. Our venue holds up to 200 guests with a capacity of 130 for your ceremony.

CEREMONY FREE OF CHARGE Guests can enjoy the comfortable surroundings and state of the art facilities in our suite and then step out onto the luxury roof terrace and private sun deck to take in the unbeatable 360 degrees sea views.

Let us make it an unforgettable day that you will treasure forever.

For more information visit our website or call our Events Manager for an informal discussion or to arrange a viewing of this magnificent venue.

AIRBOURNE – SUNDAY 12TH AUGUST 2012 Enjoy this event from this unique venue which is situated at the end of Eastbourne Pier and has the most amazing views of the sea and coastline.

WE ARE OFFERING A LIMITED NUMBER OF TICKETS FOR SUNDAY 12TH AUGUST 2012, COME AND JOIN OUR PARTY WHICH INCLUDES: Fruit Punch – Arrival Drink from 11.30am Barbecue – Served between 1.00pm – 3.00pm Exclusive Use – of The Ocean Suite Unrivalled – Viewing of the airshow from The Ocean Suite, our luxury roof terrace and the Camera Obscura Tower.

TICKETS ARE ON SALE NOW £19.99 PER ADULT £11.99 PER CHILD (Children aged 12 years & under) DON’T MISS OUT! CALL 01323 410467 NOW Cheques made payable to Six Piers Ltd

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The Ocean Suite, Eastbourne Pier, Grand Parade, Eastbourne, East Sussex, BN21 3EL T: 01323 410467 F: 01323 738918 E: info@theoceansuite.co.uk W: www.theoceansuite.co.uk

Spending It!

PREMIUM CARS TOP LEFT: Two decades after inventing the SUV, the latest Jeep Grand Cherokee is fine tuned £36,795 www.jeep.co.uk TOP RIGHT: Featuring bespoke luxury and sporting details designed in collaboration with Victoria Beckham, The Range Rover Evoque, from £28,695 www.landrover.com MIDDLE: With enhancements in design and driving comfort, the new BMW 7 series, from £58,115 www.bmw.co.uk BELOW: They claim it is a new generation of the benchmark sports car first launched in 1963, the Porsche 911 Carrera, from £71,449 www.porsche.com

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Spending It!

SBT SUSSEX BUSINESS TIMES

SBT SUSSEX BUSINESS TIMES

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ISSUE 362: FREE

THE APPRENTICE’S KARREN BRADY EXCLUSIVE INTERVIEW WE EXPLAIN THE FACTORING FACTOR CAMILLA STEPHENS REVEALS THE SECRETS TO HER SUCCESS WITH HIGGIDY PIES WE FIND OUT THE TRUTH ABOUT INSOLVENCY AND ANSWER YOUR BUSINESS QUESTIONS IN OUR NEW SBT Q&A SECTION

GETTING THE SUMS RIGHT

WE GIVE YOU THE FINANCIAL INFORMATION YOUR BUSINESS NEEDS

SBT THE MAGAZINE THAT MATTERS

GET INDIVIDUAL ISSUES OF SUSSEX BUSINESS TIMES MAGAZINE DELIVERED DIRECT TO YOU, STRAIGHT FROM US, WITH FREE POST AND PACKING. 6 ISSUES (A YEAR’S SUBSCRIPTION) FOR JUST £10.00 HOW? CONTACT US AT CONTACT@LIFEMEDIAGROUP.CO.UK

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Spending It!

PREMIUM CARS TOP LEFT: With the introduction of a handcrafted ‘artisan’ cabin, the Jaguar XRK-S coupé is available to order for £97,000 www.jaguar.com TOP RIGHT: This limited edition is the latest iconic design to be unveiled by Aston Martin, the DBS Ultimate £186,582 www.astonmartin.com MIDDLE: Incorporating the name and genes of the five times Le Mans winner, the Audi R8, from £87,965 www.audi.co.uk BELOW: Claiming that it is redefining the very pinnacle of the super sports car market, the Lamborghini Aventador LP 700-4, £247,668 www.lamborghini.com

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12:02

LONG ROOM THE

The perfect place to meet people, drink and dine in the centre of Eastbourne with a secluded garden.

Private room available for hire.

8 Bolton Road, Eastbourne, East Sussex BN21 3JX Tel: 01323 723023

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Tried & Tested

Working Lunch

Need to impress a client, discuss important plans with a colleague or just enjoy a great lunch away from the office? This issue SBT Editorial Director Grant Scott visits Gravetye Manor near East Grinstead and samples a quality of service, food, wine and environment that is sure to impress any client or business colleague...

It is essential over the course of a successful business Review career to have an ace up your sleeve.

A dining location which you can always reply upon to provide impeccable service, a refined attention to detail, sumptuous but comfortable surroundings and above all excellent food. A location which you can take past, present and future clients and business colleagues to with complete confidence. Gravetye Manor is my personal ace up my sleeve.

I first visited Gravetye approximately twenty years ago and I have been returning irregularly ever since.

However, having lived out of the county for many years and faced with a client whom I wished to impress, I decided to take a risk and play my Gravetye card once again. It was not a mistake.

From the moment that the electronically controlled gates silently open as you reach the end of the winding road through the stunning countryside which surrounds Gravetye, you know that that the Gravetye experience is going to be one of assured quality. As I pulled up in front of the 16th Century Elizabethan Manor house, a member of staff came to meet me with an umbrella to protect me from the insistent June rain and greeted me by name. Gravetye was delivering on service before I had even entered the building.

Despite the month a fire crackled in the vast fireplace in the entry hall lounge and the air was filled with a scent of

Gravetye Manor

combined wood smoke, bees wax and fresh foliage. In short Gravetye smells exactly as it should. It has the scent of a prestige country house hotel set in 1000 acres of woodland. I met my guest and we had pre dinner drinks in one of the comfortably appointed lounges, whilst we looked at the lunch menu and wine list and sampled delightful pre-lunch miniature fried balls of pork and soft cheese.

Now it is at this point that fear can enter into your mind whether you are picking up the bill personally or hoping to pass it through your accounts department as a legitimate business expense. Especially when you have chosen to eat somewhere like Gravetye, but have no fear because they have one of the best value daily lunch menus I have ever seen. The two course menu is just £22.50 and the three course is £27.50 and offer two choices for each course with an extra £4.00 for coffee and Petits Fours. I chose the pressed smoked chicken with Gravetye piccalili,

Dining room at Gravetye Manor

Why it works Fine dining in an elegant setting.

Attentive, polite staff who will ensure you are never left wanting or waiting.

Beautiful gardens which add an added dimension to dining.

Opportunities to stage meetings and unique events.

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IGHTON’S BR H

STAURANT RE

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NEW B EST AR TT O

DISCOVER

IS C

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BRIGHTON’S BEST KEPT SECRET

POP IN...

We are proud to announce that Stanmer House has recently been reopened by Whiting and Hammond as a wonderful restaurant and bar and now opens its doors to everyone...

There’s no need to book, just pop in.

FANTASTIC FOOD...

Our daily changing menu cooked to order by our award winning chefs using locally sourced produce. View our website for todays menu.

FOR ALL THE DETAILS JUST VISIT www.stanmerhouse.co.uk

NOW OPEN

7

DAYS A WEEK

9am - 11pm Every Day

STANMER HOUSE, STANMER PARK, BRIGHTON, EAST SUSSEX BN1 9QA TEL: 01273 680400

18 www.sussexbusinesstimes.co.uk STANMER HOUSE, IS PART OF THE WHITING AND HAMMOND GROUP, DISCOVER MORE AT: WWW.WHITINGANDHAMMOND.CO.UK

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Tried & Tested

rocket and croutons, followed by the pan fried fillet of West Coast Turbot and a selection of artisan cheeses.

Whereas my guest decided to choose from the seasonal à la carte menu as clients so often do. However, I was happy for him to do so in the knowledge that my proportion of the bill was going to be controlled. He ordered a delicate English asparagus panna cotta with Devon white crab meat, tomatoes and hollandaise followed by char-grilled fillet of Southdown lamb with slow braised leg, marsh samphire, morels and wild garlic foam and also decided to finish with the cheese. To accompany our meal we decided on a half bottle of Pouilly Fume, which proved to be both delicate and beautifully scented and a single glass each of a fantasticlly deep red Rioja to accompany the cheese course.

That is what we ordered but we both agreed that not only was it extremely difficult to settle on our final choices but that we had both rarely seen a menu upon which there were so many things that we wanted to try.

“A relaxed conversation in which you are able to both listen and put forward your business proposals” Throughout lunch the service was both attentive but always reserved, with just the right amount of information being given to describe each course as it arrived.

The room’s acoustics and table positioning allowed us to have an indepth business conversation, without fear of the subjects we were discussing impeding on the atmosphere of the room or other people’s impeding on ours. In short, it was the perfect environment for a relaxed conversation in which you are able to both listen and put forward your business proposals.

The relaxed nature of our conversation was of course aided by

the incredible quality of the food and cooking. Each course brought about comments of high praise from both of us on both the standards of flavour, which had been achieved and the sophisticated, contemporary but refined presentation of each course.

Interestingly, as the meal progressed not only was my client impressed by Gravetye (it was the first time that he had been there and had not previously been aware of it) from a business lunch perspective but he also mentioned how he would bring members of his family for both dinner and Sunday lunch.

Gravetye Manor remains my ace up my sleeve and may now be my guests also, especially as he was also interested in its conference and meeting facilities. Owned by the Relais & Chateaux group, Gravetye is just 12 miles from Gatwick Airport and 30 miles from Central London but a world away from both. www.gravetyemanor.co.uk For all business enquires contact Celine Jorgensen at: celine@gravetyemanor.co.uk

SBT

Recommendations Three more top restaurants near East Grinstead.

Aldeia Restaurant

Anise

AG’s Grill Room

This Portuguese restaurant is a real local favourite due to its authentic cooking and quality produce.

There is always a friendly reception despite being constantly busy and booking in advance is advisable. The pricing is competitive but not cheap.

Definitely one to consider www.restaurantforestrow.co.uk

The Fellbridge Hotel and Spa is home to this fine dining Asian restaurant, which is fast gaining a reputation for attentive service, and an excellent selection of desserts. Home baked breads and a wide selection of imaginative food combinations make this a gastronomes choice. www.felbridgehotel.co.uk

Set within the Alexander House Hotel and Utopia Spa. AG’s Grill Room serves modern European cuisine and has an extensive wine cellar. Many of the ingredients used are locally sourced and the location of the hotel within 170 acres of private gardens provides a relaxed and informal lunch environment. www.alexanderhotels.co.uk

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A Winning Formula

The Sound of Success From humble beginnings to a collaboration with Apple, celebrity endorsement and the pursuit of perfection; SBT listens carefully to the story of Bowers & Wilkins, the internationally acclaimed maker of speakers who has its roots in Worthing and still follows it’s founders’ clear vision At SBT, we’ve seen time and again that the most successful Profile business ideas are often the simplest.

Bowers and Wilkins are a case in point.

The company was founded by John Bowers, who in the Second World War was a special operations executive in clandestine radio based at Bletchley Park and was always passionate about sound. After the war he studied at Brighton Technical College and qualified in Telecommunications Engineering before opening Bowers & Wilkins Limited; a retail shop which dealt in radio and televisions with his former army colleague Roy Wilkins in 1965.

Yet despite surrounding himself with some of the best hi-fi equipment of the day, Bowers was disappointed with the sound quality of the equipment he encountered. A classic music enthusiast who attended many concerts, he felt that the reproduction that the speakers of the 1960s offered were lacking. He started to experiment with designing and building his own speakers in the garages at the rear of the shop and the results of his success were the beginnings of his new manufacturing company B&W Electronics. This he established with his lifelong friend Peter Hayward in 1966, with £10,000 bequeathed to Bowers by an elderly lady who had been impressed with his knowledge of classical music and the speakers that he had subsequently built for her.

From the outset Bowers had a clean, uncomplicated vision - to produce the

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Zeppelin Air in collaboration with Apple

best loudspeaker in the world. He also sought to deliver products across a broad price spectrum and for both the domestic and professional markets. In his lifetime Bowers produced award winning loudspeakers, was pioneering in utilising new (or reappropriating existing) technology and as a result developed designs used in recording studios such as EMI Abbey Road, Decca and Deutsche Grammophon.

Bowers’ simple vision still drives the company today, twenty years in succession of its founder. As it enjoys new milestones in design, further awards, celebrity endorsement and a collaboration with Apple, SBT were keen to discover how the B&W

“Bowers & Wilkins core belief remains unchanged: that a high-fidelity speaker should be to the ear what a flawless pane of glass is to the eye”

Inside The Industry

John Bowers, founder of Bowers & Wilkins

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A Winning Formula

Group, still based in Worthing, have gone from strength to strength, whilst keeping true to their founders’ philosophies in tough times.

“Today we’re turning over £130 million as a group,” Geoff Edwards, COO (Chief Operations Officer) reveals “and when I joined it was closer to £70 million,” he notes, adding humbly “not that I have had much to do with that.”

Edwards joined the company in 2002.

