Talk Business December 2013 by Talk Business

W W W . T A L K B U S I N E S S M A G A Z I N E . C O . U K

FOR THE ENTREPRENEUR

BY THE ENTREPRENEUR

December 2013 £4.50

The

Hospitality

Issue

3 1 0 f2

Fire and Alan Sugar’s firstknives apprentice

He’s brash, he’s bold, he’s brilliantly Series one winner Tim Campbell talks about talented and he’s just 20. Meet life after TV stardom and his new venture Britain’s hottest new chef

o s e c a F dy Bra e n e w r Kar aan - rs m C o Fr mes move a to J al our rs of e rev shake n a d year the

Breaking the chain

How indie restaurants are taking on the big boys, and winnning

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W W W . T A L K B U S I N E S S M A G A Z I N E . C O . U K

FOR THE ENTREPRENEUR

BY THE ENTREPRENEUR

October 2013 £4.50

Football’s first lady Karren Brady on West Ham, The Apprentice and what holds women back in business

15% of SMEs are female-led

Does the UK lack entrepreneurial women?

£70 billion unclaimed We reveal the ultimate tax rebate

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iNSIDE 9 Editor’s letter

12 News & events

16 TALK Success 16 Hats off to the chef Britain’s youngest head chef, Luke Thomas 22 Take one company Wahaca 25 ‘If there’s no fun, there’s no point.’ Q&A Modball Rally founder 26 TB Awards Faces of 2013 29 Introducing… TB grills a young up-and-comer 32 Best book of 2013 130 He said/she said What are the entrepreneurs saying this month?

talk MONEY 35 The funding expert Have you got it all planned? 37 Made in China Trading abroad 41 Multinationals paying 0.5% tax Is that fair? 43 A day in the life Diary of a Start Up Loan recipient

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47 The branding column Rich With 50 The chain reaction The UK restaurant trade 52 Down the hatch The UK pub trade

11 Letters

45 Before you sign on the dotted line… Shareholder agreements

TALK strategy

55 Grow your business Using evidence

Talk image 85 Smart vs. casual What you wear

57 Are you fit for work? Adam Caplan

86 Look the business: dress to impress Fashion

61 The sales doctor The 12 questions

88 Tried and tested: comedy Locations for SMEs

talk MARKETING

90 Christopher Ward Brand in focus

63 The marketing column Kimberly Davis

93 We love… Christmas office supplies

65 Ten steps of Twitter Step two: NET followers

talk technology

67 What works for you? In-house or agency PR

95 Our man in the valley David Richards’ tech column

70 Extra! Extra! Read all about you! Ten tips to get media coverage

97 More productive meetings Meetings survey

talk people 73 The people column Lee McQueen 74 Secret diary of an entrepreneur Benito’s Hat founder 77 The MD magnifier Q&A Bassepoint 79 Reward your staff HR Insight 81 Ten tips for happy staff Retaining talent 83 Employee needed – please share! Social media recruitment

99 Lights, camera, action! Video technology 102 Host with the most Web hosting 105 I’ve got an app for that… Our fave business apps 106 Round up Best gadgets of 2013

TALK FRANCHISE 113 Franchise news 115 Spotlight Auditel 117 The fran man Growing pains 119 Take one franchisee Pack & Send 121 Assessing an opportunity Nigel Toplis

talk aDVICE 123 Concept TV 126 Powwownow 128 Talk Business Directory

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editor’s letter

Bon appétit

Scan this QR code to subscribe to Talk Business

EDITOR

Dawn Murden dawn.murden@astongreenlake.com

DESIGN

Paul Christopher Daniels paul.daniels@astongreenlake.com Heather Rugeley heather.rugeley@astongreenlake.com Adam Nowell

INTERN

Christian Muhika

WEB DEVELOPMENT MANAGER Mitchell Finlay mitchell.finlay@astongreenlake.com

SALES & MARKETING MANAGER Scott Hartley scott.hartley@astongreenlake.com

SENIOR ACCOUNT MANAGER Damien Ward damien.ward@astongreenlake.com

SENIOR ACCOUNT MANAGER Trystan Hurley trystan.hurley@astongreenlake.com

MANAGING DIRECTOR Jay Boisvert jay@astongreenlake.com

Circulation/subscriptions: UK £40, EUROPE £60, REST OF WORLD £95 Circulation enquiries: Aston Greenlake Publishing Ltd T: 0203 617 4680 Talk Business is published 12 times a year by Aston Greenlake Publishing Limited Floor 8, 6 Mitre Passage Peninsula Central Greenwich, London SE10 0ER T:02036174681 ©Copyright 2013. All rights reserved. No part of Talk Business may be reproduced, stored in a retrieval system or transmitted in any form or by any means, without the prior written consent of the editor. Talk Business will make every effort to return picture material, but it is sent at owner’s risk. Due to the nature of the printing process, images can be subject to a variation of up to 15 per cent, therefore Aston Greenlake Publishing Limited cannot be held responsible for such variation.

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or me the Christmas break equals turkey, stuffing, all the trimmings, gingerbread men, and nicking every single Malteaser Celebration before anyone realises the tub has even been opened. My seasonal food habits got me thinking about entrepreneurs – in particular the indie restaurants, the local cafés, takeaways and pubs. Aren’t these one of the oldest forms of SMEs? With humble beginnings that often stay that way, run by families, or small groups of friends, while others become industry disrupters, or sometimes grow to epic proportions. We interview all sorts of businessmen and women, and have a number of guest contributors on our books, from tech companies to the financial industry and marketing. But it feels like the entrepreneurs of the hospitality industry often get forgotten, so this, The Hospitality Issue, is dedicated to them. Turn to page page 16 to read about Luke Thomas, Britain’s youngest head chef. He’s worked with big industry names like Jamie Oliver and Heston Blumenthal, is head chef of three restaurants, has been the star of his own television documentary – and he’s just 20 years old. Luke started working at his local butcher’s when he was 12 and progressed very quickly. On the flipside the founders of Wahaca prove it’s never too late to follow your dream in our Take one company. Thomasina Miers tried her hand at marketing, advertising and fashion before discovering a love for Mexican food and enrolling in cookery school. After winning BBC’s

MasterChef in 2005, she joined forces with Mark Selby who had worked behind the scenes in restaurants for years. The first Wahaca opened in Covent Garden in 2007, and they now have 12 locations in and around London. Some indie restaurants do phenomenally well, but is it difficult in today’s climate? On page 50, I ask the owners of small restaurants how they compete against big chains, such as Pizza Express, Wetherspoon and Costa. As the year draws to an end, we also rate the best gadgets of 2013 on page 106, and look back at our best interviews on page 26 and ask you to choose your favourite. Take care of business for now and enjoy the holidays.

Dawn Murden, editor

@TalkBusinessMag

talkbusinessmagazine.co.uk

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Contributors & LETTERS

Our culinary commentators

Ben Fordham is founder of Mexican restaurant, Benito’s Hat. The first restaurant opened in Goodge Street in 2008, and since, another three restaurants have opened in New Row, Great Castle Street and King’s Cross Station. Ben started his career as a tax corporate lawyer following in his father’s footsteps. But after three years in that industry, he decided to follow his dream and open a Mexican restaurant. You may recognise Ben from ITV’s Britain’s Got Talent.

Nelson Sivalingam received a loan from Start Up Loans Company, a Government backed scheme providing mentoring and funding for budding entrepreneurs aged between 18-30 to help their business succeed. Former Dragon, James Caan chairs the company. Nelson Sivalingam received £15,000 so he could set up oneminutelondon.com, the online video guide to eating and drinking in London.

