The Market Magazine - Issue five by Market Publishing Ltd

INVESTMENTS BUSINESS ENTREPRENEURS FINANCE ENVIRONMENT TECHNOLOGY

JAMES CAAN the secret of a

The new inspiration for business, investment and culture

Bondage

Firm lessons in investment!

Winning Pitch...

How to Profit from

Body

currency trading

Language in Business

Corporate Manslaughter

EXCLUSIVE

Anouska

Hempel

WHAT YOU NEED TO KNOW!

TIGER

Power, Strength, Beauty, in Danger PROPERTY

ART

WINE

MARKETING

PSYCHOLOGY

FASHION

April 2011

The shocking truth illegal markets exposed

HEALTH

ADVENTURE

ÂŁ3.75

Welcome... to The Market â&#x20AC;Ś

Tiger, Tiger burning bright In the forests of the night, What immortal hand or eye Could frame thy fearful symmetry? William Blake 1794

There were once nine subspecies of tigers. Of these, three are extinct, one is no longer found in the wild, and the rest are endangered. Tigers are killed by poachers for their skins. They are also killed to supply the growing and lucrative market in bones and body parts, for traditional Chinese medicine and tiger wine. Saul Wordsworth examines the threats that face the last 3,000 wild tigers on pg 14. The demise of this most iconic and majestic beast would surely be a dark day for life on Earth. However, despite the huge effect humanity has on the natural world, the planet will never be tamed. As we go to print, a massive 8.9 magnitude earthquake has recently hit the northeast of Japan triggering a devastating tsunami, which has caused catastrophic damage and tragic loss of life. We watch the footage in horror and disbelief as ships, cars and even buildings are swept away by the huge wall of water and we are in awe of the power of nature. The aftershock has also struck financial markets across the globe and the loss of significant refining capacity in the worlds third-largest economy is likely to cause further instability for global fuel prices. The Polar explorer Ben Saunders is a man who has witnessed the planet in her most harsh and stunning beauty. Glyn Morris catches up with Ben on pg 20, as he attempts a new world record solo return to the North Pole. Having gone back time and again, he fears there is something addictive about the intense and magical High Arctic, that tests both the mind and body to extremes.

April

Despite the fact that in the developed world the majority of us live our lives shielded from raw nature, are we that removed from our instinctive behaviour? Researchers from New York University have found that we make eleven major decisions about one another in the first seven seconds of meeting. This is because the human brain is hardwired in this way as a prehistoric survival mechanism. Our new columnist Carol Kinsey Goman Ph.D. pg 56 is a world-renowned body language expert. Her skills help leaders improve productivity and energise a workforce. Over the coming months, Carol will show us how to build powerful and effective business relationships by using verbal and nonverbal communication, that project confidence, credibility and empathy. We continue this theme in the business section, with a series of features dedicated to the paramount importance of customer care. Whether you run a global corporation, or are just starting in business. Our writers suggest many ways to help your customers feel valued, thus giving your company the edge in this competitive market. On the investment pages this month Richard Willsher looks at the various attractive features that Bonds offer, explaining what they are and exactly how they work on pg 26. We also examine the biggest market of all, that of global currency on pg 30, showing how big profits can be made in the world of Forex. In alternative investments we explore the market in comic books on pg 34. Certain first editions of childhood favourites can be unbelievably valuable. Last year a pristine copy of Action Comics No.1, printed in 1938 and containing the first ever appearance of Superman, was sold for $1.5m.... Now thatâ&#x20AC;&#x2122;s something worth finding in the attic! m Contact us at info@themarketmagazine.co.uk www.twitter.com/themarketmag

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HIRSH

W E S T

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TRILOGY COLLECTION

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contents April

This month you could... Our pick of the best things to try, do or buy

Stop press Business news and recent events

Big facts Michelle Martensen investigates democracy Tigers Saul Wordsworth looks at why the world’s most majestic creature is on the brink of extinction

Adventure 20

Ben Saunders We speak to the polar explorer as he prepares for his next record breaking expedition

Environment 46

Investment bonds Richard Willsher tells us what they are and how they work

Forex Foreign exchange is the largest financial market, but private investors can play there too

Comics Collecting comics can be highly lucrative, Saul Wordsworth explains

Technology 40

The television We take a look at the evolution of the UK ‘s most popular home gadget

4 www.themarketmagazine.co.uk

Recycling Helen Campbell finds out if there really is brass in muck

Business 50

Law Jo Tall discusses the importance of health and safety

The green cross code for the entrepreneur written by Greg Limb and Daniel Crowther

James Caan We hear his top tips for winning a business proposal

Body language in business US columnist, Carol Kinsey Goman Ph.D, shares her expertise with us

Are you listening? You may hear but do you really listen

Valuing a business Guy Clapperton tells us how to work out what your business is worth

The art of loving your customers Business expert, Bev James’s regular column

Investments 26

Tech & gadgets Our pick of the latest technical innovations for the home and office

120 55

Business workshop Top business mentors explain the importance of seeing things through customersâ&#x20AC;&#x2122; eyes Online business Guy Levine tells us the four website mistakes to avoid Private equity What is it and how can it help business

Country properties Thinking of investing in a country property this year? Rachel Newcombe looks at how the UK market is faring

Travel 110

Shreyas, India Angela Melville-Rae checks out of the spa resort and tells us all

Health

114

Fit for Business Fitness advice from Olympic rower and personal trainer, Toby Garbett

116

Nutrition Nutritionalist and Personal Trainer, Antony Beeston lays down the ten commandments

104

Career Interview success Lucy Heskins tells us how preparation is the key

Fashion

Property

Spring suits We take a look at this seasonâ&#x20AC;&#x2122;s suits

Wine 84

... and more Wine A guide to Bordeaux with top wine writer, Rebecca Gibb

Art 88

Sculpture Lisa Sharpe brings art down off your walls and pulls it into the room Gallery View Wonderful art on our gallery wall

Design 98

118

Real business The inspirations and aspirations of real people in real business

120

Annabel Giles... contemplates the joys of working from home

122

Global Diary Our pick of the best events and auctions

128

People v computer Creative thinking and critique from advertising guru, Dave Trott

Anouska Hempel We talk to the renowned designer about acting, fashion and design www.themarketmagazine.co.uk

5 Mediterranean

hidden gems of the

It ’s not easy to nd hidden gems in a kaleidoscope of Mediterranean landscapes... so we ’ve found some for you.

Small Luxury Hotels of the World ™

Casa Angelina Lifestyle, Amal Coast, Italy Clinging to the hillside

Eight Hotel Portono, Italy An idyllic bolt hole from which to discover the pleasures of the Italian Riviera, minutes from Portofino ’s renowned piazzetta and delightful harbour, Eight Hotel Portofino offers chic modern interiors, a private beach and shady garden perfect for siestas.

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Villa Marie, near St Tropez, France

on the Amalfi Coast

There are plenty of quiet

overlooking the clear

corners and shaded patios

blue Mediterranean,

at Villa Marie where you

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plus charming terraces

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White decor and whimsical

and a spectacular pool cut

pieces of art enhance the

into natural rock.

stylish minimalism.

Cap Rocat, Mallorca, Spain Dramatic Mallorcan architecture in a breathtaking setting, magical dining venues and stunning rooms and suites are Cap Rocat ’s claim

San Antonio, Santorini, Greece

to fame. This secluded,

This romantic boutique

overlooking the Bay of

hotel is dressed to

Palma.

historic and romantic 19th century former fortress is an adults-only haven

impress: bright white rooms with amazing sea views are seductively splashed with colour; luxurious cave rooms are hewn out of volcanic rock; the infinity pool has views to die for.

Small Luxury Hotels of the World ™ Over 520 hotels in more than 70 countries View all our special offers at www.slh.com Experience another World

Watch

the Royal Wedding… Prince William and Kate Middleton tie the knot at Westminster Abbey on Friday 29 April. If this doesn’t appeal, you can still enjoy the UK bank holiday set for the couple’s big day.

Book

your fine-dining package for Matrix Live…

Our pick of the best things to try, do or buy this month

Following the sold-out performances of The Lord of the Rings Trilogy, the Wachowski Brothers’ classic The Matrix is set to be the latest film screened in high-definition accompanied by a live orchestra at the Royal Albert Hall. For £140 per person, you can enjoy pre-show hospitality at the venue’s restaurant, as well as tickets for the best stalls seats. The package includes a glass of champagne on arrival, two-course set menu and half a bottle of wine and water per person. While Matrix Live isn’t showing until Sunday 23 October, bookings are already underway. Non-dining tickets are also available from £15 to £55. Visit www.royalalberthall.com or call the box office on 0845 401 5045.

could... This month you

Spend Easter at

Shakespeare’s Globe Theatre on London’s South Bank… Shakespeare’s Globe Theatre is celebrating the 400th anniversary of the King James Bible with its new season entitled ‘The Word is God’. It will begin with a cover-to-cover recital of the Bible directed by Jacqueline Somerville, which a team of actors will present from Palm Sunday through to Easter Monday (17 April to 25 April). The 2011 programme will continue with a small-scale touring production of Hamlet, followed by All’s Well That Ends Well, As you Like It, Much Ado About Nothing, Doctor Faustus, Anne Boleyn and The Globe Mysteries, before closing with The God of Soho, a satire on modern living, set in contemporary, suburban England. The Globe’s 2011 Theatre Season runs from April to October. For tickets and further details, visit www. shakespearesglobe.com or call the box office on 020 7401 9919. Picture by Manuel Harlan

8 www.themarketmagazine.co.uk

Think

about expanding your operations in Europe… The Financial Times is holding a business breakfast in London on 14 April for companies considering relocating to Europe. The briefing will focus on why businesses should make Barcelona the centre of their EU or international operations. According to the FT, senior executives, board members and real estate and HR directors within the ICT, media, design, shared services and creative industries will particularly benefit from the programme. But it will also be of interest to venture capitalists, innovation consultancies, start-ups, new ventures, incubators and business schools. Attendance is by invitation, but a limited number of free open tickets are also available. To secure a place, email aliki.varsamides@ft.com or telephone 020 7873 4109. For further details, visit www.ftconferences.com.

the London Marathon. . . The 2011 London Marathon, which sees thousands of runners hit the capital’s streets, gets underway on Sunday 17 April.

Brighten up

the boardroom with Clare Vivier’s laptop clutch… This beautiful pebble-leather clutch will carry your laptop during the day while doubling up as a bag in the evening. It comes with a suede lining at the opening to stop your computer getting scratched and will fit a MacBook Pro or other models of similar size. The perfect spring accessory, it’s also available in a striking azure blue. £117 from Bodie and Fou. Order line: 0208 450 5600 or www.bodieandfou.com.

Please send all new product releases and high-resolution imagery to Michele Martensen. Email: info@themarketmagazine.co.uk

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News

Global construction set to grow nearly 70% by 2020 Growth in global construction will outpace world GDP over the next ten years, according to a new report by Global Construction Perspectives and Oxford Economics, two UK-based research and business-management consultancies.

rapid urbanisation and strong economic growth become key drivers.

The ‘Global Construction 2020’ report, a major study sponsored by international advisory firm PwC, predicts global construction will grow by 67% from $7.2 trillion today to $12 trillion by 2020.

Its building sector will more than double in size over the decade to $2.5 trillion by 2020, or 21% of world construction.

The report says a total of $97.7 trillion will be spent on building worldwide over the next ten years. Growth in China, India and the US will account for over half of the predicted $4.8 trillion increase to 2020. China and India will drive growth in emerging markets as rising populations,

China, boosted by stimulus spending, overtook the US in 2010 to become the world’s largest construction market.

“Construction will become one of the exciting global growth industries of the next decade driven by emerging markets and the US rebound,” said Neil Blake, director of economic analysis at Oxford Economics. The report also predicts India will overtake Japan to become the world’s third-largest construction market by 2018. Seven countries – China, US, India, Indonesia, Canada, Australia and Russia account for two thirds of growth in global construction to 2020. “Corporates need to work out how to deploy skills and develop the best alliances to benefit from the exciting growth opportunities that exist,” said Jonathan Hook, global leader, engineering and construction, PwC.

Tech update The Apple iPad 2 sold close to a million in the U.S. on its first weekend – significantly more than the first iPad. People queued for hours across America to be one of the first to try out the new must-have gadget. Britain won’t have long to wait to get their hands on their own as the iPad 2 will be released on 25th March.

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According to numerous tech sources, Google will unveil Google Circles at its Google I/O conference in San Francisco. It is thought that the network will selectively share content with chosen people although it is unlikely it will compete against the mega-social networking site that is Facebook. Google has already tried its hand at social networking before with Buzz, but it proved a disaster. Only time will tell if Circles will fare better.

Tax dodgers to face greater scrutiny by HMRC Tax evaders are to face up to five years of detailed examination from the taxman under a new government initiative. HM Revenues & Customs (HMRC) said its ‘Managing Deliberate Defaulters’ programme would closely monitor the tax affairs of individuals and businesses that have deliberately evaded tax to ensure they are complying with their obligations. It said cheats that fail to keep their tax affairs in order will face increasingly intrusive interventions and could face criminal proceedings if deliberate evasion continues Safeguards are also being put in place to ensure deliberate defaulters do not escape inspection by starting up a new business under a different name or identity. In these instances HMRC claims it would continue to monitor the new business. David Gauke, exchequer secretary to the Treasury, said: “This government has made it clear that we will not tolerate people who refuse to pay their fair share and [we] will pursue those who bend or break the rules.”

Research from Bedfordshire University has concluded that Facebook is turning women into stalkers. Dr Emma Short’s study discovered that women leave unwanted messages for their ex-partners on Facebook pages, send inappropriate emails and set up fake accounts to lure them into communicating with them. Statistics show that offline 8% of stalking victims are men compared with 35% online.

Firms have been told to double the number of women on boards by 2013 or face government measures. Lord Davies in his report urged FTSE 350 companies to boost the number of women at the board table to 20% by 2013 and 25% by 2015. But he stopped short of quotas, unless the voluntary measures fail.

40% of UK websites receive no visitors A new study has found 40% of websites in the UK get no visitors from either pay-perclick (PPC) advertising, “natural” or free search-engine results. According to ClickScene, the web-design company that conducted the survey, the results reveal the only people visiting the sites are family, friends, or those who already know the web address. The research showed only 9% had embraced PPC advertising, such as Google AdWords, to get their name, web address and marketing message in front of customers searching their product. “In general, businesses haven’t quite got it yet,” said Andrew Willis, managing director of ClickScene. “There were about one million new domain names registered in the UK in 2010 but if nothing changes the vast majority of those will be very lonely places indeed.” A total of 10,000 active UK-registered websites were checked for visibility between 21 February and 3 March 2011. Each website was checked against the top 20 paid and natural search results for 40 million keywords and phrases. Of these, 9,100 did not appear in PPC advertising, 4,047 did not receive any visitors from the natural or free searchengine listings, and 4,002 didn’t appear in PPC advertising or receive any visitors from the natural or free search-engine listings. For free advice on improving web-leads and sales, visit www.clickscene.com.

French food has become the fastest-growing cuisine in the UK, according to new research. In the past year, volume sales of French ready-made meals and desserts from all UK retailers grew by 6%, according to independent retail analysts Kantar Worldpanel. At Tesco the growth is even higher – with a rise of 27% year-on-year. From 6 April 2011, penalties for offshore non-compliance – for income tax and capital gains tax – will be linked to the tax transparency of the country involved. Under the HMRC clampdown, there will be increased penalties in place for under-declared income and gains from territories that do not automatically share tax information with the UK. It means anyone hiding money offshore could face new penalties of up to 200%. Small firms will no longer have to have independently audited accounts under new regulations announced by Business Secretary Vince Cable. Government sources claim the measure will save 42,000 businesses around £40 million each year. From April 2011 all corporation tax payments will have to be made electronically and all company tax returns must be filed online for accounting periods ending after 31 March 2010. The returns will also have to be filed using a specified data format, known as ‘Inline XBRL or iXBRL’. In addition to limited companies, the changes impact organisations, including clubs, societies, associations, co-operatives, charities and other unincorporated bodies. For further details, visit www.hmrc.gov.uk.

HMRC has launched a new online resource to help employers run their payroll systems. The new system ‘Basic PAYE Tools’ replaces the ‘Employer CD-ROM’. Employers that have used the CD-ROM will need the new tools for the remainder of the 2010-2011 tax year as well as future tax years. For more information, visit www.businesslink.gov.uk. A new online facility that promises to respond to legal queries within 60 minutes of them being placed on its website has been launched in the UK. Right Solicitor will provide a 15-minute free consultation either by phone or in person across a variety of areas including family, employment and personal injury law. See www. rightsolicitor.co.uk for more details. Independent research shows 18% of government-backed funds for businesses have closed since August 2010. Of these, 92% were targeted at start-ups or small businesses, according to UKFunders, which tracks more than 1,000 businessfunding sources (public and private) for companies seeking between £10k and £10 million. It said the findings question whether the government is serious about a recovery, led by small businesses. A massive 85% of employees that have dogs would like to take them to work, according to a survey by office design company Maris Interiors. More than a third (38%) said they would even consider changing jobs if it meant being able to take their pooch into the office. In addition, 16% of dogowners said they would be prepared to give up a week of their holiday for the privilege, with 14% willing to take a pay cut. Non-dog owners weren’t quite so enthusiastic, however, with 68% unhappy about the idea. Common concerns included fleas, chewed cables, allergies and litter training.

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Democracy What does it mean and where does it come from? Michele Martensen investigates.

Fact 1

Democracy has its formal origins in ancient Greece. Most agree it originated circa 508 BC with Cleisthenes, the Greek statesman who reformed the constitution of Athens. Often referred to as “the father of Athenian democracy”, Cleisthenes is widely credited with having created the world’s first democracy. However, some scholars claim advancements toward democratic government could have originated with earlier civilisations.

Fact 2

The term ‘democracy’ derives from the Greek words demos (people) and kratos (power), meaning ‘power of the people’ or ‘rule by the people’ (demokratia). The modern definition of what constitutes a democracy is more contentious. According to one source, democracy is a political system in which all members of society have an equal share of formal political power. In modern representative democracies, this formal equality is embodied primarily in the right to vote.

Fact 5

Around one-half of the world’s population lives in a democracy of some description. However, according to the Economist Intelligence Unit (EIU), the actual number of full democracies is low at just 26; 53 countries fall into what the EIU calls “flawed democracies”. France, Italy, Slovenia, and ironically Greece, all dropped from full democracies to flawed democracies post-financial crisis. As the EIU notes in its 2010 democracy report, social unrest related to the global financial crisis has already impacted around two-dozen countries, mainly

in Europe, resulting in increasingly negative trends in political development. “Historically, economic crises and difficulties have been associated with democratic breakthroughs, such as the sudden collapse of seemingly stable autocratic regimes, as much as with the opposite outcome of increasing authoritarianism. However, in the current circumstances, and given the combination of other factors at work, it seems much more likely that the negative impact on democratisation would predominate.”

Democracy Index 2010, By Regime Type No of countries

% of countries

% of world population*

Full democracies

15.6

12.3

Flawed democracies

31.7

37.2

Hybrid regimes

19.8

14.0

Authoritarian regimes

32.9

36.5

*Note: “World” population refers to the total population of the 167 countries covered by the Economist Intelligence Unit’s 2010 Democracy Index. Since that excludes only microstates, it is nearly equal to the entire actual estimated world population for 2010. Source: Economist Intelligence Unit

Fact 3

New Zealand was the first major nation to grant universal suffrage, or the right to vote, to all its citizens in 1893. However, the municipality of Franceville (present-day Port Vila, capital of Vanuatu in the South Pacific) was actually the first self-governing community to practice universal suffrage without distinction of sex or race, in 1889.

Fact 4

Universal suffrage in the UK did not come about until 1928. In the US, full enfranchisement of all citizens was not secured until 1965 with the ‘Voting Rights Act’, which finally outlawed discriminatory voting practices against African-Americans following the ‘Civil Rights Movement’ or ‘Southern Freedom Movement’.

Full Democracies, By Rank Norway 1 Iceland 2 Denmark 3 Sweden 4 New Zealand 5 Australia 6 Finland 7 Switzerland 8 Canada 9 Netherlands 10 Luxembourg 11 Ireland 12 Austria 13

Germany Malta Czech Republic US Spain UK South Korea Uruguay Japan Belgium Mauritius Costa Rica Portugal

14 15 16 17 18 19 20 21 22 23 24 24 26

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No other animal so encapsulates the power, pride and menace of the natural world.

A Friend in

PERIL The worldâ&#x20AC;&#x2122;s most majestic creature is on the brink of extinction. How did this happen?

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Sumatran tiger

ur love affair with the tiger has been sealed over centuries. From Hinduism and ancient Chinese worship, via Shere Khan in Rudyard Kipling’s, The Jungle Book, to a billion soft toys and a thousand nature programmes, its majesty is celebrated worldwide. In 2004 the tiger topped a poll as the world’s favourite animal. “We can relate to the tiger,” says Candy d’Sa, animal behavioural specialist. “It is fierce and

commanding on the outside, but noble and discerning on the inside.” No other animal so encapsulates the power, pride and menace of the natural world. With canine teeth precision engineered to slice flesh and claws that could tear a man to shreds, its combination of perfect muscularity and a long tail for fast running mean this formidable predator effortlessly hunts down animals twice its size.

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Bengal Tiger

At the turn of the last century there were 100,000 tigers in the wild. Today this figure is closer to 3,000 and falling fast. Of the eight original subspecies, three â&#x20AC;&#x201C; the Bali, Caspian and Javan tiger â&#x20AC;&#x201C; have disappeared in the last 70 years. According to the World Wildlife Fund, by 2022 this most charismatic of beasts will no longer exist in the natural world.

Malayan tiger

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Impending Extinction There are three principal reasons behind these diminishing numbers, all of which can be attributed to manâ&#x20AC;&#x2122;s influence. The first is loss of habitat. Unlike other big cats tigers prefer large sweeps of densely covered land where they can lurk in tall grasses, camouflaged by individually unique stripes, and ambush their prey. Huge areas of jungle and forest across its living spaces in Asia have been cleared for agriculture, industrial expansion and human settlement. In recent years these countries have experienced huge population booms. Indonesia may only be 10% the size of the United States but today it has the same population. In China the population has doubled in the last forty years and 99% of original forestation has been destroyed. The tiger has fewer places to live and hunt, meaning it resorts to preying on domestic animals or going hungry.

Sinopix/Rex Features

Laski Diffision/Rex Features

Above: Amur tiger and far east leopard skins confiscated by customs agents. Right: Caged tigers at a tiger breeding complex in Guilin, China. This complex is home to 1,500 tigers.

As tigers compete for limited habitat and resources, groups become separated from each another. This spreading out or fragmentation means an increased inability to mate with tigers in nearby areas, resulting in an already diminished population repeatedly breeding with the same small group. Over time this weakens the gene pool and leads to defects and mutations. By far the most upsetting of this triumvirate is the illegal hunting and poaching that takes place across most of the 13 remaining Tiger Range Countries (TRCs). Whilst many wild tigers now live in nature reserves established through conservationist and government cooperation, these tend to be isolated pockets of forest. Due to a lack of equipment, night patrolling and general funding, such secured areas

are frequently infiltrated by poachers who are able to prey on officials’ vulnerability to bribery and corruption as a result of poverty. Medicinal Traditions In traditional Chinese medicine every part of the tiger is highly prized. A set of tiger bones may fetch up to £225,000. The sale of tiger wine, made by steeping the bones in huge vats of rice wine, has for more than 2,000 years said to bestow the power of the tiger upon the drinker, curing rheumatism and arthritis, and prolonging life. Tiger wine was regularly imbibed by Chinese premier Mao Zedong, even as he declared the tiger to be “an enemy of the state” in 1959. A bottle today may retail at £500. Other body parts said to contain medicinal qualities include the claws

Tiger Farms It is estimated that for every wild tiger alive today there may be three farmed tigers in China. Although the country banned the trade in tiger bones and products back in 1993, it has been widely reported that in specialist farms these animals are being bred for their bones. The tigers are kept in cages and are often underfed, surviving on a minimum amount of food (tigers can eat up to 100lbs of meat a day). Sometimes they are let out to chase chickens for a smattering of visitors. Most die of malnutrition in a state of filth and neglect. Females are forced to produce cubs at three times the normal rate. Their young are then removed prematurely and made to suckle from pigs and dogs, freeing the mother to bear another litter. Xiongshen Park in Guilin, southwest China, is said to have a population of over 1,500 mainly Siberian tigers. Hidden from view is a building where skeletons are cleaned and immersed in vats of wine. The park sells over 200,000 bottles of tiger wine a year and has 600 skeletons stored in wine at any one time.