With a background in accounyancy, and as a partner in the firm Grant Thornton, he had been advising B&W since 1985 and felt that it was time to go into industry on feeling “the frustration of giving advice and not necessarily seeing the outcome or that it is followed through correctly.” Edwards had met John Bowers, his predecessor and also found the current business owner not only passionate about the business but also the core objective of creating “the best loud speaker in the world.”

Edwards, however, also saw that the world itself, has been changing.

“I was brought in with the role of moving the business up a gear.

It had good products, a good research and development team and good manufacturing. It was about tightening up systems and getting the business to work faster - making decisions happen quicker, moving a lean manufacturing operation to an agile operation.” Edwards had the business advisory background and experience of helping “a thousand plus companies” to draw upon as a source of knowledge. He reduced the multiple tears of management and streamlined structures. He also ensured that Bowers original tenet of “trying to achieve the best sonic performance” was done so “against the backdrop of a commercial business,” he explains.

“We are always trying to produce the best speaker at each price level and push the technology to produce better sound.” So whilst “our research guys are supreme audiophiles” as he calls them, “the senior management of the business are keeping the balance of pushing the quality, getting the product to market and the best value possible,” he maintains.

When Edwards joined, B&W had facilities in Bradford and the Midlands and during a ten year period created facilities in the Far East and China.

“We looked at the cost base of the business and where appropriate moved

The original shop launched in 1965, in Worthing

“If you were to chop most of the staff in half, you would find B&W written right through them!”

- Geoff Edwards

to a lower cost base,” he explains of the Bradford facility. “We also have the problem of the European supply chain and in particular use high quality wooden cabinets. In 2003 the European cabinet market was rapidly declining and we ended up with a business in Denmark which in 2010 we onshored to the UK to protect the supply chain and get what we needed in the most efficient manner,” he details. With a company producing a product that is all about quality “we couldn’t get someone else to do it for us,” he explains, and it is this which is behind the company’s decison to keep their global business base in Worthing, where there are a team of some 300 workers.

“If you were to chop most of the staff in half, you would find B&W written through them! We have loyal and hard working staff and they have built up skills over the years that are very difficult to replace. To move and go somewhere else you would be giving up a strong, complex skill base which is diffilcult to repeat.” It was the ability of these staff to pass on their skills that enabled the company to move into China “and maintain the quality of what we produce in our other factory.” The

second reason for B&W to stay on the south coast “is that we also have our research facility on the other side of the downs in Steyning with people who have devoted their lives to producing the best loud speaker. These are rare people,” he says of this team of 30, and so whilst from a manufacturing side Worthing is not ideal because of the abysmal infastrcuture, we manage around it.”

Whilst the company is physically staying put, it is not afraid on all other levels, to move with the times. “We have taken the knowledge we have gained of manufacturing top end high quality hi-fi speakers and cascaded it down to a now wider range of products,” Edwards elaborates. These are products that the company produce today in response to the new and evolving ways that we consume music. Whilst there might be an initial perception that this would not be a fruitful market, Edwards argues that this is resolutely not the case, and secondly, the importance of moving with and responding to that market in tough times. He admits that whilst the company, being in the “premium market” was initially “hurt” by the 2008 recession, they did

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Visit www.identity-online.co.uk or call today on +44 (0) 1323 469111 24 www.sussexbusinesstimes.co.uk

A Winning Formula

“gain” from “consumers being careful and buying a high quality item and keeping it for longer” and secondly from offering “flexibility.”

“There was a worrying phase where people thought there would be less appreciation of music from downloads and MP3 players, but people like ourselves rose to the challenge of creating higher quality dowloads, with even better sound than off of vinyl and CDs. Also, if they are listening to music all day, there is a challenge to give people the flexibility to be on the move, to have comfortable headphones for long periods or music in all of the rooms of the house. People now want the same quality from a smaller speaker that they used to get from very large speakers, a sound system that allows them to be listening to a female vocalist with a high range voice in one moment and watch a blockbuster movie the next.” B&W, he claims, rose to such challenges and in a competitive market. As a result of the company looking at how they would respond to the new generation consuming music, their industrial designer started to look at Apple, at the same time that Apple “were looking at trying to produce a quality sound system for their products.” Apple, it transpired were seeking an audio partner whose products would reflect their core values and “these things coalesced,” claims Edwards. The result, was a collaboration on products such as the Zeppelin Air and Zeppelin Mini. It is no coincidence, Edwards reveals, that many of the employees at B&W had read Steve Jobs’ biography and felt there were “a lot of similar, underlying philosophies” to both companies “from the delivery of function to the ability to use iconic products and design” and he was not surprised that meetings with their Director of Branding and between B&W’s Industrial Designer and Jonathan Ive in the USA were fruitful.

Of course the collaboration with Apple has propelled Bowers & Wilkins to further success. “Not only did that give us new technology which allowed us to break out from where we were in providing hi-fi speakers, it has been a way of getting our products to a new generation.” B&W could expand their retail base without threatening the independent retailers who stock their products in each country and comprise of 2,500 outlets worldwide. “If you

The iPod has changed the way we listen to music and the award winning Zeppelin which allows people to get the most of digital music at home without turning on their computers

The 804 Diamond speakers, part of the 800 series used in professional recording, domestic hi-fi and incorporates a tweeter made from pure diamond

start to sell through John Lewis, you will upset your exisiting retail base,” Edwards explains: “but as these were a natural extension of our products, we could open up additional retail channels for that segment of new media products such as computer speakers, headphones and Zeppelin products.”

These products, he reveals, now count for one third of B&W’s business, whilst the development of the home theatre, which has also grown particularly since 2007, is also doing extremely well and high profile collaborations, with brands such as with Jaguar motorcars, are maintained.

Off the back of the new media side of the business is the ‘Society of Sound’, the company’s online community.

This gives their community access to previously unreleased music (which they are seen to be supporting), the opportunity to learn about the musicians who use their products (such as Peter Gabriel) and is ultimately, “a

way of improving the links between us the manufacturer and our consumers.”

As a business without a shop, this is a way of B&W communicating directly with the end user of their products.

So, all that is left to ascertain, is whether over five decades of design and manufacturing, Bowers & Wilkins have managed to produce the best speaker in the world as John Bowers always dreamt of? Well, the Diamond Dome Tweeter found in their 800 Series Diamond was recently awarded the presitigious Queen’s Award for Enterprise in Innovation, an award which prides both innovation and commercial application. So whilst the pursuit of perfection might by its very nature be an eternal one, Bowers & Wilkins recent achievements not only have their founders’ vision at heart, but would, we can surmise, have made him proud. www.bowers-wilkins.com

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An Entrepreneur’s Story

The Pie’s the Limit

From a kitchen based start-up in Shoreham-by-Sea to a £15 million business that grew 900% in four years, Samantha Scott-Jeffries speaks to Camilla Stephens of Higgidy Pies to discover how she turned a humble British staple into a successful brand.

Higgidy Pies is a brand with a warm Interview message and a cool business idea at its core. From their kitchen in a quiet back street of Shoreham-by-Sea, Higgidy pies and quiches are handmade with generous helpings of simple, fresh ingredients “as if your mother or grandmother had made them,” says the company’s founder Camilla Stephens, and are all wrapped up in appealing, friendly boxes adorned with illustrations. It is no mistake that the result is a product that feels lovingly put together, slightly rustic in its deliberate imperfection, with an emphasis on taste. Yet whilst Stephens is an avid home cook, it was not her love of pies that was behind the launch of brand, but rather her ability to spot a commercial prospect.

“The idea for Higgidy came from

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spotting a gap in the food market,” she reveals. “I had seen many premium brands emerge such as Innocent Smoothies, Green & Blacks chocolate and in supermarkets you could buy ‘own brand’ or ‘value’ crisps or Kettle Chips. Pies were something that I associated with chip shops, a product hiding all types of meat under pastry and there was no premium, top tier product on the market.” And so she set about bringing “innovation and energy” to revitalise a great British staple when she launched the company in 2003.

The experience that Stephens gleaned from her earlier career went some way to paving the way for her Higgidy venture. From an early age Stephens followed her love of food, leaving school half way through her A’Levels to join Leiths Cooking School in London where she became their youngest graduate. She later joined

their catering company whose clients included the Orient Express, before working to produce food for French chef Justin de Blanc in Mayfair. At 21 she joined Good Housekeeping magazine as an Assistant Cookery Editor, but decided ultimately, that she wanted to return to cooking.

However, it was also apparent that Stevens had already had developed an entrepreneurial eye.

When she visited America, Stephens came across the Starbucks chain, a brand by which she was impressed and had not yet made it over to our shores. She visited the company’s headquarters and suggested that she take the concept to Britain, along with a range of food to accompany their coffee, which she would develop.

“In a very nice way they said, ‘no thank you, we’re not interested in you taking Starbucks to England,” she recalls. Yet Stevens still believed in

An Entrepreneur’s Story

“The idea for Higgidy came from spotting a gap in the food market”

- Camilla Stephens

Camilla Stephens, a keen and experienced cook, at the helm in the kitchen

www.sussexbusinesstimes.co.uk 27

An Entrepreneur’s Story

“In a very nice way they said ‘no thank you, we’re not interested in you taking Starbucks to England’”

- Camilla Stephens

the idea and when she learnt about the Seattle Coffee Company, who had just launched as a start up in London, she approached them with the same food offer and this time was successful. “I joined at store number two in Canary Wharf” she remembers “and started working as a Barrister for my first few months in the role, and at the same time I sourced food from local producers and bakeries to build a range of sandwiches and pastries for the company to sell.” The range was a resounding success on their counters and the company expanded quickly. “The learning I took from that, was that you have to be prepared to wear a lot of different hats in a small entrepreneurial business and almost work for a different company every six months as it grows and changes,” she says. And grow it did. The Seattle Coffee Company expanded to 50 cafes and after six years was bought out by Starbucks. Stephens became the head of food for the UK at Starbucks for the three years that followed. “I learnt a lot about marketing,” she recalls of this time “we had to rebrand quite quickly and I learnt how to communicate with customers and bring them with you.”

After a brief stint of working freelance in Sussex, she started to develop a new business in 2003, which would become Higgidy.

On spotting a gap in the market for premium quality pies, Stephens went into business with two other partners, who each invested £50,000 in the business enabling them to produce a handmade product. “In the

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ABOVE: Stephens and her children making Higgidy Pies

beginning we started off making pies for cafes, delis and garden centres and the consumer was not aware that they were eating Higgidy, it was faceless,” says Stephens. However, the pies proved popular and within a year, the company were supplying the Eat fast food chain. This didn’t however, automatically lead to financial success. Despite sales of £260,000, and a growing turnover, by 2004 the company was in actuality losing £4,000 a week. Stephens had married an architect called James Foottit and in a bold move, they decided that they needed to invest everything they could financially and physically into the business, they sold their London home,

bought out the two original founders and rented a house in West Sussex close to the Shoreham premises.

Stephens and Foottit became completely hands on in the day-to-day running of the company and all of its operations, working across all roles, and all hours with a small team of ten workers. From the outset, however, they did not compromise on quality.

It was vital to them that the pies were handmade, the ingredients were naturally sourced and standards were high. The struggle was worth it, and by 2004 the company enjoyed sales of £550,000 which escalated to sales of £880,000 in 2005.

By 2006, Stephens felt that it was

time to develop their product into a brand. She had already established that she “wanted to bring something into the category that your Mum or Granny would have made at home, into an area that was highly mechanised.”

She wanted to “convey that you could have a delicious slow cooked stew in a pie, with great cuts of meat. Pies are British, I am proud of British food and I think we wanted to communicate that,” she says. Stephens teamed up with a design agency to develop the Higgidy logo, packaging and website.

“I had a vision that I didn’t want all of the pies to be lidded [or covered in pastry]” she says “the idea that there would be a panelled window in the box

“You have to be prepared to wear a lot of different hats in a small entrepreneurial business” - Camilla Stephens

that allowed you to see into the pies, would show that they looked vibrant and fresh,” she claims. “Also, we feel very rooted here in Sussex, we feel established here and want to invest in the local community and I think that comes across in our packaging,” she continues. Then, there was the name.

“Higgidy is a made up word,” she says.

“There were children running around when we were brainstorming ideas and someone said ‘higgidy’ and we looked at the pies it worked.” Today Higgidy to Stevens “means something imperfect, higgledy-piggledy, freshness and colour.” The branding gave the product a clear identity and during the same year Higgidy Pies was

www.sussexbusinesstimes.co.uk 29

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An Entrepreneur’s Story

The Recipe for Success

Higgidy’s Spinach, Feta & Toasted Pine Nut Pie.

Camilla Stephens of Higgidy Pies shares some key advice on creating a thriving food brand.

• One of the things I learnt at Good Housekeeping is that you want to reach a wide audience, so keep the product wihin reach. Our pies might not be something you put in your shopping basket each week, but they are there for when people want to treat themselves and that’s what we are; an affordable treat.

• People always need to eat and we’re great believers in British manufactuirng and supply. If you have a great idea go for it but do your research. Seek out people who are experienced and have gone before you and learn everything you can from them. Do jump in with both feet, but always be prepared for hard work.

chosen to be part of J Sainsbury’s ‘Supply Something New’ Scheme.

The result was a contract to supply 80 Sainsbury’s stores in 2007.