Thomasina Miers and Mark Selby are the brains behind the restaurant, Wahaca, which now has 12 locations in and around London. Tommi won BBC’s Masterchef in 2005 and had been working at a restaurant in Richmond, while Mark had come from a background working behind the scenes of restaurants and holiday companies. The pair were introduced through a mutual friend.

Richard Jones is vice president of national accounts of Groupon UK, the deal-of-the-day website that features discounted gift certificates/coupons usable at local or national companies. The site has 83 million subscribers. Richard is well placed to talk about the benefit Groupon can have for SMEs, and the opportunity it offers to reach new customers and iron out any peaks and troughs.

He reveals a typical week in his business on page 74

Read about his new venture on page 43

Turn to page 22 to read all about the past, present, and future of Wahaca

On page 50 he talks about how Groupon can help SMEs and indie restaurants

DECEMBER 2013

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MAILBOX

If you’d like to send us your thoughts about Talk Business, or anything else that’s happening on the SME scene, just get in touch: email: dawn.murden@astongreenlake.com snail mail: Aston Greenlake, 6 Mitre Passage, 8th floor, Greenwich Peninsula, London SE10 0ER

This month our readers want to learn more about the 2011 Bribery Act and past Apprentice contestants

The Bribery Act November’s feature Free holiday? Think again about The Bribery Act, which came into effect on 1 July 2011 was a much-needed wake up call. I work in PR and we often take journalists out for lunches or send them gifts, so this law is absolutely key for us. I would like to learn more though. Maybe read some real life case studies, or advice from lawyers, and so on. It’s so important but also a grey area.

R OF LETTEMONTH THE

Daniel Merton PR account director

Look who’s laughing now A week after I read about Rob Law the Face on the Cover in November’s issue I had to travel for business and I saw so many kids riding Trunkis in the airport! I have to say; they do look like fun. Well done to Rob. I especially love the fact he can say: “Look who’s laughing now!” to the Dragons. Meredith Clark

Tell me more Dear Talk Business, The Apprentice is in it’s ninth series now, with around 16 contestants on each show that’s 144 who’ve passed through the show, with just one being employed at the end of each series. Reading about Tim Campbell and the Bright Ideas Trust wetted my appetite for more updates. We know about Kimberly Davis and Lee McQueen as they write columns, but what about the others? More updates please! Kind regards, Nick Troy A Curious Businessman

Tweets 0F the month... @oasis1317 @TalkBusinessMag many thanks x well done other winners @lisadevaney @TalkBusinessMag thanks for the RT! Always happy to send the RT love back! @Midas_UK Useful advice about online business as featured in @TalkBusinessMag @TheBusinessShow @TalkBusinessMag that’s fantastic to hear Dawn! We’re looking forward to seeing you all! Please shout if there’s anything I can do! @TalkBusinessMag @TheBusinessShow Our preparations are going great thank you. We’re really looking forward to the show. – Dawn #TBS2013 @ThamesValleyExp @TalkBusinessMag Plz RT: 500+ businesses registered – Thusrday @steam_museum going 2 be huge! Thamesvalleyexpo.co.uk @hubworkspace @TalkBusinessMag Article of the day… From @ TalkBusinessMag bit.ly/1ap5qJQ @cloudbookkeep appears in @ TalkBusinessMag page 51 on how to save time by outsourcing to a bookkeeper @STLemma See why more #smallbiz use our #freelegalsupport to help them with legal matters, in @TalkBusinessMag

talkbusinessmagazine.co.uk

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NEWS & EVENTS

Dates for the diary Business Junction Networking Events 5 December Carom at Meza, Soho 11 December Arsenal Football Club 12 December Jewel, Covent Garden 17 December Brewers’ Hall 18 December The Langham businessjunction.co.uk Sterling Integrity 6 December International Legacy Hotel, Cardiff 31 January Crown Plaza, Birmingham

13 February The Future Inn, Bristol 7 March The Village Hotel, Coventry 1 May Regus Business Centre, Gloucester sterlingintegrity.co.uk The Franchise Show 14-15 February Excel, London thefranchiseshow.co.uk

Sales Job Expo 22 February London salesjobs-expo.com Online Retail Conferences 10 February Royal Garden Hotel, Kensington September Venue TBC orevents.com

Tech Startup Jobs Fair 20 February Innovation Warehouse, London techmeetups.com

Research reveals micro businesses are earning more RESEARCH ON NATIONAL Freelancers Day confirmed UK freelancers and micro businesses are invoicing nearly a third more than in 2011 – a strong indication of economic growth One-man-bands and micro businesses are leading the way in the UK’s economic growth according to new research by Crunch Accounting. In 2013, freelance and micro business owners invoiced on average £6,401 per month, a figure that has grown by 27.4% since 2011 (£5,024 invoiced on average per month in 2011 by Crunch freelance clients). The announcement coincided with National Freelancers Day, a UK-wide event that brings together and celebrates the Darren Fell, managing director and importance of the UK’s diverse freelance founder of Crunch Accounting said: ‘Our workforce, which includes approximately data shows that the UK’s 1.7 million 1.7m freelancers nationwide. freelancers and contractors are not only

leading the way in terms of economic growth, but blowing away all other areas of the economy with a significant 27% growth in revenue.’

DECEMBER 2013

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25% of SMEs use personal finance to fund business ACCORDING TO FINDINGS published by Experian, the global information services company, a quarter of small- and medium-sized enterprise (SME) directors are using personal finance for funding. This includes sources such as mortgages, credit cards and savings accounts to support their business. Experian surveyed a range of SMEs to better understand how they fund business ventures. Of those that had used personal finance, almost a third had used personal mortgages – and thus put their homes at risk – to fund their business, while 47% of SME directors said that they rely on high-interest personal credit cards for everyday business affairs. Personal bank accounts are frequently used by SME directors, with two thirds (65%) stating that they have drawn on funds directly from their current account and nearly half (48%) saying that they had dipped into their personal savings. Ade Potts, managing director, Experian’s SME business, UK&I, said: ‘This

Economic recovery will take number of years THE BANK OF ENGLAND’S chief economist, Spencer Dale told the BBC that the UK’s economic recovery would take a number of years. Spencer Dale sits on the BoE’s Monetary Policy Committee (MPC), which sets interest rates. And last month the nine members all voted to leave interest rates at the current 0.5%. The Bank’s plans for future interest rate rises have been watched since the Governor, Mark Carney, said he would not consider a rate

rise until unemployment fell to 7%. However, the Bank said last month that unemployment, has fallen faster than predicted, and the 7% level is not to be regarded as the immediate trigger for a rate hike. Spencer Dale then stressed that things are improving in regard to economic recovery. This echoes comments from the MPC minutes that the UK, in the Bank’s view, is in a “sustained recovery” and does not face major inflation risks.

research shows that SMEs are becoming increasingly resourceful when it comes to funding and are using a variety of different financing options that are available to them to set up or expand. ‘However, there are some key factors that SME directors should consider before

using personal finance sources. ‘Although it might initially seem like using personal funds for business purposes is the easiest route, it can affect personal credit records and leave them vulnerable, particularly when you consider people are using their homes as security.’