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According to the World Wildlife Fund,

by 2022 this most charismatic of beasts will no longer exist in the natural world.

political leaders will be true to their word? What happens if money is not forthcoming or countries continue as they were? The extinction of any species is a tragedy. The days of the rhino are numbered and new research suggests the great white shark may disappear as soon as 2015. The tiger, more perhaps than any other endangered species, has the ability to capture the imagination. How can we live with ourselves if we let this most vivid and awe-inspiring of creatures die out? Action While we may be talking about the fate of the tiger, we are also touching on issues critical to the future of humanity. Human civilisation can only develop if we take a sustainable attitude to our shared planet. At our current rate the preservation of nature is not commensurate with the impetus of man. Siberian Tiger

(insomnia), eyeballs (epilepsy), penis (impotence), whiskers (toothache), bile (meningitis) and brain (laziness and acne). None has any proven scientific benefit. Instead they are sold into societies where drinking tiger wine and purchasing tiger products are indicative of wealth and sophistication. Tiger numbers have dropped, Asian populations have surged and their economies have boomed. The demand for tiger is greater than ever, leading to higher prices for dead carcasses. Hong Kong is believed to be the largest importer of tiger products. In many parts of China and Indonesia tiger parts are openly for sale. Meanwhile a survey carried out in the UK in the late 90s found that over half of Chinese medicine shops stocked tigerrelated products.

18 www.themarketmagazine.co.uk

What To Do? Aside from the 70-plus charities dedicated to the wild tiger, in November the world’s first conference focused on the preservation of one species took place in St Petersburg. Leonardo DiCaprio appeared and donated $1m. A global tiger recovery programme was endorsed by all TRC countries and a goal was set to double the number of wild tigers by 2022 through the education of locals, the reintroduction of tigers to their former ranges and enhanced cooperation between international organisations including the UN and Interpol to strengthen the enforcement of international laws against trafficking. This is all very promising and should be praised – but is it enough to hope that

Few of us will have done anything to aid the ailing tiger. We remain quietly outraged, wondering what difference a lone voice could make. It does not have to be this way. This is a narrative that could yet be rewritten. Never underestimate the strength of people power. Plenty of options are available. We could write to our local MP, David Cameron or President Obama. World Bank President, Robert Zoellick declared the tiger needs £350m pledged over and above what is currently being invested. That money has to come from somewhere. It is not Other People who donate to good causes, it is all of us. The tiger does not have to go the way of the dodo. If it does, we all die a little. m Saul’s fee for this article was pledged to the Global Tiger Recovery Programme. To donate please visit www.savethetigerfund.org.

By Saul Wordsworth

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True

Brit

Ben Saunders spent his childhood reading about the great polar explorers. Now he is following in their footsteps, twice reaching the North Pole solo and unsupported. As we go to print he is attempting, solo, to break the speed record to the Pole. In October, on the centenary of Captain Scott's epic expedition, he intends to lead a three man team to the South Pole and back on foot, a journey of 1,800 miles no one has yet accomplished. By Glyn Morris

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A school report when you were 13 reads “Ben lacks sufficient impetus to achieve anything worthwhile.” Do you think this was a fair assessment?

To be fair, I think I frustrated a lot of my teachers. I didn’t struggle academically, but I was incredibly lazy; I’d do the bare minimum to get by and I’d leave all my revision until the night before the exam, which worked well until the concept of coursework came along. In hindsight, I realise that I was never (or at least very rarely) inspired by anything that happened within the four walls of a classroom, and that all the stuff that excited me happened outdoors. What were your reasons for going to Sandhurst Military Academy?

Many of my boyhood heroes – Sir Ranulph Fiennes, Chris Bonington, John Ridgway – had been Army officers, and I think I assumed that was the natural career path if I wanted to end up leading expeditions. I lost touch with my father at an early age, and I think I subconsciously sought out male role models. As a child I was vividly impressed by some of the images that came back from the Falklands war, and I aspired to being a soldier for many years. At 18 you went hiking in the Himalayas. How different was the man who emerged four months later?

It was the first time I’d travelled independently for any length of time and I grew up an awful lot. The gap year (or “gap yah” if you’ve seen the brilliant parody on YouTube) has become a middle-class cliché but I think mine had a profound influence on the course of my life. You worked as an instructor at the John Ridgway School of Adventure. What influence has he had on your life?

To the teenage me, John seemed a larger-thanlife superhero. He’d served in the SAS, he’d been a formidable heavyweight boxer in the Army, he’d crossed the Atlantic in a wooden rowing boat, he’d made the first crossing of a remote icecap in Patagonia and he’d held the record for sailing non-stop round the world. When I met him, however, I found him incredibly modest about his own achievements, and incredibly good at using his experience to encourage other people to think differently about their own potential and ability as human beings. He was a fantastic mentor, and I often say it was during that year that the screw came loose for me: that was when I started dreaming about organising and leading expeditions of my own. At the time you felt your 2001 polar expedition a failure. How do you view it now?

Soichiro Honda, the founder of the Honda motor company, said that “Success is 99% failure”. Immediately after that first expedition I felt resolutely beaten; completely crushed by the severity of the

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“I’d occasionally wake up from a dream that I was at home in bed, wrapped up in a nice warm duvet, only to find I was alone in my tent at -45 degrees C.” experience, the hostility of the environment and the scale of the challenge we’d squared up to. It took me a while to realise just how much I’d learned during that trip. At times it was nightmarishly hard, but I look back on it now with a peculiar level of fondness, as a bizarre form of apprenticeship. We were attacked by a polar bear and I had frostibite in a toe. Learning curves don’t come much steeper than that! What made you want to return?

A host of reasons, from the laughably romantic (a feeling that I’d found my calling) to the wholly pragmatic (I was 30 grand in debt from my first expedition, and seeking sponsorship seemed a better alternative to paying this off than squirreling away part of my salary for the next few years). Having gone back again and again since (and having paid off my debts years ago), I do fear there’s something addictive about the high Arctic. It’s a magical place, and nothing I’ve done in the civilised, ‘real’ world – no rock concert or art gallery or frescoed ceiling or Michelin-starred meal – has compared to the intensity of what I’ve experienced on expeditions. Having reached the North Pole in 2003 how did it feel to be on top of the world?

I was enormously proud of myself of course, but in many ways the geographic North Pole is the ultimate anticlimax: there’s nothing there, not even a pole at the Pole. What improvements were made to kit, communications and food for the 2004 Trans-Arctic expedition?

We made a host of changes – some were minor tweaks and some were major shifts. We spent a lot of time and effort working on the nutrition, and ended up with a strategy that was a radical departure from the accepted norm for polar expeditions. I work in such a peculiar niche that there’s often scope for real innovation, and I get very geeky about the equipment and food I take with me. You made a daily blog on this trip. How important to you were the replies?

The ability to share my expeditions as they happen with an audience of almost limitless size has been a huge source of satisfaction and motivation. When I

was younger I used to love getting dusty library books about explorers, so the opportunity for schools to engage with what I’m doing in real time is exciting to me, and I suspect I’d have paid more attention in geography lessons if we’d been able to leave comments on an explorer’s blog. Having a satellite phone doesn’t automatically make things easier, however. It’s very easy to get homesick, and to lose the absolute focus that you need to operate and survive alone in those conditions, and it also offers the ever-present opportunity to quit when the going gets tough. An evacuation flight and a comfy bed in a warm, safe hotel is only ever one phone call away, which is hard to ignore on tough days, when it feels like a mad, selfimposed purgatory in the most hostile place on earth. You describe each day as an extreme of highs and lows. What was a typical day on the ice?

I average about nine hours of skiing north, hauling my sledge. Getting up in the morning was usually tough, and I’d occasionally wake up from a dream that I was at home in bed, wrapped up in a nice warm duvet, only to find I was alone in my tent at -45 degrees C. I melt snow on a small stove to get drinking water to rehydrate my food and make hot drinks for breakfast and throughout the day, I have breakfast (freeze-dried porridge with cream), washed down with a protein shake, a couple of vitamin pills and a hot energy drink – breakfast alone is more than 1,400 calories. My mood during the day seems intrinsically linked to the ice and weather conditions, and I experienced huge mental peaks and troughs. When you reached the North Pole you were the only person in an area the size of the United States, yet you were able to speak to your mum on the phone. Can you describe that moment?

It was pretty surreal – my mum was in the supermarket at the time, and I could hear the beep of the shopping going through the checkout. Because of the melting ice you had to be picked up before reaching Canada. How dangerous had things become?

It was pretty hairy. There was a lot of open water around, and I knew the chances of getting all the way across to Canada were pretty slim. What was the gear failure that thwarted your speed record attempt in 2008?

My 2008 attempt from the Canadian side of the Arctic Ocean was scuppered by a broken ski binding. It sounds like the tiniest of things; something I might be able to bodge a repair to, or carry on without, but a steel plate inside the binding had snapped. Without skis I had no chance of reaching the Pole in the narrow time window that’s available each year, and having a new pair flown out to me would have cost about $30,000, as well as negating my “unsupported” status that year.

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Over the last decade you have witnessed the effects of global warming first hand. How serious do you think it is?

I’ve seen a clear rise in average temperatures, and a corresponding reduction in the thickness and extent of the pack ice as a whole, but I’m certainly not qualified to comment on what’s causing this shift. I do worry, however, that the global warming debate is detracting from the wider issue of sustainability, and I’ve seen an abhorrent human impact on the high Arctic. I’ve found oil and plastic stuck in the ice, hundreds of miles from civilisation, and there are Inuit mothers in Canada and Greenland with toxic levels of mercury in their breast milk. Are the days of Arctic expeditions on foot numbered?

Quite possibly. It will soon be impossible to start a North Pole journey from land on the Russian side of the Arctic Ocean as there’s more and more open water there each year. After speaking at the Poptech and TED conferences in 2005 you stated that “they changed my life profoundly”. In what way?

Both of these events gave me a unique opportunity to learn from (and hang out with) people that were at the cutting edge of a huge range of fields, from cartoons – I

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“In the past, I felt like I had to justify my expeditions by raising money for charity, but I’m now happier pursuing endeavour for endeavour’s sake.” met Matt Groening, who created the Simpsons – to particle physicists and rocket scientists. I’m often asked why I do what I do, or what motivates me, but this was never questioned by any of these people. It was as if there was a mutual understanding that being passionate about something and pursuing the outer limits of human potential, no matter how peculiar the niche, was a good place to be. In the past I felt like I had to justify my expeditions by raising money for charity, but I’m now happier pursuing endeavour for endeavour’s sake. You have given motivational speeches to many international companies. How do your experiences relate to the business world?

In some ways I’m laughably unqualified to advise any

business. I barely scraped through my A-Levels, I don’t have a degree, let alone an MBA, and I drag sledges for a living. I spoke at a major banking forum in Luxembourg recently and the presenter before me was talking about T2S securities transactions, which might as well have been in Swahili or Macanese, as I barely understood a word. Yet if you zoom out far enough, we can all find food for thought (and hopefully inspiration) in stories about challenge, adversity, aspiration, teamwork, communication, leadership, failure, struggle and success. With seven marathons and three ultra marathons under your belt, do you think you’ve reached your physical peak?

I’m 33 now, and fitter than I’ve ever been, but I’m also aware that this comes at a huge cost – my social life is almost non-existent, I don’t drink, I haven’t been to a nightclub in years, I produce more muddy, sweaty laundry per week than most rugby teams and I’m perpetually knackered and aching from training fifteen or twenty hours a week! You call yourself an explorer of human limits. How close to these limits do you think you’ve come?

I’ve consistently surprised myself on each of my expeditions – I’ve had many points where I’ve felt

like giving up in the face of seemingly overwhelming difficulty and odds, yet whenever I thought I’d reached rock bottom, I could always go a little bit further. Describe the expedition you are about to embark on.

I’m returning to the North Pole, solo again, but from the Canadian side this time, and with the aim of setting a speed record. No one has reached the North Pole solo since I did so from Russia in 2004, so it’s a significant challenge. You’ll be able to follow my progress at www.bensaunders.com. What are your plans for the future?

In October 2011 I set out to make the first return journey to the South Pole on foot, leading a three-man team to complete the journey that Captain Scott died trying to achieve. In many ways Scott’s expedition was the most poignant of the Edwardian golden age of exploration, and a lot of people are surprised to hear his journey hasn’t been finished yet. 2011-12 is the centenary of Scott’s final expedition, and we’ll get home in 2012, the year of the London Olympics and the Queen’s 60th Jubilee, so it seems like the right time to attempt it. The entire journey is 1,800 miles and will take about four months. m

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BONDS ARE A WAY FOR ORGANISATIONS TO BORROW MONEY, USUALLY FOR A FIXED PERIOD OF TIME AT A FIXED COST, WHICH MAY BE CHEAPER THAN BORROWING FROM A BANK. THAT INCLUDES GOVERNMENTS, MULTILATERAL ORGANISATIONS LIKE THE WORLD BANK, THE EUROPEAN INVESTMENT BANK AND COMPANIES SUCH AS BARCLAYS, BP OR MARKS AND SPENCER. THIS PROVIDES A CLUE AS TO THE BENEFITS BONDS OFFER INVESTORS. Take a bond such as Rolls Royce 7.375% 14 June 2016. It will repay on 14th June 2016, referred to as the maturity or redemption date. From the date it was issued until then, the company will pay interest or “coupon” of 7.375% per annum. So investors who buy this bond will know when they will get their money back and how much interest the company will pay. This is why bonds are often referred to as “fixed income” investments although there are some that carry floating rates. Bonds not shares This is quite different from investing in company shares. Firstly, bondholders know how much coupon they will receive and this is not dependent on a management decision or a vote at the company’s annual general meeting. Secondly, payments of coupon and the maturing principal value of the bond are part of the costs of the borrower’s business. They do not come out of profits as ordinary share dividends do. So bonds are, or should be, more reliable. Thirdly, in the event of a bond issuer going bankrupt, bondholders are paid out before shareholders. So, bonds offer investors a reliable income, provided the borrower is creditworthy – of which more later. What often confuses those looking at bonds for the first time is the way that bonds are priced and how the real investment return is calculated. Most bonds are issued in lots of £100. This is called the nominal value of a bond and is the amount that will

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be repaid at maturity. But the price of bonds in the market fluctuates depending on a number of factors such as the credit standing or rating of the issuer, the supply and demand for the bonds and also prevailing interest rates. In the case of the Rolls Royce bond, on 9 February 2011 the buying price was £116.20. This is said to be priced “above par” and because the coupon remains the same whatever the price, the actual so-called “running yield” or return on an investment made at this price, is around 6.35%, not 7.375%. There is also a further complication. Although the investor may have paid £116.20, he/she will only receive repayment of £100 at maturity in June 2016. He/she will lose £6.20 of his/her capital. This can be factored into the calculation to produce an annual yield to redemption (YTR) by dividing the £6.20 by the number of years left to run, for ease of calculation let’s say five in this case. The answer will be 6.35% minus 1.24% (£6.20 divided by five) producing a YTR of roughly 5.11% per annum. If the price of the bond had been lower than par then the return would have been higher than 7.375%. One important principle with bonds is that the lower the price the higher the yield. Ratings By investing, the bond investor accepts the risk of the issuer failing to pay coupons, usually every six months and repaying the bond at maturity. Therefore he or she needs to understand

the risk. Fortunately this is made easier by credit ratings agencies such as Moody’s, Standard & Poor’s and Fitch whose business it is to study the possibility of default and grade the risk – AAA being the highest, most credit worthy and D being the lowest. Convention has it that ratings above BBB are referred to as “investment grade” and those below “sub investment grade”. The lower the rating the higher the risk, and the higher the return. Low rated bonds are also referred to as high yield or sometimes “junk” bonds. You can find ratings at the ratings agency website which are listed in the panel. Highly rated bonds produce a reliable stream of coupons, often over a long period of time. Consequently, insurance companies, pension funds and private individuals buy them for their reliability. It is not therefore difficult to imagine the huge market that exists in highly rated bonds, the largest being in government bonds. Government bonds Governments, as we know only too well at the moment, borrow vast amounts of money. The bonds that the UK government issues to meet its borrowing needs are referred to as “gilts”, short for “gilt edged stock” and are AAA rated. The government’s Debt Management Office (DMO) website contains a great deal of information about gilts, including explanatory documents, a list of the gilts currently in issue and

Bond Investment Bonds offer several attractive features but before investing it is important to know what they are and how they work

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HIGHLY RATED BONDS PRODUCE A RELIABLE STREAM OF COUPONS, OFTEN OVER A LONG PERIOD OF TIME.

the previous day’s closing prices. This should be your first stop if you want to learn more about them. In essence, gilts are categorised in two groups, “conventional” and “index linked”. Conventional gilts work pretty much in the same way as the corporate bonds described earlier. So, for example, the 2 1/4% Treasury Gilt 2014, matures on 7 March 2014 and pays 2.25% on £100 of nominal value. But on 9 February it was priced at well above par. If you go to the DMO’s website you will see there are two prices. One is the “clean price” which means that the price does not take into account the interest that has accrued on the bond since the last coupon payment date. The second price is the “dirty price” which is the total price payable for it includes the accrued interest. The important thing though, for an investor who is looking to hold them to maturity, is the yield and on 9 February this was 2%. So while the coupon payments may be reliable this is barely competitive with current building society or bank savings rates and is roughly half the rate of inflation. Index linked gilts may be more attractive. “Linkers” are valued by reference to the retail price index (RPI) so that the value of each £1.00 invested

and the coupon payments are adjusted to take inflation into account, at a time when RPI is running at around 4.8% (latest figure available at time of writing from the Office of National Statistics for the year to December 2010). Added to this is the coupon such as 1 1/4% Indexlinked Treasury Gilt 2017 where the coupon is 1.25%. That is the good news. The bad news, as ever, is that the current price is well above par at 106.88 clean and 125.74 dirty. The exact yield isn’t known until the indexation is calculated, for more information go to the DMO’s website. Once satisfied that you want to invest in bonds, two questions remain. Firstly, where to learn the prices? The Bondscape website is a mine of information and provides quite a lot of additional help. Secondly, where to buy? Banks, stockbrokers and online dealing services can help. Also, they may offer you bond funds, which are funds that invest in a collection of bonds of different sorts to try to smooth the risk and provide a consistent level of return. Make sure you understand what is on offer and what you’re investing in before taking the plunge. m By Richard Willsher

Useful websites www.fitchratings.com www.moodys.com www.standardandpoors.com www.bondscape.net www.dmo.gov.uk

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market The biggest

The global trade in foreign exchange is the largest financial market, but private investors can play there too, writes Richard Willsher

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he numbers are unimaginable for most of us. In its latest Triennial Bank Survey, the Bank for International Settlements (BIS) reported that the average daily turnover in the global foreign exchange market reached $4 trillion in April 2010. That’s four and 12 noughts every single trading day, dwarfing the trade in equities, bonds and other securities. Moreover, 37% of this trading was carried out in the UK, mostly in London’s dealing rooms, making it by far the largest trading centre in the world, double that of New York in second place. Part of the demand to sell one currency for another arises from companies selling goods from one country to another. Trading by financial institutions, moving their money around the globe as one financial market opens and another closes

is another source of turnover. A third is cross-border investment where large insurance companies or pension funds buy investments in other countries and buy the appropriate currency to do so. A large proportion of sales and purchases of currency is however speculative, betting that one currency’s rate of exchange will rise or fall against another and private individuals can take part in this too. Investing or gambling? Currency trading is sometimes referred to as “investing” but arguably it is more realistically viewed as gambling. The basic principle is that any two “currency pairs”, say US Dollars (USD) and Euro (EUR) or Pound Sterling (GBP) and Japanese Yen (JPY) never remain at the same exchange rate against each other for very long. The opportunity to make a profit (or shoulder

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a loss) arises from guessing successfully which way the rates will move. If you bet on JPY gaining value against GBP and you are right, when you change your Yen back to Pounds you can make money, and, if your bet is big enough, quite a lot of it and also in a short space of time because foreign currency markets are very fast moving.

are the “x factors”. The unexpected: a 9/11, a tsunami, a coup d’état or catastrophic outbreak of disease in some part of the world are examples. The forex market reacts with lightening speed and one currency will gain or lose its value against another in an instant.

This pretty much sums up the attractions of this market. It is fast, potentially profitable, accessible through online trading accounts and volatile. As long as rates are moving there is the chance to trade and make money.

How to trade The BIS report noted that over 40% of all trade involved the USD, 20% EUR, 10% JPY and 6% GBP. Any combination of these are the most common trading pairs but it is possible to trade many more currencies than these, depending on those offered by brokers.

The influences that make currencies move in one direction or another can include economic data released by governments, changes in interest, inflation rates and political events such as changes of government or their policies. Then there

A broker will quote a two-way price that will look something like this: GBP/USD 1.5967/1.5972. The first currency mentioned, GBP here, is the one that there is one of. The first price mentioned, usually quoted to four

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Beating the exchange rate trap Investing in overseas stocks and shares, bonds or property brings with it foreign exchange risk. The risk is that when you want to make or receive a payment to or from abroad your Pounds may not be worth as much as they were when you first thought about making the investment. The solution is to buy or sell foreign currency “forward”. This means asking a bank or foreign exchange broker to set the exchange rate well ahead of when you want to do the deal, rather than to just sell you the currency using a “spot rate” when you want to transact. According to Nick Fullerton of FC Exchange, the London foreign exchange broker, rates can be fixed up to two and a half years ahead. So for example, if an investor knows when he or she will receive the proceeds of a sale of shares in US Dollars, or will make the final Euro payment for a property in France then they can fix the rate in advance so they will know where they stand. “At the moment we are seeing more of our customers starting to buy properties abroad again,” says Fullerton. “They come to us for protection from the risk of the exchange rate moving against them. Some people are put off making foreign currency investments, thinking that it is complex and expensive. It need not be and, in most cases, we are cheaper than their clearing bank.” Contact details for FC Exchange Tel: 020 7989 0000 www.fcexchange.co.uk

decimal places, is the “bid” price, the one at which he is prepared to sell the Dollars for Sterling. The second number is the “offer” price at which he is prepared to sell Sterling to buy Dollars. The difference is called the “spread” and represents the broker’s take, in our example .0005 or five “pips”. While some brokers may only deal in large amounts, say £50,000, others may go down to smaller amounts. One attractive feature of foreign exchange is that you will always own an asset; you are “collateralised” because you either own one currency or another. Typically, broking accounts enable the trader to bet much larger sums than they actually own and the broker charges a “margin” or a deposit as security which is likely to be of the order of 5% of the amount traded, £2,500 for a trade of £50,000.

Then it is all to play for. If your bet is right and the currency you buy either increases or decreases in line with your bet, you make a profit. Get it wrong and you lose. The risk is that you lose your margin and much more if the rate swings wildly against you, but fortunately brokers will usually offer tools such as “stop losses” which click in and stop your losses from mounting further. This gives a taster but the market is more complicated and there are a number of other types of bets that can be made. The next move is to visit some of the brokers’ websites, read the advice and information they offer which is usually free to decide if foreign exchange trading is a game you’d like to play. m

By Richard Willsher

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P I R ST

Collecting comics can be highly lucrative – and now is a good time to start. Words by Saul Wordsworth

weets and chocolate are a gratifying pleasure when we are six, but comics are perhaps the first item we buy with our own money that feel like they are truly ours. These entries into the world of fantasy can stimulate our hearts and minds and conjure worlds hitherto unimaginable, inspiring us to believe that a man can fly, stretch, run at 200mph or turn green when he feels hacked off. A love affair with comic books that begins in childhood may last a lifetime. “The market for comic book collecting is enormous,” says Malcolm Phillips, founder of Comic Book Postal Auctions Ltd in the UK. “We have been selling British and American comics for 20 years. Today most of our auctions take place online. Aside from bringing enduring pleasure to the reader, comic books have a great potential for financial return.”

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Malcolm Phillips does not lie. A pristine copy of Action Comics No.1, printed in 1938 and containing the first ever appearance of Superman, was sold in March 2010 for $1.5m. Not far behind is Detective Comics issue No.27 from May 1939, Batman’s inaugural showing, which sold for $1.38m a few years earlier. Both emerged from a period known as the Golden Age of comic books, the first era to feature the modern day superhero. Traditional British comics may not have the same historical tradition, but in 2004 Phillips still sold a copy of The Dandy No.1 for £20,350, a world record. “The Dandy had a free gift attached, the Express Whistler which was a small tinplate whistle, blue on one side, yellow on the other. No other known example has survived. When collecting or buying old comics, free gifts enhance value

Above: The front cover of the first detective comic showing Batman in 1939.