To meet supermarket standards, Stephens had to hire a technical manager and invest a further £50,000 into the business via a bank loan. The money was ploughed into refining “food safety aspects which needed more work, including having a paper trail so, for example if you were taking a delivery of meat, knowing which batch was going into which pie.”

Higgidy Pies are now stocked in 330 Sainsbury’s stores and also in Waitrose, Boots and Ocado. However, Stephens has been wary of the brand becoming too large too quickly. “We are careful of who stocks us. We are manufacturers as well as a brand, so we need to monitor how quickly we grow so that we can copy with scale, maintain our ethos and values and quality.” A very large part of this, is the fact that the brand has grown

“without outside investment. That gives us enormous independence and we are very proud of that. We could have grown quicker if we had gone to a venture capitalist, but I don’t think we would have enjoyed that kind of growth or accountability. We enjoy that we are friends and family together, taking our own decisions and we’ve shown the bank that we are wholly committed.”

This is a recipe for the business that has clearly worked. In 2009 Higgidy completed the final phase of the build of their current Shoreham site, which doubled their sales capacity from £7.5 million to £15 million. They hit this target at the beginning of this year.

To further their success, Stephens seems ambitious to grow Higgidy brand. “We never called ourselves Higgidy Pies, we are Higgidy”, she points out. “We want to bring our energy and innovation to rejuvenate areas that are a bit lacklustre and we are actively looking to find something suitable to go into soon.”

• Don’t be tempted to cut corners.

There is always a temptation to find cheaper cheese, put less meat in or buy a big piece of machinery to make things a bit faster, but we know the quality of the product we make and we won’t compromise because it will show. The proof of the pudding is in the eating.

• If you approach a supermarket go with the finished product, not an idea. You need to know how it is going to be made, not how it might be made. The product has to be well thought out. It has to have all of the costings and the backing.

• Our biggest challenge has been retaining ownership. It has enabled us to retain control. It’s been tough, but for us, its been worth it and I would advise others to do the same.

www.higgidy.co.uk

www.sussexbusinesstimes.co.uk 31

The Secrets of My Success

True Grit

High level success doesn’t come easy, as Karren Brady knows. The Vice Chairman of West Ham United FC, Non-Executive Director of Mothercare and boardroom face of the BBC series The Apprentice has fought hard to get to the top of her game. Here, she reveals some of the gritty determination, ambition and personality traits she believes are necessary to reach the top.

Don’t read on, if you don’t want a wake up call!

The Life and Times of Karren Brady Karren Brady began her career at Saatchi & Saatchi when she was 18 years old and swiftly moved onto working for the radio station LBC (London Broadcasting Company) as a sales executive.

She left LBC to join the Sport Newspapers Ltd in 1988 and became a Director there within the space of a year.

She became the Managing Director of Birmingham City Football Club in 1993 and remained there until 2009.

During that time she helped turn the Club’s fortunes around. She took over running the club when it was in administration, and in her first year at the helm, the Club recorded a financial trading profit. In 1996 the Club made an overall profit for the first time in its modern history and in February 1997 she launched the Club on the Stock market. At the time she was the youngest Managing Director of a PLC in the UK. In October 2009 her business was valued at over £82 million and she sold it.

In January 2010, Karren was appointed as the Vice Chairman of West Ham United FC. In January 2011, under her leadership campaign, West Ham were awarded the

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Rule 1: Work Hard Essential Advice

Success is about the relentless pursuit of what you want.

Before you even start trying to get what you want, you need to accept that hard work is going to be a vital ingredient. It sounds simple, but a lot of people don’t want to recognise that, because it’s hard and it’s work. I’ve known many people who really just want a get-rich-quick scheme, a shortcut to success. They are always chasing that one big deal. They don’t realise that the path to success starts with the understanding that you will require dedication to what you want to achieve through hard work. You will sacrifice your ‘spare time’, you won’t have a hobby and probably not much of a social life. But as you take the steps needed towards being a success, you have to remember that the first step is always hard work, and lots of it.

I work relentlessly to achieve a business goal, and I believe that is the single most important reason why I am successful. It may be 2am and I may be exhausted, but I keep working until it is finished. Whenever you are facing a huge pile of work or a major challenge, it is psychologically

“The path to success starts with the understanding that you will require dedication to what you want to achieve” - Karren Brady

OPPOSITE: Karren Brady

An Entrepreneur’s Story Private Schools

www.sussexbusinesstimes.co.uk 33

“I work relentlessly to achieve a business goal, and I believe that is the single most important reason why I am successful” - Karren Brady

34 www.sussexbusinesstimes.co.uk

preferred bidder status for the 2012 Olympic Stadium and following her first 12 months at the club it made a trading profit for the first time in many years.

Karren has attracted considerable media attention in her career, and was the subject of an hour long documentary ‘Inside Story’ - The Real Life Manageress shown on BBC1. She has hosted her own TV show, and has also presented shows on ITV as well as having written four books. She is also currently a columnist for The Sun newspaper and Women & Home magazine and a judge of the Cosmopolitan Women of Achievement Awards, the Sports Industry Awards, Red Magazine Women Awards, Women & Home Women Awards.

She is an Ambassador for The Stroke Association, WellChild and Teenage Cancer Trust and Chair of the Mothercare Group Foundation.

She has been a Board Director of Mothercare PLC, Channel 4 Television and Sport England and is currently a non-Executive Director of Arcadia, the fashion retail group.

As well as all of this she is also an honoree Fellow of the Institute of Sales and Marketing.

She was voted by Cosmopolitan magazine as one of the 100 most powerful women in the world and in 2004 and 2006 attended The Queen’s lunch for Women Achievers and Business Leaders. She was acknowledged as one of the most influential women in Britain by the Daily Mail and voted as one of Britain’s Most Inspirational Women

by Good Housekeeping magazine.

In November 2006 she won the Cosmopolitan Woman of the Year, in the category of Women Who Have Changed the World.

In March 2006 she was chosen as the team leader on BBC1’s The Apprentice, for Comic Relief, where she led her team to a victory over the boys team raising over £750k for charity.

In December 2007 Karren was a guest on Desert Island Discs and February 2008 saw the launch of Karren Brady’s ‘Today’s Business Woman’ magazine. In October 2007 Karren was voted Business Woman of the Year and in November 2008 she was named as one of

essential to have that acceptance.

No matter how bad things are, no matter how hard the battle you face, you have to accept the reality of the situation, and embrace the pressure.

You just have to take the view that it has to be done. This takes selfdiscipline and energy, and you’ll not meet anyone successful who doesn’t have both.

In my case, I think my energy is partly a compensation mechanism for the things I don’t have. I don’t have every quality that you need to be a really successful leader – I have one or two.

I’ve met people who have them all, but they are exceptional. Most people are like me, in that you can compensate for areas where you might not be as strong.

Rule 2: Have Confidence. Confidence lies at the root of personality. I meet a lot of professional people who don’t have any personality, and therein lies a problem. Whatever qualifications you have, personality is at least as important, because people do deals with people, not with brains.

When it comes to choosing between two people who have the same qualifications, you choose the one who has the personality you want to work with.

Confidence expresses itself as energy, as being able to articulate your thoughts, having an opinion, being able to be a bit charming, and being a good listener. But you can have too much confidence. There is a fine line between enthusiasm and delusion. Success is about ability as well – there are lots of people who are very confident but they can’t deliver. They soon get found out.

To lead a team, you need confidence. Some people who lack confidence are scared to take on a managerial role because they think they need to be able to do every aspect of the work. But what really sets you apart as a leader is not how much you know how to do, but how you behave when you don’t know what to do. If you don’t have the confidence to ask for advice or to gather people together or to listen to people, you will not succeed.

The Secrets of My Success

the top leadership role models in a national poll. This recognition was quickly followed in December 2008 when she was presented with the coveted Spirit of Everywoman Award at the NatWest Everywoman Awards, acknowledging her outstanding achievements in changing the landscape for women in business.

During January 2009, Karren presented a series of features for ITV1’s GMTV called Just the Job, helping people back into work, and giving advice about looking for and retaining your job in this uncertain economic climate.

November 2010 saw Karren listed in the business category of The Sunday Telegraph’s ‘100 Most Powerful Women in Britain’, whilst she was also included in the Evening Standard’s list of ‘London’s 1000 Most Influential People 2010’, second to David Beckham in the category of Sport.

In December 2010 she received her Doctorate from the University of Birmingham in Business studies.

In 2010 following appearances as one of Lord Sugar’s interrogators on the BBC show ‘The Apprentice’, Karren has replaced Margaret Mountford as Lord Sugar’s righthand woman.

In February 2012, Karren was delighted to accept an appointment as an Ambassador for charitable organisation, Wellbeing of Women.

In 1995 Brady married Canadian footballer Paul Peschisolido, who played for Birmingham City for two seasons, 1992–93 and 1993–94.

About one year later, she had her first child, a girl named Sophia. She had about six weeks off work after the birth of her second child, a boy named Paolo. Karren still lives in Birmingham with her husband and children and they also own a holiday home in Canada. In 2006, she underwent a full-body MRI scan as part of a general medical screening, which unexpectedly discovered a potentially fatal cerebral aneurysm.

In February 2006, at the age of 36, at very short notice, she underwent neurosurgery to prevent the aneurysm from rupturing, and was back at work approximately one month later, having fully recovered.

Karren Brady and Charity Karren has been lucky enough to be involved with numerous charities and fundraising activities during her career, including raising £1 million as the winning team leader on Comic Relief Does the Apprentice in 2007.

She is currently working with: Wellbeing of Women Karren has recently been appointed an Ambassador for Wellbeing of Women in recognition of her long term support of the charity.

Established in 1964, Wellbeing of Women raises funds for specific research into the field of reproductive and gynaecological health and also provides health information to women. www.wellbeingofwomen.org.uk Wellchild Together with celebrities including entrepreneur and star of TV’s Dragons’ Den Duncan Bannatyne, explorer Benedict Allen, triathlete Jodie Swallow, Footballers’ Wives actress Sarah Barrand and pop band Scouting For Girls, Karren is an Ambassador for Wellchild, a charity providing care, support and research programmes for seriously ill children and their families throughout the UK. www.wellchild.org.uk The Stroke Association Stroke has a greater disability impact than any other medical condition. A quarter of a million people are living with long-term disability as a result of stroke in the UK. Karren has been involved in raising awareness that both adults and children can suffer. www.stroke.org.uk Mothercare Group Foundation Britain’s best-known baby goods retailer has its own independent charity, the Mothercare Group Foundation. The charity provides grants to organisations and initiatives concerned with the health and well-being of mums-tobe, new mums, children and families, premature babies and those requiring other specialist care. Karren is Chairman of the Foundation, which is administered by trustees drawn from the Mothercare board. www.mothercare.com

Teenage Cancer Trust Karren supports this charity devoted to improving the lives of teenagers and young adults with cancer and whose mission is to raise funds, educate, and support. www.teenagecancertrust.org Karren and Awards The Awards that Karren has won, or notable lists that she has been named on, include: Named as one of the 50 most inspirational women of the nation by Marie Claire Magazine.

Second Most Inspirational and Admired Female Role Model for Business Women in Britain.

Top 100 Most Inspirational Women – The Guardian.

Britain’s Most Inspirational Women by the Breakthrough for Breast Cancer Inspiration Awards (2011).

National Reality TV Awards – best reality TV Judge (2011).

Evening Standard’s ‘London’s 1000 Most Influential People 2011’.

Awarded an Honorary Doctorate from the University of Birmingham.

Evening Standard’s ‘London’s 1000 Most Influential People 2010’.

Sunday Telegraph’s ‘100 Most Powerful Women in Britain’.

Natwest Spirit of Everywoman Award Businesswoman of the Year.

Cosmopolitan ‘Woman of the Year’ in the ‘Women Who Have Changed the World’ Category.

Named in Cosmopolitan’s ‘100 Most Powerful Women in the World’.

Named in Daily Mail’s ‘Most Influential Women in Britain’.

Named in Good Housekeeping Magazine’s ‘Britain’s Most Inspirational Women’.

Honoree Fellow of the Institute of Sales & Marketing.

Recognised twice by Her Majesty The Queen for business and achievement.

Strong Woman: Ambition, Grit and a Great Pair of Heels

by Karren Brady (Collins, £18.99)

www.sussexbusinesstimes.co.uk 35

Rolls Royce headquarters at Goodwood

Making their Marque

One of the most important historic names in the history of motoring has come to one of the most historic motoring locations in the West Sussex downs to create engineering excellence for the twenty first century as we discovered when we visited the Rolls-Royce Headquarters at Goodwood.

36 www.sussexbusinesstimes.co.uk

Did you know that the Rolls-Royce Brand headquarters was based at Goodwood?

Watch We certainly didn’t, but perhaps that is not surprising as their current West Sussex headquarters is their fifth manufacturing base and headquarters since they began manufacturing cars in 1903. Since then they have been based in Manchester, London, Derby and Crewe before settling down across from the historic Goodwood Track now that Rolls Royce is a wholly owned subsidiary of BMW. In 1998, Vickers the then owners of Rolls-Royce Motors decided to sell and the most likely buyer was the German manufacturer BMW, who were already supplying engines and other components for Rolls-Royce and Bentley. However, BMW’s final offer of £340m was beaten by a rival offer by Volkswagen of £430m.