Spencer Dale also said that he doesn’t see a housin

Enjoy a tax-free Christmas party AS THE FESTIVE season approaches, ICAEW reminds employers that staff Christmas parties can be tax free. Every year, HMRC’s seasonal gift allows businesses to spend an annual tax-free amount of up to £150 per member of staff. Anita Monteith, ICAEW tax faculty technical manager, explains: ‘With businesses now starting to feel the effects from the mounting economic recovery, people have every right to want to celebrate Christmas after a busy year.’ The rules apply to any annual party or similar function, which must be open to staff generally or to workers at a particular location. The tax-free limit applies for a tax year, so if the

employer puts on a summer party and a Christmas dinner, together costing less than £150 a head, both will be tax free. This is available to businesses of all sizes. The range of items that can be claimed under the £150 can also include accommodation and transport. However, one penny over this limit and the full amount spent will become liable to income tax and National Insurance for both staff and employer alike, the amount being taxed as a benefit. Gifts given to employees by bosses are taxable. Cash presents, such as Christmas bonuses or vouchers, also have to have tax and National Insurance contributions paid

through the PAYE system. That said, those bosses who prefer to give staff a present can pick up the tax bill on behalf of their employees by setting up a PAYE Settlement Agreement with their tax office. For further information please see hmrc.gov.uk

DECEMBER 2013

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02/12/2013 15:09 01/11/2013 10:54

TALK SUCCESS THE INTERVIEW

Hats off to the B chef

Luke Thomas has worked with industry titans like Jamie Oliver, Gary Rhodes and James Martin, and at age 20 he is already head chef of three restaurants. He spills the beans on his success to Dawn Murden

efore I met North Walesborn Luke Thomas, AKA Britain’s youngest head chef, I’d heard a lot about him. I’m a self-confessed foodie so he turned my head when he became chef patron of his first restaurant, Luke’s Dining Room, aged just 18. I’d seen the documentary about him on BBC Three and read a lot about him on the web; some of it good, some bad and some brilliant. Hotelier Mark Fuller has partnered with Luke on two restaurants; Luke’s Dining Room, within his hotel, Sanctum on the Green, in Berkshire, and Retro Feasts a pop-up in his Embassy Nightclub, Mayfair. When Mark met Luke through a friend, he likened him to celebrity chef, Marco Pierre White, saying they both had “something about them”. ‘This little rosy-cheeked lad walked into my office, and he blew me away with his knowledge and conversation,’ Mark said. ‘It was like looking at a boy but talking to a 30-year-old.’ On meeting Luke I couldn’t agree more. He is eloquent, intelligent and wise. His fresh face and the fact that he admitted to loving The Only Way Is Essex were the only things giving away his age.

When I was 12, I started working at the local Steve Vaughan butcher to learn more

‘I work hard, so I like watching something easygoing,’ he told me. ‘What could be more easy-going than watching people party?’ Luke began working in his local butcher at age 12, and this opened doors to work experience and training at the hotels and restaurants it supplied. He worked part-time and evenings while studying at school, and then for his level 1 & 2 NVQ in professional catering. In 2009 Luke entered the FutureChef competition and beat 7,500 applicants to get to the final cook-off, winning with his lamb with creamed savoy cabbage, and a double chocolate soufflé. The prize was work experience with chef Gary Rhodes. Luke didn’t get everything handed on a plate to him. His persistency paid off, as the previous year he came in third place. So did his networking skills, having the confidence to walk up to his culinary heroes, like Jamie Oliver and Heston Blumenthal at conferences. ‘You don’t ask, you don’t get,’ he shrugged.

DECEMBER 2013

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TALK SUCCESS THE INTERVIEW

Most of the bad press I read about Luke was a reaction to his BBC documentary. ‘Everything went on camera, but they selected the stuff that would make good TV,’ Luke told me. And it’s true, as Luke was accused of being “overambitious” and “arrogant” and many viewers raved on Twitter, seeming to want his head on a platter. Yes, Luke is ambitious, but who is anyone to say he is overambitious? After all, he is head chef of three restaurants already. Imagine what he could achieve by age 40. And arrogant? He is sure of himself and confident, but is that a bad thing? I personally think his “all you can eat” ambition is inspiring. But you can judge for yourself… HOW DID YOU GET INTO COOKING? From age four I remember helping my parents in the kitchen. They cooked good, honest British food, like roast lamb with mint sauce. I always knew I wanted to work with food. When I was 12, I started working at the local Steve Vaughan butchers to learn more about food. The butcher supplied hotels and restaurants, one being the Soughton Hall Hotel in Flintshire, a boutique hotel with a restaurant. An opportunity arose for me to do some training there. I ended spending two and a half years there, and I fell in love with the food, and the buzz of a restaurant. At age 14, I went on to the Chester Grosvenor Hotel & Spa and stayed there until I left school. I balanced this with my studies and left school with eight GCSE’s, before completing my NVQ in professional catering. Later I gained experience at Jamie Oliver’s Barbecoa, and three Michelin-starred restaurants.

I also gained experience at Jamie Oliver’s Barbecoa, and three Michelinstarred restaurants

WHAT INSPIRES YOU IN THE KITCHEN? My food is British food, gastropub meets restaurant, that bistro style – that’s what I do. I cook what I like to eat; one of my favourite dishes is a Sunday roast, especially beef with lashings of horseradish. One of my restaurants – Retro Feasts, has the ethos of old school British food. It was inspired by the growing popularity in Americana old school food, like Bubble Dogs. I tried to emulate what they have done, but with British food. When I go out, I enjoy eating food that I won’t cook, like Japanese and pan-Asian.

WHEN WAS YOUR BIG BREAK? It all really took off when I won the FutureChef 2009 competition when I was 15 years old, after a two-hour cook off against 11 other finalists. On the judging panel was Brian Turner from BBC’s Ready Steady Cook, and chairing was David Mulcahy, Sodexo’s culinary director. It was an amazing opportunity, I met key industry leaders and it’s highly recognised. I realised there was no limit to where I could go. A BBC THREE DOCUMENTARY ENTITLED BRITAIN’S YOUNGEST HEAD CHEF AIRED LAST APRIL ABOUT YOU AND THE OPENING OF LUKE’S DINING ROOM. DID YOU ENJOY IT, AS THERE WAS A BIT OF NEGATIVE PRESS? It was a weird, yet amazing experience. It was great exposure, but there was also a lot of pressure. I was only 18 at the time, and my first restaurant was basically my first full-time job. They were filming 24/7 from day one. They wanted to interview you after a bad night. I did cringe at some bits, but would do it again. You can use TV to your advantage, for brand exposure, it just has to be managed carefully.

DECEMBER 2013

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TALK SUCCESS THE INTERVIEW

My life I’m watching: The Only Way Is Essex. I’m reading: cookbooks. I’m listening to: upbeat dance and chart music. I’m surfing: Facebook and Twitter. My guilty food pleasure: curry flavour Pot Noodle.

AS WELL AS YOUR DOCUMENTARY, YOU’VE APPEARED ON TV SEVERAL OTHER TIMES ON SHOWS INCLUDING BBC’S JUNIOR MASTERCHEF AND RUSSELL HOWARD’S GOOD NEWS. WHICH SHOW WAS YOUR FAVOURITE? I really enjoyed the Great British Menu on BBC Two. I also found Russell Howard’s show really rewarding. It was good fun but got the point over at the same time. I love comedy and felt I could be relaxed and open. YOU’VE GOT THREE MAJOR PROJECTS ON THE GO – TALK ME THROUGH LUKE’S DINING ROOM, LUKE’S BROADWAY AND RETRO FEASTS, AND THEIR INSPIRATION… Luke’s Dining room opened in March 2012. It’s a village pub turned boutique hotel, owned by Mark Fuller. Luke’s Dining Room is a standalone brand within the hotel. It’s fine dining with a casual relaxed atmosphere. It’s the British

It all really took off when I won the FutureChef 2009 competition when I was 15

bistro thing – weekends are the best time for footfall. Then Luke’s Broadway, at the Lygon Arms in the Cotswolds opened in June 2013. It again has that British bistro feel. This time I’ve partnered with Puma Hotels. Partnering with hotels is great for chefs, as it enables a chef to set up at a good location, with guaranteed footfall and fewer overheads. I get to be the chef and concentrate on the food, the brand, and so on. The most recent project is Retro Feasts, which is a pop-up restaurant taking over the ground floor restaurant in the Embassy nightclub in Mayfair, also owned by Mark Fuller. There were seven months left of the Embassy nightclub so he said we should do something different with it. Mark suggested Cheeky Vimtos, pineapple and cheese on sticks, and chicken Kievs. It’s a throwback to retro food. HOW DID YOU GET THE START UP CASH FOR YOUR VENTURES? When partnering with a hotel, most of what you need is refurbishment costs, which can cost £20,000 or £30,000. Luckily, I partnered with Mark Fuller who put the money in. WHAT IS THE BIGGEST STRUGGLE YOU’VE FACED? There are three places and just one of me; I can’t be everywhere at once. If there’s a problem, I want to be there, but I can’t. I don’t have an empire, and I don’t have a middle team so it’s all on me.

