As I watched Chancellor Rishi Sunak unveil the government’s new Net Zero targets, I couldn’t help but feel a pang of disappointment. It’s a day that will go down in history as a black mark against British business, and one we will rue for years to come.

Sunak’s announcement marks a disconcerting shift in priorities that could have catastrophic implications for British businesses. It’s a stark departure from the UK’s previous commitment to sustainability and the long-term benefits it brings, both economically and environmentally.

For many businesses, this new policy feels like a sudden pulling of the rug from under our feet. We’ve been striving hard to align our strategies with the initial Net Zero targets, investing significantly in greener and more sustainable practices. Now, the goalpost has been moved, and the consequences for businesses are grave.

With this change, businesses will face mounting challenges. The financial burden of adopting new practices to meet these new targets, combined with the uncertainty surrounding the specifics of the policy, will place enormous strain on SMEs. This could result in job losses, reduced competitiveness, and potential business closures.

The impact extends beyond the immediate business sphere. Consumers are increasingly demanding sustainable and ethical businesses. A shift away from our previous environmental commitments could potentially damage our reputation in the eyes of consumers, both domestically and internationally.

The Importance of Sustainability

What Sunak’s announcement overlooks is the long-term benefits of sustainability. Prioritising sustainability isn’t just about protecting the environment; it’s also about creating a resilient and future-proof economy.

Green practices stimulate innovation, create jobs, and open up new markets. They make us more competitive on a global scale. By turning our backs on these benefits, we are effectively sabotaging our own future.

A Call to Reconsider

This policy change is more than a mere adjustment of targets. It’s a clear message about where our government’s priorities lie. It’s a decision that underestimates the resilience and adaptability of British businesses, and one that sidelines the importance of sustainability.

As businesses, we must not let this announcement deter us from our commitment to sustainability. We must continue to innovate and find ways to reduce our carbon footprints. We need to keep reminding the government and the public why sustainability should be at the forefront of any economic strategy.

It’s a dark day for British business, but it’s also an opportunity. An opportunity to stand up for what we believe in and to show that we won’t be swayed by short-term political decisions.

Let’s use this as a catalyst to engage in deeper discussions about the kind of future we want for our businesses, our economy, and our planet. Today, more than ever, we must reaffirm our commitment to sustainability and the long-term benefits it brings. Only then can we hope to navigate the challenges that lie ahead and emerge stronger on the other side.

Read more:
A dark day for British business: Unraveling the implications of UK’s new Net Zero Targets

Wilko, the well-known High Street homeware retailer, has recently collapsed into administration, unable to secure a rescue deal.

With 400 shops and 12,500 workers at stake, the future of the company hangs in the balance, I look at the reasons behind its downfall, and the potential implications for its employees and the retail industry as a whole.

The Current Situation

Despite entering administration, the stores will remain open for the time being, ensuring that there are no immediate job losses and employees will continue to be paid. PwC has been appointed as the administrator and will actively seek a potential buyer for the entire business or its parts. The collapse of Wilko, if no resolution is found, could mark one of the biggest casualties on the High Street this year.

The Factors Leading to Collapse

Wilko’s demise was not an overnight event; the company has been grappling with various challenges for some time. The depths of its problems became apparent when it announced its intention to appoint administrators, giving the company a 10-day window to secure a rescue deal. However, despite receiving a significant level of interest, Wilko was unable to strike a deal within the necessary timeframe, leading to its unfortunate collapse.

Missed Opportunities

The collapse of Wilko comes as a blow to many, with the GMB union arguing that it was entirely avoidable. According to the union, warnings were repeatedly given about the retailer’s potential to capitalize on the growing bargain retailer market, but the company failed to seize this opportunity. This missed potential is a clear indication that Wilko failed to adapt to the changing retail landscape and capitalize on emerging trends.

Financial Struggles

Wilko’s financial struggles were a significant contributing factor to its downfall. The company has been burdened with sharp losses and a severe cash shortage. In an attempt to alleviate the financial strain, Wilko borrowed £40 million from Hilco, a restructuring specialist. Despite these efforts, the company’s financial position remained precarious, ultimately leading to its administration.

Fierce Competition

Wilko faced intense competition from rivals such as B&M and The Range, exacerbating its financial woes. As the high cost of living pushed shoppers to seek out bargains, these competitors emerged as popular alternatives. Moreover, Wilko’s traditional town centre locations proved to be an expensive liability as customers increasingly shifted to larger retail parks and out-of-town locations.

Lack of Investment and Adaptation

One of the key factors contributing to Wilko’s downfall was a lack of investment in systems and infrastructure. The company failed to modernize and adapt its operations to meet the demands of a changing retail landscape. With a large estate of over 400 stores, Wilko needed significant investments to remain competitive, but these investments were not made. Consequently, the company found itself unable to keep up with emerging consumer behaviors and mounting challenges.

Economic Challenges

Wilko’s collapse also reflects the broader economic challenges faced by many High Street retailers in recent years. Reduced consumer spending, inflationary pressures, and increasing costs have had a significant impact on the retail sector as a whole. As a result, many retailers, including Wilko, have struggled to survive in this challenging environment.

Impact on Employees and Communities

The collapse of Wilko has significant implications for its employees and the communities it serves. With 12,500 workers at risk of losing their jobs, the immediate concern is the economic and psychological impact on individuals and families. Furthermore, the closure of Wilko’s stores could have a detrimental effect on the local communities, leading to reduced footfall, job losses in associated industries, and a decline in the overall vitality of the affected areas.

Pension Scheme and Deficit

Another concern arising from Wilko’s collapse is the potential impact on its pension scheme. Thousands of Wilko workers are members of the company’s pension scheme, which reportedly has a sizable deficit. The Pensions Regulator is currently in discussions with the employer and scheme to protect the interests of the scheme members during this challenging time.

Future Prospects

While the immediate future of Wilko remains uncertain, there is hope that a buyer may be found to rescue the company, either in its entirety or in parts. PwC, as the appointed administrator, will continue conversations with potential investors to explore all possibilities for the business. However, if no resolution is found, store closures and redundancies may become inevitable.

Wilko’s collapse into administration highlights the challenges faced by High Street retailers in an ever-evolving retail landscape. The company’s failure to adapt, coupled with financial struggles and fierce competition, ultimately led to its unfortunate demise. As Wilko’s future hangs in the balance, the impact on its employees and the retail industry as a whole remains to be seen. The collapse serves as a stark reminder of the need for retailers to stay agile, invest wisely, and anticipate changing consumer behaviors to secure their place in the evolving marketplace.

Read more:
As Wilko falls into administration: We look at the High Street retailer’s struggles

As a business owner, I have come to realise that sustainability is not just a buzzword, but an essential aspect of any successful business plan.

In today’s world, where climate change and environmental degradation are becoming increasingly pressing issues, it is more important than ever for businesses to prioritise sustainability in their operations.

According to a report by the UK government, establishing a pro-innovation approach for UK businesses is essential to reduce their carbon footprint and improve their sustainability practices. Every business must optimise their operations, reduce waste, and improve energy efficiency, all of which can contribute to a more sustainable future.

For me, sustainability is not just about reducing my business’s carbon footprint or minimizing waste. It is about creating a business that is built to last, one that is resilient and adaptable to changing circumstances. By prioritising sustainability, we are not only doing my part to protect the planet, but I am also future-proofing the business.

The Capital Business Media group became a certified Carbon Neutral Company over five years ago, and I have regularly spoken about our companies work-from-anywhere policy, which also adds to not only our staff’s wellbeing, but also the companies overall carbon footprint.

Also as a company we encourage others to follow our lead with our Brands: EV Powered; encouraging others to follow our lead in making the move to electric vehicles, Electric Home; championing sustainable and renewable energy in home and commercial locations and our carbon neutral and fully sustainable business awards The Business Champion Awards, as well as of course being a leading proponent of sustainable SME’s with Business Matters.

One of the key ways in which sustainability has become an integral part of our business plan is through the adoption of sustainable practices in all of our operations. From reducing energy consumption to minimizing waste, we have implemented a range of measures to ensure that our business is as sustainable as possible. For example, all staff who have company cars these are now powered by electric, and our print business has implemented a programme throughout out supply chain to source ethically and sustainable and also a detailed recycling programme to minimise waste.

But sustainability is not just about reducing our environmental impact. It is also about creating a business that is socially responsible and ethical. This means treating our employees fairly, supporting local communities, and sourcing materials and products from ethical and sustainable sources. By doing so, we are not only doing the right thing, but we are also building a strong reputation and brand that customers can trust.

Another key aspect of sustainability in our business plan is innovation. By embracing new technologies and ideas, we are able to create products and services that are not only sustainable but also innovative and cutting-edge. For example, we were one of the first media companies to sent out subscription magazines in paper wrappers not plastic – even the biodegrade and compostable variants. By doing so, we are not only reducing waste but also creating products that are more sustainable and environmentally friendly.

But perhaps the most important reason why sustainability is essential in our business plan is that it is simply good business sense. By prioritising sustainability, we are able to reduce costs, increase efficiency, and improve our bottom line. For example, by introducing our work-from-anywhere policy which enabled us to reduce energy consumption and waste, we are able to save money on utility bills and office costs. By sourcing materials and products from ethical and sustainable sources, we are able to reduce the risk of supply chain disruptions and improve the quality of our products.