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on to sell one million copies a week. enormously. More important, though, is grade. Grade can make the difference between an Eagle No.1 selling for £850 or £55. A low-grade Superman No.1 may be worth as little as £10,000. We sold one in December. Although it had been restored it was still in a fairly shoddy state. Low-grade No.1’s are a cheap entry into what can be an expensive market.” STORIES The back-story to a comic’s creation forms part of its mystique and can often be as interesting as the strip inside. Take The Eagle. A mocked-up, shortened version was sent to every British school and church that its founders, Marcus Morris and Frank Hampson, knew of in an attempt to prove their publication to be morally upstanding and good for boys. Once the establishment was onside, the comic was published to great fanfare in 1950 and went

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“I own one of the original mock-up issues from 1949, signed by Morris and Hampson,” says Phillips. “Only around 300 of these were ever produced. It’s the kind of piece most collectors would give their eyeteeth for.” Whilst Phillips’ mini Eagle would be worth a healthy four-figure sum today, The Eagle itself is not a comic of significant value due to its large circulation. Girls’ comics, on the other hand, are strongly collected and often have a far greater price tag. This is because the market was appreciably smaller than the general market that targeted at boys. “The distribution of girls’ comics wasn’t one tenth of the distribution of those for boys,” says Phillips. “This means that girls’ comics dating from the ‘40s and ‘50s, from Marvel’s girl comic right up to more modern day examples of Jackie,

Tammy and Girl – sister paper to Eagle – are genuinely rare. In the 60’s, when pop took over, there was a cross-over from girls’ comics into the fashion arena. These comics included make-up tips and little cut out costumes and remain iconic and valuable because of the fashion, make-up and pop music content.” High-end collectibles are one thing, but what about the average comic book fan who might have an everyday collection of Superman, Batman and Spiderman comics stashed away

at the back of the wardrobe? “It would be a curate’s egg really,” said Phillips. “In other words, good in parts. Some 70s items are highly desirable. Hulk No181 for instance features the first appearance of Wolverine. Similarly X-Men Giant Size No1 is sought after, as is No94 because the X-Men are donning new costumes. Various items from the 70s can be worth several hundreds of pounds if they are in near perfect grade, which many of them are since the 70s is still relatively

Above: First issue of the comic ‘Superman’.

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recent. However, if you go back just a little earlier to the Silver Age of Comic Books – the mid-‘50s to 1970 – that’s when you find real gems. No.1’s from Marvel such as The Incredible Hulk, Spiderman and The Fantastic Four are all worth very good money in high-grade. INVESTMENT For anyone looking to invest in comic books the advice is clear: collect quality, go for the No.1’s or issues where new characters appear for the first time, go for the most money you can afford, and the highest possible grade. “You could take a scatter-gun approach and buy up everything you thought was rare,” says Phillips. “Investing for profit is quite a tough thing to do though. It really is only worth investing in comic books if you enjoy them. If you don’t you’ll be surrounded by little ticking financial clocks and will find yourself preoccupied over the right time to sell rather than basking in the

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pleasure of ownership. Many of these publications have genuinely sophisticated storylines told through the medium of breathtaking artwork that, were it published elsewhere, would receive the highest possible accolade.” Very few truly valuable comics exist. There are a small handful of original “Action Comics” from the Golden Age worth six figures or, in one or two cases, more. The difficulty is that comics were designed to be read, then discarded. Those produced prior to 1990 were printed on newsprint and remain fragile. Because of their age few are preserved in the requisite condition. But of course the scarcity is part of what makes collecting so exciting. CHILDHOOD “There are plenty of precautions you can take such as cardboard backing and vacuum packing, but the key is to collect for the pleasure of it,” says Phillips. “If you

A pristine copy of Action Comics No.1, printed in 1938 and containing the first ever appearance of Superman, was sold in March 2010 for $1.5m!

were brought up in the ‘60s or ‘70s buy the stuff you remember from your childhood. Whether it’s Lion, Tiger, Spiderman or the Gerry Anderson-inspired TV Century 21, always try and get the free gifts with the first issues. If you were a fan of Viz, you can pick one of the 150 No.1’s for less than £500, complete with free icecream stapled to the back. If you continue to protect what you have you are more likely to receive a revaluation upwards in future decades.” For those looking at the best way into today’s market, the American comic market is currently soft, meaning it is difficult to sell. This translates to a buyers market. “Now would be the time to invest in American comics,” says Phillips. “Aside from their quality, the constant making and remaking of the likes of the Spiderman, X-Men, Batman and Superman films means interest in these classic comics will never die out.” m

The Most Valuable Comics of all Time The classic era of comics ended in 1990. Since then large printruns produced on acid-resistant paper have rendered today’s comic books very unlikely to ever possess great value. Here, though, are the ten most valuable comics of all time. 10. Name: Amazing Fantasy, No. 15 Value: $280,000

5. Name: Detective Comics, No. 1 Value: $405,000

9. Name: Flash Comics, No. 1 Value: $289,000

4. Name: All-American Comics, No. 16 Value: $430,000

8. Name: More Fun Comics, No. 52 Value: $316,000

3. Name: Superman, No. 1 Value: $671,000

7. Name: Batman, No. 1 Value: $359,000

2. Name: Detective Comics, No. 27 Value: $1,380,000

6. Name: Marvel Comics, No. 1 Value: $367,000

1. Name: Action Comics, No. 1 Value: $1,500,000

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TV through the ages

In 1926, John Logie Baird introduced the world to television, since then it has continued to evolve both through technology and programming becoming bigger and better. With internet on your TV and 3D beginning to come to mainstream sets, what is the future for the UK’s most popular home gadget? By Alex Iszatt

V came to the masses in 1937, it was in Black and White and there was only one channel – the BBC had complete monopoly over what the public watched. TVs were cumbersome, usually set into a wooden surround, that made them expensive and not everyone could afford one. Those that did could experience live action radio shows as well as the news. Society was different then, there was a more neighbourly atmosphere and those who had TVs would invite friends and neighbours into their houses to see important historical events, such as the Coronation Procession of George VI and Elizabeth. People began to experience events that they would previously have only read about in the newspaper. It was an exhilarating time of change. The public soon wanted more and in 1952 the House of Lords debated the future of broadcasting in Britain and ordered an independent report to make recommendations for a second channel. A white paper issued by the government in the same year commented, “as Television has a great and increasing power in influencing mens’ minds, the Government believes that its control should not remain in the hands of a single authority, however excellent it may be...” And so commercial TV, paid for by on-screen advertising came to life in the form of ITV. There are now hundreds of TV channels with the th average European watching close to t four hours of TV each day. TV has become such an important part of our lives that everyone blames it for everything, from obesity to the murder everyt rate. TV T may be easy to criticise, but it has also als benefited us too. The major importance of TV, that many m of us take ta for granted, now that we have internet interne is in our lives, is that it informs and educates us. An American study ed shows that some major changes happened in the US U because of television, including the Civil Civ Rights Movement and the anger towards toward the Vietnam War. By actually seeing the struggle and death caused by heads hea of state, the country began to

40 www.themarketmagazine.co.uk

understand derstand the true impact of the War. Newspapers papers and the print media provide a degree of separation from reality, but TV graphically bringss whatever is happening right into your living rooms, ms, complete with added feelings. Television makes us an “eyewitness” to events as they happen, and we can be right there when a country is invaded or to our team winning a sporting event. TV breaks down the barriers of distance

Another benefit is that TV allows us to passively relax, which is important for fo our psyche and helps us stay mentally men and physically healthy. We that both children and W know k adults watch TV in a kind of relaxed, transfixed state of awareness. But this also means that as we are not really thinking about what we are seeing, we are being ‘hypnotised’ and passively accepting what we are watching on an

“3DTV IS POPULAR RIGHT NOW, AND IT WILL NOT BE LONG BEFORE THE PUBLIC WANTS MORE.” and becomes an extension of our senses. Before television, children had no idea what most foreign countries or their people looked like, or how they lived and animals and fish were only names in books. However, research also shows that children who watch TV for more than ten hours a week suffer negative academic effects.

unconscious level, which is why TV advertising can be so effective. Since ITV came on to our screens, there have been commercials, suggesting products that will help make us happy – be it toothpaste, the lastest perfume that we simply must have or the convertible car that will

make our life complete. Television advertising is certainly very powerful and all who watch are susceptible to it. Hence companies spend millions of pounds on TV ad campaigns. At the end of the 1980s, there were just four UK TV channels available and the BBC had 50% of the audience share. Nowadays, around 70% of homes have access to digital TV, with hundreds of channels to choose from, while online and mobile video have increased their market share. In 2005, the audience share for the two main BBC channels was down to 33% (BBC Statistics). In 2011, the UK is switching off the analogue signal, and will be taking TV viewing into a new digital future. Brian David Johnson, a futurist with Intel, says “People are watching more TV than ever before, but how people watch TV and how people experience TV is changing rapidly.”

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How people think about TV is becoming more multifaceted, with a mixture of TV, games and social networking. Interactive TV web-like applications will enhance viewing by adding activities, the need has been driven by the growth in the number of internetconnected devices in the home and familiarity with mobile apps. In fact, it is reported that paid TV app revenue will rise from $10 million in 2010 to $1.9 billion by 2015. It is not just the way we interact with TV that has changed, the technology has too. We moved away from blackand-white to Technicolor consoles, then plasma and LCD high-definition TVs. But the industry does not plan to stop there, it is continuing to evolve. Manufacturers are producing bigger and thinner TV screens, and broadcasters are merging together internet, apps and widgets to offer an all round experience to customers. A popular format at the moment is 3DTV, Chris Gauden from PC Pal says that “3DTV is definitely the future, just without the glasses.” 3DTV does not come without its problems, because your brain has to interact differently with the screen and that

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can cause serious side de effects such as headaches. The label on 3D movies and programmes actually offerss a warning that individuals who are sleep-deprived or inebriated should not watch 3DTV. However, potential side-effects will not stop people who want to watch 3D movies/shows, which leads Scott Birnbaum, vice president of Samsung LCD to say that “demand for 3DTV will sky rocket this year.” Since Sky showed the World Cup in 3D via special screens at some pubs, the desire to watch players come out of the screen has risen. Manufacturers such as Panasonic, Samsung, LG, Sony and Philips have screens, available from most retail outlets and they are all competing to see who will release the first home use TV without the need for geeky glasses – Toshiba have already promised theirs in 2015. 3DTV is popular right now, and it will not be long before the public wants more. That is where the WindowWall can take TV to the next level. The WindowWall is a scalable system that consists of up to 20 screens to display either the same image across all screens or use individual screens separately.

This idea of multi-screens will come into the home when it is more cost effective and will provide users with the ability and games to interact with TV, internet a consoles etc. The idea of this wall of imagery can even go one step further and remove the need for screens, using any surface as the TV. The possibilities of this wall are endless, without-screen commercials can be shown anywhere, at any time without interrupting the main show. Users can interact with friends and share information about what they are watching without having to turn on their phone or PC. Philo co-founder, Greg Goldman believes users want “that sense of community — they want to know what people are watching while they are watching it.” People’s relationship with TV is changing, especially as it evolves across various screens. The future of television is an immersion into a personalised viewing experience, although it will not be complete for another few years. When the technology is accessible to everyone there is a strong possibility that the way we interact with each other and the world will change forever. m Part two of TV through the years will look at mobile TV and the evolution of YouTube.

Tech and

gadget

Our pick of the latest innovations for work, home or play

Surround-sound…

Monster Cable have created a new pair of high-tech over-ear headphones inspired by Daft Punk, the Grammy-awardwinning musical duo that composed the soundtrack for the recently released Walt Disney film Tron: Legacy. Created by Monster’s groundbreaking engineering team, the headphones immerse users in the world of the movie with a special surround-sound mix of the Daft Punk-engineered soundtrack that comes included with the headphones. Daft Punk edition Tron: Legacy headphones by Monster retail at £249.95 and are available from Comet, HMV, leading department stores and specialist retailers. www.monstercable.com.

Pour…

This practical wine pourer comes with a cork top that will seal your bottle to ensure leftover wine keeps. Designed by Aurelien Barbry for Normann Copenhagen, it’s a simple little gadget that performs a great function. £18 from www.bodieandfou. com or by calling the order line on 0208 450 5600.

Slimline…

As we went to press, Apple was gearing up for its UK release of the iPad 2 (available 25 March). The new model is 33% thinner and up to 15% lighter than its older sibling, while maintaining the same 9.7-inch LED-backlit LCD screen as the launch model. It also features Apple’s new dual-core A5 processor and now includes two cameras, a front-facing VGA camera for ‘FaceTime’ – the application that enables users to have face-to-face video calls with iPhone 4, iPod touch and Mac users wherever there is wi-fi – and a rear-facing camera that captures 720p HD video. www.apple.com.

Light up…

Teac’s tabletop audio lamp offers a unique twist on the traditional clock radio. It has a dock for your iPod or iPhone and an LED light for reading in bed. Features include the iPod/iPhone dock that charges while playing, FM tuner with ten pre-set stations, dual-drive speaker system, digital clock and alarm, as well as wake-up lighting just before or at alarm time. It also offers independent speaker chambers with a bass-reflex port, a remote control and iPod dock adapters. Teac’s SR-LUXi lamp retails for around £99. www.teac.co.uk.

44 www.themarketmagazine.co.uk

Rebirth…

ReBirth, the renowned techno-micro-composer music-software application, from Swedish company Propellerhead, is now available for the Apple iPad. “The iPad gives us the platform we always dreamed of when we conceived ReBirth nearly fifteen years ago,” said Ernst Nathorst-Böös, CEO of Propellerhead Software. Rebirth for iPad’s main features include two classic drum machines, two analogue bass synthesizers as well as direct tune sharing to Facebook, social networks and other ReBirth users. ReBirth for iPad is available now through the Apple iTunes App Store for 11.99 or $14.99. www.apple.com.

Next generation…

Colourise …

Linn Audio has launched a range of loudspeakers in a myriad of colours with a new bespoke service that allows you to choose from more than 200 high-gloss colour options. The finishes are available across all three lines of Linn’s high-performance speakers, including the Akurate and Klimax range. More traditional finishes are also available in black ash, rosenut, walnut, cherry, oak and white. Linn’s Akurate 242 loudspeakers start from £7,300 a pair, while the flagship Klimax 350 line-up begins at £19,900. www.linn.co.uk.

LG has unveiled the world’s first 3D smartphone offering users a full 3D experience. The company says the LG Optimus 3D addresses the lack of 3D content issue – one of the biggest problems facing the 3D market – with a complete platform for a one-of-a-kind experience on a mobile device. LG’s most advanced smartphone to date, the Optimus 3D features a dual-lens camera for 3D recording, a glasses-free LCD panel for 3D viewing and diverse connectivity options such as HDMI and DLNA for 3D content sharing. For more details, visit www.lg.com.

Please send all new product releases and high-resolution imagery to Michele Martensen. Email: info@themarketmagazine.co.uk www.themarketmagazine.co.uk

brass Is there really

anywhere there’s muck?

For many, it is a struggle to recall life before it became standard ‘responsible citizen’ practice to recycle. Those heavy-duty lidded plastic boxes have long been as common a part of our street furniture as red phone-boxes once were.

s you dutifully save, wash and separate paper, cans, cardboard, plastic and glass and carry the boxes, no doubt over-laden, to your office collection bins or the end of your garden path, do you give any thought to where it all ends up? Or to whether there is any point to it? And whether anyone actually makes any money out of it? Recycling is intended to cut back on landfill reliance, save energy and reduce climate change impacts, and a growing number of different materials – paper, card, glass, metals, certain plastics, textiles – are collected, sorted and sold on for reprocessing. According to Defra, 37% of household waste was recycled in 2008/09, compared to 14% in 2000/01. Over the same period, the proportion land-filled fell from 78% to 50%. These figures show that recycling can be successful, but it can also be controversial. Some UK councils are reported to be forcing residents and businesses, via the threat of fines, to sort materials into up to nine separate boxes for collection, saying they are saving thousands of pounds as a result. However recycling is done, legislation and landfill taxes, and our continuing consumer thirst, mean both a constant stream of waste and also continued pressure for it not to end up in the ground. But running a profitable recycling business is not a simple operation. For

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a start, there needs to be a reliable, sustainable market for the materials you collect for recycling. Used glass, paper and metals are commodities like oil, coffee or rice, and prices can oscillate considerably.

months, while clear plastic bottles made from polyethylene terephthalate, or ‘PET’, commonly used for soft drinks, come in at £310 per tonne, almost double their level a year ago.

“[After historical highs], prices for recovered materials fell sharply in late 2008,” says Liz Dixon-Smith, head of market knowledge at WRAP (Waste & Resources Action Programme). “The main cause was the onset of the global recession, and uncertainty about what this would mean for demand for raw materials, but it was compounded by the credit crunch which made it difficult for some businesses to obtain trade finance.

Prices like these, for what is essentially our discarded everyday waste, look attractive, but there are considerable costs associated with recycling. First, a choice has to be made between handling only one type of material, or multiple materials. If the former, then the market needs to remain strong for profits to be made, and if the latter, the higher cost of logistics must be taken into account.

“Prices for a wide range of commodities, both virgin and recovered, fell. But prices for recovered materials, and particularly lower-quality materials, appeared to be amongst the most severely affected.” Prices have now recovered, says WRAP, and demand is strong, particularly in China, a traditional market for a large portion of the UK’s recovered waste. Prices for recovered paper and plastics are particularly robust at present, reflective of a combination of rising virgin material prices, supply shortages and strong demand from export markets. For example, a tonne of newspapers, magazines or ‘old corrugated cardboard’ currently fetches around £110, with prices having risen by around 80% over 12

Each material must be collected, sorted, stored, processed, baled and transported, with reprocessing technologies a significant proportion of the cost. In good global trading conditions, the price obtained for the recovered materials more than offsets the costs of the recycling operation, and that is when profits can be made. But if end-prices plummet, those doing the collecting and sorting can find themselves with an expensive, and useless, stockpile. So what can be done to make recycling more sustainable? Some materials are made into entirely ‘new’ products, while others are part of what is termed a ‘closedloop’. This means the recovered item - a glass bottle, for example - is reprocessed and turned back into another one. This way, logistical costs are often substantially

Recycling is intended to cut back on

landfill reliance, save energy and reduce climate change impacts www.themarketmagazine.co.uk

lower and, with the manufacturer of the contained product often onboard as part of the loop, sustainability is more assured. Some manufacturers, keen to take advantage of growing consumer demand for green products, are making a deliberate virtue of the recycled nature of the raw materials they use and making things out of 100% recycled glass or reprocessed fibres. The latter has been particularly evident in the fashion sector. A recycled Tetra-Pak carton handbag, anyone? As to whether shipping our paper and plastics waste to China is a more environmentally-friendly option than burying it in the ground in the UK... the answer is yes. Having delivered huge volumes of consumer goods to the UK market, many of the China-bound ‘waste ships’ would otherwise be returning empty, and research by WRAP in 2008, comparing the CO² emissions associated with those two options, suggested that recycling in China has the better environmental outcome overall. For some types of materials, food waste being one, domestic handling is the only economically viable option. Investment in anaerobic digestion, a process that can turn bio-waste into renewable energy, has soared in recent years but further capacity is needed if the UK is to take full advantage of this opportunity. So, although export eastwards is therefore expected to remain part of the solution for UK recycling for the foreseeable future, there is a strong argument for developing better solutions at home for dealing with our waste. Says WRAP’s Dixon-Smith: “The market’s volatility at the end of 2008 highlighted the importance of having a diversified portfolio of end markets for recovered materials - it was notable that prices for materials, for which there were UK markets as well as overseas markets, were less volatile than those that were dominated by exports.” Glass and paper recycling infrastructure in the UK is fairly well-established, but only a fifth of local authorities currently offer a kerbside mixed plastics collection service. March 2011 is due to see the opening of the first UK facility able to both sort and process a range of non-

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Each material must be

collected, sorted, stored, processed, baled and

transported

bottle rigid polymers from municipal plastics collections. Supported by funding from WRAP, the development is expected to help catalyse further investment in the sector. There is still a large gap in ability to handle the peel-off plastic film lids that accompany so many products. Organisations such as Waste Recycling Services (www.wasterecyclingservices. co.uk) can advise members on loans and grants available to recycling schemes to help identify the most applicable options. “There are still grants and definitely loans which can be obtained for recycling projects,” says WRS business partner Jamie Davies. “The grants in recycling are available UK-wide with some regional variances. Generally, grants and loans go hand-in-hand as, to obtain the grant, you have to spend funds and then reclaim and this is best achieved via a loan or overdraft facility.”

Before investing in technology to recycle a particular product, it is vital to keep a close eye on any legislation affecting the material’s use in the first place. For example, Ireland’s 2002-imposed tax on the dreaded plastic bag, possibly one of the worst environmental offenders of all, has cut usage by 90%, and plastic bags are now restricted or banned in 25% of the world. If you are eating a sandwich or drinking a coffee while reading this and you are interested in helping tackle the UK’s waste problems, you have got inspiration right in front of you. For more food for thought, just visit any supermarket Easter egg aisle between now and the end of April. The packaging used by the seasonal chocolate industry alone should be enough of an eye-opener to the possibilities. m

By Helen Campbell

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Look after your staff or face the charge of

CORPORATE MANSLAUGHTER! Commercial lawyer Jo Tall looks at a recent tragic case and outlines key steps every business should take to avoid prosecution for corporate manslaughter.

any business owners decide to become limited companies precisely because they believe this will limit their liability. Many do not realise that when it comes to the health and safety of the employees of a company, the “corporate veil” can be lifted and unlimited fines imposed as the recent case involving Cotswold Geotechnical Holdings Ltd shows. In September 2008, 27-year-old junior geologist, Alexander Wright from Cheltenham was killed when the sides of the trench in which he had been collecting soil samples collapsed and crushed him. Mr. Wright had been left working alone in the 3.5 metre-deep trench to ‘finish-up’ when the company director left for the day. The two people who owned the development plot decided to stay at the site as they knew Mr. Wright was working alone in the trench. About 15 minutes later they heard a muffled noise and then a shout for help. Despite the plot owners’ best efforts, Mr. Wright died of traumatic asphyxiation. The company that employed Mr. Wright, Cotswold Geotechnical Holdings Ltd (‘Cotswold’), was a relatively small company with a sole director who also managed the company’s affairs. It was charged with the criminal offence of corporate manslaughter. Whilst there have been several prosecutions of individuals following fatal rail crashes or ferry disasters, this was the first time that a prosecution had been brought against

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a company under the new Corporate Manslaughter and Corporate Homicide Act 2007. On 17 February 2011, the company was fined £385,000. This represented 115% of the company’s turnover in the year of the accident. Peter Eaton, the director of Cotswold, was also personally charged with gross negligence manslaughter and other health and safety offences, but was too ill to stand trial. The crux of the case was that Cotswold had failed to take all reasonably practicable steps to protect Mr. Wright from working in that way. It had ignored well-recognised industry guidance, that prohibited entry into unsupported excavations more than 1.2 metres deep, by requiring junior employees to enter into and work in unsupported trial pits; typically from 2 to 3.5 metres deep. What is the law? Whilst previously the law was deficient in that organisations could only be convicted of corporate manslaughter if a single individual, the “controlling mind” at the very top of the company was personally guilty, under the new Act the management structure as a whole is scrutinised. If the way in which a business’s activities are managed or organised by senior management causes a death, this constitutes a gross breach of a duty of care to the deceased. The test is whether the business’s conduct fell far below what could have been reasonably expected in the circumstances.

WHEN IT COMES TO THE HEALTH AND SAFETY OF THE EMPLOYEES OF A COMPANY, THE “CORPORATE VEIL” CAN BE LIFTED AND UNLIMITED FINES IMPOSED

Note that individuals, including directors or managers, cannot be prosecuted under the new Act. However, if there is evidence that a fatality has been caused by gross negligence of individuals, they can still be prosecuted and jailed for manslaughter under common law. Indeed, in recent years, both employers and directors have received sentences of between one year to 14 years imprisonment. What are the penalties? The size of the fine in the Cotswold case was less than the starting point of £500,000 recommended by the Sentencing Guidelines Council only because of the small size of the business (now with four employees) and because of its fragile financial position, it was given ten years to pay the fine. However, the law is that the fine may be unlimited. Courts may also require a business to take steps to address the failures behind the death (a remedial order). Finally, the courts may also impose a publicity order, requiring the business to publicise details of its conviction and fine. Not good for business!

Where to find out more: ! HSE has published guidance for directors

on their responsibilities for health and safety - ‘Leading health and safety at work: leadership actions for directors and board members’ (INDG417) ! The full text of the Corporate Manslaughter

and Corporate Homicide Act 2007 is available on the Office of Public Sector Information website: www.opsi.gov.uk ! Further guidance on the offence, including background information, is available on the websites of the Ministry of Justice (www. justice.gov.uk) and Northern Ireland Office (www.nio.gov.uk) ! Guidance on health and safety at work is available from the Health and Safety Executive (www.hse.gov.uk) and the Health and Safety Executive for Northern Ireland m (www.hseni.gov.uk).