DO YOU FIND IT’S HARD TO GET TAKEN SERIOUSLY BECAUSE YOU’RE YOUNG? Sometimes, but you learn some people will always play you down and see ambition as a bad thing. I have a desire to succeed. I have three venues now for a reason, and if people don’t take me seriously, they don’t have to. YOU’VE WORKED WITH SOME BIG NAMES IN FOOD, INCLUDING JAMIE OLIVER, HESTON BLUMENTHAL AND JAMES MARTIN. HOW DID YOU GET THOSE CHANCES? I met them at conferences, events or met people that could put me in touch, or emailed them myself. I learned to network quickly. I remember seeing Heston at a conference, I was only 13 and I went up to him, I told him about what I was doing and two days later I was offered an opportunity to work with him. If you don’t ask, you don’t get. Jamie Oliver and his family ethos inspires me, and of course, my partner Mark. When I’m down south we share an apartment in Wimbeldon. He says: “if you don’t start, you don’t finish.” YOUR FIRST COOKBOOK IS COMING OUT NEXT YEAR IN MAY. TELL US ABOUT IT… It’s about using the essentials you can grab from your local shop and eating British food together. I’ve deconstructed old favourites and reinvented them, like beans on toast with broad beans and ricotta. WHAT DOES THE FUTURE HOLD FOR YOU? Retro Feasts closes at the end of this year, but it will make a comeback, more permanently, with a larger offering. I can’t say too much – all will be revealed later. Contact: lukethomas.co.uk

DECEMBER 2013

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02/12/2013 02/09/2013 15:12 15:55

TALK SUCCESS TAKE ONE COMPANY

ack in 2006 Thomasina Miers and Mark Selby met for the first time in a pub. They were introduced by a mutual friend who knew they shared a similar spicy dream: owning their own Mexican restaurant. ‘Tommi had just won BBC Two’s Masterchef,’ Mark says. ‘She had wowed the judges with a Mexican dish.’ Before Tommi got into cooking, she’d tried her hand at VAT consultancy, digital strategy and marketing, before discovering a love for food and studying at the Ballymaloe Cooking School in Ireland. ‘When I finally discovered food as a career it was a revelation,’ she says. ‘I realised I was at my happiest when there where people around the table, waiting for me to feed them.’ She opened a cocktail bar in Mexico City in 2003, and then spent a year in Mexico learning about Mexican food. Following her Masterchef win, she spent six months at the Petersham Nurseries Café in Richmond, working for head chef, Skye Gyngell. Mark Selby had previously worked with Stelios Haji-loannou of easyJet, and Nando’s founders, Robert Brozin and Fernando Duarte. ‘I’d been working in restaurants and had learnt a lot from the guys that set up Nando’s in the UK – I was their right hand man,’ he says. ‘I also worked with Stelios on easyJet, easyHotels and so on.’ Tommi and Mark both wanted to own their own Mexican restaurant and had similar visions. ‘I’d travelled around Mexico when I was 18 and Tommi had lived there for a while,’ Mark says. ‘We both agreed there was lots of great Mexican food in Mexico and the States, but none here in the UK.

The whole enchilada Dawn Murden meets Mark Selby and Tommi Miers, the duo behind Mexican market dining restaurant Wahaca

in securing their start-up cash, because his old colleagues at Nando’s became shareholders and they were completely aligned with the business and the vision. The duo spent a year planning the food, the brand, and their identity until they found the location for their first restaurant on Chandos Place in London’s Covent Garden. ‘The ethos of Wahaca was Mexican market dining in the

Tommi won BBC Two’s Masterchef... she wowed the judges with a Mexican dish ‘Tommi wanted to set up a sociable cantina, while I wanted to do something similar to Wagamama, with Mexican food.’ After chatting in the pub on that first meeting, Tommi and Mark agreed to embark on their culinary mission together, and three weeks later they jetted off to Mexico to research. ‘I remember when we visited the main square in Oaxaca [pronounced Wahaca], which is where we got our name and a lot of inspiration from,’ Marks says. ‘This was a special place for me as I got my A-Level results while I was there.’ Mark says the pair were lucky

UK with a focus on food and great value, with great cocktails and tequila and a vibrant atmosphere,’ says Mark. The first restaurant was very successful; within the first three weeks of opening in July 2007 there were three-hour queues out the door, but with this instant popularity came problems. ‘I’d developd all the recipes in my tiny kitchen in Shepherd’s Bush, and we were having to double and treble them every other day,’ says Tommi. ‘We had never operated a restaurant together and had limited experience.’ ‘We found customers were having a 50/50 experience and this wasn’t what we wanted.’

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Vital statistics Mark says. ‘We had to close a third of the restaurant to train more staff.’ Despite encountering problems at the start, the duo dealt with everything that came their way and the brand became known for all the right reasons, winning a number of accolades, including a Cool Brand Award in 2010, an International Interior Design Award in 2012, and the Good Chicken Award in 2013. The food and sociable experience translated to customers, and expansion was soon on the cards, with new restaurants opening in Canary Wharf, White City and then Soho. Now there are 11 restaurants in London and one in Kent. How did Wahaca attract a large following so quickly? Was it to do with their marketing? ‘We didn’t spend a penny on marketing in the traditional sense,’ Mark says. ‘Customers

We visited the main square in Oaxaca [pronounced Wahaca], which is where we got our name and a lot of inspiration

Company founded: We began trading in July 2007, but started planning a year and half before Start up capital: £1 million Turnover: £21 million last year Profit: Not disclosed Number of restaurants: 12 Growth rate: £9 million in 2012, £14 million in 2011 Biggest achievement: Great people. We focus on our team and their development and have some interesting and passionate people on board.

were having little Wahaca moments and spreading the word about their experience.’ With funky seating, arty walls and theatrical food presentation, there was plenty for people to talk about. ‘One little marketing tool that worked really well was giving away a matchbook filled with chilli seeds for customers to grow their own – it really took off on social media with plenty of pictures being posted on Flickr, Twitter and Facebook,’ Mark says. Tommi and Mark did face struggles right at the start, but say they never thought about giving up. They began trading during the recession and grew from an independent to a 12-restaurant chain rather quickly taking everything in their stride. They are doing exactly what they dreamed of doing; they’ve got the whole enchilada. Their advice to other SMEs is to avoid cutting costs just to cut

costs. ‘Don’t compromise on your vision either,’ Mark says. ‘Never go into a business unless you’re going to give it 100%.’ And that includes being 100% about your business partner. Even though they bring different strengths to the table they do everything together, whether it’s tasting food or choosing a new location. What does the future hold? ‘We’ve built a long-term sustainable business with a focus on the development and happiness of people who work for us,’ Mark says. ‘Every year we take all the managers to Mexico, we believe in giving rewards.’ They have also launched an offshoot of Wahaca called Burrito Mama at St Paul’s One New Change. Mark Selby and Tommi Miers are definitely two entrepreneurs to watch and learn from – they understand what ingredients make tasty Mexican food and a great restaurant business.

talkbusinessmagazine.co.uk

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02/12/2013 09:34

THE MONEY MAKERS BUSINESS CLUB Are You a Money Maker?