Moreover, by prioritising sustainability, we are able to attract and retain customers, like our anchor automotive division client Aston Martin who are increasingly concerned about the environment and social responsibility. In today’s world, consumers are more conscious than ever about the impact of their purchasing decisions on the planet and society. By demonstrating our commitment to sustainability, we are able to build a loyal customer base that values our products and services.

Read more:
Why sustainability should be the cornerstone of any business plan

UK SMEs are facing an increasingly competitive market. In order to stay competitive and grow, they need to find new and innovative ways to engage with customers, streamline their operations, and improve their bottom line.

One solution that can help SMEs achieve these goals is the use of ChatGPT, a powerful language model developed by OpenAI.

ChatGPT is a natural language processing (NLP) model that can understand and respond to human language, making it an ideal tool for SMEs looking to improve their customer engagement and support.

With ChatGPT, SMEs can create chatbots that can handle a wide range of customer interactions, from answering basic questions to resolving complex issues. ChatGPT can also be used to automate repetitive tasks such as data entry or customer service inquiries, freeing up employees to focus on more complex and strategic tasks, leading to increased efficiency and productivity.

In addition, ChatGPT can be used to generate content, such as product descriptions, blog posts, and marketing materials, saving SMEs time and money on content creation, and leading to more engaging and effective content. ChatGPT can also be used to analyze customer data, gaining insights that can inform business decisions.

To get started with ChatGPT, SMEs will need a basic understanding of NLP and programming, but there are many resources available, such as OpenAI’s documentation, tutorials, and sample code, to help SMEs learn more about ChatGPT and how to use it effectively.

In conclusion, ChatGPT can provide a wide range of benefits for SMEs looking to improve their customer engagement, streamline their operations, and gain valuable insights. With its ability to understand and respond to natural language, and its wide range of potential applications, ChatGPT can be a powerful tool for SMEs looking to stay competitive and grow in the UK market.

This was written by ChatGPT in less than 30 seconds to prove my point, and whilst it needs refining, the potential is huge.

Read more:
Why UK SME’s could be saving time and money by using AI tools like ChatGPT

Small businesses are pivotal in reviving the UK economy, and they play a vital role in creating jobs and driving economic growth. However, high inflation and rising energy costs can present significant challenges for small businesses.

These challenges can make it difficult for businesses to maintain profitability and continue to operate successfully. In this blog post, we’ll explore some strategies that small businesses can use to mitigate the impact of high inflation and rising energy costs and continue to thrive.

One strategy small businesses can use to deal with high inflation is to review their pricing and consider raising prices on goods or services.

By increasing prices, businesses can offset the cost of inflation and maintain profitability.

However, it’s important to consider the impact on customers and the competitiveness of the market before implementing any price changes. For example, a small coffee shop could raise the prices of their coffee by 10% and still remain competitive by offering high-quality coffee beans and a good atmosphere.

Another strategy is to focus on cost-cutting measures and increasing efficiency. This can include reducing energy costs by implementing energy-efficient practices or negotiating better rates with energy suppliers.

For example, a small retail business could replace incandescent bulbs with LED lights, which can save up to 80% on energy costs. Additionally, small businesses can look into other ways to cut costs such as reducing office supplies or inventory without having to let go employees.

In addition, small businesses can explore new revenue streams and diversify their product or service offerings. This can help to mitigate the impact of inflation and energy costs by providing additional sources of income. For example, a small retail business could start selling products online, or a small service-based business could offer additional services to clients. For example, a small hair salon could start offering hair care products online, and a small graphic design firm could start offering website design services. Diversifying revenue streams can help small businesses to weather economic challenges and continue to grow.

Another strategy is to negotiate with suppliers and vendors for better prices, payment terms, and credit lines. This will give some breathing room to the business and allow the business to maintain cash flow and pay bills on time. For example, a small restaurant could negotiate with its suppliers to extend payment terms from 30 days to 60 days, or negotiate a discount for paying early. This will give the business some extra cash flow and the ability to plan its expenses better.

Finally, small businesses can look into government support and funding programs that are available to help businesses deal with high inflation and rising energy costs. These programs can provide much-needed financial support to small businesses during tough economic times. For example, the Small Business Grant Fund and the Retail, Hospitality and Leisure Grant Fund are government grants available in the UK that can provide financial support to small businesses during tough economic times.

In conclusion, high inflation and rising energy costs can be significant challenges for small businesses, but there are strategies that can be implemented to help them navigate these challenges and continue to operate successfully.

By reviewing pricing, cutting costs, diversifying revenue streams, negotiating with suppliers and vendors, and exploring government support, small businesses can take steps to mitigate the impact of inflation and energy costs on their operations.

Remember, as a small business owner, it’s important to stay positive and proactive, and always be on the lookout for new opportunities. By being flexible, creative and focused on cost-cutting and revenue diversification, small businesses can survive and even thrive during tough economic times. With the right mindset and strategies in place, small businesses can weather the challenges of high inflation and rising energy costs and continue to be a vital part of the economy.

Read more:
Navigating high inflation and rising energy costs: Strategies for small business success

Effective Leadership Strategies for UK Small Business Owners: How to Stay Competitive and Foster Growth

Effective leadership is essential for the success and growth of small businesses. However, small businesses often face unique challenges, such as limited resources and a constantly changing environment. As a small business owner, it’s important to understand these challenges and develop strategies for effective leadership.

One of the most important strategies for effective leadership is setting clear goals and expectations. According to a study by the Harvard Business Review, having a clear vision and setting specific, measurable goals can improve a company’s performance by up to 15%. As a small business owner, it’s important to have a clear vision for the company and set specific, measurable goals for the team to work towards. By communicating these goals and expectations to the team, business owners can ensure that everyone is working towards the same objectives.

Communicating effectively is another crucial strategy for effective leadership in small businesses. Regular updates and being available to answer questions and address concerns can help to build trust and ensure that everyone is on the same page. According to a study by The Leadership Institute, effective communication is the key to building trust in the workplace. In small businesses, it’s particularly important as it allows the leader to provide context and updates on the company’s progress, and get feedback from the employees.

Leading by example is another essential strategy for effective leadership. A study by the Harvard Business Review found that a leader’s actions set the tone for the entire organisation. As a small business owner, it’s important to set the standard for professional conduct, work ethic, and ethical behaviour. Your employees will look to you for guidance, and your actions will shape the culture of the organisation.

Empowering and delegating is also a key strategy for effective leadership in small businesses. Empowering employees by giving them autonomy and ownership of their work not only reduces the workload on the leader, but also helps to develop the employee’s skills and knowledge. According to a study by Deloitte, a culture of empowerment leads to increased productivity and employee engagement. Delegating tasks and responsibilities is also crucial as it allows business owners to focus on the most important aspects of the business while allowing employees to grow and take on more responsibilities.

Being adaptable is also an important aspect of effective leadership in small businesses. The world of business is constantly changing, and small businesses must be able to adapt and embrace new ideas and technologies in order to stay competitive. According to a study by Forbes, companies that are more adaptable have 50% higher chances of surviving in the long run. As a small business leader, it’s important to have a flexible approach and be open to new opportunities.

Developing a strong team is also essential for effective leadership in small businesses. Building a team with a shared vision and work ethic can help to create a positive work culture and inspire employees to work together to achieve the company’s goals. According to a study by McKinsey & Company, companies that prioritize employee engagement have higher productivity and lower turnover rates.

Encouraging employee development is also crucial for effective leadership in small businesses. Investing in training, mentoring, and professional development can help employees improve their skills, knowledge, and career potential. A study by the Society for Human Resource Management (SHRM) found that organisations with strong learning and development programs have a 29% higher retention rate.

Finally, leading with a clear vision is essential for effective leadership in small businesses. Having a clear vision of where the company is headed and being able to communicate that vision to the team can help to align the company’s efforts and focus on what’s important. According to a study by the Harvard Business Review, leaders with a clear vision are more likely to achieve successful outcomes.

In conclusion, effective leadership in small businesses is essential for the success and growth of the company. By setting clear goals and expectations, communicating effectively, leading by example, empowering and delegating, being adaptable, developing a strong team, encouraging employee development, and leading with a clear vision, small business owners can create a positive, productive work environment that leads to success and growth for the company. In the UK market, small businesses make up 99% of all enterprises and employ 60% of the workforce (according to the Federation of Small Businesses), which emphasizes the importance of good leadership in this sector. It is important to remember that effective leadership doesn’t mean micromanaging, but instead creating an environment where everyone feels valued and empowered to contribute to the company’s success. By following these strategies, small business owners in the UK can improve their leadership skills and create a positive impact in their business, as well as its employees and the community.

Read more:
How to stay competitive and foster growth

The ‘pingdemic’ poses a major threat to our economic recovery and it is essential that the Government acts now in order to prevent an economic catastrophe.

For England, the 19^{th of} July has been dubbed as, ‘Freedom Day.’  We have been gifted with the easing of social gathering restrictions, social distancing rules have in large, been lifted and face coverings are no longer a mandatory requirement.  However, what is disconcerting is that on Freedom Day the soaring covid infection rates have triggered ‘pingdemic’ chaos.  In the first week of July, more than half a million (530,126) alerts were issued by the NHS Covid-19 track and trace app, requesting people to self-isolate for ten days, following contact with anyone who has tested positive for Covid-19.  This figure is a staggering 46% increase from the previous week, leading to the aptly named, ‘pingdemic’.

‘Pingdemic’ has caused utter chaos in both the public and private sectors, where thousands of people are unable to continue working.  The NHS, transport, retail and hospitality sectors have all expressed alarm at the high number of staff absenteeism, after being ‘pinged’ by the app. Professor Lucy Easthorpe, Government advisor on disaster planning, has revealed that some workforces are seeing up to 80% absenteeism, higher levels than seen even at the height of the pandemic.