Jo Tall is a commercial and IT lawyer with 20 years’ experience www.offtoseemylawyer.com

What precautions can you take? As an employer, you should hopefully already be complying with health and safety legislation. However, you should examine the processes and systems that you use to comply with the law. For example: ! the systems of work and equipment used

by employees ! the condition of worksites and other premises occupied by your business ! products or services supplied to customers ! whether senior management have been briefed on procedures

The resources listed that follow will help you and if in doubt, please do consult a lawyer. You owe it to your staff (and it will help you sleep well!).

www.themarketmagazine.co.uk51

cross code The green

for the Entrepreneur With the dust settling following the Emergency Budget last summer we have all got used to the idea that capital gains tax is now 28% for higher rate taxpayers. However, many business owners are adjusting to the news that Entrepreneurs’ Relief (“ER”) was extended to £5m and is now potentially worth up to £900,000 per individual, says Greg Limb, Private Client Partner at KPMG in London.

ow, like children learning to cross the road, we need to learn about the pitfalls of capital gains tax all over again. So far, much of the interest around ER has been centred on ensuring that shareholders have the required 5% shareholding needed to qualify for the relief, but for the family company where it is common to have only two or three shareholders, this may not be of much interest. So, for an Entrepreneur who owns 100% of the shares in a company, is it really that straightforward, with no need to think about planning? Well the answer is, of course, that depends!

First, find a safe place The first thing any share owner should be clear about is ensuring that he holds shares in a qualifying company. As with taper relief before it, in order to qualify for ER the individual shareholder must meet certain conditions and the company must be a qualifying company. In particular this means that the company must be a trading company (or the holding company of a trading group). While this sounds straightforward to achieve, big investments or large amounts of cash on the balance sheet

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may be enough to prevent a company being treated as a trading company for this purpose. The good news is, unlike with taper relief, it is easy to improve the position with planning such that the maximum relief can be obtained (with taper relief, this could sometimes mean waiting ten years!) Stop, look and listen Assuming that the company is a qualifying company, there may still be planning to consider. Unlike taper relief, ER is limited to the first £5 million of capital gains. If gains on an eventual sale of the company’s shares are expected to exceed that level it might be worth considering passing shares to other family members (eg, spouse) now to maximise the availability of ER. Alternatively, family members might already hold shares and might want to take steps to ensure they qualify for the relief and that their position is maximised. Proceed with caution In passing shares to family members, entrepreneurs need to be aware of the individual qualifying conditions. Not only must shareholders own 5% of the shares in a company, but they also need

to be an officer or an employee of the company (or a group company). Where family members already work in the business this may not be a problem but, where they don’t, achieving this is not always as straightforward as it might first appear. HMRC can be expected to challenge the employment status of family members and there is a wealth of case law on the subject of whether someone is or is not an employee or office holder. There are a number of pot holes to fall in so getting it right from the beginning and having the contemporaneous documents in place to prove it could end up saving tax of up to £900,000. Simply making someone a director will not be enough so look at this area carefully. Individuals need to have met the qualifying conditions for 12 months at the time of an eventual disposal, so unlike with taper relief, transfers between spouses cannot be made at the last minute. Planning now before any sale is in prospect is the best way to ensure that the maximum ER is available on an eventual disposal.

Health check your finances Dan Crowther, Private Client Director at KPMG offers his financial health check for effective wealth management.

Do you and your family use your tax allowances? Consider: spouse, children, income tax allowances, lower rate bands, CGT allowances.

2 3

YES

IF NO To To Consider Leave

Are your investments tax efficient? Consider: using ISA allowances, wrappers, balance of income and capital If you are employed, is your package as tax efficient as you can make it? Consider: components of the package, pension, share incentives, overseas aspects.

Do you understand your pension? Consider: whether to make/stop contributions, when to draw and how, other options.

If you have assets abroad, are they tax efficient in both countries? Consider: each country’s tax cost on income, sole ownership, death, as well as different ownership structures.

6 7

If you plan to emigrate in the future, are you deferring taxes where appropriate? Consider: investment wrappers, trusts, destination country.

8 9

Do you know your domicile status? Consider: exploring status, improving status, structuring implications.

If you spend time outside the UK, is your tax residence situation in hand? Consider: are you UK resident, non-UK resident, dual resident, planning opportunities, risk factors.

If you have more than one home, have you planned to maximise CGT relief for if/when you sell? Consider: Principle Private Residence Relief elections, occupation by relatives.

If you are in business, or own investment property, is it tax efficient? Consider: business structure, jurisdiction, tax on annual profits, tax on distributions, exit plans, succession, other business taxes, overseas aspects, eligibility for tax reliefs.

Do you have a plan for inheritance tax? Consider: spend kids inheritance (“SKI”), insurance while young, introducing a combination of strategies over time.

If you have family trusts, are they still needed and tax efficient? Consider: family situation, UK tax costs and benefits, overseas aspects, running costs.

If your parents make provision for you or your family, will it be tax efficient? Consider: parents’ IHT planning, provision for grandchildren, offshore will trusts, school fees.

If you die, will your family be protected as you intend? Consider: UK Wills, non-UK Wills, joint assets, immediate funds for dependents, life assurance.

15 16

If you are incapacitated, will arrangements be as you would wish? Consider: powers of attorney, insurance cover, trusts.

Do you have all the advisors you need? Consider: lawyers, private bankers, investment advisors, investment managers.

Is your tax compliance up-to-date? Consider: UK self assessment, payroll for personal staff, record keeping, other UK forms, non UK compliance.

How did you fare?

Mostly Yes: congratulations, you are on top of your wealth management game. Keeping on top of your tax affairs is essential for maintaining the health of your business and your personal wealth. With most of your bases covered, make sure you address any of the issues that you answered no to. Mostly No: don’t panic – getting on top of your tax affairs can be quite a straightforward process as long as you seek professional advice. Planning can never happen too early so highlight any of the above issues that are most key to you and start to talk to your advisor about how you can plan for a more tax effective future. www.themarketmagazine.co.uk

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Business

James Caan's

TOP 5 TIPS for winning a business proposal UNDERSTAND YOUR AUDIENCE It is absolutely key to understand the backgrounds of prospective investors and their motivations prior to presenting. Extensive research will enable you to tailor the pitch accordingly. As you would with any other presentation, if you know your audience you can engage with them on a personal level where possible. MAKE THE JOURNEY COMPELLING I think an effective pitch is one which places the investment opportunity in the context of a journey. For example, you need to focus on a problem encountered and demonstrate why and how you came to develop the idea to solve the problem. But you must pitch it with conviction to grab their attention. Personally, if I could relate to the problem, and found it compelling enough, I would be more likely to invest. I would then want to quickly assess the size of the market, whether I think it’s profitable and if there is anything to currently compete with it in the market. IT’S NOT JUST THE IDEA I have always been passionate about investing in people, sometimes more so than a great idea. If a person has the drive and determination to make a business work, then their proposal is going to be more appealing. So I would say you need to succinctly explain why you are a sound individual to invest in, whether that’s down to your qualifications or your experience and, importantly how you plan to execute the idea. Give yourself as much credibility as possible, but keep it short and relevant.

questions on turnover, sales figures, break-even points, gross and net margins (profits) and so on. Investors like hard evidence so don’t try hide behind technical terms or future growth projections. PRACTICE AND MORE PRACTICE It sounds obvious but I’ve seen many pitches where the presenter simply hasn’t prepared enough. Preparation for the pitch is absolutely key to its success. You should go through every possible line of questioning and eventuality so that you are totally ready. By confidently articulating a business plan and presenting your case persuasively you’ll significantly enhance your chance of funding.

KNOW YOUR NUMBERS Investors focus on numbers so make sure your facts are realistic and prepare them as much as possible. Just like you see in the Den, be prepared for indepth

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leaders The silent language of

Leadership is about communication. You already know that. So, in preparing for an important meeting, you concentrate on what to say, you memorise crucial points, and you rehearse your presentation so that you will come across as credible and convincing.

ut did you also know that the people youâ&#x20AC;&#x2122;re speaking to will have subliminally evaluated your credibility, confidence, likeability and trustworthiness before you had a chance to deliver your well-rehearsed speaking points? Did you know that your use of personal space, physical gestures, posture, facial expressions and eye contact could already have sabotaged your message? And, most critically, did you know that anytime your words and body language were out of alignment people believed what they saw and not what you said? So, if you went into that important meeting with all the right words and all the wrong

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moves, you probably left sensing that things didnâ&#x20AC;&#x2122;t go as well as youâ&#x20AC;&#x2122;d hoped. But you might not know why. Leadership is also about building and sustaining positive business relationships. You know that too. You travel to meet personally with key customers, socialise with board members to get to know them better, arrange meetings in order to interact more closely with front-line workers. But did you know that your ability to accurately read and respond to the body language of others is fundamental to building empathy

of the clear nonverbal signals that are being sent by clients and colleagues in every business encounter. The human brain is hard-wired to read and respond to these signals, but most leaders don’t know that the process is taking place and are unequipped, therefore, to use it to their advantage.

THE TIME IS RIGHT It’s a great time for leaders to start building their nonverbal intelligence. Three factors have come together to put body language skills at the top of an executive’s “must do” list: 1) the visual technology revolution, 2) advances in scientific research that provide direct links between body language and leadership results, and 3) the growing importance of crosscultural communication with the global workforce. 1.

and rapport? If you misinterpreted or ignored important nonverbal signals from your colleagues, customers, or employees, you probably parted company feeling vaguely dissatisfied with the relationship you’d established, again not knowing why, but realising something needed to be done about it. I’m a professional communicator, an international keynote speaker, and the author of “The Silent Language of Leaders: How Body Language Can Help – or Hurt – How You Lead.” But when I’m not travelling around the world on speaking engagements, I coach people like you – managers, team leaders,

There are several companies with products that are making the virtual experience more realistic. Recently, I got a demonstration of Cisco’s TelePresence Meeting, that uses “life-size” high-definition video and directional sound technology, this new generation of videoconferencing makes participants feel like they are actually sitting in the same room with people who are on the other side of the world (or, in my case, on the other side of the Cisco campus in San Jose, California). Best of all, I was able to make eye contact with my virtual partners, and we could respond to each other’s expressions and gestures.

entrepreneurs, and senior executives who are looking for ways to become even more effective in their ability to relate with and influence others. I “shadow” these leaders, observing them as they run meetings, interact informally with employees and colleagues, consult with customers, negotiate business deals, and make formal presentations. So I’ve seen firsthand how nonverbal signals can literally make or break a leader’s success. I’ve also noted that most leaders are nonverbally illiterate - completely out of touch with the effect their body language has on others and unaware

The visual technology revolution Smile – you’re on someone’s camera! From YouTube postings to cell phones with video capability to image-driven social media, there is no escaping the visual technology revolution. And we are only beginning to see the impact of this revolution on businesses around the world.

The science of leadership and body language Research by the MIT Media Lab shows how subtle nonverbal cues provide powerful signals about what’s really going on in a business

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interaction. For example, whether you win or lose a negotiation is strongly influenced by unconscious factors such as the way your body postures match the other person, the level of physical activity as you talk, and the degree to which one of you sets the tone -- literally -- of the conversation. Based on data from devices (called Sociometers) that monitor and analyze patterns of unconscious social signals passing between people, researchers with no knowledge of a conversation’s content can predict the outcome of a negotiation, the presentation of a business plan, or a job interview with over 80% accuracy. But nothing has added more to the scientific validity of body language than neuroscience and the use of fMRIs. Magnetic resonance imaging (MRI) uses radio waves and a strong magnetic field to take clear and detailed pictures of internal organs and tissues. Functional magnetic resonance imaging (fMRI) applies this technology to identifying regions of the brain where blood vessels are expanding, chemical changes are taking place, or extra oxygen is being delivered. Consider, for example, the research from Duke University that shows why we like and remember those who smile at us: Using fMRI, the Duke researchers found that the orbitofrontal cortices (a “reward centre” in the brain) were more active when subjects were learning and recalling the names of smiling individuals. 3.

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The global workforce Your success as a leader depends increasingly on your ability to get top business results with a multinational workforce – not just because participating in global teams is fast becoming part of your job description, but also because

the workforce within your own national borders is growing more and more diverse, ethnically and culturally, every day. When it comes to body language and culture, you can expect to be judged by behaviours that include how close you stand to a colleague in conversation, how much or little you touch others, the degree of emotion in your voice, the amount of eye contact you display, and the kind of hand gestures you use. And what feels so right in one culture may be ineffective or even insulting in another. Understanding the similarities and accommodating the differences in multicultural body language is a key leadership skill.

SEVEN SECONDS TO MAKE A FIRST IMPRESSION I’m pleased to announce that each month I’ll be writing a column for this magazine. I’ll offer tips on how to use body language to maximise your impact in a variety of everyday business circumstances including change management, leadership, negotiation, collaboration, building trust, projecting confidence and status, and showing empathy and warmth. I’ll share my research on the body language of male and female leaders, and I’ll help you develop the body language savvy that is key to working effectively with global teams. I’ll even show you how to “fake” charisma. I’ll also be asking for your comments and questions – and responding to them in future columns. But for now, I thought it would be good to begin . . . well, at the beginning, because the basis for all your business relationships is established nonverbally in a matter of seconds. Let’s say you are meeting a business acquaintance for the first time – it could be your new boss, a recent addition to your team, or a potential client you want to sign up.

The moment that stranger sees you, his or her brain makes a thousand computations: Are you someone to approach or to avoid? Are you friend or foe? Do you have status and authority? Are you trustworthy, competent, likeable, confident? And these computations are made at lightening speed. Researchers from New York University found that we make eleven major decisions about one another in the first seven seconds of meeting. In business interactions, first impressions are crucial. While you can’t stop people from making snap decisions – the human brain is hardwired in this way as a prehistoric survival mechanism – you can understand how to make those decisions work in your favour. First impressions are more heavily influenced by nonverbal cues than verbal cues. In fact, studies have found that nonverbal cues have over four times the impact on the impression you make than anything you say.

and indicates interest and openness. (To improve your eye contact, make a practice of noticing the eye colour of everyone you meet.)

Here are seven nonverbal ways to make a positive first impression: 1.

Adjust your attitude. People pick up your attitude instantly. Before you turn to greet someone, or enter the boardroom, or step onstage to make a presentation, think about the situation and make a conscious choice about the attitude you want to embody. Straighten your posture. Status and power are nonverbally conveyed by height and space. Standing tall, pulling your shoulders back, and holding your head straight are all signals of confidence and competence.

Smile. A smile is an invitation, a sign of welcome. It says, “I’m friendly and approachable.”

Make eye contact. Looking at someone’s eyes transmits energy

Raise your eyebrows. Open your eyes slightly more than normal to simulate the “eyebrow flash” that is the universal signal of recognition and acknowledgement. Shake hands. This is the quickest way to establish rapport. It’s also the most effective. Research shows it takes an average of three hours of continuous interaction to develop the same level of rapport that you can get with a single handshake. Lean in slightly. Leaning forward shows you’re engaged and interested. But be respectful of the other person’s space. And that varies in different cultures. But for most situations in the US and the UK, that means staying at least two feet away.

Every encounter, from conferences to meetings to training sessions to business lunches, presents an opportunity to meet people, network, and expand your professional contacts by making a positive first impression. You’ve got just seven seconds – but if you handle it well, seven seconds are all you need! If you have any questions about body language for Carol, please e-mail her at info@themarketmagazine.co.uk Subject: Body Language. Carol Kinsey Goman, Ph.D., is an executive coach, author and keynote speaker who addresses organisations, government, and business audiences around the world. She is the author of “THE SILENT LANGUAGE OF LEADERS: How Body Language Can Help – or Hurt – How You Lead.” For more information, contact Carol by phone: 00-1-510-526-1727, email: CGoman@ CKG.com, or view her websites: http:// www.SilentLanguageOfLeaders.com and http//:www.CKG.com.

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n a C ou y

hear me?

Using your ears to hear is one thing but can you really listen?

ommunication is important in every day matters, whether at work or at home. Poor communication can account for a multitude of problems especially in the workplace, these can include wasted money, poor productivity, low morale and staff conflict. The major barrier in most cases is that employees do not feel they are being listened to. One of most basic of all human needs is the need to understand and to be understood. To become more effective we all need to listen to those around us. Of course, hearing is something most of us take for granted; we all know how to do it, but not everyone actually listens. There is a great difference between hearing and listening. Hearing refers to the physical dimension of sound going into the ear and for the brain to process it into meaningful information.

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Listening incorporates paying attention and focusing, with the intention of understanding and responding appropriately. Listening and hearing are learnt at an early age. As children we get into the habit of ‘parent-deafness’, the ability to look like we are listening without paying attention at all, usually because we are drawn to a TV show or playing with friends. Although this may pass, some children start to develop this ‘deafness’ for other authority figures such as teachers and employers, therefore it is important to encourage better listening early on. One of the biggest problems to overcome is our natural desire to talk. Even when we are listening most of us are thinking about what we are going to say next, and waiting for an opportunity to speak. We are focussing on our internal discussions, our attention is

Hear

Speak Converse

Heed Gab

drawn away from what the other person is saying and we fall back into hearing, not listening. The result of this can be seen when others jump to conclusions or change tact, and this is where conflict can begin. True listening is a skill which needs to be learnt and practiced. Think about how you feel when you feel someone has listened to what you have said. No doubt it will be a positive thought, one of understanding and trust; this is exactly how you can make others feel just by learning to listen. This form of communication is so important in the workplace that in 1991 the United States Department of Labor Secretary’s Commission on Achieving Necessary Skills (SCANS) identified listening as one of the three foundation skills that are essential for those entering the workforce.

Discuss Ignore Shout

So, how can you become a better listener? It is easy, it just takes practice. Next time you are in a group, work or home etc, just watch and listen. It will not be long before someone expresses an opinion. Instead of forming your own conclusions, just become a mute surveyor. Watch how others are responding, watch their body language and really get an understanding of what they are saying. Jim Roth was an exceptional motivational speaker and he commented, “You cannot speak that which you do not know. You cannot share that which you do not feel. You cannot translate that which you do not have and you cannot give that which you do not possess. To give it and to share it, and for it to be effective, you first need to have it. Good communication starts with good preparation.”

HOW TO SHOW YOU ARE LISTENING • • • • •

Maintain eye contact Do not interrupt the speaker No fidgeting, sit still Lean toward the speaker Repeat instructions and then ask appropriate questions when the speaker has finished

The first steps to understanding and effective communication is to prepare

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WHY SHOULD YOU LISTEN? It builds trust Listeners are more trusted than those who offer nothing but a sales pitch.

It offers credibility

“Even when we are listening most of us are thinking about what we are going to say next, and waiting for an opportunity to speak.”

People who listen and respond in the appropriate manner are perceived as competent and capable. Others want to work with them and will recommend them in the future. Throughout history the best leaders have been those who have listened to their people.

You can make others feel good

yourself to become a great listener. Effective communication is 20% of what you know and 80% of how you feel about what you know. Of course, in this day and age there are now dozens of ways to communicate and face-to-face is, unfortunately, a lower priority on that list. It is important to remember that when communicating via email, text or online chat, a simple remark can be taken completely out of hand. Feelings can be hurt when there was no intention. Now that social media is everywhere, these personal conversations are being amplified, repeated and spread at a much faster rate than ever before, making listening even more critical. Because we are interacting on a whole new social level, we need to be both listening and talking, but even through this medium many people are only doing one or the other. On Twitter and other social websites such as Facebook, the majority just update their status with no reference to the world around them or to other peoples’ statements or views. If your company is going to use these networks in their marketing strategy, then it is important to listen and talk simultaneously. Technology

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provides various monitoring tools, like TweetDeck, which gives real-time notifications when someone mentions your company name and Google insights, which emails you when the web has found a comment about you. As a company you could begin to listen by monitoring and analysing what others are saying, then respond to it in a well-thought out logical manner. Face-to-face interaction is always preferred above any other methods, and even though times are changing the need to listen is still just as important. The practice of listening will improve good hearing skills and effective listening skills. Try encouraging it in your place of work, and make it more of a priority within your life. When people feel that you have really listened to them, you will help gain their respect and they will potentially value your opinion more. Listening is not just being polite, it can add a great deal of value for the listener. m By Alex Iszatt

By listening to others you are making others feel appreciated and supported. With such a simple technique, anger can usually be quickly dissipated and morale will be boosted.

You can achieve goals If an employee, or friend, is struggling or a project is failing, just by listening you may find out why. Getting more information out of a situation will help everyone focus and can lead to more goals being achieved.

Get the scoop You can learn a lot by listening, do not think that all the information is relevant to the here and now, by paying attention there may be knowledge you can use in the future.

People will listen to you If you listen to other people then you are more likely to get listened to. This is not because they feel obliged to listen to you; it is because they trust you – a trust that was built when you took the time out to listen to them.

IMPROVING

LEADERSHIP

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Courses are being run in collaboration with the Royal Naval Leadership Academy at the Royal Navy Command Headquarters in Portsmouth where great leadership has been taught for over 400 years. The size of each course is limited to 20 delegates to ensure maximum learning, participation and review. The course programme has been developed to coach rather than lecture, to challenge but not to overwhelm and to practice the art of great teamwork, communication and leadership. The course directors are Mark Grant, an international business & leadership consultant and Neil Laughton, a successful business and expedition leader. They are supported by a team of serving and ex-service Royal Navy personnel.

To enquire about a Business Leadership Academy course for your company, please contact us on 020 7096 2878 or info@businessleadershipacademy.co.uk Business Leadership Academy 123 Pall Mall, London SW1Y 5EA. Tel: 020 7096 2878 info@businessleadershipacademy.co.uk www.businessleadershipacademy.co.uk

Business

Values Ask any business owner what excites them and eventually a handful will start talking about how they “love multiples”.

hose formulae that dictate what a business would be worth if they sold it, how well they have done – usually three times a consistent profit. They just love it. This is partly because they ought to get out more but also because everybody wants to know the value of what they own. Except the 3x multiple should only ever be used as a starting point. Let’s take two extreme examples, which would, with the multiple idea, have varying valuations. The first we will call J. K. Rowling. You can Google the estimates of the profit she makes annually from the Harry Potter “franchise” (by which we mean something which is not a franchise in the business sense at all, but that’s another matter). You can multiply that figure by three. You know as well as everyone else that she cannot sell “books by J. K. Rowling” as a business because the whole thing would become meaningless immediately if she walked away from it. Take another example, from someone I interviewed about 20 years ago. He was a computer dealer in Ascot, which can of course be sold using standard multiples. Except he decided (wisely, it appeared at the time, although subsequent developments might give him reason to reconsider) to buy the freehold of his premises. So any multiple would now have to have the value of the buildings put into it, these can go up and down depending on how the market happens to be performing. You have to take account of the market doing apparently strange things: social network Twitter has been valued at $10bn fairly recently but it is yet to make any profit at all. Simon Arthur, partner at commercial law firm, Moore Blatch, says it is important to understand

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there is an element of art as well as science in valuing a business. “Valuers and Brokers usually use a number of valuation methods and plot them against an x and y axis graph (commonly referred to as a football pitch, for no obvious reason),” he explains. “It is then quite easy to compare and see where the mean valuation or valuation spread sits on the football pitch.” Some of the most widely used methods for valuation include net assets valuation, he explains. This is the one people use in property investment or when a company is being broken up. It would have helped my computer dealer contact with the freehold, for example, but would be hopeless when the assets are intangible as in the Twitter case or when significant assets are held off the balance sheet. And there is another caveat: “Net asset valuations are not as straight forward as they may sound (i.e. simply calculating assets less liabilities) because, of course, very different valuations can be attributed to assets depending, for example, on the future intended use of the asset and whether or not the asset has a special significance to a particular buyer,” says Arthur. More common is the 3x profit mentioned earlier, known as the market multiple. It applies a market norm multiple to an estimate of future earnings and is as accurate as the forecasting applied. If – as in the Rowling case – the main consultant or someone with the whole customer list is going to vanish, this needs to be taken into account when considering what a business might be worth. A variation on this is the discounted cash flow idea; Arthur explains that this converts total future cash benefit into a single one-off sum, discounting future operating cash flow by a risk-adjusted rate of return. Traded companies might also look at the dividend yield method of valuation.

So, how does it all work in practice? Frank Joshi is a serial entrepreneur and business angel, and he is very plain: valuations will depend on what a seller wants and what a buyer will pay. He paints a few scenarios, including those in which valuations are required for funding rather than buyout reasons. “A start up can typically go through a series of funding rounds and with each round the valuation can increase dramatically, especially if there is good news alongside the requirement to increase funding, such as: all milestones from the previous business plan have been met,” he says. “If objectives have not been met and especially if cash is running out, then valuations can collapse, as the risk for the next batch of investors is increased they will typically want to invest at a lower price with some unique conditions that mean that they can get their cash out first in the event of a future sale.” Growing ventures are a bit different. Companies go through a sort of sweet spot, in which they are selling the dream of how much product they will sell; once they start selling and realities bite, their prices can all but collapse without their actually doing anything wrong, simply because there is suddenly historical precedent rather than cash flow guesswork. Mark Lyons, partner at Aston Ventures, goes as far as saying multiples are an irrelevance. “The vendor will always be looking to find reasons to drive the price up and the buyer will be doing the opposite,” he says – noting the importance of benchmarking against comparable deals and growth potential of the market in which any investment is happening. “You need to identify exactly where the value is held within the business. A clear starting point is assessing the maintainable earnings. In addition, it is important to carefully consider cash flow, the company’s historical track record, as well as the reputation and the calibre of the management team.”

important

It is to understand there is an element of art as well as science in valuing a business.