Despite this, a stipulation in the

Brand Focus

ABOVE: The new Rolls-Royce manufacturing plant on the Goodwood Estate

ownership documents of Rolls Royce dictated that Rolls Royce plc, the aero-engine maker would retain certain essential trademarks (including the Rolls-Royce name and logo) if the automotive division was sold.

Rolls-Royce plc chose to license not to VW but to BMW, with whom it had recently had joint business ventures.

Despite this VW had bought the rights to the “Spirit of Ecstasy” bonnet (hood) ornament and the shape of the radiator grille, but it lacked the rights to the Rolls-Royce name necessary to build the cars. Likewise, BMW lacked rights to the grille and mascot. To resolve this issue BMW bought an option on the trademarks, licensing the name and “RR” logo for £40m. In response VW claimed that it had only really wanted Bentley anyway, as Bentley at the time was the higher-volume brand and moved twice as many cars as Rolls Royce.

The resulting situation was in BMW’s favour, as they could, if they wished,

withdraw their engine supply with just 12 months notice, which was insufficient time for VW to re-engineer the Rolls-Royce cars to use VW’s own engines. To resolve this stand off BMW and VW finally arrived at a solution in which from 1998 to 2002 BMW would supply engines for the cars and would allow use of the names by VW, an agreement which would cease on 1st January 2003. From that date onwards, only BMW would be able to name cars Rolls-Royce, and VW’s former RollsRoyce/Bentley division would build only cars called Bentley. This agreement resulted in 2003 with BMW opening the new manufacturing plant on the Goodwood Estate.

Since the opening of the state of the art manufacturing plant, Rolls-Royce fortunes and sales have continued to grow and by the end of last year they were able to announce record sales results for 2011 of 3,538 cars sold globally during the year, a 31% increase on the 2010 total of 2,711 cars. This

figure represented the best sales result in the company’s 107 year history.

Strong sales growth was also reported across the globe, with notable results seen in Asia Pacific (up 47%), North America (up 17%) and the Middle East (up 23%) and the United Kingdom also showing a strong performance, reporting 30% growth in the year. In Continental Europe, Germany and Russia were the largest growth markets, with each more than doubling sales compared to 2010.

“We had an outstanding year in 2011 and we should take a moment to reflect on this Great British success story,” said Torsten Müller-Ötvös, Chief Executive Officer, Rolls-Royce Motor Cars. “Our business is in excellent shape. We are developing our dealer network, moving into new markets like South America and expanding our manufacturing operation in West Sussex to meet global demand and we have plans to develop our product range. At the core of this extraordinary success is a dedicated,

www.sussexbusinesstimes.co.uk 37

Brand Focus

committed and, above all, passionate workforce.” All good news for Sussex, a county not traditionally seen as one in which car manufacturing is a traditional element of its economic health.

2011 also marked a record for the Rolls-Royce Bespoke personalisation programme, a service with Rolls Royce’s legendary hand-craftsmanship and attention to detail at its core.

Nearly every Phantom family model leaving the home of Rolls-Royce at Goodwood comes with some element of bespoke personalisation, from unique paint colours, interior detailing and embroidery, to exquisite whole vehicle designs including champagne sets, humidors and picnic sets.

in the world where Rolls Royce motor cars are built – and signals the next phase in the development of our company.”

The success of Rolls Royce at Goodwood is also offering employment opportunities to those looking to work for the company at the beginning of their careers. Its Apprenticeship Programme begins this August and offers young people the opportunity to work alongside skilled craftspeople in leather, wood, paint, electrical engineering, mechanical engineering, assembly and finesse roles. Launched in 2006, the programme provides people aged 16-24 with the opportunity to train on apprenticeships that last

“By the end of last year they were able to announce record sales results for 2011 of 3,538 cars sold globally” This retail growth is having a direct effect on BMW’s plans for the Goodwood headquarters as was shown last September when they announced plans to expand Goodwood across its Assembly Hall and Surface Finish Centre, with the prospect of over 1,000 people being employed on the site.

Work began at the beginning of this year and the expansion includes an increase of more than 2,500 square metres for the Assembly Hall, completing the final phase of development from original site plans for the production area. A new extension will also increase the Surface Finish Centre by about 1,000 square metres. Mark Prisk, the Business Minister, visited Goodwood and commented: “I am delighted to have been invited to the start of the building expansion programme at Rolls Royce Motor Cars. The company’s handbuilt luxury models are flag bearers for British manufacturing and we should join Rolls Royce in celebrating this great British success story.” Torsten MüllerÖtvös, added: “We are extremely proud of our achievements and Rolls Royces are rightly lauded as “the best cars in the world” by press and customers. Our investment demonstrates confidence in this unique brand, our commitment to our home at Goodwood – the only place

38 www.sussexbusinesstimes.co.uk

for up to four years and combine on-the-job training whilst studying for nationally recognised qualifications.

The programme has been designed in conjunction with the Learning Skills Council (LSC) and both Chichester and Northbrook colleges. The selection process is designed to guarantee recruitment of the very best candidates who could have the opportunity to further grow with the company following a successful apprenticeship period.

Since the programme’s launch in 2006, more than 30 young people have been employed following completion of their apprenticeship. In 2011, the programme was extended to the business areas and the first business apprentice was recruited. In addition to the Apprenticeship Programme, more than 50 young men and women were employed within the company in 2011 on industrial placements ranging in duration from six to twelve months and further positions are likely to be available this year. The company also runs a successful graduate programme, with new positions made available each year.

For those worried about the ecological impact a company manufacturing cars could have on such a beautiful and sensitive area

of the Sussex Downs, have no fear.

Rolls-Royce recycles 75% of all waste materials generated at Goodwood.

Employees are encouraged to recycle wherever possible and currently over 60% of all waste items are recycled, from paper and cardboard to glass, cans and bottles, from redundant computer equipment to scrap metals.

Parts ordered for production of the cars are even delivered to Goodwood packaged in recyclable containers, which are returned for re-use. Remnants from the wood shop are utilised by manufacturers of wooden products and leather off-cuts are sold to buyers from all over the world for use in other industries, for instance the fashion industry. Even the landscape debris and the weeds cleared from the lake, in the 42-acre grounds, are composted for use on the Goodwood Estate organic farm.

One of the most incredible features of the Goodwood plant however can only truly be seen from above. The sedum ‘living roof’ which covers 22,500 square metres of the headquarters roof space is the largest in the UK and is just part of the responsible soft landscaping of the headquarters, which also includes the planting of over 400,000 trees and shrubs to screen the buildings and encourage a rich biodiversity of flora and fauna species into the area. Water usage is also taken seriously with the introduction of new initiatives, which have resulted in an average saving of 11,000 litres per day for the entire site, equivalent to a hosepipe running continuously for 106 hours or 212,000 cups of tea. Ian Robertson, the Chairman and Chief Executive of Rolls-Royce Motor Cars explains this approach to their immediate environment: “We are committed to continuously improving resource consumption as part of our sustainability programme.

It is astonishing how apparently minor changes to working procedures can bring about significant savings.

We continue to work on improvements at Goodwood where everyone is encouraged to suggest ideas for making savings”.

That’s Rolls Royce at Goodwood.

Good for the local economy, good for the local environment and good for one of this countries most important motoring brands. Now you know about them just as we do. www.rolls-roycemotorcars.com

www.sussexbusinesstimes.co.uk 39

What Do You Do When All Else Fails?

It might still be a taboo in business, but insolvency is a reality for many. Even in good economic times, one in three small businesses fail every year, so it pays to know what to do if your company faces financial distress and the implications of going insolvent, whatever the current state of your business. SBT consults three corporate recovery and insolvency experts from two Brighton based companies for essential advice.

When SBT spoke to Chris Latos, a Partner Financial of White Maund and John Walters and Advice John Beard, Partners of Begbies Traynor, there was one piece of advice that was a the top of their list - to seek help as soon as there is a hint of a problem.“The first thing is not to bury your head in the sand,” said Latos, “you really have got to take professional advice.” Whilst the first port of call is to consult your solicitor and accountant, all three experts spoke of how they regularly receive referrals from these professionals and to SBT’s amazement, offer an initial consultation for free. This is crucial for determining the extent of the problem and the types of procedure that might be applicable to a business in trouble. “The earlier we get to look at the business the better,” note Walters and Beard, stressing that directors should not be tempted to leave things too late or to feel that seeking help from an insolvency expert necessarily means

40 www.sussexbusinesstimes.co.uk

that they will eventually face insolvency.

“The aim is to rescue businesses and there are a lot of aspects we look at outside of the insolvency procedure, so for example, it could be that the company needs restructuring” whilst inside the procedure “it could be that part of the company is profitable and can be saved.” In fact, Walters and Beard speculate that “50% of the people we see, leave with the facts to turn their business around and so we don’t do further business with them or it could be that an insolvency expert can be involved for a long period without implementing an insolvency procedure.”

Yet what is key, is catching any problem early. “This is what we class as the decline curve,” they stress. If problems are left to escalate, “the higher the chance that it will be terminal.”

Latos is also keen to point out that it is imperative to seek early advice for a second reason: to notify your suppliers. “The main thing” stresses Latos, “is to have a good understanding of where you are, then you can manage

expectation to under-promise and overdeliver. Don’t be tempted to paint a rosy picture” not least to suppliers, he notes.

“Suppliers get very nervous when they are kept in the dark and are repeatedly told that the same ‘cheque is in the post’ story. People don’t like bad news,” he acknowledges, “but if they get it early on, they can plan, especially if they have a clear and concise message.

The majority don’t adopt this strategy and by the time they go cap in hand for help it’s too late and any goodwill has disappeared.”

Often, a resistance to seek advice early is down to personal and professional pride. “With a family firm that’s been operating for years, there maybe embarrassment at the helm if it goes down, but it’s a fact of business life. 95% of the people we deal with,” claim Walters and Beard “are honest people with unfortunate circumstances, they have problems and they haven’t got the ability to react to them, or a mistake might mean that an insolvency process is applicable to them” they

Money Matters

claim, stressing that insolvency should not always attract a stigma of failure through negligence or ineptitude. “It could be, for example, that the business has failed to react to a changing environment, that their main creditor has gone bust or their largest contract, on which they have become reliant, is for a business that has failed. “It is a good idea not to be reliant on one customer, it is a great business model to spread the risk,” Walters and Beard advise, on this point. As for family businesses in particular, there are often other contributing factors for failure.

“On the south coast we have seen quite often that directors see us too

it’s too late, what are the personal implications of going insolvent? Is there still a stigma in the business world to doing so? Latos says that since the Government have brought in recent Enterprise Acts in the last decade, “there have been a huge leap in the number of bankruptcies as restrictions have been watered down. So whereas once the term would be a minimum of three years, now it is for a duration of 12 months, so unless the person is a repeat offender, and there are some out there, the stigma is less. Anyone going insolvent or bankrupt will have a credit history for seven years and will need to do an IVA, but there is nothing stopping

wound up and they have to set up from scratch.”

Other personal implications depend on which business model a company has appropriated. If a sole trader has a liability, their debts fall on their personal assets “but if they have a company voluntary arrangement or a limited liability partnership, the money they paid for their shares, or directors loans will be at risk rather than their personal assets,” Latos outlines.

Finance aside, Latos also sees the psychological effects of insolvency.

“It’s important to remember that it’s a business failure and to be as open as possible when looking for help. Some

“Don’t be worried to go to an insolvency practitioner, the aim is to rescue businesses” - John Walters and John Beard, Begbies Traynor late because they have been running successfully for many years and have found it very hard to dismiss staff that are family and friends when they have needed to. It is difficult to have the commercial instinct to cut back at the right time when a business is part of the family and we do see directors who put money in to the business to pay the wages, hoping things will get better.”

Furthermore they explain: “with owner managed businesses with long term relationships with their workforce, it can be financially difficult to make cuts to turn the business around. Redundancy costs are too high sometimes” they offer by way of example. “You can’t avoid redundancy costs so it’s a tricky scenario for smaller businesses, a pointer would be to get decent employment advice.”

If professional pride sometimes stops those seeking key advice before

you or another director setting up another company the next day, unless you have been disqualified as a director by the BIS (who disqualify some 900 directors a year) or have been bankrupt personally. Usually this disqualification is because the director didn’t undertake their obligations as they should have done and they therefore can’t act as a director for a minimum of three and a maximum of 15 years. This is something that will happen within two years of liquidation and another reason why it is important to take advice if trading insolvent - for example, to be aware that there are duties to the credit as a whole. There is usually nothing to stop a director trading again as long as they have a reasonable prospect of returning to credit. However, when seeking that advice too late, say when a company has a petition from HMRC, then there is little that can be done. The company is

people can get despondent, but it’s important that directors keep things in perspective. It can lead to health issues and problems at home if they keep things bottled up.”

Of course, all businesses hope to succeed and in tough times, not only do companies have to have plans that are flexible and be ready to “react to change in the market place,” claims Latos but they must also be aware that the HMRC are taking a tougher approach to failures when they are seeing businesses coming back for a second, or third time in trouble, and so are banks.

“They want to see businesses cutting costs and businesses that are very lean, whatever their scale.