My concern is that many of these sectors are only just starting to recover. For example, the hospitality sector has been one of the hardest hit and as we approach peak season and the school summer holidays, staff shortages will halt its chances of recovery.  To highlight the challenges faced, the restaurant chain, Pied à Terre are only able to offer dinner-service due to significant staff shortages.

The transport sector is experiencing similar disruptions. On Saturday, Transport for London (TfL) closed the entire Metropolitan line, with other lines also affected.   On Sunday, rail passengers in the North of England were subjected to major delays. And, passengers in Sheffield, Leeds, Lincoln, Doncaster and York were all advised against travelling.

Retailers have also heightened concerns over food supply disruptions. The frozen food retailer, Iceland is being forced to close stores, citing staff absences increasing by 50% in the last week; what’s more, disruption is also evident across their supply chains and logistics networks too.

We are at a tipping point, if we don’t do something now, then businesses won’t be able to operate at all. We’re at a time when the furlough scheme is coming to an end, which poses even further threat to businesses especially those in the hospitality sector who are exposed to multiple people in any given day at work.

If we look at the number of new Covid cases, on 18 July, these were recorded at 48,161 per day.  If this is doubled, then instead of 500,000 people isolating, this will equate to five million people being pinged!  This would be absolutely devastating for the economy, and its recovery.

The Government plans to review isolation requirements on 16 August, with a view to putting an end to self-isolation for those who are fully vaccinated.  We have PCR tests which are widely available, so why not stipulate that anyone getting ‘pinged’ should take a test, and be allowed to return to work, provided that their test result is negative.

The Government should act now to prevent an economic catastrophe, and leverage ‘Freedom Day’ to introduce these changes.

Read more:
The ‘Pingdemic’ poses a major threat to UKs economic recovery and the government must act

If it really is a case of “one more heave” on vaccinations before restrictions on the hospitality sector can be eased, what’s the best way to ensure the country’s pubs, restaurants and nightclubs survive to take a shot at recovery?

The two most important measures may be these. First, an extension of six months to the ban on landlords evicting tenants. Second, a government-backed framework for the two sides to share the accumulated pain of unpaid rents.

As things stand, the moratorium on evictions is due to end suddenly on 30 June, and it requires no imagination to envisage chaos.

Hospitality firms, broadly defined, are estimated to have built up £2.5bn of unpaid rent during the pandemic and the hardball class of landlord will want to grab what it can. Fear of being at the back of the queue of creditors will tempt some to make demands for unpaid rent on day one, potentially killing thousands of businesses before they’ve had a chance to try to trade their way out of crisis.

Rishi Sunak is obviously aware of the problem since he’s been lobbied from all sides. The chancellor does, though, need to announce his decision very soon, which means this week.

For many pubs and restaurants, uncertainty over rent arrears is a bigger worry than any tweaks on business rates that may or may not be granted (an extension to furlough, it seems, is not on the cards).

A sketch of a framework would put a ringfence around rents accumulated during lockdown, with landlords and tenants given six months to negotiate a solution between themselves. If they can’t agree, arbitrators would then impose a deal.

That, more or less, was a model proposed in April by British Land and Landsec, two property giants that can afford to take a long view. It is also, roughly, what trade bodies in the hospitality industry want.

A critical detail would be the instructions given by the government to arbitrators. A default assumption of a 50/50 split in the bill would not work in all circumstances or all sectors. Some “essential” retailers have been open and trading during lockdown but have still not paid full rent; it is hard to see why they should be treated as generously as a pub or nightclub that suffered a full blast of restrictions.

But the broad principle of “burden sharing”, or rent forgiveness, in the hospitality sector seems sound. It is only the government that can make it happen in a semi-orderly fashion. Sunak needs to hurry up.

Read more:
Hospitality firms urgently need urgent clarity from Sunak over £2.5bn of unpaid rent

Policymakers may be underestimating the power of remote working to boost productivity.

I have been saying for a decade that working from home could allow businesses to save on office space and have access to better workers.

I know this for a fact, as all of the Capital Business Media group of companies have operated a hybrid business model since 2011. This has resulted in staff satisfaction and productivity improving the output of each of the companies and unlocked the ability to provide higher pay rewards for workers which in turns allows for us to attract the best talent.

I’m not pleased that Michael Saunders, an external member of the rate-setting monetary policy committee agrees with me as in its latest Monetary Policy Report, the Bank said that more remote working could weigh on productivity because it might damage the quality of collaboration and communication between workers. However, Saunders said: “The effects of working from home on potential output during the pandemic may turn out to be less one-sided than assumed in the February Monetary Policy Report. Moreover, a persistent increase in working from home seems likely and may well actually support potential output over time.”

Saunders said that forced homeworking was weighing on the economy because it was not suitable for all jobs, but this was likely to be replaced by a hybrid model. “While a shift to widespread compulsory full working from home probably is not optimal, working from home offers a range of possible advantages for some firms,” he said. “It is likely to allow some firms to access a wider pool of staff (for example, people that cannot easily get to a specific work location), and . . . lead to reduced absence from sickness.”

He said some workers were more productive at home because there were fewer distractions. It also could lead to a better work-life balance, which could increase staff retention and reduce costs linked to high staff turnover.

Read more:
Working at home can lift positivity, productivity and profitability

To solve the problem of climate change, we all need to take account of our personal carbon emissions and make continued efforts to reduce them ourselves, including small businesses.

Carbon neutrality, or having a net-zero carbon footprint, refers to achieving net-zero carbon dioxide emissions by balancing carbon dioxide emissions with carbon removal or simply eliminating carbon dioxide emissions altogether.

Carbon neutrality means having a balance between emitting carbon and absorbing carbon from the atmosphere in carbon sinks. Therefore, it’s essential to reduce carbon emissions in order to reach climate neutrality. If no improvements are made, climate change will damage economies, promote resource scarcity, and drastically increase the cost of doing business.

As a small business, you can use your tools and resources to help reduce your carbon footprint and better the world. Learn more about ways you can become carbon neutral and the benefits of doing so.

Practical Steps for Reducing Your Carbon Footprint

At first glance, this may seem like an intimidating task for your small business. However, there are many realistic actions you can use as a starting point. As a business owner, you may be wondering what the practical steps are that small businesses can take to reduce their carbon footprints. A wise place to start is to get on board with the three R’s, which are to reduce, reuse, and recycle. Configure your office accordingly and make it easy for your employees to do so. These principles can be applied to all areas of your business, including from packaging, to office supplies, to operations, and supply chains. You can skim the access by always choosing to reduce and reuse first and foremost.

Another practical step for reducing your carbon footprint is to educate yourself and your staff on the matter. Make it known and an initiative throughout your company that this is an important topic for you and that you want to see people participating. Encourage an open dialogue on the subject, brainstorm new ideas, and put policies in place that promote sustainability.

Your small business might want to purchase carbon offsets or invest in renewable energy as well. If investing in renewable energy is a challenge, you can reduce your consumption by using high-efficiency lighting and powering off all electronics when not in use. Carbon offsets are a form of trade. When you purchase an offset, you are funding projects to reduce greenhouse gas emissions. They can even be tax-deductible, depending on what company you purchase them from.

Is Becoming Carbon Neutral Realistic?

Carbon neutral is when a company that’s carbon neutral (or carbon-free) is removing the same amount of carbon dioxide it’s emitting into the atmosphere to achieve net-zero carbon emissions, usually by purchasing carbon offsets or credits to make up the difference. As for going carbon negative, it’s when a company removes more carbon from the atmosphere than it releases (the phrase “climate positive” has been used interchangeably with carbon negative). The latter requires going beyond achieving carbon neutrality. Studies have found that consumers are buying sustainably marketed products, not just saying they want them. It’s possible and realistic to achieve this goal if the small business itself is willing to implement impactful changes that will allow for the company to become carbon neutral or even carbon negative.

Key Challenges

Although it may be a possible and realistic objective overall, that doesn’t mean there aren’t or won’t be challenges to face and overcome. In fact, there are a few key challenges facing small businesses that want to develop into low carbon or carbon neutral companies. Deciding where to start when facing so many challenges is a daunting prospect. For example, who should take responsibility, what are the most important actions to take first, and how do you measure progress, to name a few.

When there aren’t best practises in place, businesses feel overwhelmed and may end up doing nothing. There’s a lack of clarity about how to measure carbon reductions accurately and report results. A consistent basis for carbon measurement needs to be in place so that all businesses are working from the same baseline. You need to know how to obtain the right kind of data and if it’s good enough. You also need to be able to ensure your carbon footprints are credible and trustworthy. Finally, overcoming cost barriers and changing behaviours are additional challenges that need to be addressed.

Key Benefits

Even though there are challenges that small businesses face in becoming carbon neutral, there are also key benefits to small businesses if they can achieve net-zero carbon emissions. A reduction in carbon emissions is one and the same with reduced energy costs. Energy costs money, so by cutting emissions and switching to cheaper, renewable energy, businesses will better be able to manage budgets. Over time, businesses will become more profitable too due to the simple changes they’ve made.

It’s also a way to set your small business apart from your competitors and win over more consumers. Going the extra mile or step can create distance between you and the other small businesses out there, so you stand out in a positive manner. The truth is that consumers become increasingly discerning with their buying choices and loyal to the companies who take climate change seriously. A business taking steps towards net-zero now will be well suited to attract customers in the years to come. Therefore, with the improved marketability and cost-saving opportunities, there’s potential for your small business to become more profitable in the long run.