Valuations are a complex area, and talking to a number of people involved you cannot help but wonder whether there is an element of smoke and mirrors to the whole thing. Certainly the textbook game of multiples needs severe sanity checking if it is going to be any use. It offers a ballpark and a starting point but the real trick in scoring a good valuation is in finding the right buyer. Next issue we will have a look at how that can work. m

By Guy Clapperton

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The customer

is always right As spending cuts start to bite and purse strings tighten, customer service will play an even greater role in business success. Whether you’re just starting out or manage an established business, putting your customers at the heart of what you do is essential if you want to build trust, maintain loyalty and improve revenue in an increasingly competitive market. With millions of customers worldwide, American Express’ Ian Lundberg, Senior Vice President & General Manager, World Service, Europe, looks at the challenges of attracting and keeping a loyal customer base and meeting modern demands for superior service.

AYING that the customer is always right has become a bit of a cliché - a platitude that is drummed into business students and repeated by business leaders every day of the week. However, this doesn’t mean that the phrase is no longer true.

with a third of those surveyed saying that companies fail to meet their expectations. Only one in 10 said they thought that companies were prepared to go that “extra mile” for them, compared with more than double that amount in America, Germany and the Netherlands.

In a challenging economy where growth is hard to achieve, businesses that listen to and connect with their customers will emerge from the downturn not only financially stronger but with their reputations significantly enhanced. Companies need to be brave and continue to invest in customer service and resist the temptation to cut back.

The poll also suggested that post-recessionary British consumers are a much tougher crowd to please. While once they were prepared to wait courteously in queues, fearful of any checkout confrontation, many now would rather shop elsewhere than put up with rudeness, half-hearted apologies and automated responses. That’s why offering good customer service is never enough; we should all be striving for excellence.

The High Price of Poor Customer Service We recognise that delivering perfect service, every time, is a challenge for any business, but it is one well worth striving to meet, as the findings of American Express’ Service Barometer showed. The global survey of more than 12,000 consumers confirmed what we have known since our inception more than 160 years ago: that businesses risk losing their customers if they treat customer service as a commodity. Yet many still do. It’s not surprising therefore that Britons are among the least satisfied with the level of customer service they receive,

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The expectations of today’s customers are much higher, which is why when asked how many poor customer experiences they would put up with, more than four in 10 Britons said they adopted a “two strikes and you’re out approach”. This means they would give a company only two chances before taking their custom elsewhere. Perhaps more worryingly, almost two-thirds said they would not hesitate to “speak negatively” about the company after a bad experience, using all the social media tools at their disposal, including Twitter and Facebook.

Top Tips Indeed, new media tools have altered the landscape in which businesses operate. Customers aren’t just buyers of products but also reviewers. If they’re happy with what they’ve bought they will broadcast the news to millions of people within in a matter of seconds – but if they’re dissatisfied, they can damage your reputation with a simple click of the mouse. I remember one example a few years ago when a musician accused an airline of damaging his equipment during a flight. After failing to get compensation, the musician got his revenge via social media, creating a video which has been watched more than 10 million times. However, businesses should not be frightened about the power consumers now have to voice their opinions, so long as they have the structures in place to address consumer complaints. We have a team devoted to monitoring social media, which means we can address customer issues in real time, nipping problems in the bud before they spread across the internet.

The Benefits of Getting it Right First Time There are commercial as well as reputational advantages in providing excellent customer service. Our research showed that more than half of UK customers would be willing to pay a premium for excellent service – an average of 7% more in fact, which could potentially add millions to the bottom line of UK businesses. Furthermore, more than two-thirds said they would be much more willing to give a company repeat custom after a positive customer experience. We know from the popularity of review sites such as TripAdvisor and Mumsnet that today’s customers rely heavily on peer reviews, blogs or online postings to learn more about a company and its products – in fact half of those surveyed report “always” or “often” doing so. The good news is that when customers experience excellent customer service they are more than happy to share this with their friends and online followers. Contrary to conventional wisdom, our research showed that customers are actually more inclined to tell a friend about a positive experience than complain about a negative one.

POOR AVERAGE GOOD Retrieving lost custom is not impossible, but it doesn’t come cheap. Beyond simply resolving the problem, nearly two thirds of UK consumers said they expected something in return for poor customer service. Most said they would be happy with an apology, but almost two-thirds said they expected a discount and more than half said that they would require a free gift to draw a line under bad experience. The key is to establish robust procedures to ensure that customer complaints are handled quickly and efficiently. Leaving a bad impression when handling a complaint means that you have probably lost that customer forever.

As consumers brace themselves for a possible rise in interest rates and an increase in the cost of living, businesses will need to up their game if they want to build and retain customer loyalty. In uncertain times consumers will simply go elsewhere if they are unsatisfied with the service they receive and believe they are not getting value for money. So no matter what sector you’re in, or how big your business, providing excellent service is a must because, cliché or not, the customer is always right. m

! Listen and connect with

your customers, making sure you understand their changing needs. If we receive a call from a customer who is moving home, for example, we always think about what else we can do to make that experience less stressful. ! Think about customer service

as an opportunity to deepen your relationship with your customers, not as a transaction. Put yourself in their shoes and think about how you would expect to be treated. ! Recognise the value of your

front-line customer service staff, or customer care professionals, as we prefer to call them. They are the face of your company and can make or break your reputation. ! Invest in the right training and

tools, even when budgets are tight. It’s not enough to train customer care professionals technically; it’s the softer skills such as listening, understanding and being connected that we focus on. ! Get feedback from your

customer service employees – they are closest to your customers and understand the most about what customers want and need. Organise monthly meetings with your team to ensure that you don’t miss out on this incredibly valuable insight. ! Go that extra mile – customers

will never forget it. Deal with complaints quickly and efficiently, and also think about how you can turn a good customer experience into an excellent one.

EXCELLENT ! www.themarketmagazine.co.uk

Business

loving Have you ever walked away from a sale because you didn’t like the attitude of the sales person? I once delayed buying a car because the salesman bombarded me with more detail than I could tolerate listening to. Instead of thinking, ‘What does the customer want?’ (which, by the way, was to pay and drive away in a lovely brand new silver BMW). He was determined to tell me about the engine, the emissions, the safety features and just about everything else he knew. Some people want loads of detail whilst others just want a silver car! When you are selling your product or service, you need to listen for these differences and adapt your style to each customer’s need. If a sales person is programmed to deliver the same pitch regardless of individual requirements they will win some and lose some. Successful sales people have a gift for ‘tuning in’, asking the right questions and adapting the information they give to suit the needs of the customer. Some people need all the facts to make a decision and others will switch off if bored by too much detail. The best sales people know that when they connect with their customers a sale is more likely to be made. Strong sales skills are essential for business survival. Every time you exchange goods or services for other people’s money you are in the business of selling. Business owners who are motivated solely by profit or a love for their product are likely to think, ‘I want to sell this and I need people to buy it,’

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rather than, ‘What does the customer want and how can I best solve their problem or fulfill their need?’ Selling is not something you do to people; it is a service that you provide for people. At the end of the day, customers won’t buy what they don’t want. Closing a sale should be about helping the customer to make up their mind. Leaving a decision open-ended can lead to procrastination, which does not help anyone. If you can provide your customers with what they want, closing the deal should be seamless and painless, for both people. There will be no awkwardness. No one needs to feel pressured or uncomfortable. The process is fun, because both parties are achieving the result they want. But first you need to be able to recognise your customers and know your market niche. There is no point in trying to sell to everyone. If you are fishing for salmon you do not wade into the river with a trawler net. You need to provide a juicy incentive to make that salmon notice you. We all respond well to incentives. That is why the January sales work so well. Being offered a rare opportunity within a limited time helps us to decide what we want; a free gift or a discount helps to justify the wish to buy. Incentives

James Caan’s EBA – Passionate about your success.

work best when you target your market carefully. Focus on attracting only those who you know are likely to bite. It is about having a personal connection. I know I have a connection with coaches, with entrepreneurs, with people who want to set up a business. I understand and like them, so I instinctively know what they want; the problems they need to solve; and what will attract them to our courses. You can tell when a business owner has disconnected from their work. They lose the ‘spark’ that drives their passion; they have ‘fallen out of love’ with their business and the people they serve. That has a knock on effect, because if a customer feels uncared for, they will complain. Complaints mean that the business is not serving their customers properly – which means the owner is not doing their job properly.

deny that Richard Branson is passionate about what he does. Whatever he launches, he steps out in public and links himself directly with the product – be it him wearing a wedding dress or dressed as a can of cola – so we can share the feeling that this is something he is excited about. Because if the business owner is not excited by it, why should somebody else be – and why would anyone buy it? BEV JAMES is founder and MD of The Entrepreneurs’ Business Academy, a joint venture with James Caan, and MD of The Coaching Academy – the largest coach training provider in the world. She is a Millionaires’ Mentor and a serial entrepreneur. www.the-eba.com www.bevjames.com

There is a saying: “Business would be great if it wasn’t for the customers.” That can go two ways. If you do not like and respect your customers it is a slippery downhill slope. If you spend a disproportionate amount of time fielding customer complaints, you will eventually ‘go off’ your customers and lose your love for your business. Your focus will become less about service and more about money. You will focus mainly on the financial return and stop putting the needs of the customer first. If you serve someone well and with integrity, you are less likely to have complaints and more likely to stay ‘in love’ with your customers. They will want to buy from you because they feel cared for. They will sense that you are not selling just to make yourself lots of money. If you create something that people need and want, and you promote it in such a way that your customer makes a connection with you – the money will come. Nobody would

James Caan’s EBA – Passionate about your success.

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Business

View your buisness

THROUGH your customers' eyes Do you know how customers see your business? Have you ever viewed the journey through your customers’ eyes? What does it feel like? How easily do they get their needs met? What kind of experience do they have? Do they enjoy a first class flight with extra leg room – or is it more akin to the rush hour crush on a railway platform? Do you anticipate their needs; or do they have to shout and push to get your attention? Customers are king – but never more so than in the current climate.

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nything a customer wants, a customer can have. If you cannot provide it, someone else can. So it is important to provide a positively memorable experience that makes them come back for more. You can always make a difference to your business through your customer care regardless of the industry you are in. As the founder and MD of Diva Cosmetics my clients were fast-paced fashion chains. I offered each company a bespoke service, providing Own Brand make-up that matched their customer profile. I needed to understand not only their unique market position but also what their customers wanted. The buyers relied on me to understand my product and to be ahead of the trend each season. They trusted my commitment, and so they trusted my advice. The success of the business relationship was built on that foundation (if you will pardon the pun). Now, I apply the same principle when I am mentoring business owners. Contented customers will recommend you to others. They add value to the volume of your sales and the value of your business. Your reputation begins and ends with the quality of your customer commitment.

James Caan’s EBA – Passionate about your success.

Customer commitment is the sixth of seven essential disciplines explained in my business book, BOOM! It involves anticipating what your customers will need or desire before they realise it themselves and providing what they want before they have to ask. Here are my top tips for improving your customers’ business journey:

BUILD POSITIVE PERSONAL RELATIONSHIPS This tip applies to your team and suppliers as well as your clients. You are much more likely to get fast-track service when occasion demands it if you always treat people with courtesy and respect. Income makes your business profitable but the quality of your business relationships determines lasting success.

KNOW YOUR OWN BUSINESS Customers are your main business asset. Without customers you have no business and you will not survive. Every business owner should be able to answer the following questions:

HONESTY IS THE BEST POLICY You can’t be all things to all people; and you will not please everyone. If something goes wrong, evaluate it honestly, make adjustments, put things right and learn for the future.

■ Who are our customers and what do they want and need? ■ What leads customers to choose us – and what may cause them to turn away? ■ Which customers currently contribute most to our annual revenue? ■ How many customers did we get via referral? ■ What can we do to attract more of the right kind of customers?

✔ Don’t work with people whose styles and values are likely to clash with yours. ✔ Don’t agree to anything that you do not understand or cannot deliver. Honesty is always the best policy. ✔ Nip problems in the bud. If you feel something is ‘wrong’, you are probably right. Find out your customers’ concerns so you can put things right.

First impressions are lasting impressions. If you want to leave a positive impression you need to ensure that your values are being transmitted throughout your company, at every level – and throughout your marketing material and website. MAKE YOUR CUSTOMERS FEEL SPECIAL Always ask your customers plenty of questions. Find out their expectations. Get their feedback. Build a profile and keep in touch with them. On one level what customers want is what they ask for, but they also want to feel special, appreciated, understood, welcomed back. They want to buy the qualities that you and your brand represent. The personal touch is the key to further business. HELP YOUR CUSTOMERS TO HELP YOU It is more expensive to attract new customers than it is to retain existing ones, so look after the ones you have. Customer care and marketing are natural partners. Market feedback, contact data and personal testimonials are often willingly given in exchange for a free offer or other incentive. DELIVER WHAT YOU PROMISE The only way to make a customer truly happy is to deliver on your promises. Remember that you and your values are part of what your customer is buying. No one wants to change suppliers unless they have to; it is time consuming and inconvenient.

KEEP REVIEWING YOUR CUSTOMER CARE What additional things could you introduce to improve your customers’ experience and create a lasting impression? REVIEW, your current customer strategy. PLAN your next steps. DO what you need to do to improve your customer commitment. You want customers to feel as if they have received more than value for money – at no extra cost to you.

Emma Wimhurst is a motivational speaker, business turnaround expert and author of BOOM! 7

disciplines to control, grow & add impact to your business. www.emmawimhurst.co.uk Emma is an EBA Millionaire Mentor.

"Without customers you have no business and you will not survive."

James Caan’s EBA – Passionate about your success.

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Business

The secrets of being 100%

CUSTOMER-LED and successful in business There are enormous opportunities for business growth in the current climate and there is every reason to be positive about the future. The key to success is to adopt a positive mindset and to ensure that your business adapts to the needs of the modern market place. Customers, like employees, do not leave companies – they leave people – when they are no longer fulfilling their wants and needs. So here are my ten steps to win more business and keep your customers happy.

IS YOUR COMPANY FIT FOR PURPOSE? Every business owner must make sure that their service is fit for purpose. You must continually make sure that your customers need or want what you have to sell. I meet many people whose approach is outdated and who are not adapting to the changing needs of the marketplace. They are in love with things the way they are. We must continually reassess and ask ourselves, ‘Have we got the right product for 2011 and 2012? Is the service right for 2011 and 2012?’ If not: change it, move it; do something completely different.

IF YOU HAVE A GOOD PRODUCT, DON’T KEEP IT A SECRET Too few people are putting the required effort into proactive business networking. They keep their business venture secret by remaining invisible. It is no longer enough to be good at what you do; you have to connect to your marketplace. That means going to meetings, talking to people, listening to what other people are doing; doing joint ventures and doing enough marketing and promotion to ensure that prospective customers are aware of your business.

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PUT YOURSELF IN YOUR CUSTOMERS’ SHOES When you want to attract new customers, always begin by putting yourself in your customers’ shoes, especially when you are developing your website. Too many business owners focus on selling the company rather than emphasising the ways they will look after their clients. Of course, you need to tell people who you are and what you do, but that in itself will not drive customers to your door. Your customers do not want to buy your company; they want to buy what the company does. They want to understand what the unique benefits are and what care you will offer them.

"The best way to demonstrate customer care to your clients is to offer them guaranteed risk reversal in the form of a moneyback guarantee."

James Caan’s EBA – Passionate about your success.

MAKE YOUR WEBSITE IRRESISTIBLE Having a strong website is of crucial importance. It is your primary mode of exposure for attracting enquiries. For optimum impact, I recommend including a short video on your homepage. On average, web browsers will spend no more than three seconds evaluating whether or not to explore a website; but if there is a video clip, they will click on it. It needn’t be long; 30 seconds is enough. If you are uncomfortable talking to camera yourself, record a customer giving positive feedback instead; or record a two-way conversation. It is a valuable way to communicate the company benefits to your prospective customers.

WINNING MORE BUSINESS – WHERE FROM? Every business owner or entrepreneur should have a prospective customer list. These are the people we would like to do business with, whether or not we do so already. Most business owners want more customers; but they do not make time to focus on their customer profile. They become reactive rather than proactive in building their client base. If we know who our ideal customers are, where they are, what they do and how to approach them; we are more likely to take action in order to do business with them.

INVEST IN DEVELOPING YOUR SALES AND PRESENTATION SKILLS Having a passion for what you do and how you deliver it will attract prospects, but you need to have excellent sales and presentation skills too. A written proposal will only take you so far. It is possible to win trust and confidence on the phone or in a follow up meeting – but all that good may be lost if you fail to give a strong account of yourself and your business in a more formal setting. Paying for training will return great rewards, for very little investment.

SELL VALUE NOT PRICE There is a tendency for entrepreneurs to believe they need to compete on price. They may feel they have to be the cheapest in the marketplace; some try to avoid discussing the price or hide it altogether. Statistics show that in reality only about one third of buying decisions are based solely on price, the great majority are based on perceived value. Be proud of your price and always focus on selling the long-term value of your product or service. What else are you offering in addition to the product?

LISTEN TO YOUR CUSTOMERS AND DO NOT KEEP TALKING The traditional image of the glib-talking salesman is a thing of the past. Modern day selling relies upon being a very good listener who tunes in to the true needs of their customer. The key to long-term business success is to become a solutions-provider rather than just a sales person. If your customer has a problem that you cannot solve directly, is there someone within your network who can?

EVERY CUSTOMER WE WIN SHOULD LEAD US TO THE NEXT CUSTOMER One of the finest ways of winning business is via customer recommendations. Your future reputation and financial success relies upon the quality of your customer care. If your customers are happy they will become your ambassadors and will often recommend you without you even knowing they have done so. Looking after your customers is inexpensive to do and the rewards are enormous.

ALWAYS OFFER A 100% MONEY-BACK GUARANTEE The best way to demonstrate customer care to your clients is to offer them guaranteed risk reversal in the form of a money-back guarantee. I have sold millions of copies of my books all around the world with the promise that, ‘If you’re not 100% satisfied with the result – I’ll give you your money back.’ I have had only a handful of copies returned. Why should your customer take the risk? Would you pay your plumber if his repair struck a leak? You do not ask for your money back from someone who has done a good job. It ensures that you take the initial brief carefully too. Guaranteed risk reversal is quality control in the form of a 100% money-back guarantee.

Richard Denny is known as The Millionaire Maker. He joins the EBA as a business growth specialist. Richard is author of five international best-selling books. He was quoted by

The Times as “The master of professional salesmanship.” www.denny.co.uk

James Caan’s EBA – Passionate about your success.

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you must avoid The four mistakes

on your website

The reason why a business needs a website is to sell: plain and simple. It either needs to sell products, sell services or sell a brand. Like the sales person who never closes a deal and simply becomes a professional visitor, the website which does not encourage and ask for the business is no more than a business card.

et’s look at how we can take our website, whether we are an e-commerce or service based business, and improve the results it provides us and create a great return on digital. The first, and often simplest mistake, is when companies hide their telephone number. If you own the kind of business which is involved in a complex or consultative sale, having potential new customers ring you is probably the best outcome a website can provide you, yet time and time again people hide their telephone numbers at the bottom of their pages. Telephone numbers should take pride of place in a prominent position on every page of the site. To take that one stage further, a simple call to action next to the telephone number will encourage more calls. For e-commerce businesses, especially start-ups or non market leaders, a phone number adds credibility and subconsciously says ‘If there is a problem with the order, real people are here to help,’ which adds a level of credibility to the site. The second mistake is writing copy for the site that is so generic that any company, not just a

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competitor could use the same copy on their site. Let me give you an example… ‘New Co Ltd. Was established in 1904 and is now the market leader in said industry. We are so good we have won every award under the sun and our chief executive is on the board of several charities.’ Now, I don’t know about you, but this just doesn’t do it for me. It’s boring and bland, but most importantly it has no relevance to what the browser is looking for. You see, when people are on the internet, they have an itch they want to scratch. They are looking for a present for a loved one that is either unique, hard to find or cheaper than elsewhere, or they are looking for a solution to a complex business issue. At no point are they looking for a self-indulgent epitaph. So here is how you produce a great opening paragraph. You know the pain points people are facing who buy your services. If you are an estate agent, you talk about the fact that the biggest frustration people face is the lack of proactivity and that you are different. If you are an engineer, you talk about the company that ground to a halt before finding you and

James Caan’s EBA – Passionate about your success.

using your solution. If you are an e-commerce based business, you write unique product descriptions and have great photography. The copy on your site has to whack people straight between the eyes and make them sit bolt upright in their chair, not because it is literary genius, but because finally people will find the answer to their problem. The third mistake is to not ‘try’ and collect data from your website which continually builds your database and gives you a base of people to market to. Now, I’m not a big fan of using the word ‘try’. I think you either do it or you don’t, but collecting people’s email addresses is becoming much harder. It’s harder because people are fed up of being spammed. Therefore, there are some crucial factors which will encourage people to pass over their details, and it is mostly down to ramping up the value. ‘Sign up to our newsletter’ does not cut it anymore. So when you are asking people for email addresses you always need to give good reasons. This can be keeping up-to-date with a fast-moving market, or receiving free money-off vouchers or consultations, or even, a combination of both. With the usage of social media increasing every day, it could be argued that it might be better to get people to follow you on Twitter or become a fan on Facebook. I think this is greatly dependent on the market and what you have to offer. Simply having a fan on Facebook is not enough. If you want them to become new customers they need to be kept in contact with and nurtured to a point where they will pick up the telephone.

The final mistake is not having video on your website. Technology makes it very simple to do this and with the likes of YouTube and Vimeo you don’t have to worry about hosting the video or the cost of bandwidth. The best kinds of videos are either customer testimonials or product explanations which both fall in the category of not being overtly self-promotional. To generate great testimonials, focus them on the issues that you know most new customers would face. If you are a market leader with premium costings, ask people for testimonials which talk about return on investment. If you are new to the market, ask people for testimonials which talk about the benefit of working with fresh minds. A great testimonial should answer the issues people are conjuring up as to why they shouldn’t do business with you. For product demonstration videos, think show not tell! Don’t tell them what it does, just show them! By using the strategies discussed in this article, you will be able to mix a potent cocktail which will provide a noticeable and pleasing increase in the amount of business your website generates. It is not unusual to see conversion rate increases of between 40% and 100% from adding video alone. Guy Levine is MD of Return on Digital and an EBA Millionaire Mentor, www.the-eba.com. Find us on Twitter @entrepreneursba, Facebook and LinkedIn, www.returnondigital.com

James Caan’s EBA – Passionate about your success.

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THE SOUTH POLE OLYMPIC CHALLENGE

EXPEDITION 2012 REDEFINING CONVENTIONAL WISDOM The South Pole Olympic Challenge Expedition 2012 comprises an unconventional team including three disabled adventurers who will ski the last 100 miles to the South Geographic Pole. They aim to arrive on the 100th anniversary of Captain Robert Falcon Scott's arrival on 17th January 1912. The expedition team will comprise eight members, three of which will have severe disabilities - blindness, prosthetic limbs and a paraplegic who will travel in a specially designed wheelchair on skis. An opportunity exists for a generous benefactor to join the team. The remaining places will be filled by an Olympic Gold Medallist, a doctor and two seasoned polar adventurers.

Photo: www.martinhartley.com

BENEFACTOR NEEDED The expedition will cost ÂŁ40,000 per person including training, equipment, flights and insurance. A generous benefactor is being sought who will ideally join the expedition team all the way to the South Pole! For more information please contact Neil Laughton: T: +44 7973 289552 E: neil@neillaughton.com

Business

PRIVATE EQUITY

and how it can help business

The Market met with Tristan Ramus, entrepreneur and co-founder with James Caan of Hamilton Bradshaw, to discuss Private Equity and how it can help small-to-medium-sized businesses achieve their full potential. WHAT IS PRIVATE EQUITY? There is much hype and not a little mystery surrounding the world of Private Equity. In broad terms, in the world of investment and finance, Private Equity is simply an asset class comprised of shares in operating companies which are not publically traded on a stock exchange. WHAT DOES A PE COMPANY DO? A Private Equity company will generally comprise of a number of investors (and hopefully, but not always, a board of talent with proper operational and managerial expertise) and funds, to make investments directly into private companies. WHAT SORT OF COMPANY WOULD LOOK TO A PRIVATE EQUITY COMPANY FOR INVESTMENT? The simple answer to that question is that all sorts of companies might, at one stage or another, look to a Private Equity company for investment. It will depend on the life cycle of the business, where the owners are in terms of the business trajectory and external (including economic) factors. There is no "exclusivity" on which sectors can benefit from investment and expertise, although a number of PE houses have their own specialities, or sector focusses, for example, retail, industrial, financial, real estate etc... WHAT SORT OF DRIVERS LEAD A COMPANY OR BUSINESS TO SEEK OUTSIDE INVESTMENT? This is a rather open-ended question and there is never one single reason, but a common theme is that the owners may well wish to increase the value and/or profitablity of the company, perhaps with an eye on a strategic exit in time for which certain preparation needs to be made. You tend to get a lot of entrepreneurs who set up a successful operation, drive it to a specific financial level, which then becomes a limit. The key is being able to take a business to the next level, driving for growth, expansion, scale and, ultimately, some sort of exit.