They want to see that businesses can keep within their budgets.” It is not an option for management to be blinkered.

www.sussexbusinesstimes.co.uk 41

Money Matters

What is bankruptcy?

Bankruptcy is one way of dealing with debts you cannot pay.

Via bankruptcy proceedings: • You will be free from overwhelming debts so you can make a fresh start, subject to some restrictions; and • It will make sure your assets are shared out fairly among your creditors.

Anyone can go bankrupt, including individual members of a partnership.

There are different insolvency procedures for dealing with companies and for partnerships themselves.

How are you made bankrupt?

A court makes a bankruptcy order only after a bankruptcy petition has been presented. It is usually presented either: • by yourself (debtor’s petition); or • by one or more creditors who are owed £750 or more by you and that amount is unsecured (creditor’s petition).

A bankruptcy order can still be made even if you refuse to acknowledge the proceedings or refuse to agree to them.

You should therefore co-operate fully once the bankruptcy proceedings have begun. If you dispute the creditor’s claim, you should try and reach a settlement before the bankruptcy petition is due to be heard. Trying to do so after the bankruptcy order has been made is both difficult and expensive.

What are your duties as a bankrupt?

When a bankruptcy order has been made, you must: • Comply with the official receiver’s request to provide information about your financial affairs. The official receiver may request that you attend at their office for an interview - the court will give you the address of the official receiver. (Note: usually before the interview, you will be sent or given a questionnaire which you should fill in as fully and accurately as possible.) If the official receiver does not ask that you attend at the office for an interview, you will be sent a letter, which will set out what is required of you. Again it is likely that you will be asked to complete a questionnaire. You should note that in either circumstance, any questionnaire completed before the bankruptcy order, supplied to you by an adviser or another third party, will not be acceptable; • Give the official receiver a full list of

42 www.sussexbusinesstimes.co.uk

your assets and details of what you owe and to whom (your creditors); • Look after and then hand over your assets to the official receiver together with all your books, records, bank statements, insurance policies and other papers* relating to your property and financial affairs; • Tell your trustee about assets and increases in income you obtain during your bankruptcy. (Note: by law you must inform your trustee of any property which becomes yours during the bankruptcy. Such property includes lump sum cash payments that you may receive, for example redundancy payments, property or money left in a will); • Stop using your bank, building society, credit card and similar accounts straightaway; • Not obtain credit of £500 or more from any person without first disclosing the fact that you are bankrupt; • Not make payments direct to your creditors.

You may also have to go to court and explain why you are in debt. If you do not co-operate, you could be arrested. *Your books and papers will normally be destroyed after your trustee has finished with them. However, you can have them back, provided they have not already been destroyed.

How will bankruptcy affect you? a) In relation to your creditors If you are made bankrupt, you must not make payments directly to your creditors. Creditors to whom you owe money when you are made bankrupt make a claim to your trustee (either the official receiver or an insolvency practitioner). They should not ask you directly for payment; if you receive any requests, pass them immediately to your trustee to deal with and tell the creditor that you are bankrupt. There are some very limited exceptions to this non-payment rule. The main ones are: • secured creditors, such as creditors who have a mortgage or charge on your home; Note: If mortgage payments are not made, the lender may sell your home.

• non-provable debts, such as court fines and other obligations arising under an order made in family proceedings or under a maintenance assessment made under the Child Support Act 1991.

Non-provable debts are not included

in the bankruptcy proceedings and you are still responsible for paying off such debts; • Benefits paid to you which have been overpaid may be able to be included in your bankruptcy. It is important to look at the dates the benefits were paid to you and the dates you were notified both of the overpayment and the decision of the benefit provider to recover that overpayment. If any of the dates are after the making of the bankruptcy order, the overpayment will not be included in your bankruptcy, and you will still be liable to repay it.

• student loans; and • any monies owed after 19 March 2012 to the Department for Work and Pensions for budgeting loans and crisis loans will still be repayable during and after discharge from bankruptcy.

Suppliers of services to your home (gas, electricity, water and telephone) may not demand from you payment of bills in your name which are unpaid at the date of the bankruptcy order. But they may ask you for a deposit towards payment for further supplies or could arrange for the accounts to be transferred into the name of your spouse, civil partner or partner. You must pay continuing commitments such as rent (if you rent your home), together with any debts you incur after the bankruptcy. b) Payment to creditors The official receiver will tell your creditors that you are bankrupt. They may either act as the trustee or may arrange a meeting of creditors for them to choose an insolvency practitioner to be the trustee. This happens if you appear to have significant assets. You may have to go to this (or any other) meeting of your creditors.

The trustee will tell the creditors how much money (if any) will be shared out in the bankruptcy. Creditors then have to make their formal claims. The costs of the bankruptcy proceedings are paid first from the money that is available.

The costs include fees that the official receiver or the insolvency practitioner charge for administering your case.

At least part of the claims from your employees (if any) may be preferential and are paid next, along with any other preferential debts. Finally, other creditors are paid, together with interest on all debts, as far as there are funds

Financial Year End looming? Spend your Training Budget this year or lose it next year.

De-Mystifying Safety in the workplace

I think we all know that a lot of the bad press that comes out about Health & Safety is generated by people that cannot be bothered to deal with issues and manage them correctly. It is easier to blame “Health & Safety” and get something stopped rather than actually manage it in a sensible way.

Whether it be the head teacher banning conkers in the playground or a business owner banning Christmas decorations in the office.

This is what the HSE have to say about some of these daft decisions. And they are doing something about it too.

Common Sense: The HSE is there to help your business and believe it or not they do have a sense of humour Check out Myth of the month www.hse.gov.uk/myth/mythofthemonth.htm

Here is the confirmation that this is happening:

An amusing take on some of these ridiculous myths that are killing our spirit.

Myth Busters Challenge Panel

Let’s help them out and get some common sense back in our lives.

“Health and Safety” is often incorrectly used as a convenient excuse to stop “what are essentially sensible activities going ahead”.

At Miris training we have a great new product for businesses.

Health & Safety Awareness training:

The Health and Safety Executive has set up an independent panel – the Myth Busters Challenge Panel - to scrutinize such decisions.

3 modules each lasting about 25 mins, Office Safety Awareness, Fire Safety Awareness and Manual Handling.

The Panel is chaired by the HSE Chair Judith Hackitt, with HSE Board member Robin Dahlberg as the Vice-Chair and they are supported by a pool of independent members who represent a wide range of interests. This includes small businesses, public safety, trade unions, the insurance industry and many outside interests where day-to-day common sense decisions on risk management are made.

Run on an e-learning platform, so everyone can be trained without leaving their desk

This Panel will look into complaints regarding the advice given by non-regulators such as insurance companies, health and safety consultants and employers and, quickly assess if a sensible and proportionate decision has been made. We want to make clear that “health and safety” is about managing real risks properly, not being risk averse and stopping people getting on with their lives.

If you think a decision or advice that you have been given in the name of health and safety is wrong, or disproportionate to what you are doing, you can complain to the panel. It will investigate and publish its findings on the HSE website

A test at the end of each module to measure understanding and a Certificate issued.

Your staff will be trained and you will have peace of mind that you are legally covered.

Just imagine the cost and time savings for your business.

Miris Training can also offer Management training, for you, your managers, supervisors and team leaders to help you manage Health & Safety effectively.

www.hse.gov.uk/contact/myth-busting.htm?

De-mystify Health and Safety. Talk to Jane Brann at Miris Training – no obligation.

Phone: 01293 618881

www.miris-training.co.uk Read the blog www.miris-training.co.uk/blog

www.sussexbusinesstimes.co.uk 43

Advertorial

Mark Kennedy is the water expert brains behind Sussex based company UKh2o. He started his career with British Gas as an engineer, before working on the London Stock Exchange for Hoare Govett . This was followed by 10 years developing commercial sales for BIG in the UK and New York. He agreed to help out a friend at the last minute for the Ideal Home Show in 2003, and ended up working on a water softener stand. He took to the job like the proverbial duck to soft water and soon found himself to be their highest sales man of the year. Later that year, he started his own company in the water treatment industry, and he now finds himself with a smart showroom in Ferring, a Kinetico authorised dealer for the South East of England and a company that is growing at a very fast rate.

What was the turning point for the company?

We became a Kinetico authorized dealer in 2009 and that is when the pieces began to slot into place. Kinetico are a premium brand manufacturing water softeners and drinking water systems. Our showroom in Ferring followed soon after and this has proved a focal point for people to visit to see the difference soft water can make to them as well as being able to try the new boiling water and sparkling water taps that we stock.

Why water softeners?

In this area, the water is incredibly hard and limescale can be a huge issue so a softener really is essential. We are filling a need for Sussex. We pride ourselves on our complete service from initial phone call, through site survey, installation and aftercare. Our service and parts warranties give total peace of mind.

What are the benefits of soft water then?

There are many benefits to having a softener installed from saving money, keeping a greener home, spending less time cleaning as well as increasing the life expectancy of your water using appliances and reducing energy bills. A softener can also alleviate the symptoms of eczema and psoriasis.

What other services do you provide?

We were asked by several of our clients to carry out general plumbing repairs so we are now growing the Heating and Plumbing side of the business. As well as providing services for domestic properties, we undertake work for commercial clients. We work closely with several lettings agents as well as providing water treatment for many commercial organisations such as Golf Clubs, hospitals, dentists, hotels, hairdressers, coffee shops, restaurants, commercial window cleaning and a number of high profile clients such as the BBC, Madame Tussauds, GlaxoSmithKline, Magnox and the Time Team. We also install water treatment equipment for clients with borehole, well and spring water supplies. We have gas safe engineers working for us and have just engaged a Kitchen Designer with a wealth of experience who works with us in the showroom. We work with a number of top quality manufacturers such as Franke, Blanco, Grohe and Quooker. The Quooker instant boiling water taps are great – we have one installed in the showroom and one at home as they are so neat, eco friendly and designed to save you money and time.

What’s the next stage?

We are planning to open other showrooms in the Fareham and Hastings areas so that we can connect with and provide our clients an exceptional service for all of the areas that we cover.

Kinetico complement our high standards as they are the world leader in water treatments. Their products are brilliantly designed, easy to use and offer unrivalled reliability. Their machines come with a 10 year parts warranty and a 1 year labour warranty www.sussexbusinesstimes.co.uk from 44 UKh2o.

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Money Matters

available from the sale of your assets.

If there is a surplus, it will be returned to you. You would then be able to apply to the court to have your bankruptcy ‘annulled’ (cancelled).

If your trustee makes a payment to your creditors, they may place an advertisement about your bankruptcy in a newspaper asking creditors to submit their claims. Depending on how long it takes your trustee to deal with your assets, this advertisement may appear several years after the bankruptcy order. c) Your assets You must disclose the following items to the official receiver: • tools, books, vehicles and other items of equipment which you need to use personally in your employment, business or vocation; • clothing, bedding, furniture, household equipment and other basic items you and your family need in the home.

The official receiver will let you keep these items unless they can be replaced with a suitable cheaper alternative.

The official receiver/trustee will take control of all your other assets on the making of the bankruptcy order. They, or any insolvency practitioner who is appointed as trustee, will dispose of them and use the money to pay the fees, costs and expenses of the bankruptcy and then your creditors.

If appointed, the insolvency practitioner’s fees for acting as trustee are also paid from the money raised by selling your assets.

The trustee may apply to the court for an order restoring property to them if you disposed of it in a way which was unfair to your creditors (for example, if before bankruptcy you had transferred property to a relative for less than it was worth). The trustee may claim property which you obtain or which passes to you (for example, under a will) while you are bankrupt.

A student loan made before or after the start of a student’s bankruptcy is not regarded as an asset that the trustee may claim, if a balance of the loan remains payable.

If you have made a claim against another person through court proceedings, or you think you may have a claim (a right of action) against another person, the claim may be an asset in the bankruptcy. d) What happens to your home?

If you own your home, whether freehold or leasehold, solely or jointly, mortgaged or otherwise, your interest in the home will form part of your estate which will be dealt with by your trustee. The home may have to be sold to go towards paying your debts.

If your spouse, civil partner or children are living with you, it may be possible for the sale of the property to be put off until after the end of the first year of your bankruptcy. This gives time for other housing arrangements to be made. Your spouse, civil partner, a relative or friend may be able to buy your interest in your home from the trustee. Such a purchase would prevent a sale of the property by the trustee at a future date. Your spouse or any other interested party should be encouraged to take legal advice about the home as soon as possible.

If the trustee cannot, for the time being, sell your home, they may obtain a charging order on your interest in it, but only if that interest is worth more than £1,000. If a charging order is obtained, your interest in the property will be returned to you, but the legal charge over your interest will remain.

The amount covered by the legal charge will be the total value of your interest in the property and this sum must be paid from your share of the proceeds when you sell the property.

Until your interest in the home is sold, or until the trustee obtains a charging order over it, that interest will continue to belong to the trustee but only for a certain period, usually 3 years, and will include any increase in its value.

Therefore, the benefit of any increase in value will go to the trustee to pay your debts, even if the home is sold some time after you have been discharged from bankruptcy: the increase in the value will not be yours.