If your small business supplies larger companies you may also find yourself mandated to become carbon neutral as part of your supply chain contract. My media company Capital Business Media produces a consumer magazine for Aston Martin Lagonda and it is a contractual requirement that we are carbon neutral.

The advantages outweigh the disadvantages

These are a few practical ways small businesses can become carbon neutral. While there are obvious challenges, there are also key benefits that should spark your interest and get you thinking about how you can change your habits and policies.

There are not only advantages for the company itself, but also the environment and the people. No one is saying that becoming carbon neutral is easy, but it is possible and worth it. You should now feel more equipped and confident to begin having the tough conversations in your office and figuring out a game plan for tackling this critical initiative.

Read more:
How small businesses can become carbon neutral

More companies are switching to remote workflows due to COVID-19 and the added benefits it offers. But how can you manage a team through a small screen?

Modern problems require modern solutions. When the COVID-19 pandemic first hit, many companies (even tech ones) scrambled to set up a remote workflow so they could continue to work even whilst staff were unable to leave their homes.

There was a rush to set up platforms like Zoom to ensure that the entire team could communicate effectively and work from home. Many believed it to be a temporary change and that we’d be back in the office in a couple of weeks.

But that didn’t happen

Instead, most of us are still stuck working from home. While it initially seemed like a problem, more and more teams are starting to take notice of the benefits of remote workflows. Whether it’s the cost savings from no commuting or allowing your employees to be more comfortable in their work environment, there are a surprising number of benefits that we can expect from working remotely.

My company, Capital Business Media, has been operating on a hybrid remote working model since 2011. Staff only went into the office two or three days per week, and that was before COVID-19 even happened. Nowadays, we’ve switched to almost exclusively using a remote workflow and only going into the office when we absolutely need to have a face-to-face meeting. As a team that adopted this style of workflow early on, we’ve faced a lot of trial and error which was necessary to perfect our remote workflow. So hopefully here I can pass on some of the most important lessons we’ve learned and how you can also manage your team through just a small screen.

Keeping track of everything that happens

Since you’re working remotely, you won’t be able to see your staff or what they’re doing. As such, it’s vital that you keep track of everything when it comes to their work responsibilities and duties. For instance, I don’t keep track of their working hours as I am far more focused on the output, but if you bill your clients by the hour then make sure that you have the ability to do so. You should be asking your team for updates on what they’re doing, and you should have your own spreadsheets and dashboards that will help you lead your staff.

Keeping track of my staff helps me understand where they’re at, what tasks they’re on and what they should be doing next. Since you’re working remotely, information and communication become two of the most important factors that you absolutely need to keep an eye on.

Adopt a proactive approach to communicating with staff

Unlike working in an office, you don’t have to immediately respond when you work remotely. After all, your recipient could be in the toilet, walking the dog, stretching their legs or even making a drink. If you have an urgent message to tell them, you can’t just speak to them and catch their attention.

When you’re managing your team through a small screen, you have to remember that they can only interact with you through a screen too. This makes immediate conversations difficult to sustain and grabbing their attention becomes tough. As a result, you’ll need to switch to a more proactive approach to communicating with your staff. This involves:

• Planning ahead with your team so everyone knows what they’re doing for the rest of the week as opposed to just a single day.
• Responding to emails and messages even if you don’t have a full response. Just letting someone know you’ve received the message will help ensure there’s no assumptions or miscommunication.
• Establish a shared message board or chat program where people can leave messages and communicate with each other even if they’re not online at the same time. The goal is to keep things orderly and to ensure everyone knows what they’re doing.
• Communicate as much info as you can in a single message as long as it’s relevant to the conversation or your work. Don’t break up your responses or information into multiple parts. This will ensure that everyone reads the entire message instead of waiting for your response and potentially missing something.

Platforms like Zoom allow you to easily adopt a proactive approach to communicating with staff. Instead of just relying on emails, you’ll need to integrate instant messaging, group calls and video calls to ensure that everyone is one the same page. You also need to embrace the fact that your team might miss messages now and then, so packing as much information as you can into a single message will ensure that it is read in its entirety.

It’s difficult to adapt to the idea of managing your team through a screen. The most important concept to learn is that information becomes incredibly important. Understanding the status of your staff members and what they’re doing will be the key to unlocking your team’s remote potential and managing them with the least amount of stress.

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Managing your team through a small screen

Ever since the COVID-19 pandemic grew to an international level, almost every industry has been hit with a period of downturn.

Even today, we’re still feeling the economic effects of a global pandemic and there doesn’t seem to be an end in sight. Even if there was, the damage has already been done and industries have been changed forever.

Unfortunately, this is something that we just have to get used to. Becoming an entrepreneur is about more than just starting up a business and hoping the stars align. You need to focus on recognising and taking advantage of opportunities in order to grow both your business and your expertise. That’s why we’re going to talk about turning into a downturn and how you can profit from uncertain conditions.

Inaction is the worst action

Perhaps the worst thing you could do during a downturn is to pretend that everything will return to normal. Market conditions are liquid–they’re constantly in motion and while you can predict them to some extent, there’s always the possibility of a wrench getting in your way. Don’t just accept that the blockade is there and wait for someone else to remove it. Instead, learn to navigate around these issues and take advantage of the downturn.

However, you shouldn’t just do something for the sake of doing something. Instead, it’s important to create a coordinated and organised response to a period of downturn. A lack of planning can lead to poor user experience or panic within your company. Both of these can have a serious negative impact on your business. As such, think carefully about how you can navigate around a downturn and take advantage of it.

Establishing yourself as a new market leader

When you’ve identified a gap in the market as a result of a downturn, it’s important to remember that it won’t stay like that forever because you’re not the only business that is looking for new opportunities. While it’s never too late to latch onto a trend that a competitor has identified, you ideally want to be the company setting the pace.

When a business’s initial response to a downturn is mild or hesitant, there’s a high chance that they’ll overreact in the future in order to compete with other companies. With an aggressive strategy, you place yourself ahead of the curve. Your company leads the pack and can often dictate how the industry responds. As you can imagine, this has a number of unique benefits that can steer your brand towards success.

• Reputation increases thanks to your status as an industry leader or innovator
• Ability to set premium prices due to your reputation
• Lowered costs of production due to economies of scale
• Favourability with other businesses and influences
• More publicity and exposure
• Shorter sales cycles
• Less perceived risk from customers

Creating new opportunities for partners

Market ecosystems are sustained by many different entities. During a period of downturn, all of these entities suffer because there are fewer customers to serve. A supermarket may have reduced sales for a specific product, leading the producer to pile up stock that isn’t needed which negatively affects the acquisition and sale of the resources required to make it. This also directly affects marketing efforts, influencers and even content creators.

During a period of downturn, identifying unfilled market gaps can reinvigorate the ecosystem and provide opportunities for past and potential future partners. For instance, we recently launched a new online electric vehicle magazine called EV Powered. After identifying a niche that wasn’t being filled, we increased our staffing levels which allowed us to rapidly deploy the EV Powered website and fill it with unique content that covered the electric vehicle industry. In doing so, we’ve created opportunities for content creators to work with us to report on electric vehicle news and produce opinion pieces.

Our contribution to the industry generates exposure and gets people talking about electric vehicles again. This is a small step to help reinvigorate the electric vehicle market and establishes us as a leader in producing content relevant to the industry. In the future, we could work with manufacturers, content creators and even influencers to generate more content and create new opportunities for everyone involved.

Read more:
Why you should turn into a downturn

Whether working from home has been a productivity and wellness-enhancing revelation or a burden to be shouldered with stoic resolve depends on your job, your home setup and your personality.

However just as air travel changed beyond recognition after 9/11, traditional offices appear set to become safer, cleaner and less pleasing environments too.

As Boris Johnson unveiled guidance on Sunday for bringing Britain out of lockdown. Each employment sector will have to adapt in different ways but those of us who work in conventional offices will find they look and feel very different in the coronavirus era.

One noticeable change will be proximity to other workers; we’ll all sit at least 2 metres apart. There will be no squeezing in the extra person in a meeting room.

Also forget hot desking, and the use of printers and whiteboards will be frowned upon. Tape will mark off walking lanes and close off desks to enforce distancing and spacing, even in the lift. Hand Sanitiser stations will be everywhere. We’ll arrive and leave at staggered times, in single file, from separate entrances if possible, and  quite possibly team beers will be something that takes a while to come back.

Some will happily accept these curtailments in order to be back in the physical fray of office life, and out of their own kitchens, back bedrooms and living rooms. For this group, there’s no substitute for face time with colleagues and the energy an office brings.

Others have found remote working saves time and energy on commuting, while it has the happy advantage of lessening your chances of infection. Many of these people feel it also provides fewer distractions and a better life balance without sacrificing productivity (although others have found all hope of balance or delineation between work and personal time has gone out the window).

I am a huge fan of “WFH” and all of our companies have operated this to some degree since 2011 and depending on the individual role, I definitely feel that a remote-working option balanced with plenty of office time is optimal. This is confirmed by my own experience over the past 9 years plus academic studies that show workers are happiest when they have some control over their environment.

A recent survey of at-home workers found more than half wanted to continue to work remotely as much as possible, although the number dropped to 53% from 62% the longer their spell of remote working continued. Workers in finance, technology, media, insurance and professional services were most likely to prefer remote working, however from personal experience I think b2b sales teams do not work well when split up as ‘hunting as a pack’ is the best, and possibly only, approach.