In the current economic climate, we are seeing a lot of businesses where there is an unserved working capital requirement with the operation. Don't forget for many small-to-medium-sized operations, banks remain closed for business, at least on sensible terms. There may be a margin of pressure in the business sectors as well, and most likely where you have a mixture of these, there will be a corresponding drop in business performance. With these symptoms, input of investment and expertise can be a powerful medicine to recovery and growth. HOW DOES THE INVESTMENT PROCESS WORK? Again, each investment is a bespoke process, but typically the first thing the PE company will want to be sure of is the Senior Management Team (SMT) as this is really a business of investing in people â&#x20AC;&#x201C; numbers are important but without the right people there isn't a business. We then invest equity, i.e. cash, into the business, having previously satisfied ourselves that the underlying operation is sound (and/or if not, having taken a view on the unfit elements and perhaps having agreed a strategy with the SMT). We will have also agreed a business plan with the SMT which is then put into practice over a set period of time. Typically, we buy stakes in businesses to build them, so when it comes to sell both the owner and investor benefit. This ensures our interests are aligned and that we are all moving in the same direction. Tristan Ramus is Managing Director at Hamilton Bradshaw Human Capital who have recently established HBHC III, their third Investment Fund specialising in recruitment and staffing companies.

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Career

success Interview

(and the secrets employers don’t want you to know)

It is widely known that interview preparation is a skill, yet even the most experienced candidate can overlook the importance of research, preparation and mastering the basics. The harsh reality of companies of all sizes going into administration and hundreds, if not thousands, of people being made redundant, has forced job seekers to up their game and re-identify what it is they want from a job.

etting a good night’s sleep, arriving early to an interview and putting the research in, are just a few fundamental interview basics we should know off by heart. But in today’s competitive market, job hunters are required to stop an interviewer in their tracks to ensure they are noticed. The tables have turned: interviewers, rather than trying to make a good impression and retain talent, are now spoilt for choice, they can afford to be selective. In some cases, they can have hundreds of applications to wade through, tens of interviews to sit. So, how can you distance yourself from the competition? Get inside the interviewer’s mind, find out what they are looking for and deliver the goods – that’s how. If you are looking to give your interview technique the edge, follow these steps to help turn a dull meeting, into a winning performance. Preparing for the big day The biggest mistake job hunters are

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guilty of is not being fully prepared. Endless career resources will tell you that research is the passport to success and they are right. What they fail to mention, however, is what tools to use and the areas to identify.

will provide invaluable opinions and insight. Also, read the trade press to put the company into context, ask the HR department for a media pack and sign up to the company’s social media activity to gain inside information.

Research should be twofold: an exploration of the company, with the aim of identifying areas to show your value, and the job itself.

Plan your way to success To ensure the interview goes smoothly, create a pre-interview checklist comprising the small details that can make a huge difference. A week before, set aside some time to find out: where the office is, the name of your interviewer, the office’s number (just in case) and whether you are required to sit one or two interviews. This should reduce the chance of any hiccups.

Your first step should be finding out as much as you can about the company. It is simple to visit the corporate website, memorise the ‘about us’ section and regurgitate this in an interview setting, but today’s employers want more than this. They want you to impress them with your knowledge of the company’s market share, its competitors, its corporate structure and even its share prices. Thanks to the internet, we have a wealth of information at our fingertips, so make sure to capitalise on its reach. Use a corporate website as a starting point and swot up on industry blogs – they

Before you set foot in an interview, make sure to remain three-dimensional: show you are willing to put the effort in from the off-set and you will be well on your way to making a lasting impression. The interview Body language is everything. On the most basic level, you should ensure to

The biggest mistake job hunters are guilty of is not being fully prepared.

So what about the secrets interviewers do not want you to know? Here are just a few… 1. An interviewer will make their mind up about you in the first 30 seconds 2. They may have looked on your online profiles before you step foot in the room

maintain eye contact, sit upright and be interested in your interviewer’s input. But in an interview setting, this is only the beginning.

Don’t just reel off your prepared answers. Mull the question over in your head, take a sip of water, and do not make the answers seem scripted.

Think about paralanguage. Nonverbal content is just as important as your pitch, so maintain a level of self-awareness and ensure you’re an equal contributor to the conversation. Do not shy away from selling your skills, and, if you’re brave enough, inject a bit of light-hearted humour (but use it sparingly).

The journey afterwards A few days after the interview, if you have not heard back already, request feedback, either from the interviewer or the recruiting manager.

4. They can afford to be selective, so expectations will be high

It is important to note that what you do with this information can inform future opportunities. So many people underestimate the importance of acting upon feedback; they fail to recognise the information is their own personal SWOT analysis. It provides a platform in which to further hone your skills – if you are not successful that is. m

6. Some interviewers are more nervous than you

Another much-debated area is generic questions. Those questions every interviewer is bound to ask to catch you off-guard: why do you want this job? What can you bring to the company? Why do you wish to leave your employer? Of course they will be hidden in different formats or different questions, but you should have an answer to each of them.

3. Some will deliberately sit higher than you to put you on edge

5. If you are the right person for the job, there is always room to negotiate

Overall, remember: when going for an interview, do not try to be the perfect candidate – just make sure you are better than the competition. It is impossible to be a prospective employer’s ideal candidate, so make sure to stay true to yourself and be realistic about the situation.

By Lucy Heskins

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Fashion

Sophisticated

Spring suits

As the days get longer and the winter chill fades. Put away your heavy winter wear and step out in a chic suit. Whether tailored and classic, or with elegant modern flair; a great suit will always cut a dash and may just give you the confidence edge….

Jaeger > Jacket £340 Trousers £180 Shirt £75 Tie £50 www.jaeger.co.uk

Loake

Savoy Brogue £180 www.loake.co.uk

BOSS Selection Shorn wool-silk suit ‘Lloyd/Gardens’ £999.00 www.store-uk.hugoboss.com

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Terence Trout

Hugo Boss

Suit £880 Tie £80 Shirt £110 www.terencetrout.net

LK Bennett > Dina Jacket £245 Dina Skirt £145 www.lkbennett.com

Reiss

Jacket £169 Trousers £89 www.reissonline.com

Shoes £375 www.net-a-porter.com

Stella McCartney

Louis Vuitton

Satin Jacket £1258 Satin Trousers £POA www.louisvuitton.com

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Mulberry

Fashion

Heathcliffe Briefcase £710 www.mulberry.com

Office

Frankie Brogue £66.99 www.office.co.uk

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Reiss

Suit £230 Shirt £32.50 Tie £18 www.debenhams.com

J by Jasper Conran

Suit £495 www.reissonline.com

Bertie

k2 shoe £85 www.bertieshoes.com

Aquascutum

Anya Hindmarch Coburn bag £695 www.anyahindmarch.com

Hobbs

Blanco Jacket £295 Plym Trousers £225 Shada shirt £175 www.aquascutum.co.uk

Limited Edition Kempton Riding Jacket, £249 Limited Edition Kempton Pants £169 www.hobbs.co.uk Please send all high-resolution product imagery to Christelle Villanueva. Email: christelle@themarketmagazine.co.uk

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Wine

Bordeaux Early pickings from

The world’s fine wine merchants and critics will descend on Bordeaux in late March to taste the region’s new wines. Just six months after the grapes are picked, producers open their doors to allow the wine industry’s VIPs to swirl, sniff and slurp the first offerings from the most recent harvest. The tasting takes place when the wines are still babies: they still have six to 18 months to mature in oak barrels and will not be bottled and shipped for two years. Yet, the scores the wines receive from the most respected critics following the March tastings, strongly influence the release price of the wines.

he tastings are a grand affair with lots of foie gras-fuelled dinners and schmoozing in beautiful chateâux. However, there is work to be done: merchants and journalists head from château to château at break neck speed tasting barrel samples before heading off to their next appointment, complete with wine-stained teeth. Notes are made, scores are given, and rumours abound over the release prices. It is then a waiting game. Waiting for key critics to release their scores and waiting for the châteaux to announce their release prices. American taster and ex-lawyer, Robert Parker, is the world’s most revered wine critic and can make or break your wine. If he gives your wine 100 out of 100, you can charge pretty much what you want and still sell out before the wine is bottled.

are saying it is “great” and “extraordinary” while estates on the Left Bank are declaring it “amazing” and “exceptional”. Well, they would say that, wouldn’t they? Nevertheless, impartial reports seem to support their claims of greatness.

Before the first wine has been tasted, the 2010 vintage is already being touted as another ‘great’ vintage. Like the boy who cried wolf, wine drinkers are becoming immune to proclamations of ‘the greatest vintage of the century’ and growing seasons ‘saved by Indian summers’. Firstly, 2000 was the vintage of the century, then 2003, then 2005, then 2009, and 2010 is predicted to be of similar quality. Producers on both the Right Bank of the Gironde River, which includes the villages St-Emilion and Pomerol

While quality continues to rise thanks to improvements in the vineyard, winery, and more consistent warm weather (a result of global warming), prices are also being pushed up by the Asian market’s voracious appetite for fine Bordeaux. Their appetite has been stimulated by the abolition of all wine taxes in Hong Kong in 2008. Since then, famed international auction houses including Sotheby’s and Christie’s have set up shop on the island. It has overtaken London and New York to become the world’s leading fine

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Another fantastic vintage might not be what Bordeaux needed after the vintage of the century and release prices going through the roof. The 2010 harvest was small, and basic supply and demand economics, indicate this will keep prices high or push them higher still. Many traditional Bordeaux buyers were priced out of the market during the 2009 campaign and, if the critics award similarly high praise to the 2010 wines, previously affordable wines will be out of reach for the traditional red Bordeaux drinker.

Pull quote gggggggggggggg gggggggggggggggggggg gggggggggggggggg

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wine market with prices rocketing at auction. Records are being smashed regularly: a single bottle of 1869 Château Lafite-Rothschild fetched HK$1,815,000 (£151,250) in Hong Kong at the end of 2010, helping Sotheby’s Hong Kong branch reach HK$410.5m (£34.5m) in wine sales, nearly three times the 2009 total. Fine Bordeaux has become a prized possession but will it be worth investing in the 2010 harvest? Firstly, we’ll have to wait and see what the critics say. Is it all the wineries claim it to be? Or, is it hype? If it turns out to be another great vintage, then we will be waiting for the release prices to be announced. If they are as high as the 2009 vintage, as anticipated, it will not serve the investor well as they were ‘fully priced’ on release. Since then, some of the exorbitant 2009 wines have witnessed a slight increase in price, particularly Lafite-Rothschild, which is the darling of the Chinese wine scene, but the majority have remained stable or fallen such as Château Angélus and MoutonRothschild. The same scenario is likely to be played out after the 2010’s are released and are unlikely to reward anyone looking to make money and profit in the short term. The top five châteaux, known as first growths, are the gems to have but can be difficult to get your hands on unless you have a good relationship with your fine wine merchant. It is also worth watching Château LynchBages, Duhart-Milon, Beychevelle and Pontet-Canet, which are highly desirable in the Asian markets and likely to continue to rise in price. 2010 was a year of rocketing prices but in 2011, growth is likely to be more gradual. When the 2010 release prices are finally announced in late spring, there will be a frenzy of activity. Instead of taking part in the bunfight, it could be better to look back at older vintages. Gary Boom, managing director of Bordeaux Index says, “I would buy anything with a bit of age because there’s very little stock in the market: such as DucruBeaucaillou, Pichon Lalande...When there is no stock, prices jump.” There is also advice to snap up Haut-Brion 1998 (96 Parker points) and 1996 (92), selling at around £3,800 and £3,400 per 12 bottle-case respectively. First growth Haut-Brion is lagging behind

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its competitors in popularity and price but wines boasting these scores and hitting their drinking window (2008-30+) will inevitably rise in price as collectors start to consume these wines. The 2010 vintage looks set to be delicious yet we will only know once the world’s best palates have given their verdict in the spring. Even then, these wines will not reach UK shores until 2012. If you are looking for some top drops to buy for drinking, the region’s 2010 wines could offer great quality further down the Bordeaux hierarchy and won’t cause your bank manager to have heart failure. m Rebecca Gibb is winner of the Louis Roederer emerging wine writer of the year 2010.

TASTING RECOMMENDATION Château Lachesnaye 2002, Haut-Médoc Cru Bourgeois Loads of flavour, reminiscent of leather boots, black fruit compote and medicinal notes. Extremely well made with plenty of developed flavour for the price. A rare triumph for Bordeaux at this level. £7.99 Majestic Château la Vieille Cure 2002, Fronsac Lots going on in this one: whiffs of olives, sausage, blackcurrants, earth and pepper. Brisk tannins still have a lot of ageing to do, but the developed nose is very charming for drinking now. £17.99 Sainsburys Reserve de la Comtesse 2005, Pauillac Savoury and dense with violets and blackcurrants. Very bold tannins that will reward ageing, although it is enjoyable now, with a hearty meal. Serious, aristocratic, classic. £39 Tesco

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Scul 88 www.themarketmagazine.co.uk

pture art class

the substantial catalyst I

recently attended an auction at Sotheby’s, selling a painting on behalf of a client. The paintings were selling with mixed results, and the tension in the room was palpable as buyers hoped to pick up bargains and the sellers kept a worried eye on the reserve prices. But the mood with the pieces of sculpture that were on sale was tangibly different. The sculptures sold well. I’m not surprised. I was particularly struck by the sale (for £623,000) of a bronze maquette of Antony Gormley’s Angel of the North.

Tyneside, perhaps on a grass mound in the drive of the Spanish villa of a Geordie footballer now playing his game a long way from home. Wherever it was going, one thing was for sure – this wonderful and un-missable piece of sculpture was going to be taking a tangible piece of the North East of England with it, and making a statement.

People often seem surprised when I suggest that they need a piece of sculpture to bring a room together, or to complete a themed collection, but I believe that sculpture is the most powerful of catalysts Standing three-foot-three-inches tall in getting pieces of art to pull together. and with a wingspan of over nine foot Why? Well quite simply, and literally, this miniature version of the sixty-sixbecause it brings the art down off your foot Goliath of Gateshead was still a walls and pulls it into the room itself. If dominating and substantial piece. My you confine yourself to A three-foot-three-inches tall, bronze paintings alone you are maquette of Anthony Gormley’s Angel pushing all of your art out to the extremities of the North recently sold of the room. A cleverly placed piece of sculpture, at a Sothebys auction for £623,000 however, can bounce the mind from a picture on the wall into the mind drifted as I waited for my own lot to room and back again, subliminally but come up. Who had bought the miniature tangibly filling the whole room with your Angel? Where was it going? I pictured art. A well-placed piece physically enters it dominating the entrance lobby of a your space, without intruding upon it. smart London corporate headquarters, As you bustle into a boardroom you may reminding all those who came into the miss the pictures on the wall, but you will building of the North-Eastern roots of not miss the bronze on the boardroom the corporation; or maybe it was going table; and if it is a well-chosen bronze it to stand proudly abroad somewhere, like will bring the paintings on the wall down a distant echo of its perch on the edge of into the room with it. Low Fell overlooking the A1 approach to

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Top: Atlantis - Oil on canvas by Jeffrey Kroll. Above: No. 60 – Bronze – Edition of 12 by Adam Roud

Let me give you some examples of what I mean. On the walls of a multinational corporation’s modern-themed boardroom are a series of works by, say, Frank Auerbach: powerful and dynamic, full of light with immense depth; on the boardroom table is a Henry Moore reclining figure, or a Barbara Hepworth pair of Forms: tactile, organic, in bronze, or marble, or hopton wood stone, or alabaster. The juxtaposition of canvas on the wall with substance on the table, and the subtle contrast of the angularity and depth of colour of the painting with the soft lines and organic colours and tangibility of the sculpture complement each other and draw the mind from the wall, into the centre of the room and back to the wall again. This ensures that the

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art that you have chosen is not simply ‘there’, but that it fills your whole space and really creates the atmosphere that you are seeking. Without the physical catalyst, the artwork all too easily retreats into the background. And you do not have to be a millionaire, because the rules that apply to those who can afford an Auerbach and a Hepworth apply regardless of what you spend: you would be surprised what you can get for the price of a Banksy print. You can create exactly the same effect with the vibrant angularity of a Jeffrey Kroll (from £12,000) on your dining room wall, complemented by the wonderful tactile smoothness of an Adam Roud bronze (from £4,500) on the dining room table. The principle, and the effect, is just the same, but without costing a fortune.

Above: Installation view at Royal Academy’s Modern British Sculpture showing Barbara Hepworth’s ‘Single Form (Memorial)’ (196162) in the foreground and Henry Moore’s ‘Reclining Figure’ (1951) in the background. Photo: John Bodkin/Dawkins Colour. Below: Head of William Feaver, 2008 Oil on canvas by Frank Auerbach. Courtesy of Marlborough Fine Art.

ARTHUR ACKERMANN

Beachscape - July 1982

20” x 16”

Oil on paper

Signed and inscribed verso

Donald Hamilton Fraser R.A. Tel 020 7235 6464

27 Lowndes Street, London SW1X 9HY www.arthurackermann.com

info@arthurackermann.com

Above: Black Panther – Oil and gold leaf on canvas by Charlotte Lyon. Left: Lifesize Leopard coming out of a Tree – Bronze – Edition of 12 by Hamish Mackie

Or perhaps you have chosen a wildlife theme for your room. It does not matter whether the pictures on your wall have the searching depth and dynamism of a Peter Beard, or the fluid movement of an animal captured in oil by Mark Adlington, or even the charming naivety of a Charlotte Lyon black panther on a gold-leaf background. All of them lurk on your walls unless they are invited into the room by the inclusion of a centrally-placed sculpture. This is particularly true if the piece in question is full of life – like the muscle-groupmovement achieved in the wonderful wildlife sculptures of Hamish Mackie; and while a life-sized bronze leopard would cost you £48,000, a two-foot version, which is all that you would need to have the effect that you are seeking in a goodsized room, would set you back as little as £5,000 or £6,000. Or perhaps you are simply a City banker with a sense style and a sense of humour – with a bronze bull on one side of your desk and a bronze bear on the other...

Above: The St Pancras Lovers – originally called “The Meeting Place” but fondly renamed by the public – a monumental ninemetre tall Unique Bronze by Paul Day sited in St Pancras Station, London.

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But let’s get back to icons. You will find the witty and high-impact sculptures and friezes of Paul Day all over London, from his depiction of the late Queen Mother’s life in the Mall to the Battle of Britain memorial on the Embankment. But Paul Day’s work is very accessible,

with a clever vignette of a hairdresser in bronze costing less than the price of a commuter’s season ticket. One of his best-known works is ‘The Meeting Place’ at St Pancras Station: two lovers standing nearly 30-feet tall under the great clock in William Barlow’s magnificent engine shed, mounted on an intricate bronze frieze that brings alive the story of railway travellers throughout time. Like the Angel of the North, you could buy an artist’s bronze maquette of The Lovers at three-foot-six-inches (1m tall – 1/9th of the final sculpture) for only £18,000, but, if that is still unaffordable, you can obtain a maquette of an early proof called The Kiss at 17 inches (43 cm) tall and for less than £6,000. Of course, such a sculpture could be snapped up by a London-based Euro-company to stand as a statement in their corporate lobby; but I would much rather imagine it standing on a little plinth of its own in the hall of a house, like an echo of every morning kiss goodbye or evening kiss hello. The bottom line is that it is sculpture, carefully chosen and cleverly-placed that brings your art from the peripheral walls into the core of your living or working space: if you collect art then it is sculpture that provides the substance and the catalyst. m

By Lisa Sharpe Contact Lisa Sharpe directly on 07774 428747, www.lisasharpeca.com or lisa@lisasharpeeca.com

J K I 8 K K F E J K I < < K # C FE ; F E # N ( A / C K " + + ' ) ' . .-0 +'+ ( K? < D 8 P = 8 @ I ? F K < C %:F% LB

Gallery view 94 www.themarketmagazine.co.uk

1. Michael Felmingham, Towards Ca’Rezzonico, Oil on board, 14’’ x 21 1/2’’, £2900, www.arthurackermann.com 2. Antonio de Reyna, View of La Giudecca in Venice, Oil on canvas, 13’’ x 29’’, www.arthurackermann.com 3. Louisa Blackshaw, Landscape 16, Oil on canvas, 48’’ x 60’’, £3750, www.arthurackermann.com

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1. Nathan Walsh 5th Avenue Reflections oil on linen 100 x 100 cm (40 x 40 in), www.albemarlegallery.com 2. Nathan Walsh Lloyds Vertical oil on linen 204 x 125 cm (80 x 49 in), www.albemarlegallery.com 3. Nathan Walsh Hot Specialities oil on linen 100 x 125 cm (39 x 49 in), www.albemarlegallery.com 4. Nathan Walsh Multiverse oil on linen 144 x 188 cm (57 x 74 in), www.albemarlegallery.com www.themarketmagazine.co.uk

I love what I do, I love it all. The people, the management and the design. I am driven by

sustaining the creation!

Anouska

Hempel From £10 to business empire, we meet the Lady behind Blakes and The Hempel and find out more…

rriving at the stylish five star Georgian boutique hotel, Blakes, in South Kensington, we are shown to a room, which, with its exquisite style and evident attention to detail, could have only been designed by our interviewee, Lady Weinberg (Anouska Hempel). In walked an elegant, petite lady and almost immediately, the room was filled with her powerful energy, charisma, lively chatter and sense of humour. Born in the Antipodes, Anouska moved to Australia with her family and later she moved to the UK with her sister. On arriving in England, she made the journey from Southampton to London by train, finding herself at Earls Court with just £10 in her purse, having spent the last of her money in Cairo on a bottle of Joy (perfume). When we asked what she felt like at that moment, she replied, “I felt bereft, scared and a bit nervous, sad and

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homesick, and in desperate need of a coat!” Their first stop was a youth hostel in Holland Park, little did she know then that she would one day be living in grandeur in that very area. Not long after, the much-needed coat was purchased “I remember buying a bright yellow coat, a Chanel copy from Wallis. I had to share it with my sister, I knew that coat inside-out, the buttons would fall off, it looked like an old dead egg in the end”. So what did the Lady do next? Having always had an interest in acting, Anouska landed her first film role only a year after arriving in London and six years later she became a Bond Girl in On Her On Her Majesty's Secret Service as one of the “Angels of Death”. 1978 highlighted the turning point in

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her career, when she opened one of the world’s first boutique hotels, Blakes . This was most definitely, an ambition fulfilled. For Anouska, at that time, Blakes was a home away from home. It was part of the thriving 70s scene and became a glamorous bohemian salon, filled with music and theatre personalities. The passion for design has always been a constant in her life, “Even at the age of five, I would rearrange the dinner table and I did not like it if the egg cups were the wrong way around!” Her inspiration comes from all that surrounds her, she explains “it comes from a lot of things I cannot bear! I like to turn a negative in to a positive, if someone’s made the effort to make it, then I can try at making it better”. Besides this, Lady Weinberg is inspired by the talent, passion, immortality and sheer genius of the great, Leonardo Di Vinci. “He tried to fly”, she said wistfully. Anouska strongly believes that environment affects peoples’ moods, feeling and actions, “environment can cause depression and anxiety. It can also improve everything on every level. It’s

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a mood enhancer and it increases one’s endorphins. In fact, Blakes was done intuitively. “I knew that if a girl came to Blakes and glanced at herself in the beautifully lit mirror at the bottom of the staircase, she was going to have a good night, a lot of fun, a lot of chatter. A lot of lovely things can come out of feeling good in yourself. Very interesting that staircase, the staircase consists of scaffolding poles wrapped in cane and cost the bare minimum and the mirror cost a lot more!! It was that kind of juxtaposition of coming down and seeing yourself looking good. If people are feeling that they look good, then they look good, it psychosomatic. It’s the inside-out and outside-in.” In the mid 1980s, Anouska opened a fashion boutique in Chelsea. Here she dressed the world’s most fashionable women, including Princess Margaret. Anouska’s fashion designs are now part of the permanent collection exhibited at London’s V&A museum and New York's Metropolitan Museum.