If, after a certain time, usually 3 years, your trustee has not sold or obtained a charge over your interest in the property, or applied for an order of possession or obtained a charging order against the property, or you have not come to any arrangement with your trustee about that interest, it may be returned to you. www.whitemaund.co.uk www.begbies-traynorgroup.com www.bis.gov.uk

John Walters and John Beard of Begbies Traynor outline some of the most common pitfalls when it comes to corporate insolvency Addressing the problem too late.

Make sure you surround yourself with professionals and don’t be worried to go to an insolvency practitioner, their aim is to rescue businesses.

Not having the financial information on where the company is at that particular time in order to take a decision as to whether it is, or could be profitable. Make sure you have good management information and accounts.

Not spreading the risk with customers. It is a common mistake to rely on one large company who might unfortunately fail and take down smaller businesses it can no longer pay, or trade with. Don’t rely on one contract. Spread your risk.

Not spotting when the market you are involved in is coming to an end.

Successful businesses are often flexible and diversify when necessary.

Not making cuts when they are necessary, hoping that things will get better. Get advice as soon as you see warning signs, from day one.

Shareholders and directors not being aware that if they take illegal dividends as a method of drawing a salary because of the tax benefits of doing so, there will be no funds for them to draw back and they will be asked to pay the money back if they go insolvent.

Not being aware of the terms and conditions of contracts a company has with their suppliers.

It is sometimes the case that the T&Cs make a director personally responsible for the amount owed if their company goes into liquidation, or even some of that company’s debts. Always be aware of what you sign and read the T&Cs.

www.begbies-traynorgroup.com

www.sussexbusinesstimes.co.uk 45

Finance Explained

The Factor Factor Many small businesses suffering from weak cash flow are turning to invoice factoring to ensure that they do not suffer from closure despite being owed large amounts of revenue. But what is factoring and what does it mean for your business? SBT found out the answer to both of these questions.

We have been in business long enough here at SBT to remember the last time (the economic crisis of the early nineties) when Insight debt factoring was an option adopted by many small business. Factoring or ‘debt factoring’ involves selling your business’s invoices to a third party. In return the chosen third party will process the invoices and allow you to draw funds against the money owed to your business and therefore improving your cash flow. Essentially, these companies provide you with immediate finance, debt collection and ledger management service. It is commonly used by businesses to improve cash flow but can also be used to reduce administration overheads. Factoring and invoice discounting are collectively known as ‘invoice finance’ but are often just referred to as ‘factoring’, though they are distinct products. Factoring can be adopted by businesses trading with other businesses on credit terms but is not normally available to retailers or to cash traders.

Factoring companies can be independent, or subsidiaries of major banks and financial institutions but whatever their background, they will want to meet you, visit your business, review your financial situation and study your business plan to evaluate your suitability for a factoring facility. You should also be aware that credit limits may also have to be placed on your customers in order to limit the amount of invoices they need. After signing an agreement, the factor will typically agree to an immediate advance of up to 85% of approved invoices with the balance to be paid when the debtor pays the debt. The initial payment is then usually made available within 24 hours.

Factoring may seem like the perfect simple solution but it is more complex than some other forms of funding and you may wish to take professional advice before using factoring for the first time. There are numerous advantages to factoring, but also some potential drawbacks, as with any type of funding. On the positive side factoring provides a large and quick boost to cashflow. For example a business that is owed £500,000 may be able to get £400,000 or more in just a few days. There are many factoring companies vying for your business, so prices are usually competitive, some customers may respect factors and pay more quickly, factors may give you useful information about the credit standing of your customers and they can help you to negotiate better terms with your suppliers, you will be protected from bad debts if you choose non-recourse factoring and factors will credit check your customers and help your business trade with better quality customers and improved debtor spread. However, on the negative side queries and disputes may have to be referred on and may have a negative impact on your available funding. The cost

of factoring will mean a reduction in your profit margin on each order or service fulfillment and it may reduce the scope for other borrowing. Factors will restrict funding against poor quality debtors or poor debtor spread, so you will need to manage these funding fluctuations. To end an arrangement with a factor you will have to pay off any money they have advanced you on invoices if the customer has not paid them yet. This may require some business planning. You should also be aware that how the factor deals with your customers will affect what your customers think of you. So it is important that you make sure that you use a reputable company that will not damage your reputation.

Factors’ requirements vary, so what follows is an indication and not a rigid list of considerations when thinking about factoring for your business and you may find a factor even if the following criteria are not met. However, we believe that this will give you a good overall picture of the standard requirements. Your business should have an annual turnover of at least £50,000, although some factors

“On the positive side factoring provides a large and quick boost to cashflow” will consider start-ups and smaller businesses, a good spread of simple, non contractual debt that is easily proven and low levels of debt more than 90 days overdue. Your business may not be suitable for factoring if it sells to the public, has too many small invoices, has too many disputes and queries, is not a sound, reputable and trustworthy business, has customers that make part payments or staged payments and has complex contractual arrangement or warranty provisions.

Whether to factor or not and the type of factoring you wish to consider (there are a number of different options including invoice and export depending upon the specific requirements of your business) it is essential that you receive expert advice and research the options suggested to you thoroughly. There is no doubt that factoring can be the perfect solution to get your business through this different economic climate but it is not something to be rushed into. It is however an option which more and more small businesses are both considering and adopting.

For more information on factoring visit: www.businesslink.gov.uk

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ADVERTORIAL

The MBA Catch 22

Mannings Heath Golf Course

You want an MBA but you are too busy to study? As Heather Short discovered, with the right course it is possible to do both.

Heather Short has had a pretty good career to date. She used to work at IBM. Then, with a small investment, she started her own networking marketing business, building a team of 700 international traders. But she has always wanted more.

‘I felt I needed to streamline my ideas, get up-to-date with the world of business again and learn the theory to back up my business experience,’ she says. ‘So I decided to study for an MBA.’ The problem was trying to find a course that would allow her to work and study. She discovered what she needed at the Portsmouth Business School, which has re-structured its Executive MBA course to better suit the needs of professional business people in full-time employment.

Heather won a scholarship to study for the Executive MBA, which for a self-employed person paying their own way made a huge difference.

A week induction session at the start of the academic term is followed

by just 16 teaching blocks throughout the two-year course, a UK and European residential and six Master Classes. Students from this September need only be on campus just 20 times over two years with all resources accessible remotely.

‘I know it’s a cliché,’ Heather says, ‘but the MBA really has been a lifechanging experience and one that I wouldn’t have wanted to miss. All the unexpected extras and eye-opening opportunities made the course perfect for me. There is so much more to it than just going to the University for lectures.

In addition to the taught programme there are two residential trips and a series of master classes, which cover a range of topical issues faced by today’s professional managers. The mix of learning offered is excellent and there’s a fantastic amount of knowledge-sharing amongst students in the MBA group.’

As a result of doing the MBA Heather has now set up her own consultancy business, which helps SMEs realise

their objectives. ‘Two and a half years ago I never thought I would be doing this,’ she says, ‘but I enjoyed the consultancy project on the course so much I realised that it was a natural next step. Studying at the Portsmouth Business School has really given me a boost and the skills to make me much more confident in business.’

The Executive MBA is conducted over two years of teaching with a further six months for completion of the research project. It integrates the essential pillars of management – blending strategy with operations, control with change, theory with practice and covering topics which are both generalist and specialist.

If this sounds like the course for you, you might want to go along to the next Portsmouth Business School open evening on Tuesday 19 June, which will feature a guest presentation from Will King, the founder and CEO of King of Shaves.

For further details please visit www. sharpenyourcompetitiveedge.com

Show you mean business. Go back to school.

Our Master of Business Administration (MBA) will provide you with the opportunity to develop your strategic problemsolving skills whilst mastering the latest business knowledge and practice: • • • • •

Develop your management abilities Benefit through innovative work-based learning Generous scholarships Taught part-time in two-day blocks over two years Accredited by the Association of MBAs

To find out more about our wide range of degrees, come along to one of our regular open evenings – details of which can be found at www.sharpenyourcompetitiveedge.com.

The Portsmouth MBA has been a lifechanging experience and one that I wouldn’t have wanted to miss.’

Heather Short, Entrepreneur

www.port.ac.uk 48 www.sussexbusinesstimes.co.uk

For more information or to apply: T: +44 (0)23 9284 8200 E: pbs.postgradadmissions@ port.ac.uk W: www.port.ac.uk/mba

SBTQ&A

WE ASK THE EXPERTS TO GIVE YOU THE ANSWERS YOU NEED.

Q

A

We asked Gwyn Price, Regional Director (South East), Santander, what should businesses do if they find themselves in financial trouble and what are their options?

Whenever a business reaches the point of liquidation or insolvency, the damage has already been done. It is at this point most business owners take time for reflection and often find themselves questioning what else they could have done.

When a curve ball hits a business, that is the time to meet that challenge head on rather than hoping it will go away. It is the time to re-think the business’s plan, aims or goals and to try to meet the new demands and challenges.

One of the most important, yet hardest, things for a business owner to do, is to recognise when help is needed and to know where to ask for it. Very few people have all the answers, so having a wide circle of trusted people is essential. This could be clients or suppliers, friends and family or of course, professional advisors and bankers. The issue needs to be aired; the implications thought through; advice taken; and a plan formed.

The next stage is to communicate that plan, to your staff and clients as well of course to your bank. Informing the bank about a time of difficulty can seem like a daunting prospect, and can lead to fears that they will remove

financial support when it is most needed. However, the earlier a bank knows that there is an issue, the more likely they will be able to put measures in place to help support a business through a difficult time. This gives the bank an opportunity to help point out where changes can be made to help protect cash flow and working capital.

When raising issues with a bank, it is important to be open, honest and to present them with a revised plan that is credible. This may mean a rocky period for the business but over promising and not delivering can damage your credibility.

Some questions worth considering: • Do you understand why you have a problem? You need to know the gaps in your business model and be able to articulate them.

• Do you have to drop some product lines? Is your pricing right? Are you carrying too many costs? Are you getting the cash in quickly enough?

• Does the business need more investment? Will more money sort the problem? Can you incentivise your team offering shares for cash?

Could family or friends inject money?

Of course these areas are where the bank can help but showing you have considered, and/or have raised external funds is always a help.

• Fundamentally any investor; a business angel, venture capitalist or a bank, is backing you and your

expertise. Put yourselves in their shoes and consider if your revised plan is workable? Is the timescale for the workaround feasible? Will they get their money back?

• Understand your cash flow - be realistic and initially focus over the next three months – it will help you (and your backers) to identify the scale of the problem.

• Is your management team strong enough to get you through this period? Is it worth considering an interim finance director with relevant turnaround skills either permanently or on a short term contract? Your bank should be able to suggest some contacts if help is needed.

• Can your clients and key suppliers help by improving your cash flow?

Invoice finance may be a solution here.

• Don’t forget the HMRC and ask for them for time to pay.

This is not an exhaustive list of points to consider and there is a wealth of expertise available from trade associations, the Better Business Finance Taskforce, your accountant and your bankers. That said it is all about being open and honest and tackling the challenge head on.

At Santander Corporate Banking our ethos is to support businesses through developing a deep knowledge of you and your business. We are well aware that to develop this relationship we need to take a balanced view of the challenges facing businesses in today’s market place. Early discussion about issues as they present themselves enables all parties to then take considered and appropriate action – the aim is always to try and help and keep the business going. www.santander.co.uk

www.sussexbusinesstimes.co.uk 49

Q

A

To comply with health & safety in the workplace can seem so completely restrictive. We asked Jane Brann, Training Manager and Senior Trainer of Miris Training how to provide an environment that is safe, whilst retaining the co-operation and support of employees.

When I mention that I deliver Health & Safety training I can quite literally hear the shutters go down as I watch their eyes glaze over, and I hear a little voice in their head saying “God, how do I get away from this person”.

If you have 5 or more employees it is a legal requirement; you know you need to do it, it won’t just go away; but it can be damaging to a business if it is not implemented properly.

Health & Safety legislation is about the workplace. These regulations have NOTHING to do with banning “tug-

Q

of-war” at a Summer Fair or putting a stop to an annual raft race. The HSE are trying hard to tackle these spurious “myths”. Look at their website: www.hse.gov.uk/myth.

It is a fact that the achievement and good reputation of an organisation come from the top. The CBI has published findings that a safe & healthy workforce boosts productivity and morale.

So what tips can I give business principals?

• You are cruicial to its success.

Be positive when you introduce procedures to your workforce “I am doing this because I care about the safety of my staff, and the good name of my business” Be encouraging in your conversations with your managers

We asked Rosie Phipps, Principal, Oxford College of Marketing, in times of recession, and an overcrowded market for getting work, what can people do to update their skills in the digital sphere?

A

For those working in the area of marketing, the Chartered Institute of Marketing (CIM) - the world’s largest professional body for those pursuing marketing related careers - are encouraging the acquisition of professional qualifications as economic conditions worsen.

Vocational qualifications that easily transfer into the workplace are the differentiator that prospective employers are looking for, and the Chartered Institute of Marketing qualifications are designed to make

50 www.sussexbusinesstimes.co.uk

people effective in the workplace.

There has also been an increase in the number of school leavers choosing to take a professional qualification first and then build up their credits to getting a degree at a later stage. After all – why get into debt when you don’t have to? Earn and Learn has always been a good combination, now even more so.