What’s surprising is how positively managers view the experience, with more than half saying they’ll allow employees to work remotely more often. The result may be extra regional ‘offices’ which might be little more than a dedicated space at a co-working business centre, less business travel and more Zoom meetings.

There may be other benefits to the change. When we’re in the office, we may value our relationships with colleagues a bit more than in the days before Covid-19. Given that many women take career breaks because of their employer’s rigidity on working practices rather than any desire for a long pause, a new flexibility may prove beneficial to women. It may help men become more engaged in parenting and home life.

Whilst remote working has been increasing in recent years, although it still only applied to 5% of the country’s workforce before this period of lockdowns. That’s likely to change, given that we have now realised the number, and range of jobs, that can be done remotely and the government’s need to manage the flow of people using the train system and London’s tube network.

As Britain responds to the growing pressure from business leaders to provide return dates, workers with very little contact in their offices could be back at work before the end of June, while others would return in the second half of July. But Johnson is asking those who can work from home to keep doing so. That would make sense. His “stay at home” message has been so successful that many are reluctant to return to work environments.

Still, the reopening plans will also create confusion, and employers demanding clarity are unlikely to get it. As prescriptive as it sounds, the new guidance leaves a lot up to interpretation, sprinkling in phrases such as “where possible.” Britain’s trade unions are already pressing for clearly mandated safety measures. Labour leader Keir Starmer has criticised the consultation documents as too vague and he’s calling for a “national safety standard.”

I haven’t walked around London’s Canary Wharf where our main office is based since we closed in March with all of our editorial, design, research and back office staff all working from home. All our staff are working and we have even recruited two additional members of the team as we continue to grow our brands. However I picture the deserted retail spaces, with shop after shop closed and the streets and offices normally the working home of some 522,000 professionals, who emerge from the Jubilee Line or DLR stations each morning deserted.

But just as people got used to new rules for flying after 9/11 taking their shoes off and having no liquids, as the first examples, I suspect we’ll be back to sharing space with colleagues eventually. It’s just going to be different.

Read more:
What your post-lockdown office will probably look like

Have we reached peak entrepreneur? Not entrepreneur in the sense of hugely successful people with business acumen and creativity who innovate and disrupt.

In fact all the evidence shows we’ve no shortage, the number of new companies being formed each year grows ever further past the 500,000 milestone it broke through two years ago.

As a term for this type of person, “entrepreneur” is generally accepted to have been coined in 1803 by the French economist Jean-Baptiste Say, an admirer of Scottish economist Adam Smith’s book The Wealth of Nations.

But the term had been around longer, and certainly so has the general concept of a businessperson who takes risks, looks for opportunity and disrupts markets.

It is now particularly associated with the Austrian-American economist Joseph Schumpeter, who focused on entrepreneurs and their role in the “creative destruction” of markets, in his 1942 book Capitalism, Socialism and Democracy.

But you don’t care a fig about all that, do you? I’m talking about “entrepreneur” in the sense of laughable self-delusion.

In this context, the term seems to have become the most tediously overused epithet in business, ever, with the explosion of digital-based enterprise, especially in Silicon Valley, around the late 1990s.

Gradually, in the 1990s, “entrepreneur” crept into wider usage, specifically in the tech sector. Leading up to the dotcom crash at turn of this century, an entrepreneur was the thing to be.

A tech entrepreneur! The very term conjures up trendy semi-geek millionaires furnishing company offices with indoor basketball hoops and slides between the floors, and throwing company events at which charting rock bands provide the music while adults play in grown-up sized bouncy castles and drive motorised beer kegs.

Based on those now self-identifying as “entrepreneurs”, we are truly in the midst of an entrepreneurial epidemic. We are engulfed in a tumbling tsunami of entrepreneurs. They rain down upon us, the last sheltering few who have put off adding “entrepreneur” to our business card.

I mean, who isn’t an “entrepreneur” these days? Start any business and you are an “entrepreneur”. Work from home as a self-employed envelope addresser, and you are an “entrepreneur”. In particular, offer your services as a business adviser or innovation expert or start-up guru and, but of course, you will self-define as an “entrepreneur”.

On the positive side, I’ve found this encroaching flood of self-appointed “entrepreneurs” to be a handy way of knowing who is not, actually, an entrepreneur. A little delving and typically one finds the person has never set up an innovative, market-disrupting company, but instead just runs what might be a perfectly nice little business.

But not an “entrepreneurial” business, in any meaningful sense of this word. Or they have a little tech start-up and, simply because it is a tech startup, they are apparently “entrepreneurs”. And even in some cases where the people actually have been successful in business – including a tech business – then they go and spoil it all by saying something stupid like “I’m an entrepreneur”.

It is people like this who have leached the word of all meaning. Self-appointed entrepreneurship is no entrepreneurship. None of the great entrepreneurs I can think of describes themselves as an entrepreneur. If you really are an entrepreneur, if you have actually earned that sobriquet, others will call you that, with respect, over time. If you title yourself an entrepreneur you essentially won’t be one.

Image: catwalker / Shutterstock.com

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If you title yourself as an ‘entrepreneur’ you won’t actually be one

When you are trying to create futuristic technologies but are trying to do that within a publicly quoted company and business which generates it’s primary income and core operation is advertising sales on its search platform, maps and video sharing site YouTube your fat and governance lethargic company are completely at odds

This unexpected move to create a new holding company and turn Google into a subsidiary sent shockwaves through Wall Street last night although the market was receptive to the reshuffle with shares in Google up 5 per cent. The decision to promote Sundar Pichai, the well-regarded head of Android, to run Google’s main businesses was also a bold move with the founders Larry Page and Sergey Brin moving to run Alphabet.

It is always a hard decision for founders to hand over their baby, but in Pichai they have found an incredibly sensible uncle.

Google makes almost all of its money from online advertising on the back of its search engine and has moved to turn a profit from YouTube which has long been a loss leader for the business.

However Page and Brin have channelled huge amounts of profit into products like driverless cars, hot air balloons that beam down wi-fi, the Google Glass virtual reality project, drone projects and life sciences as it has placed bets on the future.

Their new name Alpha-bet is also not as random and quirky as people may think as in investment terms ‘Alpha’ is investment return above benchmark and they are clearly ‘bet’-ting on the fact that these new investments will do just that.

The business has also made a litany of acquisitions in fields like robotics and home automation in the shape of Nest.

This new structure clearly delineates the financial performance of the core business and the projects like Calico, a biology unit focused on longevity, and X-Lab, the company’s early-stage development projects including drones that is run by Brin.

This move will also improve transparency and mean that the heads of each Google unit, such as its Nest home technology division run by Tony Fadell, and its Ventures investment arm run by Bill Maris, will have a clearer like of reporting into Alphabet.

It also means that with all the removed ‘fat’ it has created autonomous divisions that are the size they ned to be and able to be nimble and fast moving to shoot for the stars and if they are going to fail, fail fast and not have knock on effects to other divisions.

The decision also means that each company is free to work with partners and there is also no reason why it could not offer equity or operate some as joint venture partnerships.

The move to separate established revenue-generating business like Google and YouTube from the “moon shots” – futuristic products that may never come off – comes at a time when Google’s business has started to mature. Companies like Microsoft have traditionally tried to incubate new services like Xbox and Windows Phone within the core business which has distracted management.

As I said this is the model that Sir Richard Branson embarked upon three or so decades ago when his Virgin Records wanted to create Virgin Airways and then went on to form Virgin Media, Virgin Cola, Virgin Vodka, Virgin Railways, Virgin Money and a large number of other companies including it’s own moon shooting company – literally – in Virgin Galactic.

This business model however is not just for these global multi-billion dollar companies. I used this same model when I founded Audere Capital which went on to wholly own companies like Capital Business Media (owners of Business Matters), initially forming joint venture companies like the business research company Trends Research with The Telegraph, acquiring the speaking agency At The Podium and then going on to invest in other companies like Brighter Comms, Source TV and EE Fashions.

Only last week a company that I am board director of decided to launch a new product which is a slight departure from their core business and invest a large amount of money into R&D to prepare this product for launch.

We are doing that via a wholly owned subsidiary company for two reasons that every small and medium sized company should follow. The first is that the main company MD is not going to lead this but one of the other board members will as this will enable focus on both elements to remain strong. The second is insurance. If the new venture fails or runs into legal or financial issues appropriate steps can be taken to close it down without the main core business being too affected.

Any company doing activities like this absolutely must look at this model as whilst you might think everything you touch will spell out alphabet sometimes it might not.

Google itself made light of its decision to separate out the “moon shots” by including a hidden link in a full stop on its official blog. That link sent the eagle-eyed to a web site for the fictional company Hooli that features in the HBO comedy Silicon Valley. In the show, the Google-like Hooli struggles to compete with start up companies and establishes a future products division called HooliXYZ that refers to itself as “the dream kitchen” and “the laboratory of possibility”. Despite boasting that it is exploring projects including a space elevator and flying cars, the unit only manages to develop a potato canon that doesn’t work.

Read more:
With Alphabet Google is finally losing its business Virginity

About eighteen months ago buying a mattress for your bed with a click instead of a trip to a store was virtually unheard of, but now millions are being invested in online mattresses businesses but why?

A few weeks ago when this magazine covered UK entrepreneur David Wolfe’s mattress sales business Leesa securing $9 million from private equity firm TitleCard Capital giving it a post-money valuation of $45 million, the second such business within a week gaining large funding  I questioned why is all the money going into Mattresses?