Later in the 1990s, Lady Weinberg founded the architectural practice, Anouska Hempel Design (AHD). Over the years, the practice has had its designs celebrated all over the globe and she was ranked as one of the top 100 interior designers and architects in the world by Architectural Digest Magazine. Designing hotels, restaurants and stores, Anouska Hempel has worked with brands such as Van Cleef & Arpels, Louis Vuitton and, most recently, Moncler, which opened its Henry Cotton's flagship store in Milan last year. “When working with a brand you are treading on eggshells somewhat, but then I have to remember that they’ve hired me so they must appreciate what I have to say. It’s fun learning a discipline and it really is a discipline”. “I love what I do, I love it all. The people, the management and the design. I am driven by sustaining the creation, changing with the times and doing things differently." Contrary to some reports, Lady Weinberg feels that comfort is as important, “I must take that off Google,

this always comes up! There has to be a synergy between the two, if the bed looks good but you can’t sleep in it then it doesn’t work!” At Anouska Hempel Design, management is key and an integral part of its success. “Management is such an important part of my life, I need people, I can’t do it all myself. I love gathering the momentum with my team and seeing how people work together and interact”. Lady Weinberg prefers to work independently and close to her team. “Boards and big team decisions do not work for me, it works for other people but not for me, they take a long time to get things done and I just want to get it done! Plus, I’m a control freak, if I’m not in it, it all goes wrong!” The best business advice ever given to the designer, was to do everything on the back of an envelope and what cannot be done on the back of an envelope, get help with and/or seek advice. Lady Weinberg adds, “not

having good people around you is the problem, it is an essential requirement”. Lady Weinberg feels is it imperative that her staff are happy and rewarded for their hard work and long hours. A crucial ingredient to keeping her staff motivated, excited and creative is to ensure that they are thanked. “I am dictatorial but never leave the other chap feeling bad. Say thank you and make the other person want to come back. Whatever’s happened during the day, always make sure they go home feeling alright or you cannot move on”. And asked, if ever stressed, “yes, I manage stress with humour. I don’t really relax, I only relax when I sleep!” For Lady Weinberg, working is a way of life, it is what keeps her sane. Juggling such a powerful job and family life is done with great difficulty and complication, relying strongly on the trustworthy team around her. So what is next for Anouska Hempel. Current projects include work with Yoo, where she is collaborating with other designers such as Philippe Starck and

Marcel Wanders. She has also been commissioned to work on the Grand Theatre in Beirut, The Baccarat Hotel in Rabat, a new exciting hotel chain in Lisbon, The Dutch Bay in Sri Lanka as well as numerous private residences across Europe. When asked what was her proudest moment, she looked thoughtfully, “opening Blakes in Amsterdam. I didn’t feel proud but good and strong, not great. Great is yet to come!” So we come to the end of our interview, we ask her what advice she could offer to other entrepreneurs. She looks serious for a moment, “Be careful, it’s not like it was. You don’t have the freedom these days. The rules have changed, life has changed. You cannot speak to your bank manager anymore. So just, be careful…” And with that, we take our leave. m

For more information on Anouska Hempel Design, please visit their website. www.anouskahempeldesign.com

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Savills Country Homes Lansdowne House 57 Berkeley Square

020 7016 3780 country@savills.com

savills.co.uk

EXCEPTIONAL PROPERTY IN THE HEART OF BERKSHIRE winkfield, berkshire 8 bedrooms, 4 reception rooms coach house with guest flat extensive gardens stick & ball field about 25 acres

Guide £7.5 million Freehold

Savills Sunningdale Mount Lodge, London Rd Sunningdale SL5 0EP

01344 626162 sunningdale@savills.com

savills.co.uk New Instruction

17TH CENTURY FARMHOUSE WITH EQUESTRIAN FACILITIES wokingham, berkshire 4 reception rooms master bedroom with en suite 5 bedrooms 3 bathrooms heated swimming pool stables and tack room annexe with kitchen and shower room paddocks and duck pond c. 2.402 acres Guide £1.695 million Freehold

Country Investing in a

Property

Many people dream of moving to the country, or buying a second home in a countryside location. If you’re thinking of investing in a country property this year, how is the market faring in the UK?

ountry properties have an undeniable charm and there are plenty of stunning locations throughout the UK to tempt the discerning buyer. Some people dream of leaving the city and moving to the country to live, to get a better quality of life for their family, whilst others are happier buying a second home to use for holiday purposes. Buying a holiday home in the country continues to be a popular choice for those that can afford it, even though locals in some areas have mixed views about prices being pushed up by temporary residents. Over the last five years the

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number of second homes owned across rural England has increased rapidly – according to the National Housing Federation, it’s increased by as much as 2040% in some areas. Despite the turbulent property market over the last year or so, the prices of properties in many desirable country areas in the UK haven’t been hit too hard. Recent research by Knight Frank into prime country house properties, for example, found that the market remains resilient. In fact, prime country house prices in England were found to have fallen

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ON THE MARKET

Country Properties on the Market Moorland Cottages is a complex of three holiday cottages located in the North York Moors National Park, in Hutton-le-Hole. Two of the cottages are already used as holiday cottages and the complex also has a laundry, family room and useful general purpose store. Between them, the three cottages have six bedrooms and three bathrooms and the complex is on the market for £625,000. Additional land is available by separate negotiation. Contact: Chesterton Humberts, York office Tel: 01904 611 828 A grade II listed ‘chocolate box’ style thatched cottage, which dates back to the 17th century, is for sale in Kemerton, on the edge of the Cotswolds. The cottage has four bedrooms, three reception rooms, two bathrooms and lots of exposed beams and Cotswold stone walls. The cottage is on the market for £695,000. Contact Knight Frank, Cheltenham office Tel: 01242 246959 or Worcester office Tel: 01242 246959

by an average of only 0.4% in the last quarter of 2010 and, overall, they’re still 3.3% higher than they were 12 months ago. “The Home Counties recorded the strongest growth of 5%, whereas the market in the north of England saw a 4% decrease in values during the year,” commented Andrew Shirley, head of rural property research at Knight Frank. “We think the prime country market will continue to hold up well this year, as there’s still a real shortage of quality property available,” explained Robert Sweeting, head of country department at Knight Frank. “Vendors selling homes, especially in areas such as the Cotswolds and around Oxford, where there is a real dearth of supply, should see their properties sell well.”

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Average property prices The latest figures from Rightmove suggest that the average prices in regions of England and Wales in February 2011 are as follows: North - £144,787 North West - £163,227 Yorkshire and Humberside - £151,708 East Midlands - £158,252 West Midlands - £186,656 Wales - £163,625 East Anglia - £211,339 South West - £244,133 South East - £294,024 Greater London - £430,680 Popular country home locations Some of the most popular areas for buying second homes in the country are in rural areas of Devon, Cornwall,

A Grade II listed country house with five bedrooms, five reception rooms and ½ acre of gardens is currently on the market with Chesterton Humberts. It’s located in Broadoak, near Rye and East Sussex and has a wealth of fine original features. It’s on the market for £695,000. Contact: Chesterton Humberts, Tenterden office – Tel: 01580 765858 In West Allington, near Bridport in Dorset this five bedroom house with three bathrooms comes with an additional two bedroom detached cottage. It could be run as a bed and breakfast or holiday cottage, or simply used as extra accommodation for guests. The property is on the market for £850,000. Contact Chesterton Humberts, Bridport office – Tel: 01308 422215

fine.co.uk selling fine homes throughout the country

FINE

Three reasons why a Fine home stands out above all others 1. Advertising At Fine, you can be sure that we will achieve the right EHZIVXMWMRK TVS½PI JSV ]SYV LSQI MR REXMSREP RI[WTETIVW ERH QEKE^MRIW WYGL EW 8LI 7YRHE] 8MQIW 8LI 8IPIKVETL 'SYRXV] 0MJI 8EXPIV :SKYI ERH +5 ;I [MPP EPWS WIGYVI XLI FIWX PSGEP ERH VIKMSREP TYFPMGMX]©RSX JSVKIXXMRK TVSQSXMSR SR XLI VMKLX [IFWMXIW [LMGL KIRIVEXI XLI LMKLIWX ZSPYQIW SJ MRXIVRIX XVEJ½G 2. Photography A good picture is worth a thousand words and our WTIGMEPMWX TLSXSKVETLIV MW XVYP] ER I\TIVX MR PMJIWX]PI ERH QEKE^MRI MQEKIV] ;MXL QSVI XLER ]IEVW FILMRH XLI GEQIVE LI LEW [SVOIH JSV GPMIRXW VERKMRK JVSQ &IRXPI] XS XLI &&' ERH EPWS GEVVMIW SYX JVIUYIRX LSQI MRXIVMSVW WLSSXW JSV REXMSREP KPSWW] QEKE^MRIW %X *MRI [I FIPMIZI ]SYV I\GPYWMZI LSQI HIWIVZIW QYGL QSVI than conventional estate agency “point and shoot ” TLSXSKVETL] ERH HVIEV] PEGOPYWXVI HIXEMPW

3. Lifestyle Journalism ;LS ORS[W [LEX MX MW PMOI XS PMZI MR E LSYWI FIXXIV XLER XLI S[RIVW XLIQWIPZIW# 3YV EMQ MW XS GETXYVI XLMW interest, the insider ’s view, and to present it to potential FY]IVW XLVSYKL SYV QEKE^MRI WX]PI EVXMGPIW ERH photography, in our brochures and other advertising QEXIVMEP 8S EGLMIZI XLMW SYV PMJIWX]PI NSYVREPMWX [MPP MRXIVZMI[ ]SY ERH [VMXI EFSYX ]SYV LSQI XS TVSZMHI an insight that no other estate agency in the country GER SJJIV 7LI LEW RIEVP] ]IEVW I\TIVMIRGI EW E [VMXIV % VIKYPEV GSRXVMFYXSV XS KPSWW] REXMSREP QEKE^MRIW WYGL EW ,SYWI &IEYXMJYP ERH MRXIVREXMSREP TYFPMGEXMSRW MRGPYHMRK XLI 2I[ =SVO 8MQIW ERH -RXIVREXMSREP ,IVEPH 8VMFYRI WLI EPWS [VMXIW ERH IHMXW LIV S[R LSQI MRXIVMSVW TEKI MR XLI 9/´W FIWX WIPPMRK HEMP] VIKMSREP RI[WTETIV

Other key differences with Fine: -

%[EVH [MRRMRK QEVOIXMRK XLEX XVYP] IRKEKIW prospective buyers &IWTSOI TVSTIVX] QEKE^MRI WX]PI WEPIW FVSGLYVIW ½RI GS YO ¯ SYV HIHMGEXIH [IFWMXI JSV XLI WEPI SJ HMWXMRGXMZI ERH GSYRXV] LSQIW ±*MRI² ¯ SYV [MHIP] HMWXVMFYXIH TVIQMYQ QEKE^MRI MR [LMGL [I GER WLS[GEWI ]SYV LSQI EPSRKWMHI PMJIWX]PI JIEXYVIW ERH RI[W *MRI 3TXMSRW ¯ E VERKI SJ EHZIVXMWMRK ERH QEVOIXMRK YTKVEHIW XS IRLERGI XLI WEPIW TVS½PI SJ ]SYV LSQI 3TIR WIZIR HE]W E [IIO [MXL I\XIRHIH EZEMPEFMPMX] ¯ EQ TQ [IIOHE]W

For your FREE marketing appraisal call

ON THE MARKET Country Properties on the Market Located on the edge of the village of Birdingbury in Warwickshire, a Grade II listed detached Georgian farmhouse with outbuildings is for sale. Dating back to 1730, the property has five bedrooms, two reception rooms, two bathrooms and 0.79 acres of gardens. The former stables have been converted to form two offices and a pool room. The property is on the market for £950,000. Contact Knight Frank, Stratford-uponAvon office – Tel: 01789 297 735 A large country manor house, with seven bedrooms, six bathrooms and three reception rooms, is for sale a few miles outside Lichfield, in Staffordshire. It’s accessed via a long private drive and has open views across the countryside. The house has its own tennis court and swimming pool, plus 4.11 acres. It’s on the market for £2.5m. Contact Knight Frank, Sutton Coldfield office – Tel: 0121 362 7878 or Robert Sweeting, Country Homes Department Tel: 020 7861 1078

Top Tips for Buying a Second Home in the Country Location and distance – Think about when you’re likely to use the property and how long it will take to get there. A weekend bolthole in Cornwall may be fine to get to on a Friday evening in the winter months, but in the summer, when traffic is heavier, it may take considerably longer.

Dorset, the Home Counties and Norfolk. But with more demand for property and second homes, house prices can be higher in the fashionable areas and more sought after, putting more pressure on your spending and searching. According to David Orr, from the National Housing Federation, a number of new rural property hotspots have been developing in recent years, as people bid to find up-and-coming areas of the countryside for second home ownership. Some of the top areas he’s identified as being popular for rural

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home buyers include the villages around Uttlesford in Essex, North Kesteven in Lincolnshire, Stratford-upon-Avon in Warwickshire, North Lincolnshire and North East Derbyshire.

Size and purpose – Be clear about what size property you’d like and what your primary use will be. If you’re only going to use it for holidays, then a large property may be impractical, however nice it seems.

In addition to finding larger homes at cheaper prices, another benefit of choosing an up-and-coming country area over an existing hotspot is the potential for price growth in the future, something many property buyers are keen to benefit from. m

Investment potential – If you’re keen to make money long-term on your property investment, then look for properties that can be renovated, improved or have letting potential.

By Rachel Newcombe

Price – If budget is a concern, then look to more of the up-and-coming country areas, where prices tend to be more affordable than the very fashionable locations. !

Discover Jamaica

.....discover Couples Resorts Situated within 18 beachfront acres of tropical gardens and just five miles from the laid-back village of Negril, Couples Negril provides the ultimate all-inclusive holiday, exclusively for couples. This beautiful all-inclusive resort offers everything you need to unwind and relax including chic rooms and suites, fine dining, a selection of excursions, water sports with instruction, movies on the beach by starlight, spa treatments*and much more. The perfect choice for your wedding, honeymoon or simply discovering each other again.

Receive a GUARANTEED upgrade from Deluxe Garden to Deluxe Ocean room. £2,699 per couple and includes: · Direct flights from LGW-MBJ · 7 nights in a Deluxe Garden room with a guaranteed upgrade to Deluxe Ocean · 24 hour dining from casual to gourmet (instead of meals/snacks) · Unlimited premium brand drinks (instead of beverages/premium drinks) · A selection of tours/excursions · Land and non motorised watersports with FREE instruction · A variety of day and night entertainment *extra cost, payable locally For bookings made by 30 April for stays from 1 May to 23 December 2011 excluding Thanksgiving.

For bookings call Discover Jamaica:

0207 078 7518 www.discoverjamaica.co.uk For terms and conditions please see our website for details

Revitalise

Your body and mind Angela Melville-Rae visits the Shreyas yoga retreat in India and discovers a luxurious spa that will not break the bank.

evitalise your body and mind in India at Shreyas yoga retreat. As the Dalai Lama said, “Man sacrifices his health in order to make money.” Working long hours, not exercising, constantly rushing, eating unhealthily, is it not time you looked after yourself and learnt to relax and slow down, so you can function more efficiently? This is just what I did, I spent a week at a charming spa set amongst coconut groves in a tranquil country setting with monkeys in the trees and an organic farm growing most of the fruit and vegetables we consumed. Arriving in the early hours at the spotlessly clean, modern and efficient Bangalore airport, I took a £15 hour-long taxi ride in the dark through the bustling traffic of Bangalore. Bangalore is not known for tourism but it is a modern city, the first, in India, to have electricity and is home to the global computer industry centre. It has lots of green parks and some lovely hotels including the Taj West End, Leela Place and lots of funky bars and restaurants so might be worth a stop over. Gradually leaving the city behind, entering the lush green countryside, we pass through small, rural villages. The roads get progressively worse with large pot holes with cows roaming and children in school uniforms getting ready for the day. We pass monkeys in trees, coconut palms, rice terraces, a large lake and

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eventually I see the sign for Shreyas. A journey of self discovery is promised and I enter paradise… Shreyas is run on Ashram principles and a totally vegetarian diet, no alcohol is allowed, with twice daily yoga and meditation classes. But, unlike most Ashrams, the accommodation is luxurious and the service is amazing. The staff are most delightful, kind and inspiring people, nothing is too much trouble. They seem to really care and are always there when needed… eg, a fresh coconut water by the pool, a torch light on the steps after dinner and even mosquito cream laid by your yoga mat! There is a no tipping policy and 10% of what you pay goes direct to the staff. How refreshing to think they are being so nice, not just for a tip. There are only 12 rooms, some set around the gorgeous chlorine-free infinity pool and in the beautifully landscaped tropical gardens. An average day would be 7am yoga class, watching the sunrise followed by a power walk. Then a deliciously, healthy breakfast by the pool. An hour-long massage before lunch and another yoga class at 4pm then supper and early night or watch one of the hundreds of DVDs in the cinema room, with its reclining leather sofas and chairs. The beds are very comfortable and you are guaranteed a good night’s sleep.

You will not go hungry here, the food is truly amazing and varied, I did not know vegetarian food could be so delicious. We had fresh fruits, yogurts, porridge, indian dosa (these are like pancakes made from fermented lentils and rice), delicious for breakfast. Lunch and dinner were always a soup followed by salads, rice, lentils, roti and vegetarian curries. And every meal is served in a different location with fresh flower petals and candles, where you are subtly encouraged to mix with other guests. I met some interesting people, many in business or between jobs from all over the world. The Yoga is a mixture of Hatha and Ashtanga and you are divided into classes for your ability, so you could end up as I did with my very own teacher one day. These are the best Yoga teachers I have ever had the pleasure of experiencing, gently adjusting your positions. It is amazing what your body will do after a week of yoga twice daily! The spa is only two rooms and massages are available in Thai, Balinese or the local Ayurvedic form. I opted for the Balinese, often lasting longer than the hour, unlike most spas! The price was high for India, approximately £50 for one hour.

Shreyas supports to meet and help feed 25 lovely smiley local children. They sang to us in their school uniforms whilst sat crossed legged on the floor. They have no toys or computers and all sleep in one room on concrete floor, having to share toothbrushes and one shower and toilet, but they seem very happy and the older ones look after the younger ones well. British Airways fly direct daily from Heathrow in under ten hours for approximately £400. The best time is October to March before the monsoon. I went in January and it was warm during the day but got chilly at night, there were fires so we managed to eat outside most evenings. There was no need for malaria tablets when I was there. ChicRetreats.com have rooms fully inclusive of all meals, drinks, yoga and a complimentary one-hour massage. A stay of six nights for £125 per person for a twin or double room.

Nandhi’s 5m-high Shivas are all worth a visit. I would recommend the Royal Orchid Hotel, which serves delicious food in its courtyard restaurant with twinkly lights. Or you could stay at the faded Lalitha Mahal Place, which despite looking very grand from a distance, is worn but charming and has delightful staff who, for a few rupees, will show you where Lady Di stayed – although I later found out that she did not! Shreyas would not suit everyone. The train passing at the end of the garden did spoil the peace with its loud horn and the gym is very poor. There are limited beauty treatments in the spa. I would definitely return to Shreyas. It is great value for money and you will feel completely relaxed, calmer, lighter, more flexible, more focused and ready for a more productive work life on your return. m

This is not real indian life so, if you have time, you could visit the historical city of Mysore, famous for sandalwood and silk. It is a four-hour drive in the car and there is plenty to see… the Maharaja’s Palace, Sri Shweeta Varahaswammy Temple and

Other guest activities include cooking classes, gardening, or as I opted for, a visit to a local orphanage which

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WIN

a luxurious three night stay in Austriaâ&#x20AC;&#x2122;s capital, Vienna.

Courtesy of British MidIand International (BMI) and Das Triest, we are offering our readers the chance to win a three night city break for two people to the beautiful and historic city of Vienna. Flying with BMI, you will stay at Das Triest. Located in downtown Vienna near the Karlsplatz, the hotel designed by Sir Terence Conran, is the masterpiece of hotel design in Austria. The prize is based on two economy flights and a double room for two people sharing. Complimentary breakfast is included. To enter, please email your name, address and telephone number to info@themarketmagazine.co.uk entitling the subject, Vienna. Good luck!

market the

Terms and Conditions Entries must be made in accordance with the competition instructions. They are invalid if they are received any later than the specified closing time (which shall be London date and time). There will be no cash or other alternative to the prize offered and prizes are not transferable. Where applicable, prize winners will be responsible for organising valid passport(s) and for securing any necessary visas or complying with other regulation. They are also strongly advised to take out adequate insurance and health advice. Dates, destinations and other specific details of a prize are subject to availability. Market Publishing Ltd will not be liable for any circumstances beyond its reasonable control that prevent the competition being fulfilled, a winner or winners being chosen, or any prize being taken up or fully enjoyed by a winner. Market Publishing Ltd excludes liability to the extent permitted by law for any cost, claims or losses howsoever caused that arise by reason of any personâ&#x20AC;&#x2122;s entry into a competition or the award, or non award, to them of a prize. In the event of any error, whether printing, technological or otherwise, which affects the competition in any way, the Judges reserve the right to administer the competition as though the error had not occurred. If any winner of a competition is unable to take up a prize for any reason, or if Market Publishing Ltd has not been able, after making reasonable efforts, to make contact with the winner, Market Publishing Ltd reserves the right to award that prize (without notice to the first winner chosen) to an alternative winner, in which case the first winner chosen shall not be eligible for any share of the prize whatsoever. Market Publishing Ltd shall not have any liability in such eventuality.

Health

Are you

fit 4business? The hardest part of getting fit is getting started!

Practice what you preach

y name is Toby Garbett and my background in the world of health and fitness originates in the cut-throat world of Olympic rowing where the time and effort you put in is precisely what you get back. The margins for success and failure in the world of sport come down to hundredths of a second. This can be likened to the width of an apple and in 2002 cost me a gold medal, this equated to just 0.02 of a second! I was a World Champion in the preceding years and went on to represent Great Britain at the Athens Olympics. In business, you may or may not be accountable for business being won or lost by fractions of a second but being as fit as you can be, mentally and physically, could help you win, or stop you from losing that important contract! I now thoroughly enjoy bringing my experience, understanding and motivation to assist others in the office or at home as a personal trainer.

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I always think it is very important in all areas of life to lead by example and there is no better example than one of the busiest people in the country making time to get fit. I was delighted to see recently that the media was drawing attention to our Prime Minister, David Cameron, as he started a new fitness regime, which includes running along the Thames in the early morning. I often hear the excuse ‘I never have enough time’, but surely, if one of the busiest people in the world has realised that being physically fit enables him to do the job of Prime Minister, to the best of his ability, then surely this gives us no excuse. Who’s stealing your lead? As we all know in business, it is important to keep up-to-date with your competitors. However, I am aware, from the world of

elite sports, that spending too much time watching and worrying about your competitors can leave your head in a mess and, you, not fulfilling your potential. Do not worry about the ‘what ifs’. A sport psychologist once told me to control the controllables! This is as true in business as it is in sport. Whether you are an individual or company you need to get the most out of yourself to compete in the marketplace. The best way to do this is to look at all areas of your life; your diet and hydration, exercise or lack of it, and sleep, how much or how little. Once you have gone some way to improving your lifestyle you will be giving you and/or your business the best possible chance of success. You may have the best website and the greatest strapline in the country but if you do not back this up with an excellent, passionate and enthusiastic service, you will not get business.

Simple

You cannot beat this second stretch; the yoga position known as â&#x20AC;&#x2DC;the downward dogâ&#x20AC;&#x2122;. It incorporates your calf muscle as well as your hamstring.

exercises Sciatic nerve impingement, also known as sciatica, is common in people who sit for prolonged periods of time. The sciatic nerve runs from your lower back, down through the back of your legs to your feet. Pressure on the sciatic nerve, from bad posture over a period of time can cause pain down the leg. The following exercises are great in combination for any type of sciatic nerve pains.

Start in a press-up position with your feet hip-width apart.

Simply start on all fours and straighten your left leg back with your toes still touching the ground.

Slowly send your bum pointing to the ceiling to form a pyramid shape, aim your heels to touch the ground keeping your legs straight and back as straight as you can get it.

Then sweep your right foot under your left leg and slowly sink your bum down and back towards your right heel. Reach your arms out in front of you and hold this position for at least one minute. Repeat this on the opposite side.

If you are reading this and you do not have sciatica they are still great exercises to do on a regular basis as prevention is better than cure! Good luck, Toby. If you would like to book a fit-4-business session with Toby, go to www.tobygarbett.com

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Health

The

Commandments of Nutrition Thou shall not eat junk food

Eat Rubbish – and you will look and feel rubbish, and perform badly. Most people only eat when they are hungry or when it is convenient, this is “BAD”. This will severely slow down your metabolism and encourage the body to store the food you eat as FAT, so to get results you have to prepare and cook your meals ahead of time, this will keep you off the path of temptation and will aid your progress. I recommend keeping a nutritional diary and making daily progress reports. Also keep a calendar handy, if you stay on your diet for that day place a line through it, if you also exercise that day place another line through it to make a cross then a few weeks down the line look over the calendar to review what you have done. If you see nothing but slashes and crosses, then you know you are on track! On the other hand, if you see a lot of spaces you know you need more commitment. Plan your food shopping, making it an event. Aim for a list of only good quality sources of protein, carbohydrates, vegetables and fats. Making sure your cupboards and fridge are stocked with all the right foods (see rule three) will help you adopt a new pattern of eating.

Thou shall not starve thyself Starving yourself in a desperate effort to lose fat is the worst thing you could possibly do. When you underfeed yourself, by drastically reducing the amount of food you eat, you slow down

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your metabolism considerably, which is the last thing you want to do when trying to lose body fat. Furthermore, most of the weight you lose comes from lean tissue (Muscle) not adipose tissue (Body Fat) – It is kind of like the Special K slogan flipped upside down “keep the fat, burn the muscle”. Not Good!