Comparing the last major economic downturn of 20 years ago to now, the fundamental difference is that the business world is now flooded with well qualified young adults. A degree no longer guarantees the attractive career path it once did, job seekers have to find new ways of clinching the best opportunities.

No marketing strategy is complete

and let it be known that you expect the same of them.

• Don’t just tell them, involve them.

Identify someone to get involved with Risk Assessments. Just ensure that they have the correct motive and would be good at it!

• Think of a new Health & Safety programme as a good “spring clean”.

Think how good it feels once you have cleared those piles of paperwork from your desk, the same applies.

• Use common sense. People really don’t need or appreciate a training course on the blatantly obvious! It is both condescending and negative.

• If staff need assistance to achieve a specific objective; then the role of Health & Safety is to find ways to enable them to do this.

• It is ALL about how you manage the risk; not just saying no.

For more information call Miris Training on 01293 618881 email traininginfo@miris-training.co.uk or visit www.miris-training.co.uk

now without a digital understanding.

Oxford College of Marketing has seen an upsurge in graduates applying for relevant Chartered Institute Professional marketing courses. In fact enrolments for courses at Oxford College of Marketing have increased by 42% when compared to last year.

As competition for the few new jobs currently available in marketing intensifies and employers become more selective, those with professional marketing qualifications will have an advantage over other applicants, helping them to get through to the interview stage of the recruitment process.

Recent research for the Institute, undertaken by Croner Reward, has shown that qualified marketers can earn more than their unqualified or part-qualified counter-parts.

For further information on CIM or Digital training courses contact Jane Young +44(0)1865515255 or email janey@ oxfordcollegeofmarketing.ac.uk

SBT Q&A

Conference and Function Room Hire Whether you need to hire a room for training, conferences, meetings, group outings, lunch parties, exhibitions, kids parties, evening activities or a wedding reception - we have a choice of three rooms and The Bothy situated in the heart of the woodland walk, with well equipped facilities to meet your requirements.

Number 64 - High Street, Bognor Regis (Situated in the heart of Bognor Regis; Easy access via train and bus) Aldingbourne Country Centre - Chichester (Situated just off the A27 near Fontwell Race Course with free parking) If you hire a room, you can use a modern, easily accessible venue in a great location. What's more, your money will be going towards supporting adults with learning disabilities to train towards gaining employment as we are a non-profit making social enterprise.

We Provide A choice of 3 bookable rooms and The Bothy, that can be set up for you in a choice of layouts. Use of Data Projector, OHP, Flipchart, DVD, Whiteboard. Internet access and hearing loop. A choice of freshly made food and refreshments.

Visit the pigs, goats, alpacas, rabbits, ducks, guinea pigs and chickens on our open farm or take a stroll in the woodland walk - Aldingbourne really do have a tranquil venue for all your needs.

The Aldingbourne Trust, Blackmill Lane, Norton, Chichester, West Sussex PO18 0JP Phone 01243 542075 Email conferences@aldingbournetrust.co.uk Visit www.aldingbournetrust.co.uk for more details on how to find us

Hydro Hotel Eastbourne

The Hydro Hotel is open all year round serving Morning Coffee, Light Lunches and Afternoon Tea.

Luncheon at the Hydro in the Crystal Restaurant 2 Course Midweek Luncheon with Coffee £11.50 3 Course Midweek Luncheon with Coffee £15.50 3 or 4 Course Sunday Luncheon from £16.95

The Hydro is the perfect choice for all occasions and has a number of venues to suit all parties.

Mount Road ● Eastbourne ● BN20 7HZ TELEPHONE 01323 720643

Email: sales.office@hydrohotel.com www.hydrohotel.com

www.sussexbusinesstimes.co.uk 51

Q

A

We asked Mark Clayton, Regional Managing Director for London & the South East at RBS Invoice Finance what to do if you’re looking for tips on how to manage your cashflow more effectively.

What is available to help keep your business on track?

Cashflow management and late payments are key issues affecting many SMEs and now more so than ever as we experience economic difficulties. Yet many are missing out on some simple ways to mitigate risk.

Indeed recent data released from Bacs Payment Schemes Ltd (Bacs), the organisation behind Direct Debit and Bacs Direct Credit payments schemes, indicates total sums owed to Britain’s SMEs have reached a record high of £35.3billion. This is uncomfortable reading for new and existing business owners who despite winning new business are hindered by this issue.

Here are some of our top tips on what you can do to keep your business on track: Talk to your financial provider about the options available There is a wide range of finance on offer and it is important to understand what will suit you best. For example many can be attracted to the functionality of an overdraft, however this can have limitations for some trading businesses and does not link directly to the day-to-day receipts or potential delays in payments. For those facing a cashflow shortfall or looking to fund growth, invoice finance can help because it allows a business to realise immediately the cash benefit of its sales typically providing up to 85% of the value of each invoice.

Recognise the value of your company assets A company’s debtor book is fast

52 www.sussexbusinesstimes.co.uk

becoming its biggest asset, and the nearest to cash (goods already sold and waiting for payment). The implementation of a structured invoice finance system can be an invaluable service for your business because you are effectively borrowing your own money - it’s just that you haven’t had that money paid to you yet. And given that the level of finance available is directly proportional to sales, funding should automatically increase as a business expands.

Chase up late payments quickly Bacs data shows that during the second half of 2011 the time that typically elapsed between the agreed payment terms and payment actually rose to 29.6 days up from 28 days from the first half of 2011. If your customers know you are quick to deal with late payments, they will be less likely to delay or ‘forget’ to pay.

Use an external provider if you feel uncomfortable chasing late payers An invoice finance provider can take away the hassle of chasing late payments because it has an experienced team of Credit Controllers who will pick up this burden - issuing statements to your customers and collecting monies due on your behalf.

The advantages of having an external organisation chasing any late payers are large - an area where too many small business owners are reluctant to be tough on for fear of upsetting valued customers.

Be careful who you are trading with and understand your customer Getting to know your customers, the way that they work and their specific requirements may help to reduce late payment. If you understand the business that you are supplying or providing a service to, you are

more likely to establish a working relationship that will suit you as the supplier and your customers.

Undertake credit checks on all new customers There are a number of ways of researching new customers from checking their bank references to checking their status on Companies House.

Reduce the risks to your business The Insolvency Service recently reported the number of business insolvencies had risen to 4,303 during the first three months of 2012, up 4.3% on the same period last year. It is therefore more important than ever to protect your business with bad debt protection which is a service designed to complement an invoice finance agreement and can ensure payment in the event of the formal insolvency of the customer, providing business peace of mind.

These are just some tips for a healthy cashflow strategy and how to reduce hassle and stress. At RBS Invoice Finance we understand the challenges you face and work in partnership with our colleagues from the NatWest Commercial Banking team in East Sussex to help you achieve your business objectives – this can range from managing cashflow for the survival of your business to future growth opportunities.

Security may be required. Product fees may apply.

To find out more contact RBS Invoice Finance: 07802 488237 kim.tunesi@rbsif.co.uk Alternatively contact the NatWest Commercial Banking team: 07785341135 dominic.williams@natwest.com

SBT Q&A

www.sussexbusinesstimes.co.uk 53

Q

We asked Chris Stevens, partner at restructuring, recovery and insolvency firm FRP Advisory LLP in Worthing; what are the common problems that small businesses face in the current economic climate?

A Firstly, the UK economy is not all doom and gloom – there are a good number of businesses improving and indeed many people I meet confirm that their business continues to improve. This said, the economy and marketplace are tough at the present time and there will undoubtedly be casualties for a variety of reasons.

We find that small businesses often face similar difficulties. When providing advice to directors of SMEs, the following complications appear to crop up time and time again.

Tax A number of our clients are seeing a more robust stance being taken by HMRC for arrears of tax liabilities.

Historically, companies have been able to enter into Time to Pay Arrangements and whilst these are still available, it is generally the case that if a company enters into an arrangement that then defaults, it will experience difficulty in trying to renegotiate with HMRC. In general, defaults on Time to Pay Arrangements will result in the matter being passed to HMRC Enforcement.

Difficulty in obtaining finance It is clear that banks are open for business and prepared to lend.

However, businesses do need to put together a robust business plan when seeking to secure finance with particular focus on the ability to service debt. In addition, the banks

54 www.sussexbusinesstimes.co.uk

will often wish for management to take an element of the risk and in times of posterity, it can be difficult for directors to obtain their own capital to invest in their business.

Credit terms SME’s with large corporations as their main customers are reporting extended credit terms from suppliers - at 30 to 60, or even 90 days - with little room for negotiation. The large corporation will often state that the SME should accept the extended credit terms or the business may go elsewhere.

This naturally puts pressure upon the business’ working capital cycle, as payment terms become more and more onerous. We are also seeing evidence that some of the large corporations will be seeking a contribution to their marketing budget from their suppliers, which ultimately creates another cost for the small business if it wishes to continue the relationship.

Director fatigue The situation is becoming more common where directors have decided that they no longer feel able to continue with the day to day challenges of an unviable business where for some time they have been able to take limited reward for their efforts. I am seeing a number of businesses where the directors have made a decision to cease trading in order to avoid having to make further cash injections, thereby trying to protect any remaining wealth. In addition, the decision to cease trading can also be linked to health and relationship issues that have suffered in recent years.

Sales When I think forward to the return

of robust GDP growth, it is generally accepted that more businesses will experience financial difficulty as an economy exits from recession than when it is going into or through the recession. The major stumbling block is over trading, where companies suddenly find they have an abundance of sales orders from major customers but are struggling to gain the working capital to facilitate completion of these orders. For some businesses, alternative forms of finance such as factoring or invoice discounting may prove highly suitable for providing working capital. Businesses have to be extremely careful that they do not simply take all of the sales on board only to find that ultimately they cannot fulfil them, which may have serious ramifications for the reputation and stability of the business.

By recognising the challenges and opportunities that uncertainty presents, and the solutions available to some of the problems, management can put the business in the best possible position to survive and grow.

For more information and free advice visit www.frpadvisory.com, email chris.stevens@frpadvisory.com or telephone 01903 222500.

SBT Q&A

www.sussexbusinesstimes.co.uk 55

Q

With over half of credit applications turned down in the UK over the last 12 months more and more businesses are turning to more flexible funding solutions as a way of growing their businesses. We asked Roger Taylor Managing Director of Innovation Finance why aren’t more businesses using receivables financing?

A

Like most financial services Invoice Finance is misunderstood for all the wrong reasons.There are still a few myths that seem to surround invoice finance and I hope that by dispelling these it gives you, the reader, the confidence to consider invoice finance as a way of funding your business for its future success and growth. At the very least it will help you understand the possibilities of using the services available in the future.

Factoring isn’t complicated. You raise your invoices in the normal way and provide the factor with copies.

The factor takes those copy invoices and advances you a percentage of the invoice amount, usually up to 85% including vat. The factor then transfers the funds to your bank either by BACS or CHAPS. You decide how much you want and how you want it transferred.

The factor collects the outstanding invoices from your customers which repays the advance the factor has made to you and then gives you the balance less any charges from the customer’s payment. It is that simple. The more sales you make, the more invoices you raise, the more funds become available to you. Unlike a bank overdraft the facility grows in line with the sales of your business.

Factoring isn’t expensive. The cost of funds is comparable with a bank overdraft and in many cases even cheaper!

56 www.sussexbusinesstimes.co.uk

You will be charged a service charge.

This cost is to cover the running of your sales ledger, the allocation and reconciliation of payments from your customers and to ascertain the credit worthiness of your customers. Bad debts can be very expensive at best and a disaster at worst. This cost is a percentage of your factored turnover and is paid for as you utilise the facility. Most banks also charge a monthly fixed service charge for managing your account.

If you are concerned about what your customers may think, the reality is that some probably already deal with factoring companies, maybe even Innovation Finance. They may already use factoring themselves and know the benefits that it can bring - great cashflow and sound credit management. If they don’t want you to work with a factor then please find out why and perhaps the factor can change their mind if they have a valid reason.

Innovation Finance even offer to visit them with you if you wish.

You may be wondering what security you need to give. That depends on the financial strength of your business but usually the first line of security is the outstanding invoices on your sales ledger. If you need to repay the amount outstanding to the factor for whatever reason they will collect all the sales invoices outstanding first and provided the collections exceed the amount owed to the factor the arrangement is finalised. If not the factor reserves the right to look for other additional security that may have taken. This could be a debenture over the assets of the business and maybe your own guarantee. In most cases provided that the invoices being are funded are

collectable from your customers there should be very little chance of the factor having to look to you personally for any shortfall.

There will be a contract. This sets out very clearly what you can expect from the factor and what the factor can expect from you, therefore ensuring there is no misunderstanding from the outset. Usually the contract is for an initial period of 12 months with a notice period on either side. The factor can vary the contract period but why would you want to? This is to provide continuity of funding and security of tenure for the facility and your business.

These are just some of the FAQs that businesses in Sussex often ask.

We have tried to answer them honestly and hope that they can clear up any myths that surround a financial service that has helped thousands of business grow and prosper even in these difficult economic times.

If you would like to find out more about invoice finance and Innovation Finance call free phone 0800 074 3443 or email info@ifltd.org.