Why is all this cash going into mattresses? – Mattress business launches in UK after $9m funding & Branson coaching http://t.co/cd34GWysJK

— Richard Alvin (@ralvin) July 19, 2015

The truth is that it is a simple case of a change in technology with memory foam mattresses being a lot easier to deliver than six feet square blocks of sprung material.

About eighteen months ago buying a mattress with a click instead of a trip to a store was virtually unheard of. But now that easy delivery processes and generous return policies have helped online mattress retailers gain traction with consumers, entrepreneurs have taken notice.

No fewer than six startups are vying to become the online mattress retailer of choice. Last week saw another entrant launch in the U.S. with Helix Sleep. Helix joins Casper, Tuft and Needle, Leesa, Saatva, and Novosbed in what is quickly becoming a very crowded market.

Why is all this money going into mattresses? (and i’m not talking about the kind that people in Greece wish they had). In addition to all of the high-profile startups, you have heavyweight incumbents (mattress makers like Tempur Sealy and retailers like Mattress Firm) to deal with.

For Helix, which has raised $800,000 from friends and family, the “starting point is customer issues with the current system,” says Kristian von Rickenbach, one of the three co-founders.

As with the other online players, Helix’s prices run in the high triple digits. And while you can now click to buy more varieties of a sub-£500 mattress than you could at any point in human history, all of the online players can still use the higher prices of brick-and-mortar retailers to flatter their price point.

But with something so unique in personal taste requirements: feel (how plush or firm you like it), support (how far and evenly your body sinks into the mattress), temperature regulation (how much heat you lose throughout the night), and something called “point elasticity” (the ability of the materials in the mattress to compress without affecting the quality of the mattress) can this really be a product that can be sold online?

Well Helix suggests that it isn’t as unique and personal as is first seen as they that have tweaked their ability to create an accurate sleep profile, based both on data (from its beta-test sleepers) and anecdotal experiences. For example, the company learned that terms like “soft” and “firm” can be highly subjective, and vary depending on geography.

“Most people in the northeast prefer a firmer feel than in south,” says Tishman. That’s an interesting finding, in and of itself. But it also means that when you ask someone in the south for their mattress preference on the sliding scale of firm to plush, you have to recognise that their “firm” answer does not mean the same thing as when someone from the northeast says “firm.”

The U.S. startups Tuft and Needle and Casper claim that they are selling more than $1 million in mattresses a month. Saatva posted $29 million in 2014 sales and expects at least $50 million this year.

These are large numbers and when you couple that with the fact that they do not have the same cost base of the traditional bricks and mortar operations, like Dreams and Bensons for Beds, with their cavernous warehouse style units there really might be something in it.

It’s still too early to tell what, if any, kind of shake-up will happen to the online mattress market but “A rising tide lifts all boats” so will we start to see these traditional outlets also moving to a more online method for sales?

I think after a period of sleeping on it to make sure it isn’t going to be a nightmare this sector really will become one disrupted to ensure everyone sleeps sounder.

Read more:
Are you sleeping on the next sector to go crazy in business?

The as-yet unnamed Amazon show, which was announced on Thursday, ended months of speculation after Clarkson was dropped by the BBC following a fracas with a producer.

The show will be made by Clarkson’s long-time friend and collaborator, former Top Gear executive producer Andy Wilman and will see the new show air online as part of a three-year deal.

I am not surprised that Amazon emerged victorious in this three-way battle to sign the presenting trio with ITV and rival on-demand service Netflix also bidding for their services. It is not the first time that Amazon has looked to the BBC – the internet firm resurrected BBC1’s period crime drama, Ripper Street, after it was axed.

ITV appeared to be dead in the water as it emerged that the trio had non-complete clauses in their BBC contracts and with Netflix being the dominant streaming service, and home to Kevin Spacey’s acclaimed remake of the BBC’s House of Cards, Amazon had to hit back hard and with Clarkson, Hammond and May’s global appeal it seems to be a sure fire winner and the most cost effective customer acquisition deal possible.

The deal is also a sign of the growing importance and financial muscle of internet firms in the world of broadcasting, with Amazon and Netflix competing with traditional TV channels for viewers around the world.

I have had various music and video streaming services for years now as I started off with Pandora, the music streaming service which 8 years ago was an early forerunner to Spotify and then Apple Music. I also agree with the BBC’s decision to move content that it currently broadcasts on BBC3 online.

Traditional TV broadcast to a box, or as is now the case a slim screen to your living room, is dieing but if Amazon was not careful there was only going to be one winner in the shape of Netflix.

Andy Barr, Head Yeti at 10 Yetis Digital, agrees with me as speaking about it together earlier he told me: “As we said back in March, when Clarkson-gate first landed, the Top Gear and three presenters personal brands were far from toxic, both in terms of financial clout and global appeal. Amazon stepping in and securing three seasons is a major coup for the retail and streaming giant.

It is going to help them grow their audience and customer base in territories that they could have only dreamed of. No matter what Amazon has paid to secure the trio’s services, as a customer acquisition campaign it is no doubt going to work out worthwhile. The only losers in all of this is the BBC.

From a media analysis point of view, this is a clear win for Clarkson, May and Hammond and a monumental win for Amazon in its war with Netflix and traditional terrestrial TV providers around the world.”

As I said when the BBC sacked Clarkson, essentially killing the Top Gear brand as it currently stands, I would not have made that decision as the cost to the corporation is likely to be huge, but it seems that aunties loss will be Amazon’s gain with possibly NetFlix also pulled down with it as do you really need two digital steaming service accounts? Amazon charges £79.99 a year and Netflix £7.99 a month.

There will be interesting choices ahead next autumn when the new ‘Top Gear’ launches and content will be king so what will Netflix counter this new Acquisition with? But one thing is for certain the consumer could be in for a treat…

Read more:
Has Amazon accelerated streaming battle signing Top Gear trio?

In the next few days the BBC are conducting a full disciplinary hearing to decide the fate of the lead host of its highest grossing programme Top Gear following a ‘fracas’ between the larger than life Jeremy Clarkson and another member of staff.

However when what seems to be a easy to decide case is made somewhat more difficult given that potentially replacing your key staff member could well cost over £50M in lost revenue what would you do?

Let us forget the individuals and the TV show involved in this case for a moment and transpose this situation to a business setting and the part of Jeremy Clarkson will be played by your sales director who since joining your company a decade ago has single handidly changed your business putting you as the leader, by some margin,  in your sector with revenues ten times your nearest rival.

The answer for many will still be clear cut. The Sales Director – who was already on a final warning – allegedly hit another member of staff. So if the allegation is found to be just, then it is a simple case of gross misconduct, don’t let the door hit you on the way out and severance package will be that defined in the employee handbook as it relates to gross misconduct cases.

Simple hey….

…and then comes the emergency board meeting and the panic on how to replace such a revenue generator and what to do in the interim whilst one is found and then the year whilst they bed in…

Before I carry on I am not in any way advocating that what is alleged in this case is acceptable, could or should be ignored, or that Clarkson is in someway above standard legal processes.

Returning to the real world where it is our Sales Director up on this charge, should the business case surrounding the loss of this key member of staff enter the decision making process?

If this person goes and you see a loss of revenue by even 10 per cent could you cope without having to make changes to your business plan. Would you be able to replace them fairly painlessly and without too much cost? I.e. Is there and able number two in the team and a detailed CRM system so all client notes are available?

Would the retention of this staff member in some guise, post some form of disciplinary action, say a suspension, contradict your business method statement? What would other staff members feel about working with them, or in fact working without them?

This decision would impact the business far less if you had robust processes and procedures in place and clearly my business setting is easier to manage than front facing ‘talent’ but impact it would.

So having posed this question, I should, I guess offer my own opinion…

I have to say that I am pleased that I am not Ken MacQuarrie, head of BBC Scotland, who is heading the disciplinary panel as this is a decision which will face the highest scrutiny and media attention across the globe with nearly as many opposing the decision on one side as supporting it on the other regardless of which way it goes.

Clearly the BBC has a duty to hold its on screen talent, looked up to by many impressionable younger viewers, to the highest standard and one far above the normal requirements laid down by employment regulation, however it does also have a duty to the Britain to be its public service broadcaster. To be the public service broadcaster it needs money and the BBC gets money from both the licence fee and also it’s commercial operations. The very top of that revenue generating tree is Top Gear and it can be argued at the present time without Jeremy Clarkson Top Gear’s appeal dramatically drops and so does the BBC’s income.

What needs to happen is that Clarkson needs to be punished and seen to be punished for the fracas if it is found to have happened as described by way of say a suspension and upon his return there needs to be an evolutionary process over the next series or two to ensure that the show is less reliant on him and then should he break the rules again then he can be extracted far easier with a lot less damage to the product than and the overall revenue stream.

Sacking Clarkson will deliver a far stronger knockout punch to the BBC, its finances and its standing in global broadcasting than the host delivered to the chin of his producer and will mean that essential, but minority elements of the broadcasters output will not face a £50M financial diet called Top Gear.

Read more:
The Clarkson Conundrum…. Would you sack your company rainmaker?

Normally it is entrepreneur and long standing dragon Peter Jones who berates an entrepreneur in front of him looking for investment with a company which has a turnover of £100,000 whilst seemingly valuing their business at a totally unrealistic value of £5M using some odd 50 times multiple to be a reason why they only want to offer 5 per cent equity in return for the incoming investment.