Thou shall feed thy body with quality whole natural foods If you can’t pick it from a tree, dig it out of the ground, fish it from water or catch it running around a field, then don’t eat it! Only consume whole natural foods in controlled portions, evenly throughout the day with the emphasis on fuelling the body correctly in and around training to optimise performance, recovery and muscle growth. Think about this for a moment: within a year, virtually every cell which makes up the body you have right now will be gone (this is a matter of fact!). Your body is “re-created” every year. Out with the old and in with the new. Your skin, your muscles, even your organs are constantly degenerating and regenerating. So, what do you think your body uses to re-create itself? Where does it get the raw materials to construct new skin cells, brain cells, muscle cell, blood cells – even a new heart? If you guess “food”, you guess right. YES, you really are what you eat! That’s why it is so important for you to start consistently feeding your body

what it needs to build the “new you” that you want to be.

Thou must consume six to eight meals per day “I’ll get fat” or “I can’t do that” is the general reaction here! Firstly, the traditional nutritional advice to eat three meals per day and avoid “snacking” between those meals actually is the worst thing you can do as this slows down your metabolism dramatically and actively increases body fat storage from the food you eat (this is another one of our bodies survival mechanisms). Most people at some point during the day experience feelings of tiredness, low energy levels and headaches. This is because people who eat three times or less per day have conditioned their body to get by on less calories and are therefore undernourished with low blood sugar levels and guess what, end up craving sugar and binging on processed junk foods, storing all bad calories as body fat. Now for the science: the way the human body works is that from the moment any food enters our mouth, enzymes begin to break it down, the body then continues this process in the small intestines and stomach, a process that takes two hours. Then depending on, a, if we have eaten correctly and b, our “burn rate”, the amount of energy required by the body at that moment will take anywhere between one and three

hours to burn it up for energy. Therefore, we must constantly feed our bodies every two to three hours to maintain stable blood sugar levels (for optimum absorption of the food we eat), which in turn will increase our metabolism, alleviating lethargy and fatigue and keep us “anabolic” - a constant state of growth and recovery. So, for optimal muscle building and fat burning, eat six to eight small, balanced meals evenly throughout the day.

Thou must not binge eat Over the last 20 years the average person has increased their daily calorific intake from 1,850 to 2,550 (this is not including the calories consumed from alcohol). That increase - 700 calories per day theoretically works out to potentially adding a “shocking” extra 20+ pounds of body fat per year which, let’s be honest, doesn’t look nice, puts enormous stress on the body as well as the radically increased risk of disease. Our focus in recent years has been distorted by so much emphasis on cutting the fat and sugar intake from our diet, but at the expense of keeping portion sizes under control. The fact is we just eat too much of the wrong foods distributed between only one or two meals per day and usually eaten late at night when we are most sedentary.

Thou must combine proteins & carbohydrates at every meal There are so many nutritional fads, with everyone jumping on the bandwagon to make money out of you. On the one hand we’ve got people like naturally skinny, Dr Dean Ornish telling us to eat high carbohydrates and on the other (the now deceased from heart disease), Dr Robert Atkins telling us to eat high fat and no carbohydrates, over weight politicians telling us to eat low protein, diet clubs educating us on red days and green days and others allowing us so many points per food. All this high carb, low carb, no carb confusion, I mean think about this, can you really get a diet cake? Well can you? All this clever marketing has left many people feeling so confused, that they don’t know where to turn for reliable information on how to “eat right”. When looking for a reliable source to bring balance back to your diet, ask yourself one question, is this person

representative of the sum of their knowledge, do they practice what they preach? If not, then how do they really know if it works?

substance known to man and essential for all life. It provides an important transport mechanism for a vast array of nutrients such as vitamins and minerals and even carbohydrates.

Thou must supplement thy diet Let’s be realistic, we live in the real world, right, and not all of us can eat six to eight meals straight off the cuff, even if we could, it is not always easy or convenient. So what should we do, starve our body of much needed nutrition by skipping meals? NO (see principles three and four). Fortunately for us we don’t have to! In steps the power of science to save the day (hooray), with specially engineered nutritional supplements. Yes folks, you can drink a shake and get into shape. Nutritional supplements do not replace our diet they, rather, complement it. I am often asked if these so called superfoods do anything that real food itself doesn’t do? Well the answer to that question is probably not. They are not miracle pills that miraculously transform us into Arnold Schwarzenegger or Halle Berry but, applied correctly as part of our nutritional programme, they can provide exact portions of protein, carbohydrates, as well as important vitamins and minerals without the excess calories, and saturated fat that you would otherwise get from convenience food you grab on the run.

Thou must refuel thy body after training Common sense suggests that after training we must refuel those hungry muscles, kick-start metabolism and begin the growth and recovery process as soon as possible. The best way to do this is through the supplementation of rapidly absorbed carbohydrates and protein consumed in a liquid form, commonly referred to as the ‘post workout shake’. Think of it as the muscle being a piece of wood, protein as a nail and carbohydrates as a hammer driving the protein in to the, now, deliberately injured muscles and then like lots of little soldier ants frantically working to knit it back together, making you leaner, stronger, more developed and toned.

Thou must consume between three to four litres of water per day Healthy muscle is comprised of more than 70% water. Water is the most anabolic

It serves an important role in all cellular activity, so if your water intake is low, your ability to transport essential nutrients becomes compromised, you will lose strength, feel sluggish as a result of all the ammonia, urea, uric acid and other waste products you don’t want hanging around in your body. Also if you happen to be someone who struggles with water retention, one of the best ways to get rid of it is to drink more water. That doesn’t make sense, I here you say… Then you must understand that water retention is just another aspect of your body’s survival mechanism. If it is bountiful there is no need for us to hold on to the water, so drink more water and you will look better, feel better, become healthier and hydrated, with the added benefit that it also helps to control your appetite by giving you the sensation of feeling fuller.

Thou may indulge one day per week Yes you heard me correctly, believe it or not eating whatever you want, one day a week, helps to build muscle and burn fat (caution! do not use this as a licence to extreme binge eat - see commandment five). When we start to burn stored body fat for fuel, our body’s built-in survival mechanism kicks in and sends a signal to your brain that you are starving. Eating whatever you want one day per week can calm those emergency brain signals. So plan one ‘free day’ per week into your nutrition programme and additionally you will help relieve any physiological feelings of deprivation that may build up during the week. I mean, come on, let’s face it, telling yourself to give up the foods you love, going cold turkey, is setting yourself up for failure. m By Antony Beeston Nutritionalist & Personal Trainer If you would like to book a session with Antony Beeston go to www.antonybeeston.com

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Business

REAL BUSINESS Each month we speak to the owners of startups and growing businesses. This month we talk to two innovative entrepreneurs about their strategy and vision.

St Pauls Lifestyle

What has been your proudest day in business? Two days stand out so far: the day four of our designs were featured in Oh Comely magazine (Jan/Feb 2011) – two of which occupied a full page; and the day Courtney Pine wrote advice for us to pass on to aspiring musicians (Jan 2011). What has been your hardest business day? I don’t mind the endless problems, challenges and crises with stock and artists etc. It’s “grinding” days when nothing much seems to happen that I find hard – but this important time at the coalface lays foundations for future steps.

Describe your business and your target market. St Pauls Lifestyle is a creative lifestyle business for men and women, celebrating our English cultural heritage and music. We sell edgy and cool apparel. A jewellery range launches this spring. While on our site, our customers and followers catch up with well-known and new musicians via our “exciting” music blog “OVERGROUND SOUND”. This is situated within the St Pauls Lifestyle site on the blog at www.stpaulslifestyle.com. Our target market is successful people who love art and music. What makes your business unique? Our commitment to art and music makes us unique: this is demonstrated, firstly, through the St Pauls Lifestyle brand: “quintessential English romantic with a punky touch”. Our intelligent designs take the wearer from the street to the boardroom and then down the road to a gig in cool urban style. Secondly, through OVERGROUND SOUND where we provide a free platform for supporting striving musicians – playing new music on our St Pauls Lifestyle website which is interspersed with reviews, interviews, features and music from high profile musicians such as Courtney Pine, Rise Against and Paul Smith. So musicians reach our retail audience as well as followers of OVERGROUND SOUND. We do not discriminate against musical genres.

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What is the most important lesson you have learned in business? The money’s in the gutter. Meaning if you want success you have to step off the pavement, roll up your sleeves and get down to hard work. You have to keep at it while people are walking past you having fun. Who or what is your biggest influence? Lord Sugar influences our approach to turnover and growth. Shah Rukh Khan (the Bollywood star also of Red Chillies Entertainment) has a dignified and respectful manner of doing business, which I seek to emulate. Who or what is your biggest inspiration? People that “bounce” – those who keep going no matter what knocks them down; gifted musicians and Constance Spry. Where do you hope to be in five years time? Internationally recognised as an edgy and exclusive cult brand that supports musicians in their self promotion and self management. What advice would you give to a budding entrepreneur? Be true, be focused, be brave and keep on doing. Trust yourself. St Pauls Lifestyle incorporating OVERGROUND SOUND Halterworth House, Halterworth Lane, Romsey Hants, SO51 9AE, Tel: 01794 519572 www.stpaulslifestyle.com info@stpaulslifestyle.com Twitter @StPaulsLifestyl Follow us on Facebook

James Caan’s EBA – Passionate about your success.

Renaissance Retreat Describe your business and your target market. Renaissance Retreat provides one-to-four-week residential Fitness & Wellbeing packages and Weight Loss programmes with a focus on lifestyle change. Everything we do is aimed at bringing the body back into balance naturally, to increase the metabolism and aid digestion, thus improving overall health. The retreat provides guests with a break from their normal daily routine and allows them to focus on how they really feel. Though guests book to get fitter or lose weight, they usually find they are on a different journey and sometimes make major decisions about their future before they leave. What makes your business unique? The Fitness industry provides blanket solutions to fit everyone. We provide a totally personalised programme based on the clients’ needs. Whilst most retreats and boot camps work with large numbers/ groups, we work with a maximum of six guests per week, offering a largely one-to-one programme. Our Holistic Approach focuses on the person as a whole - Mind, Body & Soul and our expertise allows us to work with adults of all ages, differing levels of fitness and states of health. The majority of our guests travel alone and enjoy the cosy, friendly environment of the Retreat. They often say it feels like being part of a family. What has been your proudest day in business? There have been many! One guest wrote to tell us, seven months after leaving, that he had followed our guidelines and despite a personal tragedy, had remained focused and lost a total of 45kg. He said he couldn’t have done it without our support. Only two weeks ago a guest who had limited arm mobility following a mastectomy two years ago, was able to raise her arms above her head for the first time after only three days of fitness rehab. Her ecstatic display brought a tear to everyone’s eye. What has been your hardest business day? When your product is all about people and service the whole experience must appear seamless. It can be a bit nerve-wracking when a key team member calls in ill or an incident leads to having to change the daily schedule. Luckily we have a fabulous back-up team to draw from as “The show must go on”!

What is the most important lesson you have learned in business? It’s true what they say, imitation is the greatest form of flattery. Don’t waste time worrying when someone tries to copy your idea, just focus on being the best. Competition is a great motivator. Who or what is your biggest influence? Feedback from our clients has helped us improve our original products and led to ideas for new products and services such as the “Head to Toe” Detox and “dancefit breaks”. Who or what is your biggest inspiration? We watched “The Secret”, liked the idea of the Law of Attraction and created a Vision board. It made us think about what we really wanted. Where do you hope to be in five years? To be known as the leading brand in Wellbeing and to be on Bev James and James Caan’s team of Millionaire Mentors at the EBA!! What advice would you give to a budding entrepreneur? Make sure the business you choose is something you are passionate about and enjoy as it will consume a large part of your daily life. Don’t underestimate the importance of social networking and make sure your website does its job! Networking is so important, so use all the tools and contacts available to you. Use your budget wisely and make sure you are paying for expert advice. You must have a clear vision of what you want and how you are going to get there. Learn from the journey and don’t be afraid to let go of something or someone along the way if the feeling isn’t right. www.renaissanceretreat.co.uk www.weight-loss-holiday.com Facebook: http://www.facebook.com/RenaissanceRetreat Twitter: http://twitter.com/RenRetreat Tel (International callers) +34 96 646 1216 Tel (UK callers) 0843 207 6053

James Caan’s EBA – Passionate about your success.

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Except it’s not quite like that, the reality is a bit different. Take it from me, I’ve been Working From Home (as a writer, if you can call it that) for years.

Annabel Giles

contemplates the joys of working from home

Even though I set my alarm clock for Really Early, I know I don’t have to get up straightaway. So I flick on the TV, just to check there hasn’t been an hurricane in the South East of England while I was asleep. (I slept through the Great Storm of 1987, only to discover on waking that the chimney had fallen right through the fireplace and into the bedroom.) A couple of re-runs of Upstairs Downstairs later, I have a shower. Not a bath, because I have to Work, and that would take too long. I am a busy woman. By now the dog is crossing his legs, so I take him out for a walk. He likes 40 minutes; I know this because if he has any less, he stares at me with his one eye for the rest of the day, haunting me until I make the time up to him. So I do an hour, just to be safe.

“

hem! From now on, I shall be Working From Home.” Sounds like a great idea, doesn’t it? No more commuting, greyeyed and tired, irritated by the tsing-tsing-tsing of your fellow passengers’ earphones, wound up by people shouting their business into mobile phones, late to work through no fault of your own. No more ‘teamwork’ to be done through gritted teeth, no more having to get on with people you despise, no more listening to gossip about people you don’t know. No more boss. NO BOSS!

Then we both have breakfast, during which I swallow lots of energy-giving vitamins, because I have an exhausting lifestyle, it’s just like being a long-distance runner, you’ve no idea. Having emptied and re-loaded the dishwasher to Radio 4, I pop a wash on and fold the laundry from the tumble-drier. Sometimes there is urgent ironing to do.

NO MORE ‘TEAMWORK’ TO BE DONE THROUGH GRITTED TEETH, NO MORE HAVING TO GET ON WITH PEOPLE YOU DESPISE.

I then check the fridge to make sure there’s something in for supper tonight, I see that there isn’t, so I quickly pop out to the local supermarket – not for a big shop, you understand, just enough for tonight’s meal. And while I’m out, I might as well pick up the dry cleaning and stock up on emergency birthday cards.

Yup, you can now work when you want, as much or as little as you want, in any way you want, wearing what you want, you can even have a live animal on your desk if you want to. Life is going to be just great.

On the way home, I bump into a friend who’s split up with her boyfriend. It seems churlish to turn away from her tears, so we have what I thought would be a quick coffee, but turns into lunch. He’s really been very cruel.

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I walk quickly back to the house, aware that I haven’t actually seen my desk yet today. The dog is quickly whisked round the block, so that I have the whole afternoon free to Work.

It’s 3.15pm. I have nearly two hours to do something spectacular, but I get my creative juices flowing on Facebook and Twitter, flitting from one to the other addictively, looking at complete strangers’ holiday photos and chatting away anonymously to friends of friends of other complete strangers. THE DOG IS QUICKLY WHISKED Vital for raising one’s profile, ROUND THE BLOCK, SO THAT I apparently.

HAVE THE WHOLE AFTERNOON FREE TO WORK. The landline rings. I am on my way upstairs to the study, I am busy, I do not answer it. So they ring the mobile, it’s someone I’ve been networking for three years, who could maybe offer me a job one day perhaps. We talk about everything except Work, for quite some time, but I think he’s probably building up to commissioning me.

What?! How did that happen? Only 20 minutes till I have to pick up The Prodigal from school! Right, I’d better do something, this minute. Looks at very, very long list: Ah yes, here we are. ‘700-word piece on Equivocation’, whatever that means. Online dictionary: ‘equivocate’. To avoid an issue, m sidestep, prevaricate. Who knew?!

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Grand Designs Live 30 April to 8 May 2011 ExCeL Centre, London Grand Designs Live will return to London for the seventh consecutive year at the end of April. Based on the Channel 4 TV series Grand Designs, presented by Kevin McCloud (pictured), the nine-day event will house 500 exhibitors offering tips and products for anyone looking to improve, redesign or build their own home. This year’s event will also see the return of ‘Grand Technology’, which includes an interactive showcase of the best gadgets for inside and outside the home. McCloud and architect and TV presenter George Clarke (The Home Show, Restoration Man) will also chair a number of seminars on sustainable builds, greener living and interior design trends. Book online at www.granddesignslive.com or call the 24-hour box office on 0844 209 7349 (free entry for children aged 15 and under).

Global diary

What’s on where Antiquities Period Design Sale 29 March 2011 Bonhams, Knightsbridge A collection of furniture from ‘The Lanesborough’, the exclusive five-star London hotel, is to be sold at Bonhams in Knightsbridge as part of its monthly Period Design Sale. The furniture, which has been in the hotel since its opening in 1991, is being brought to auction to make way for a new luxury suite that will cost £14,000 (plus VAT) per night. The 80-strong collection comprises chandeliers, mirrors, paintings, furniture and works of art with prices ranging from £30 to £3,000. All lots will be sold without reserve. The Lanesborough, which is located opposite Hyde Park and Apsley House, the former home of the Duke of Wellington, has played host to royals, politicians and other high-profile guests since its opening 20 years ago. It is known for its sophisticated yet discreet service, which includes a private 24-hour butler at guests’ disposal. www.bonhams.com.

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13 April 2011 Bonhams, London The Bonhams sale of Antiquities, which is being held on 13 April in London, is to include an Egyptian cat cast in bronze with gold earrings that dates from circa 664-32 BC. The hollow cast bronze, which comes from a private Swiss collection, was bought in New York in 1958 and has a presale estimate of £15,000 to £20,000. As a revered animal important to Egyptian society and religion during those times, cats, like humans, were mummified and given as an offering to the cat goddess ‘Bastet’. They were often placed on the top of bronze boxes containing mummified cats in the image of the cat goddess. In 1888, an Egyptian farmer uncovered a large tomb outside the town of Beni Hasan that contained 80,000 mummified felines dating from around 20001000 BC. Meanwhile, other lots at the sale include three powerful images of Alexander the Great – a 2000-yearold ring bearing his image and two sculpted heads from the same era. www.bonhams.com.

Events and Auctions

Indian and Islamic Art Sale

Modern and Contemporary Turkish Art

5 April 2011 Bonhams, London Bonhams is to hold its first-ever sale of Modern and Contemporary Turkish Art in London on 5 April 2011 and has appointed a representative agent in Turkey. Matthew Girling, European chairman at Bonhams, who is spearheading the new venture, said: “Part of the new reality of the global art market has been the dramatic emergence in the last decade of new buyers for contemporary Turkish art. Until recently these buyers have been mostly drawn to more traditional national art. However, the new generation of collectors, dealers and artists are increasingly influenced by broader trends from both the traditional and contemporary art world.” Bonhams Turkey will offer valuations and advice as well as sourcing works of art for sale in London. For more details visit www.bonhams.com.

5 April 2011 Bonhams, London An inscribed Mughal emerald personal seal set in a diamondencrusted gold bangle and bearing the name of Major Alexander Hannay, an East India Company officer, will go under the hammer at Bonhams’ Indian and Islamic art sale in London on 5 April. Estimated to sell for £30,000 to £50,000, the rectangular 18th century emerald is table-cut and was mounted in an enamelled gold bangle in the early 19th century. The three-line Persian inscription on the face of the emerald is in nasta’liq script and reads: “Amin al-Mulk Ashraf al-Dawla Alexander Hannay Bahadur Arsalan Jang AH 1185/AD 1774-5.” See www. bonhams.com for further details.

John Makepeace – Enriching the Language of Furniture

16 March to 15 April 2011 Somerset House, London A show that celebrates the work of renowned furniture maker John Makepeace is currently underway at Somerset House in London. Makepeace, who has been at the forefront of British design for 50 years, is well known for his famous ‘Mitre’ chair made to celebrate the Queen and Prince Philip’s Silver Wedding Anniversary and ‘Ripple’ – a chest carved with wave-forms penetrating the surface of the oak. Both will be displayed at the exhibit, which will show 25 pieces from public and private collections in the UK and abroad, with some not seen before. Several pieces will also be up for sale. ‘John Makepeace – Enriching the Language of Furniture’ is the designer’s first solo exhibition and runs until 15 April 2011 in the Terrace Rooms overlooking the Thames. www.somersethouse.org.uk.

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May Next month in

Ben Fogle – We speak to the adventurer, TV presenter and writer about past challenges, rise to fame and what awaits him in the future. Playboy – Since its launch in 1953, Hugh Hefner has built Playboy magazine into a global multimedia brand worth millions. Patrick Boniface takes a look at the ups and downs of the Playboy empire. Film posters – Whether you like them for their visual appeal or their investment potential, vintage film posters are worth a look. Drawing – Estelle Lovatt tells us how drawings have changed throughout art history and how a drawing is defined. She enlightens us on the benefits of investing in drawings, what to look out for and where to purchase them. Philippe Starck – He’s designed everything from bus stops to bicycles, lamps to lemon squeezers. We interview the legendary French product designer, and ask what inspires and motivates him.

May issue - On UK newsstands on the 22nd April 2011 Subscribe - www.themarketmagazine.co.uk

the market 69

advertising and marketing

People v computers Creative thinking and critique from Dave Trott

Nowadays we take the barcode for granted. We see the little stripey box on almost everything we buy, wherever we buy it. But it wasnâ&#x20AC;&#x2122;t always that way. Up until about 1970 the barcode didnâ&#x20AC;&#x2122;t exist because computers didnâ&#x20AC;&#x2122;t exist.

Pre-barcode, a shop would need to have a huge stockroom. They would order lots of cartons of all the products they thought they would sell. Then they would do regular inventory checks and stock-taking to see how much they had left, and when they needed to reorder, whilst keeping a daily check on stock, reordering when necessary. When the price changed, they had to change it on every single item, one by one. The checkout girl had to enter every price into the cash register by hand, like an old fashioned adding machine. Computers and the barcode changed all that. Now you print a barcode on the wrapper and itâ&#x20AC;&#x2122;s mass-produced and goes on every single object. If anything changes, VD\ SULFH WKDWÂśV HQWHUHG DW KHDG RIÂż FH and applies to everything carrying that barcode. The checkout person doesnâ&#x20AC;&#x2122;t have to enter anything because the machine reads the code and enters the correct amount. As it reads the code, it adjusts the stock on the main computer, which reorders the stock as it needs. 6R WKH MRE LV GRQH HIÂż FLHQWO\ LQYLVLEO\ and we all take it for granted, and it all depends on that little barcode. Recently I was watching a video about the invention of the barcode. In America in the late 1960s, the US grocery sector realised the need for, what they called, a Universal Product Code. It was a revolutionary idea, but it was a massive job. Some of the biggest computer companies in the world pitched for the contract. No one knew what a Universal

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Product Code should look like. So every company had a different design. Some had concentric circles, some had half circles, some had radiating circles.

Only IBM had a simple linear design. As each company took it in turn to present, they talked about the logic of their design. All of the reasons it was the better choice. Each company carefully explained that, when held the right way, their design should register on the scanner. Each company had spent months working on their pitch. So they spent hours on overhead projections of charts, and graphs, and research, explaining why their approach was better. Every company had their own persuasive, logical, sensible argument. It seemed almost impossible to choose between them. Then it was IBMâ&#x20AC;&#x2122;s turn. Their design was very basic, very simple. Theyâ&#x20AC;&#x2122;d printed up lots of their little design on small adhesive stickers. Instead of going through hours of charts, they opened up a box of Camay soap. Then they began sticking their little design on the bars of soap. Then one of the IBM team stood at the far end of the checkout counter and slid a bar of Camay soap as fast as he could along it. It slid the full length of the counter, over the scanner. The scanner went â&#x20AC;&#x2DC;beepâ&#x20AC;&#x2122; and showed â&#x20AC;&#x153;Soap 85câ&#x20AC;? on the cash registerâ&#x20AC;&#x2122;s illuminated display.

He heard the board gasp. He slid another bar even faster the length of the counter and over the scanner. Then another, then another. Each time, the scanner went â&#x20AC;&#x2DC;beepâ&#x20AC;&#x2122; and â&#x20AC;&#x2DC;Soap 85câ&#x20AC;&#x2122; showed up on the cash register. Then, to prove he wasnâ&#x20AC;&#x2122;t faking it, he asked the board to try it themselves. It was like bowling, or like sliding a hockey puck. They slid it as fast as they could, and every time it registered. They were like children, playing a game having a great time. Everyone relaxed. Instead of trying to understand complicated rational arguments, they could see it in action. They could feel it, they could do it. It was real. This is what they were looking for. Right then and there is when IBM won the contract. Despite all the complicated sales arguments and research documents that everyone else had spent months carefully crafting. IBM won it by sliding a few bars of soap along the counter. And not just by understanding how computers work. By understanding how people work.

Dave Trott is Creative Director at cstadvertising www.cstadvertising.com

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