Innovation makes it easier...

SBT Q&A

... to improve credit control and cash flow ... to get funding quickly and simply ... to let you focus on building your business InnovatIon FInance to talk to a member of our team call freephone 0800 074 3443 or visit our website for further information at www.ifltd.org

www.sussexbusinesstimes.co.uk 57

Q

We asked Sarah White, Director of Telham Training what are five top tips for getting the most from employee training?

A

Be proactive in developing a Continuing Professional Development program in your company. Most companies find that where staff receive regular training they are able to work more efficiently and employee retention is improved. It boosts confidence, staff feel valued and suffer from less work related stress – all good for both the working environment and the bottom line! Identify specific training needs. The most valuable training comes when it’s targeted to the areas employees need to do their job.

Most employers assume that

Q

staff have a certain skills level but you’d be surprised how many have gaping holes in their knowledge, so asking individuals to complete a training needs analysis will show up their strengths and weaknesses and highlight areas where training will help improve their performance.

Pick a training provider who will adapt to your company’s requirements.

Having analysed the needs of your staff, find a training provider who can match the results to the tasks relevant to each employee’s role and who will develop a range of courses which will include examples of documents they will use real time at their desks.

The participants are more likely to remember the information if they see a relevance of learning it to their particular work.

Onsite v offsite training. Onsite training can be more effective as with no travel time and, with start and finish time arranged so staff can deal with urgent emails and messages before and after the training, keeps loss of production to a minimum.

Keep it short! Consider asking for the training to be delivered in bite sized chunks. Whilst some courses need to be delivered over one or two consecutive days, most can be adapted for a series of one, two or three hour workshops, which students find easier to absorb and means they are available at their desks for the rest of the day.

For information and further advice visit www.telhamtrainingltd.co.uk

We asked Fiona Malcolm, Commercial and Marketing Director at the South of England Centre what businesses should consider when sourcing a venue for a event to ensure the best possible results?

A

Corporate events are important to motivate, reward and engage your workforce. Vital things to look for in a venue are versatility, flexibility and a full service approach and these should be found across the entire package. A venue which offers a variety of rooms and different spaces allows it to be flexible enough to host 10, 100 or 1,000 people. To ensure you pick the right accommodation for your specific needs, find a venue which offers a dedicated service and

58 www.sussexbusinesstimes.co.uk

knowledgeable advisor. Up-to-date, technology is key to ensuring the smooth running of your business event.

It is important to seek a venue which can offer Wi-Fi allowing delegates to keep in touch with the office, join in Twitter discussions, and browse the web. Find out beforehand whether the venue supplies AV equipment such as projectors, screens and audio equipment for presentations and speakers.

However, it’s not just about the interior. Venues with large outdoor space provide the versatility to host teambuilding and training activities in the fresh air. We are proud of our 150 acres of Sussex countryside, which ensures peaceful and relaxing views

away from the hustle and bustle of the office. Delegates can even enjoy a barbeque outside on a summers evening, which our caterers will provide. Speaking of caterers, does the venue have inhouse caterers who use locally sourced, fresh produce? The South of England Centre is committed to this. Choose a venue which provides a catering facility with a selection of bespoke menus such as canapés, three course meals, bowl food or finger buffets, something suitable for every occasion.

For more information visit www.soec.uk.com, call 01444 892048 or email info@seas.org.uk.

“

Computer software training Telham Training delivers expert, tailored and up-to-date computer training for your business with time and cost saving solutions.

”

Make your software work harder

Chelwood Gate Sussex 148.5x210:Layout 1

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ROOMS WITH VIEWS

Chelwood Gate Conference Centre sits within the beautiful Ashdown Forest, 17 miles from Gatwick and close to major road and rail networks.

For all your business needs, from conferences and AGMs to a selection of meeting rooms, we have the solution.

www.soec.uk.com 01444 892 048 info@seas.org.uk

ROOMS • CONFERENCES • EVENTS

■ ■ ■ ■ ■ ■

Four meeting rooms, with spacious breakout area 80 delegate capacity, theatre-style Tailored catering for your event Free parking and Wi-Fi Disabled access and facilities Dedicated conference team

Chelwood Gate Conference Centre c/o National Cat Centre, Chelwood Gate, Haywards Heath, RH17 7TT t: 01825 741 370 e: info@chelwood-gate.co.uk w: www.chelwood-gate.co.uk

www.sussexbusinesstimes.co.uk 59

Avenue Snacks The Avenue Eastbourne East Sussex BN22 3YA Tel: 07868369940

Brighton & Hove Albion Stadium American Express Community Stadium Village Way Brighton BN1 9BL. Tel: 01273 878288.

Fax: 01273 878238 www.seagulls.co.uk

Eastbourne Property Shop 7 Mimram Road Stone Cross Pevensey, East Sussex BN24 5DZ Tel: 01323 764122 www.eastbourneproperty shop.co.uk

Eurovans Eastbourne, BN24 5NH Tel: 01323 325859 Brighton, BN41 1DW Tel: 0844 818 8712 Crawley, RH11 8DU Tel: 01293 279082 www.eurovans.co.uk

Graves Jenkins 1 N Rd Brighton, East Sussex BN1 1YA Tel: 01273 601 060 www.gravesjenkins.com

H. T. White & Co. Ltd 15 Alder Close Eastbourne BN23 6QF Tel: 01323 720161 Fax: 01323 649362 www.htwhite.com

City Gym Express No.2 Furness Road Eastbourne East Sussex BN21 4EY Tel: 01323 648863 www.citygymexpress.co.uk

Fresh Cleaning Park View House 19 The Avenue Eastbourne East Sussex BN21 3YD Tel: 01323 411 601 Fax: 01323 411 654

Hopkins & Partners 1 Ivy Terrace Eastbourne, East Sussex BN21 4QU Tel: 01323 416123 www.hopkinspartners.com

Damara Fencing & Landscaping 9 Sayerland Road, Polegate, East Sussex, BN26 6NU Tel: 01323 485598 Mob: 07799141152

Gemini Press Unit A1/Dolphin Way Shoreham-by-Sea BN43 6NZ Tel: 01273 464 884 www.gemini-press.co.uk

Identity Signage and Printing Westham Business Park Eastbourne Road Eastbourne, East Sussex BN24 5NP Tel: 01323 469111 www.signage-printing.com

LONG ROOM THE

Jag press & publicity 30, Worthing Road Horsham West Sussex RH12 1SL Tel: 7861 37 6844 (24hr) Tel: 1403 793836 (9 to 5) Tel: 0844 815 4991 (new enquiries) www.jagpresspublicity.co.uk 60 www.sussexbusinesstimes.co.uk

The Innovation Centre Highfield Drive Churchfields St Leonards-on-Sea East Sussex TN38 9UH Tel: 01424 858285 www.ifltd.org

The Long Room 8 Bolton Road, Eastbourne, East Sussex, BN21 3JX Tel: 01323 723023

MDJ Services Limited Third Floor Map House 34-36 St Leonards Road Eastbourne, East Sussex BN21 3UT Tel:01323 646477 Fax: 01323 646412 www.mdjservices.co.uk

Service Directory Service Directory

Ross & Co. 13b High Street, Hailsham, East Sussex, BN27 1AL Tel: 01323 841814 Fax: 01323 849281 Eastbourne Office: BN21 4RB Tel: 01323 642426 Fax: 01323 417171 www.rossandco.co.uk

Santander UK plc South East Corporate Business Centre 3 City Place, Beehive Ring Road, Gatwick, West Sussex, RH6 0PA Tel: 01293 554880 www.santander.co.uk

Sussex County Cricket Club The PROBIZ County Ground, Eaton Road, Hove. BN3 3AN Tel: 0844 264 0202 www.sussexcricket.co.uk

Swains Plc Wilson House, Saxon Way Dersingham, King’s Lynn, Norfolk, PE31 6LY Tel: 0844 257 2800 Fax: 0844 257 2822 www.swainsplc.co.uk

SBT

Smith Osborne Downsview House, 31A Cornfield Road, Eastbourne, East Sussex, BN21 34QG Tel: 01323 649418 www.smithosborne.co.uk

Studio One 2 Furness Road Eastbourne East Sussex BN21 4EY Tel: 01323 418 928

Worldwide Mailing Solutions Peter Road Lancing, West Sussex BN15 8TH Tel: 01903 761 888 Fax: 01903 761 999 www.worldwidemailing.co.uk

Walsh Roofing Contractors Office 7, 30 Upperton Gardens, Eastbourne, East Sussex, BN21 2AH Tel: 01323 736239 Mob: 07769 664358 www.walshroofing contractors.co.uk

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AND WE CAN TELL YOU HOW! ALAN SUGAR REVEALS HIS SECRETS FOR SUCCESS THE IMPORTANCE OF E-LEARNING EXPLAINED THE GREEN & BLACKS CHOCOLATE ENTREPRENEUR SPEAKS OUT HOME OR AWAY? MANUFACTURING DEBATED THE NEW WORLD OF B&B PUBS EXPLORED PLUS: HOW TO SHOW YOUR CAR BRAND WITH STYLE

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WE FIND oUT THE SEcRETS BEHIND THE aPPLE BRaND HoW aUcTIoN HoUSES aRE SUccEEDING HoW To MakE MoNEY FRoM cRaFT WHaT MakES a GooD EMPLoYER HoW GoLF cLUBS aRE SURVIVING THE REcESSIoN WHETHER THE oLYMPIcS HaS BEEN GooD FoR SUSSEX aND WE RoUND UP THE ESSENTIaL GaDGETS FoR SPRING

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Home Grown Hero

Made In Sussex: Posturite Ian Fletcher-Price remembers the early Brand days of Posturite clearly. “In the Focus summer of 1990 I was 26 and had moved back down to Sussex from London having been sacked from the Lloyds re-insurance market,” he says candidly. “It was a recurring scene,” he laughs: “I was expelled from school and rebelled against authority.” He decided that he wanted to be a cabinet maker, “going back to my interests and roots, and in control of my own destiny.” Of course, he couldn’t have imagined that his business would develop to one day become the UK leader in egonomic equipment and posture products.

“An old school friend gave me a commission to make a sloping drawing board called a Posturite Board, I made that in Mum’s shed, and we shook hands on a 50/50 deal,” he continues.

“We went into marketing it and I extended the product range over the first few years, built up a customer base and our brand awareness grew. After about eight years, we were turning over £1 million pounds,” he says simply.

And simple it was. The company still consisted of a team of four, including Fletcher-Price’s Mum. “When I was at trade exhibitions promoting the Posturite Board, I found out about other players in the market,” Fletcher-Price claims, “and it soon became apparent that seating was the number one issue for health in the workplace.” However, rather than simply distributing or manufacturing another traditional or ‘synchronised’ chair, Fletcher-Price questioned synchronised chair design itself.

“I looked at it and I fundamentally disagreed with it. The conventional thinking behind synchronised seating is

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From humble beginnings in a Sussex shed, to a market leader with a £14million turnover and an impressive global client list.

SBT learns the story behind Posturite.

“Every month we help over 500 people back to work and sales have grown at an average of 20% a year.”

- Ian Fletcher-Price

that as you recline, your pelvis rotates backwards and you lose the inward curve of the lumber spine. Therefore you can’t possiblty sit in an appropriate position,” he claims. To come up with a posture-improving alternative Fletcher-Price “looked at the knee and a good seating position with the hips higher than the knee which retains the relationship between the pelvis and the

spine.” He went back to the shed with a sketch and his toolbox and “butchered an existing product until it felt right.”

After the chair underwent “the various standards and precedents” such as FIRA checks, Fletcher-Price took it to market. “I didn’t listen to convention, I took my belief to the industry” and this time, being headstrong paid off.

His unique product “has enabled us to corner a niche in the market and become the market leader.”

Having developed an ever expanding, extensive range of products, the company today employs 110 staff, 60 of whom are in field sales and today we have a turnover of £14million.” The field sales staff characteristically hold Sports Science degrees, have qualifications in physiotherapy, ergonomics or at least a thorough understanding of the human physiology before being trained as DSE (Display Screen Equipment) assessors.

“They provide a local service” carrying out work station assessments, giving customers advice and training on using ergomic products and adjusting office equipment. Of course “the health and saftey work regulations which required employers to conduct work station assessments for their employees to make them compliant, and a better place to work in 1992 was pure fluke, a bit of luck,” Fletcher-Price admits. However, the client list that the company has since attracted including Barclays Bank, Hewlett Packard, BP, Virgin Media, and HM Prison Service, show that there was far more than luck involved.

Throughout the company’s expansion, Posturite have moved to increasingly larger premises, but have never left Sussex. Today they operate from a former mill in Berwick, whilst Fletcher-Price often travels, to open up new channels in their export market. www.posturite.co.uk

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Order Online fOr deliv The Seagulls Store The Amex Stadium, Village Way, Brighton BN1 9BL Open Monday - Saturday 9.00am - 5.00pm Matchdays 9.00am - 2.50pm & 4.45pm - 6.15pm Brighton & Hove Albion Club Shop 128 Queens Road, Brighton BN1 3WB Open Monday - Saturday 9.30am - 5.30pm Sunday 10.00am - 4.00pm Matchdays Saturday 9.30am - 5.00pm

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