“If you want to go fast, go alone. If you want to go far, go with others.” – African Proverb

FREE MEMBERSHIP A NBSL Peer-to Peer club open to all whether you are thinking of starting a business, are a start-up business, or are already trading. To join @TMMBC & for more information visit www.meetup.com/T_MMBC Noor Business Services Limited (NBSL) | 3 Shortlands, London W6 8DA | T - 020 3609 8721 | E - info@noorbizservices.co.uk | Twitter: @NoorBiz | @TMMBC Member of The Federation of Small Businesses (FSB) left hand ad.indd 11

02/12/2013 15:14

Q&A MODBALL RALLY FOUNDER

‘If there’s no fun, theres no point.’ J

TALK SUCCESS

Dawn Murden met Jon Joseph Bourgerie, founder of the road trip party, Modball Rally, founded when he was a penniless graduate

on Joseph Bourgerie is founder of the Modball Rally, a road trip party, which takes place three times a year in 19 countries. Jon set up the Modball website by swapping his Playstation 2 when he was a penniless graduate. Now the company is worth more than £2 million.

EXPLAIN YOUR COMPANY AND WHAT IT DOES… Modball Rally is a huge road trip party for anyone aged 16 to 60. The 2013 Europe rally began in London by closing St James’s Square, where 180 cars lined up for the trip, with the finish line in Prague. On route, they partied in Amsterdam, Luxembourg, Milan, a rooftop in Venice, and more. WHEN WAS MODBALL FOUNDED? It started a year after I finished university in 2007. I’d travelled the world for a year and maxed out my credit, and then I got a junior job in advertising. I didn’t have a penny, I was eating Weetabix for dinner but I’d had the idea for Modball for a few years and wanted to get

it going. I sent an email round work asking if anyone could do web design. The last thing I had to sell was my Playstation 2 and 21 games – a colleague agreed to design the site in return for this.

I’ve asked myself; “how much money do I need in a year?” then I ask myself, “how can I earn that in a day?” because if I earn it in a day, then I can spend the next 364 days having fun.

HOW DID IT GROW? I had a five-year strategy, to make sure I was the leader in this niche – I studied advertising and marketing at university so I used that knowledge. The price started at £300 (now £1195, for Europe) per person, and I targeted anyone with a car. When Max Power magazine published a news piece about us, the rally sold out.

YOU MODEL YOURSELF ON RICHARD BRANSON. WHY? He has fun, and that’s what I like about him. Success isn’t just about money. If I break even, as long as everyone is paid and happy and we had fun – that’s cool.

SO, HOW DID YOU PERSUADE MODELS LIKE KELLY HALL AND DAISY WATTS TO ATTEND? A few of my friends knew models, and they wanted to come along; it grew from there. They’re good for the company and they have fun. DO YOU HAVE AN UNCONVENTIONAL APPROACH TO BUSINESS? Yes; if there’s no fun, there’s no point. Since I turned 23

YOUR HOBBIES ARE SURFING AND SKYDIVING. DO YOU LIKE RISK? Risk is only risk if you don’t know what you’re doing. Skydiving is my favourite hobby and I got my license in 2000. Have you ever been? [Me: no] I’m going to take you. [Watch this space!] It’s great having a hobby, most entrepreneurs say their hobby is work. WHAT WOULD YOU BE DOING IF YOU WEREN’T AN ENTREPRENEUR? I don’t think I am one – I’m just stupidly ambitious. Contact: modball.com

talkbusinessmagazine.co.uk

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TALK SUCCESS TB AWARDS

Faces We take a look back at this year’s Faces on the cover and interviews, and ask you to vote for your favourite

of 2013

JANUARY Julie Deane, founder of The Cambridge Satchel Company has had huge success. Six years on from modest roots, the company brings in more than £12 million a year, and even became the basis of an ad campaign for Google Chrome. Julie on saving money: ‘The logo I designed myself. The name, I came up with myself. The first website, I just Googled “how to make a website course free”. I taught myself over a few nights on the sofa, after the children had gone to bed.’

FEBRUARY Will King’s King of Shaves reached the age of 20 this year. Will revealed how he founded his company when he was made redundant, saying that he wanted to be his own boss and manufacture something in the UK. Will on being an entrepreneur: ‘Back then, I don’t think many people knew how to spell the word entrepreneur. You’d know Richard Branson and Bill Gates... but you certainly wouldn’t know who Stelios was.’

MARCH Matt Barrie is the man who said he won’t stop until one billion people are using his freelancing marketplace. Freelancer.co.uk was founded when Matt used a similar Swedish website called Getafreelancer. He thought the website was “rubbish” and wanted to improve on it and build an eBay-style website for jobs. Matt on the company’s future: ‘We want to be in every country, every language, every currency, with every job.’

APRIL Jacqueline Gold, chief executive of Ann Summers told us how important it is to reinvent yourself in retail to survive the cut-throat market. And that’s exactly what Jacqueline did by introducing Ann Summers’ parties. Jacqueline on changing the perception of the sex industry: ‘People had a lot of scepticism about it. I remember that one board member actually said: ‘This won’t work, women aren’t even interested in sex’. That was like a red rag to a bull!’

MAY Richard Farleigh We found out the former Dragon and Australian private investor had a thing for chess when he was younger. He was an introverted foster child and it helped his confidence grow. He also told us how he sifts through the hundreds of business proposals that come through his websites, and picks out the best to back. Richard on investing: ‘An average idea with a good person behind it appeals much more than the other way round.’

JUNE Francis Boulle. He may have seemed an unlikely match for Talk Business at first, best known for his antics on Made in Chelsea, but he came from an established family of entrepreneurs. He is a venture capitalist, founder of fundmine.com, an angel investment network, and author of a business book. Francis on his success: ‘The most important quality is being able to get up when you’ve fallen down.’

DECEMBER 2013

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02/12/2013 10:08

TB AWARDS W W W . T A L K B U S I N E S S M A G A Z I N E . C O . U K

W W W . T A L K B U S I N E S S M A G A Z I N E . C O . U K

BY THE ENTREPRENEUR

FOR THE ENTREPRENEUR

BY THE ENTREPRENEUR

FOR THE ENTREPRENEUR

BY THE ENTREPRENEUR

May 2013 £4.50

Virtual

RTI?

Planning for payroll changes

get prepared for the latest business policies

Location, location, location

reality Jump into the future with a virtual assistant

In or out?

New year, new rules:

BY THE ENTREPRENEUR

June 2013 £4.50

April 2013 £4.50

Readyfor

2013

W W W . T A L K B U S I N E S S M A G A Z I N E . C O . U K

TALK BUSINESS MAY 2013

JANUARY 2013 £4.50

TALK BUSINESS APRIL 2013

TALK BUSINESS FEBRUARY 2013

TALK BUSINESS JANUARY 2013

FOR THE ENTREPRENEUR

TALK SUCCESS

The UK’s new business hotspots

Join the payroll debate and get set for RTI

Retail fail

In thebag

Talking evolution about an

Julie Deane on the meteoric rise of The Cambridge Satchel Company

social Business

Will you pay for Google Shopping?