However tonight Yee Kwan was seeking an investment of £50,000 in exchange of 25 per cent equity in the company. Given the limited trading  activity of the business and the fact that it is a highly competitive and tough market to enter with lots of similar products vying for retailers fridge space the deal on the face of it seemed sensible.

In a large majority of investment pitches on the show the amount of money invested already by the owners and others is usually disclosed, it wasn’t in this case.

This is an essential in all investment due diligence that all investors do as time and sweat equity is one thing, but if you are coming to me as an investor asking me to write you a cheque for £100,000 investment in your company and you have only invested £10,000 but own 30 times the equity I do you are a lot less likely to secure a deal unless you can demonstrate why your numbers make sense.

So tonight after Peter Jones declared he was out after extolling the tough market that the business was looking to trade in given his and fellow dragon Duncan Bannatyne’s investment in Kirsty Henshaw ‘s food business the entrepreneur threw out a lifeline for herself by telling Deborah Meaden and Kelley Hoppen that if either of them gave her the £50,000 she wanted she would match them.

So, this immediately shows good faith and an added security that the entrepreneur herself believes in her own product, however some could also then question the numbers as does the company need £50,000 or £100,000. Are the financial projections based on the smaller or the larger investment?

Putting those questions to one side and lets assume that it has cost a very conservative half of the investment sum so far to get the company to being ‘investment ready’ and you need your incoming new business partner to be able to open doors to secure a boost to the companies exposure and turnover why would that happen if you are expecting them to put in similar effort in terms of time commitment and double your money. Yes you had the idea and of course that is worth a great deal, but ideas don’t provide security.

I regularly look at deals that we are approached over and two things are crucial above the business plan and financials. How much has the founder, and or other investors invested in hard cash terms and how much equity will the key personnel have post our investment.

Both of these questions are crucial as the first provides comfort for us as an incoming investor and it is absolutely essential post investment that the founder and the senior management team still retain enough equity in the business to remain hungry and fired up. Being an entrepreneur and starting and managing a company is not a 9-5 occupation.

If we look at a deal where were are being asked to put in treble plus what has already been invested in a non-tech fast growth business then you are going to have to offer a large amount of equity and work out a ratchet mechanism to pull that equity percentage down over time otherwise the deal is going to be dead before you open your mouth to pitch and investors don;t want to end up owning your business as that is not what investing in a business is all about.

Read more:
Dragons’ offered staggering ‘investment match deal’ to scoop ice cream deal

The Government is throwing itself behind the sector: the new British Business Bank is pouring £40m into Funding Circle, from April peer-to-peer loans will be eligible for inclusion in ISAs, and changes to tax rules will allow losses to be offset against gains.

The crowdfunding business model is presented as ‘cutting out the middle man’, bypassing unhelpful banks who are not lending to SMEs and interest rates which are at a virtual meaningless levels for funds held on deposit.

RBS themselves will be sending borrowers that they don’t fancy lending money to to peer-to-peer lenders, which given the feedback of many SME owners I speak to could mean a hell of a lot of potential new crowdfunding business.

It’s a narrative that chimes with the times, but that makes it easy to overlook the fact that the risks involved in peer-to-peer lending are very different from those taken by savers with High Street bank deposits:

Most platforms assist lenders to diversify their exposure to each borrower, so that each lender has exposure to a small part of many different borrowers’ loans, but it is worth noting that deposit guarantee (the first £85,000 of bank deposits are Government guaranteed) does not apply with this Crowdfunding.

This apparent diversification belies the frailty of the business model: they are similar loans that are likely to be highly correlated. Peer-to-peer lending has grown up in a relatively benign economic environment, and a highly benign interest-rate environment. A downturn in the economy could put a significant proportion of borrowers in trouble at the same time.

Last month the FSA rebuked peer-to-peer platforms for comparing their products to savings accounts, and more recently it criticised equity crowdfunders for misleading customers. But the hype runs deep.

Last weekend’s Sunday Times presented a table comparing the 12 per cent p.a. “top possible return after typical defaults and fees” for peer-to-peer lending with 3.3 per cent p.a. for a 5-year savings account and a 3.6 per cent p.a. prospective yield on equity income funds and banks deposit at below 1 per cent.

Peer-to-peer platforms typically talk of an expected net return around 6 per cent p.a. which is clearly 6 times that of bank deposits so with pensioners now able to manage their own pension pots should they rush to drive their mini past the Lambourghini garage to the nearest crowdfunding company to lend some of their retirement funds to small business and private individuals looking at these alternative lending options? The simple answer to that question is yes as whilst there are obvious potential failings and there is the potential that bad debt could feature as opposed to your government backed deposit banking the simple economic risk and reward comes into play.

You could invest your money in a basic FTSE 100 fund which has produced returns of 9.8 per cent and 9.2 per cent p.a. respectively over the past 3 and 5 years. An investor tucking money away for some time is still likely to do better putting money in a FTSE tracker than in peer-to-peer loans.

I’m sure there’s a place for crowdfunding in portfolios, especially for more sophisticated investors or those with an almost philanthropic ethos because as a friend pointed out to me recently equity crowdfunding is very similar to gambling on the horses as you should never use money you want see again and when you do it will be a bonus.

Read more:
Could crowdfunding become the next mis-selling scandal?

The business model that Enclothed use is that a man signs up to their service and after answering a batch of questions about size, fashion style, colours etc the data is fed into a fashion led algorithm and that data then goes to a batch of personal shoppers to humanise the selection process and they select clothes fit the criteria for the shopper.

I like the basic premise of the business model and, whilst I actually love clothes shopping, have been signed up with Enclothed’s rival Thread for over six months.

Kasia, my Thread personal shoppers advice has seen me buy a number of items, some of which I would not have sought out if I were unaided in my purchase choices.

However, here is where Thread and Enclothed’s business models differ, and why I think that Hoppen & Linney could be come unstuck when Enclothed’s warehouse staff start to drown in returned selections, and why whilst we make investments in fashion and technology companies and completely understand and embrace the concept, throwing out traditional retail stock management could be Enclothed’s downfall.

The Thread business model sees users receive an email with a virtual display rail of about 8 capsule options. So a few work day choices, a date one, a weekend and a smart outfit. Here is one that was selected for me.

As you see there are five separate items which go towards making up the look identified. I like this look, and might be tempted by some of them, but I have white shirts a plenty and also fitted suits so wouldn’t be looking to buy any more thank you but might choose most of the other items to take a look at. But I am the final decision maker in the in what is actually sent to me as I have to accept and proactively select. However Enclothed would send me the entire section for me to keep or return the items I don’t want.

Enclothed’s founders Levi Young and Dana Zingher quote a return rate of 70 per cent and that the company operate on a standard 60 per cent margin. By comparison a normal online retailer with a traditional shopping cart business model would see returns of around 27 per cent and an established company could be looking at margins approaching 300 per cent.

With a free delivery and return model when 7o per cent of your items come back this means that as you scale your stock management will be hideous to try and manage and post costs could very, very quickly spiral out of control and with only 60 per cent margin added to the traditional, albeit far lower, costs of running a retail outlet Enclothed could very quickly run out of money.

There is also the environment impact to sending goods to men who haven’t actually specifically ordered them and seeing 70 per cent coming straight back and there is also the potential problems that the time poor users of Enclothed don’t return the items within the allotted time and find themselves having keep and pay for a shirt or suit that they will never wear as they already have identical ones potentially creating a lack of goodwill amongst their target market base.

With a refined business model and an enhanced profile from Kelly Hoppen’s and Piers Linnley’s involvement Enclothed could well be onto something if they can secure the right stock and their algorithm secures high sales volumes and good strong margins, but when you are going to be potentially handing a huge slice of your operating profits to Postman Pat as you scale up your catwalk will not be paved with success or longevity and like Peter Jones I would have declared myself out.

Read more:
Dragon’s tailor make a deal, but hope they’ve kept the receipt in case of return

Hoewever, for a Den usually obsessed with patents and copyrights Duncan Bannatyne dismissed electronics entrepreneur Peter Jones concern that ‘Apple could close this business in one letter’.

At the time of the filming of the episode Jones appeared to be referring to the name of the product saying that the i element of iglove could see Apple taking a dim view as it forms such a strong element of their branding with the iPhone, iMac, iPad, iCloud etc, etc

However there is a potentially frostier reception ahead for the iGlove as in creating the touch screen for the iPhone & iPad they realised that these would be difficult to operate in cloud weather, and given their global market place, cold countries.

Apple therefore created the means of using the touchscreen in closer weather when your hands are cover and the US Patent and Trademark Office state that in Apple’s 2009 application the company filed a patent protection for a glove.

The application states, “When users, in cold weather, wear thick or bulky gloves … the loss of tactile feedback to the user may prevent the user from properly operating the electronic device, and may lead to frustration. Alternatively, if the user has to remove his gloves … the user’s hand may become cold and uncomfortable, which may also lead to user frustration.”

Apple’s glove is two-layer “system” with an outer insulating layer and an internal conductive layer. In the fingertips of the outer layer there are “apertures” through which the user may thrust his or her desired digit so that it might appropriately caress a multi-touch display while still protected by the inner layer.

It is not sure if Duncan Bannatyne completed on the deal to acquire equity in iglove once further due diligence was completed.

On the face of it whilst many feel that Peter Jones is wrong and that Apple cannot prohibit every product which is prefaced by i in its name, – with BBC’s iplayer a prime example and here especially one that is not a computer or technology related product, a patent infringement will quite possibly be taken very seriously by Apple and the UK company which sells its gloves for £6.99 in House of Fraser could well be receiving a strongly worded cease and desist letter from the San Fransisco technology giant.