To tweet or not to tweet

Marketing mistakes Show business

Richard Farleigh on choosing business over chess

Which advertising channels turn you off?

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09/01/2013 10:27

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Le geek, c’est chic?

Is the high street dead and buried?

boy

Navigating the funding landscape

Ann Summers chief executive, Jacqueline Gold, is the queen of reinvention

ISSUE 20

the big debate

King of Shaves founder Will King

ISSUE 19

ISSUE 17

ISSUE 16

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SHAVING LIVES

Chelsea

Here be dragons…

Made In Chelsea’s Francis Boulle proves his entrepreneurial mettle

Preview the best business shows coming up this summer

23/04/2013 14:58

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29/05/2013 09:14

27/03/2013 10:40

W W W . T A L K B U S I N E S S M A G A Z I N E . C O . U K

FOR THE ENTREPRENEUR

BY THE ENTREPRENEUR

October 2013 £4.50

Football’s first lady Karren Brady on West Ham, The Apprentice and what holds women back in business

15% of SMEs are female-led

Does the UK lack entrepreneurial women?

£70 billion unclaimed We reveal the ultimate tax rebate

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JULY Charlie Mullins, plumber to the stars told us how he went from being an apprentice to growing his own business, Pimlico Plumbers, which turns over £18 million a year, and has a workforce of more than 200. It wasn’t easy and he reveals how, at one time, everything almost went down the plughole. Charlie on running a business: ‘You can’t run a business on your own; you need to delegate. I learnt I had to get other people on board to help me.’

AUGUST Eben Upton, creator of the Raspberry Pi, a credit cardsized, singleboard computer designed to encourage young people to get into programming. He also founded a charity of the same name to encourage future generations into the tech world. Eben on teaching tech: ‘There’s no point of putting a 25-year-old in front of a piano and expecting them to turn into Mozart. It’s easier to learn when we’re young.’

OCTOBER Karren Brady With a heavy focus on female entrepreneurs it only seemed right that we interviewed the UK’s most powerful businesswoman. Lord Sugar’s right-hand woman and vice-chair of West Ham FC told us about how her football club is making profit for the first time and what can hold women back in business. Karren on her first job: ‘Sweeping up hair in a salon when I was 16… everyone thought I was a kid, but by the end of the week I was running the place.’

NOVEMBER Rob Law When Theo Paphitis pulled the strap off Trixie the prototype Trunki suitcase, things went sour in the Dragons’ Den, and he walked away with no investment. Seven years after that awkward TV appearance, Trunki is stronger than ever. Two million cases have been sold in 97 countries, and the company turnover is £6.1 million. Rob Law on Dragons’ Den: ‘[It] was not a major event for me – we’ve had other mountains to climb, like the hand luggage ban in 2006.’

SEPTEMBER James Cann The former Dragon featured this month, telling us how being stubborn worked for him. He also revealed how his first venture was set up in a bid to impress the lady who is now his wife, and revealed how important cash flow is in business. James on money: ‘The success of a business will come down to the liquidity, and I would advise business owners to look carefully at the money going in and out.’ DECEMBER Luke Thomas This month we interview Britain’s youngest head chef on page 18.

Vote for your winner We want you to choose your

Face of 2013

To vote: Log on to talkbusinessmagazine.co.uk/tb-awards Voting closes 16 December We will announce the winner on talkbusinessmagazine.co.uk 19 December and in our January magazine.

talkbusinessmagazine.co.uk

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02/12/2013 10:09

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02/12/2013 15:25

UP-AND-COMING

TALK SUCCESS

Introducing Amma Mensah This month we interview Amma Mensah, founder of Beyond the Classroom, who received help from Business Launchpad, the start-up programme for entrepreneurs aged 17-30

resource; the people around you have incredible gems to give you. But you will have to be open to learning from others; it will save you some time along the way.

mma Mensah founded Beyond the Classroom, an educational social enterprise. It works with schools and youth organisations to support formal curriculum learning. It uses theatre, music, dance, drama, mentoring, film and open dialogue as tools to teach life skills and knowledge.

WHERE DID THE IDEA COME FROM? I guess from personal experiences of my own schooling/coming of age journey, and working with young people in a range of settings. It became apparent to me that young people are not being adequately prepared for adult life. Academia is undeniably important, but what good is it without confidence, self-worth and independence? WHAT’S YOUR ADVICE TO YOUNG ENTREPRENEURS TRYING TO GET AN IDEA OFF THE GROUND? Just do it. There will never be a right time, so you have to create one. Open your eyes and ears to everyone around you. Your network is an invaluable

IF YOU WEREN’T AN ENTREPRENEUR, WHAT WOULD YOU BE DOING TODAY? Trying to become one.

You will have to be open to learning from others

WHAT’S BEEN YOUR WORST EVER JOB? Debt collection for a bank (which will remain nameless). I left because I could not agree with the ethics of their business operations. I feel a rant coming on, so I will leave this one at that. WHAT’S TOP OF YOUR BUCKET LIST? I don’t have one, I just try to make sure that I live every day and not let life get in the way. I try to seize opportunities as they arise. WHAT HAVE BEEN THE BIGGEST CHALLENGES YOU’VE FACED AS A YOUNG ENTREPRENEUR? Letting go of inhibitions and the limiting thoughts of others, to follow my dreams.

My Life I’m watching: Harry Potter (it’s my guilty pleasure). I’m reading: Manuscript found in Accra by Paulo Coelho (which I highly recommend) and The female Brain by Louann Brizend. I’m listening to: Janelle Monae, Metropolis EP, Everything Everything, Arc, Lauryn Hill, and The Miseducation. I’m surfing: Youtube and TED. WHAT GETS YOU OUT OF BED IN THE MORNING? The knowledge that I am my own boss; it is liberating. But it also means that the work will not get done unless I do it. HOW MUCH DOES MONEY MOTIVATE YOU? It doesn’t. Doing stuff is what motivates me. But unfortunately I need money to do stuff. WHAT’S BEEN YOUR PROUDEST MOMENT? I don’t think I’ve had it yet. Ask me again in two years maybe… My vision for the future is continued growth and social change. Contact: beyondtheclassroom.co.uk

talkbusinessmagazine.co.uk

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02/12/2013 10:24

SPONSORED ARTICLE

A CHANGING LANDSCAPE A

s a country’s wealth changes, so does the way in which goods and produce are made and more importantly sold. America, in the primary stages of its conception was an industrial state. It created. It made. But most importantly it did so effectively and turned a profit. In fact it was so successful that it became the world power we know, dominating the globe financially. Which in turn happens to be the dream of most individuals involved in the world of business. So how has a country first colonised only 500 years ago become such an important financial figure in the world? To the point that in 2011, it exported $2.1 trillion of goods around the globe. Several key points led to this colossal expansion.

Industry Increases in production led to the US surpassing England as the world’s largest producer of steel. Along with innovations such as Henry Ford’s construction line helping to improve & innovate America’s industry as a whole. Imperialism Expansion led to resources being searched for in other

Accountz.DEC13.Adv.DPS.indd 40

countries. Leading to areas such as Alaska & Hawaii being bought or colonised by America for trade and resources.

War Sad to say… However the Spanish-American War treaty (1898) gave America control of Guam, The Philippines and Puerto Rico. As well as WW1, giving America a seat at the Versailles Peace Treaty, centralising America’s global position. Now our team at Accountz isn’t telling you to dominate the globe through war and imperialism… ‘Perhaps industry’… but what we want to point out is the way in which spending changes as a country grows in wealth. As a country’s income increases the change in sectorial structure is more noticeable. Leading to an increase in the service sector… currently 79.7% of American GDP composition. We see this everywhere. Service contracts are rife. Phone contracts, mortgages and gym memberships to name but a few… and why not! It’s great value for money and an amazing way of obtaining something that you can’t afford right now!

What we don’t agree with at Accountz, are companies only offering a particular form of payment. Boxing consumers in to a payment system that better suits the company not the client. We strive to be as transparent as possible and offer our accounting software in both forms of payment. Buy our software outright at 3 different price points and never pay again… Or pay a tiny sum each month for our top of the range product, Business Suite. With features like; Product Management for monitoring stock, Cost Centres for revealing which areas or products are the most profitable, Budgeting and Forecasting allowing you to plan effectively for the future, VAT submission direct and free of charge and Customer/Supplier tracking allowing you manage and monitor the spending habits of your contacts. Accountz software becomes more than your standard accountancy package… we help you run and take control of your business. Never make decisions on out of date financial information again. Don’t be forced into a payment method that doesn’t suit you! Make your own choice with Accountz. Products work on Mac, Windows & Linux operating platforms. Get in touch! Call 01354 691650 or e-mail support@ accountz.com.

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21/11/2013 19:14

The best books of 2013 Our top six business books of the year. From female leadership to big data – all are must-reads

What Color Is Your Parachute? 2014 A Practical Manual For JobHunters & Career-Changers, by Richard N Bolles

Career expert, Richard N Bolles has now written 42 books, all with the same title. Every year he updates his guide about the current job market completely rewriting it so that it’s different from the last. This American book features insights into CV writing, networking, interviewing, salary negotiation, entrepreneurship and social media. But this is not just a job-hunting guide about the market; this book has allowed people to discover their unique gifts, skills and interests. We say: an inspiring read for any entrepreneur.

Bend, Not Break A Life In Two Worlds, by Ping Fu

Big Data

A Revolution That Will Transform How We Live, Work And Think, Ping Fu is one of the few women running a tech company in the US. Born by Viktor Mayer-Schönberger during China’s Cultural Revolution, she & Kenneth Cukier was separated from her family at age eight. She grew up fighting hunger and humiliation and shielding her young sister from the teenagers of Mao’s Red Guard. At 25, she escaped to the US with a small amount of cash and three phrases of English: thank you, hello and help. Within a year she had completed her English qualifications and started studying computer programming, rising to run the team behind Netscape. She then founded Geomagic, a company that has worked on major jobs from personalising prosthetic limbs, to repairing NASA spaceships. She is also a member of President Obama’s National Council on Innovation and Entrepreneurship. We say: incredible story of overcoming imprisonment and adversity to become a highly successful and inspiring individual.

Big data enables us to crunch an incomprehensible amount of information. It provides huge benefits, which are only just being discovered. From tracking vital signs to foresee deadly infections, predicting building fires, anticipating the best moment to buy a train ticket, seeing inflation and monitoring social media trends. But there is also a darker side to big data. Who will make the decisions - people or machines? How do you regulate algorithm? What will happen to privacy and confidentiality? In this book, two well-respected data experts reveal the reality of big data and equip the reader with tools for the next phase. We say: a fascinating and groundbreaking read venturing into the future of big data.

DECEMBER 2013

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BOOK REVIEWS

Making it Happen Fred Goodwin, RBS And The Men Who Blew Up The British Economy, by Iain Martin

When RBS collapsed and was bailed out by the taxpayer in the financial crisis of October 2008, it played a leading role in tipping Britain into its deepest economic downturn. The economy shrank, lending froze, thousands lost their jobs, and Britons will be paying higher taxes for decades to pay the clean-up bill. How had a small Scottish bank grown so quickly to become a global financial giant that could do such damage when it collapsed? At the centre of the story was Fred Goodwin, the former chief executive. Not a banker by training, he was given control of RBS and set about trying to make it one of the biggest brands in the world. Based on more than 80 interviews, diaries and papers kept by those at the heart of the meltdown, this is the definitive account of the RBS disaster, which still casts a shadow over our economy. We say: If you want to truly understand why the economy is the way it is today – read this book.

The Athena Doctrine

TALK SUCCESS

The 15 Essential Marketing Masterclasses for Your Small Business

How Women (And The Men Who Think Like Them) Will Rule The Future, by John Gerzema Powerful Promotion & Michael D’Antonio On A Shoestring, by Dee Blick A survey among 64,000 people in thirteen nations revealed two thirds feel the world would be a better place if men thought more like women. This marks a global trend away from the winner–takes–all, masculine approach to getting things done. Drawing from interviews at organisations in eighteen nations and at Fortune 500 boardrooms, the authors reveal how men and women alike are recognising significant value in traits commonly associated with women, such as nurturing, cooperation, communication, and sharing. This book shows why femininity is the new system to solve today’s toughest problems in business, education, government and more. We say: an interesting insight into how women and their “typical traits” can be the perfect model of success and leadership.

This straightforward book breaks down marketing theory into practical steps small businesses can take to achieve phenomenal marketing results. This book contains easy-toimplement strategies on marketing plans, copywriting, social media marketing, and public relations that will increase sales, prevent marketing mistakes, and build the foundations of a customer-driven brand. Author, Dee Blick has worked with SMEs for twenty-seven years. We say: before you spend a bomb on marketing, read this book – it will save you a lot of time and money. We know you’re busy so we’ve made it easy to grab just one or all of these books online in a few clicks. See our Amazon wish list here: www.amazon.co.uk/registry/ wishlist/6GVKIPHAMAW5

talkbusinessmagazine.co.uk

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02/12/2013 10:29

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02/12/2013 15:27

Our funding expe rt, Julian Smith says a busi ness plan is essential to driv e your venture forward

number of entrepreneurs have asked me whether they really need to have a business plan. They have a good business idea, have spent time brainstorming and fleshing out their thinking, have some numbers and a team, but they are reluctant to commit to a business plan.

A DETOX FOR BUSINESS Writing a business plan is not unlike doing a detox – you don’t like the idea of the process beforehand but feel a lot better afterwards. Whether starting out or not, I would recommend putting one together if you want to have a healthy business. The reasons are many: • If you need to raise money for your business, you are likely to be asked for one by your prospective lender or investor. • A business plan is a helpful document to share with any key members of the team that you are looking to recruit so that they can understand your vision. • You and the business will benefit from going through a disciplined process to clarify the thinking underpinning the business.

HOW MUCH DOES IT COST? Business plan software or templates are available for £100 or less to do it yourself. I would not recommend outsourcing the writing of a business plan because, as I said earlier, a lot of the value is in the process. A more valuable use of money would be to work with someone who can help ensure that you go through the right steps and ask the right questions to produce a useful document. In terms of content, there are certain aspects of the business that need to covered: the vision and objectives, the market and competitive landscape, the marketing strategy and plan, the operational requirements, the risks and mitigating factors, and, of course, the financials. Importantly, the plan must have integrity; not only in terms of the way it is put together but how it hangs together for the financial forecasts to marry up with the assumptions made elsewhere in the document. It needs to be professionally presented with an executive summary, but it is not about perfection and should not take months to produce. Otherwise by the time you finish it, the plan will be out of date.

Writing a business plan is not unlike doing a detox – you don’t like the idea of the process beforehand but feel a lot better afterwards

money

Have you got it all planned?

IS IT WORTH IT? A properly thought through business plan is likely to save money in the long term and open more doors. To take the example of patent protection, which you might identify is a key risk as a result of the process. To process a patent filing costs about £250, whereas to ensure protection across Europe could cost around £30,000. The cost of not ensuring that protection could run to hundreds of thousands of pounds in lost revenue if a competitor chooses to take advantage of your lack of protection. For me, it is also the strength and confidence that a founder/ owner draws from having written the business plan that is the enabler for things to happen. The best business plans tell a story about the entrepreneur and the business. As Mike Harris, serial entrepreneur and founder of First Direct and Egg, among others, says: ‘New businesses get themselves talked into existence.’ The stronger the beliefs that underpin your vision and the more aware you are of your business objectively, the more likely it is that you will advance your business prospects.

Contact: thefundingexpert.co.uk

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TRADING ABROAD

TALK MONEY

Made in CHINA

ong gone are the days when only large businesses and multi-national corporations were able to trade with China. Today, a growing number of SMEs are factoring in strategies to trade with, and sell to China’s 1.35 billion inhabitants. If you want to start selling to, or buying from China; read my practical advice for all you need to know about selling to Chinese consumers and sourcing from the nation’s large pool of manufacturers.

E-TRADING WITH CHINA China’s colossal e-commerce sector is growing so rapidly that retail experts are predicting it could become the biggest online shopping market in the world by 2014. That means that today, UK SMEs are able to sell directly to Chinese consumers online without even leaving the country. There are a number of things UK-based businesses can bear in mind to help make

James Hardy, head of Europe at Alibaba, an e-commerce platform for SMEs around the globe, advises on how to trade with China

A growing number of SMEs are factoring in strategies to trade with, and sell to China’s 1.35 billion inhabitants

their move into the Chinese market successful. DEVELOP A LONG TERM PLAN If you rush into selling to China without giving it enough thought, the chances are you will lose out to the thousands of other SMEs trying to make their own mark. Think about the whole selling process, including how goods will be delivered, as logistics can be complicated in China. GET THE RIGHT LEGAL ADVICE China has a notoriously difficult legal and administrative framework meaning companies wanting to trade there should seek professional help to navigate it. The EU SME Centre or UKTI website can help provide advice regarding issues such as licensing and variable investment entities.

CHOOSE THE RIGHT PAYMENT METHOD The most common payment method for online goods in China is through a third party platform, which allows consumers to feel secure when making a purchase online, especially from a seller in another country. Payment platforms are also relatively straightforward to apply for and install on your own website. MAKE USE OF RESOURCES Selling via one of China’s existing online marketplaces, like Tmall.com, can help you reach consumers without having the headache of setting up your own e-commerce site in China. LOCALISE YOUR OFFERING There is a huge geographical spread in China, and e-commerce is growing fastest

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TALK MONEY TRADING ABROAD

in the country’s smaller markets. It could be useful to tailor online strategies and product selection according to location, where possible. FINDING THE RIGHT SUPPLIER FOR YOUR BUSINESS China is bursting with factories offering high quality, cost effective manufactured goods. Finding suppliers online is a quick and easy way to find the right factory for your specific business needs. However, it can also feel overwhelming and risky, so take your time and research thoroughly before placing your order. BE AWARE OF WHO YOU’RE LIAISING WITH. In most cases the person you are initially speaking to may not be the final decision maker, so when they say “yes” or “no problem,” take it with a grain of salt and wait for the real reply from the owner or manager. ARE YOU ARE DEALING WITH THE FACTORY DIRECTLY OR AN AGENT? The factory will have the final say on what they are able to produce. Dealing with an agent can be time consuming, but they can also provide a great deal of variety as they may represent multiple suppliers. WHAT KIND OF SUPPLIER ARE YOU DEALING WITH? It’s hard to gauge exactly how a factory works when you are engaging online, so you may want to consider a factory audit, such as those offered on Alibaba. com, to find out exactly what kind of supplier you are dealing with. It can be money well spent and give you extra peace of mind before you sign a contract.

China is bursting with factories offering high quality, cost effective manufactured goods

HAVING THE BEST MATCHED SUPPLIER IS CRITICAL. All factories have MOQs (minimum order quantities), which will suit different importer’s requirements. You need to find a factory that suits your specific needs, so a factory that produces average orders of 100,000 units might not be right for your 5,000 piece order. Some suppliers are able to produce products to

your specifications or with minor modifications, while others simply provide premanufactured products for resale. Once you have confidence in the manufacturer and its products, some are happy to ship your products directly from their manufacturing facility to your end customers. Contact: alibaba.com

DECEMBER 2013

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SMALL BUSINESS TAX SAVINGS

TALK MONEY

Multinationals paying just 0.5% tax. s HMRC continues to ramp up efforts to recover tax shortfalls, smaller businesses are being targeted aggressively with initiatives to detect underpayments and tax avoidance schemes. Yet some of the world’s largest and most successful companies are legitimately paying minimal tax on millions of pounds of profits. In the case of Google, it paid an effective tax rate of just 0.5% on total foreign profits of $8.1bn last year, of which just £11.2 million went to HMRC. Contrast this with the 20% tax paid by the vast majority of smaller companies and it hardly seems fair.

WHAT CAN BUSINESS OWNERS DO DIFFERENTLY IN 2014 TO REDUCE TAX BILLS? While some smaller companies may be able to copy the sophisticated tax planning strategies adopted by multinationals, they rarely have the resources to carry them out, or the profits to make them cost effective. However, there are a number of good Government-backed schemes to help business owners reduce tax liabilities in ways that are not regarded as tax avoidance. These include: R&D TAX CREDITS R&D tax credits allow companies to offset development costs for new

Is that fair? Lesley Stalker, a tax partner at accountancy firm RJP LLP, discusses how SMEs can cut their taxes in 2014

Google paid an effective tax rate of just 0.5% on total foreign profits of $8.1bn

innovation by either reducing their corporation tax bill or obtaining a cash rebate. Tax refunds claimed to date have amounted to tens of thousands of pounds and the relief now covers 225% of costs. ENTERPRISE MANAGEMENT INCENTIVES (EMI) This provides employers with the opportunity to grant share options to employees, which they are able to exercise taxfree, on an eventual sale of the shares they have acquired. The employee will usually pay only 10% capital gains tax when the shares are exercised. ENHANCED CAPITAL ALLOWANCES (ECAS) ECAs are a special form of capital allowances, which enable a business to offset 100% of the cost of purchasing qualifying plant and machinery in the year of acquisition. This means the company can write off the full cost of any new plant or machinery against the business’s taxable profits in the financial year the purchase was made.

GROUP TAX RELIEFS These enable companies that are part of a larger group to transfer losses and certain deficits to companies within the same group. By transferring losses between companies, the tax affairs of the group can be managed to ensure corporation liabilities are minimised and cash flow is optimised. Companies under the same individual ownership, but not within a group, are not able to take advantage of these reliefs, and in some cases restructuring the companies into a group structure may be beneficial. Tempting as it may seem, entering into tax planning strategies that could be considered aggressive or deliberate tax avoidance, will only cause HMRC to enquire into your company’s affairs. Seek advice if you think your company pays a lot of tax and is missing opportunities to claim tax relief. Lesley Stalker is a tax partner at RJP LLP, an accountancy firm based in Surrey, which specialises in helping growing businesses. Contact: rjp.co.uk

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29/11/2013 17:29

START-UP LOANS

TALK MONEY

A day in

the life

This month our Start Up Loan recipient, Nelson Sivalingam tells us about One Minute London, the online video guide to eating and drinking in London

DEAR DIARY Wake up next to my phone blaring the most annoying alarm tone, and as per usual I tell myself that I have to change my nocturnal ways. I check my emails whilst still in bed. Then I browse the latest startup, tech and hospitality news while I munch on my bowl of Crunchy Nut. When I’m ready, I jump on the tube, and read Courage: The Art of Dangerous Living – it’s a must read!