Read more:
Bannatyne grabs iGlove investment but Apple might snatch it from him

Sometimes the world of football seems very detracted from the real world of business, however in sacking their first team manager David Moyes today the Glazer Family, it would appear that they are trying to wrestle back control.

The move will also appease their global client base (fans) after a period of not understanding their clients post their acquisition of the club in 2005.

The Glazer family upon hearing from their long term manager Sir Alex Ferguson that he wished to retire at the end of the 2012-13 season, having been in charge since 1986 and bringing the club riches greater than any other manager in the UK resulting in financials and global branding opportunities only dreamed about when he joined the club, sought his advice on who his successor should be.

Moyes, David Moyes, was his instant answer. A 50 year old manager from the same Glaswegian heritage as his own and who had been in charge of Everton Football Club  for 11 years and was regarded as a ‘sleeping giant’.

In business terms this decision was like parachuting a CEO of a 3-5 year old startup into a Publicly quoted company with a turnover ten times their previous employers and staffing levels twenty times what they are used to managing.

It was a bold move, but sometimes shareholders need to make bold decisions and also take advice from the person who has steered their ship to waters and destinations they could never have dreamt of previously.

The Glazers, as majority shareholders, may well have looked at safer, more proven options. There were arguably a glut of strong contenders and the list of obvious choices was headed up by Jose Mourinho – the most successful European manager and Pep Guardiola – The hugely successful manager of the world’s largest club Barcelona.

Both of these were overlooked, it appears, out of hand it seems as the owners heeded the advice of the man who had steered their ship for 10 years and brought them 9 awards at the highest level in club football, which had also brought levels of global commercial success never imagined when Sir Alex joined the mancunian club from Abderdeen.

Is the fact that the owners are from the US and have employed a CEO part of the decision making process?

Would this have happened in the real world of business, where even the most senior staff don’t take home a salary of £200,000 per year, let alone per week?

The simply answer is possibly….

Whilst most of the companies that we have investments in are based in the UK and I meet with the management teams on a regular basis, and usually take part in the recruitment process of senior hires, decisions would be made by the whole senior management team collectively.

However for our US investments, which we wholly own, would I take the advice from our senior management team? Of course I would. Would I enforce my own decisions upon them if the outgoing CEO was ‘going upstairs’ to become Deputy Chairman? Absolutely not!

However, with that decision comes the phrase ‘enough rope to hang yourself by’ and also the recommender’s role is also under as much pressure as the person that they have recommended.

Last month, US retailer J.C. Penney Co.ditched Ron Johnson, the CEO it poached from Apple and brought back his predecessor Myron Ullman.

The strategy, in the non-football world, is often a sign of crisis, which can work under the right circumstances, according to corporate governance experts. “It only makes sense if the person coming back has a successful track record,” said Mark Cohen, the former chief executive of Sears Canada, who now teaches at Columbia Business School.

That was the case for Apple and Starbucks Corp which both overcame a rocky period and went on to excel after the return of Steve Jobs and Howard Schultz, their respective founders and CEOs.

Jobs, who returned in 1996 to a computer maker out-innovated by rivals, engineered perhaps the greatest resurgence in corporate history, giving birth to the now-ubiquitous iPhone and other products.

Whilst this case is slightly different from Jobs, David Moyes has lost the faith of his client base. Yes, many, many still attend each home game but that is because they have season long tickets, so have paid already. However those season long ticket holders are due to receive letters this week to renew for next season.

The Glazers have previously had a very difficult relationship with their client (fan) base with many boycotting the club’s merchandise and protesting that the leveraged buyout deal that that brought about their purchase was hampering their player acquisition budget in previous  years.

There is also those highly lucrative commercial contracts which see global brands like Epson, DHL, Chrysler pay £10M’s to be associated  with the club/company.

Whilst I don’t know when they are up for renewal, I am sure that they have ratchet mechanism built into them so as the brand exposure is reduced, and with no European football at all and less air time on some global broadcasters given the on-field quality, that is already happening, these deals could drop by potentially upto 70 per cent.

By sacking David Moyes now, on season ticket renewal week, the owners and the entire board are making a decisive stand. Arguably the first time that they have been able to gain the momentum for on-field or ‘operational’ activity since they purchased the club.

Whilst Sir Alex Ferguson was much loved, like Steve Jobs, sometimes your client base will agree with you both when you decide on your successor but also accept that ‘it hasn’t worked’.

Waiting for the end of the football season, or if a company posting full year accounts, clients, stakeholders and shareholders need to see positive decisions especially when it is clear that the club staff feel that decisions that your manager is making are wrong and if part of fixing the problem is spending £200M+ on acquiring new playing staff would you invest that sum to your R&D department.

So for the sake of Manchester United as a club and institution, accept that Sir Alex had the best of intentions, and yes in his day he needed four seasons to create the world beating team he created, but times have changed and with global TV revenues, global news, merchandising and more immediacy in society that years become months.

Read more:
Why the Glazers are right to sack David Moyes for the sake of Manchester Utd

Ok, so an odd title for a business blog, but I thought that I would share this as I have just written it in a note for a board meeting where our MD is proposing her expansion plans for the coming year.

It is a startup business and the proposal is to increase headcount by 4-6 in Q1. This in itself isn’t odd however what so many new start businesses forget is the hidden costs of staff.
In this case:
Bodies
You have the recruitment costs. The salary, the NI & any other benefits (i’ll assume that you have worked these into your plan)
But have you factored in they are going to need:
A computer – Circa £800 with software
A telephone, extension & line – £80 a month??
Bum
Don’t worry i’m not talking about the extra loo paper or anything, but where are the new staff members going to sit & work?
Desk – £200
Chair – £80 at the least
Plus is there enough office space for this desk? If not has this been taken into consideration? That could cost £1,000, possible even £10,000′s

If you are in a serviced office there will be a standard cost per desk/user of around £150 in London.

So ask yourself this:
Do you need to see your staff?
Do they need to be office based?
Most importantly ask the question:
Do I need a human to do this, or is there a technology answer?

A lot of the time the answer will be no, but still ask the question and don’t forget if you are able to add an extra process or system or bespoke application to your business without increasing your head count and cost base then you have most probably increased your sale multiple on exit.

Read more:
Bodies & bums cost money can you go virtual?

I was lucky enough to spend some time recently with the Ernst & Young Global Entrepreneur of the year Hamdi Ulukaya in New York. Hamdi, who in these days of dot-com millionaires was a very worthy winner of this highly prestigious award, with a traditional and organically funded, highly profitable manufacturing business.

Ulukaya is also the epitome of the American Dream, an immigrant to the US from eastern Turkey, who after struggling with a cheese manufacturing business decided to change tact and in 2006, with the help of a $1m (£636,000) US government-backed bank loan, bought a disused Kraft Yogurt factory in upstate New York. Today his (still wholly-owned private company) Chobani turns over $1BN and is now America’s largest-selling Greek yogurt brand.

Whilst we will be featuring a full interview with the Yogurt supremo in the August issue, Hamdi told me that even after buying the plant he had no firm idea what he wanted to do with the site. “Sometimes it’s OK not to know because it gives you possibilities,” he says. He remembers morale in the small town had collapsed along with Kraft’s closure of the factory. “It was like a cemetery. Most of the town knew someone who had worked there.”

One of his first decisions was, along with five ex-Kraft staff he’d hired, to paint the walls. It wasn’t much of a business plan, but then doing something is always better than sitting on your hands, he says. “That’s what we did all summer. Now when we have problems, we always do something. If you’re in the motion of action, the ideas come.”

Simon Devonshire, the head of the Wayra UK incubator and investor in a number of ventures, on his Tall Man Business blog, says that ‘[ilink url=”http://tallmanbusiness.com/post/53503838741/business-growth-is-all-about-the-eighths”]Business growth is all about the eighths'[/ilink]. By that he means that for a business to see year-on-year growth it needs one major new ‘shout’ every six weeks – one launch in each eighth of the year.

What does Simon mean a ‘shout’?”. It is a new development, product range, evolution or upgrade, that is big enough for you to want to tell everyone about it. Ideally one that is remarkable ie. that your customers are compelled to remark upon.

This is exactly the reason why the major FMCG manufacturers like Proctor & Gamble and Unilever launch things like Platinum Power Ball dishwasher tablets, or a new element or concentration to Fairly Liquid.

As you can see not all ‘launches’ need be momentous, however you need to find a compelling and meaningful reason to engage your audience. If we were in America these would be called touch points or reach outs.

By doing this, as Simon suggests, every six weeks or so you will see clients and customers re-engaged, re-awakened and an awake and engaged client is one that is either buying, at least providing you feedback on your offering.

For my part, I think, and to paraphrase Al Pacino’s character in the film Every Given Sunday, you and everyone in your organisation needs to give that ‘inch’

I really dislike it when business owners, of firms with any kind of staff numbers, refer to their business as ‘I’ instead of ‘us’ or ‘we’. To grow any business every single member of staff needs to give that inch because in business, as in life, the margin for error is so small.

The inches we need are around us and every member of staff everyday. Whether it is engaging more with clients at a meeting to getting to know them not just their requirements, or spending that extra hour to wrote a blog on your website to help with SEO, even tidying and organising your van so you can find the tools you need faster which might create the ability to do one extra call a day.

If you build this culture into your business and you foster responsibility across the entire organisation, you will find that all of the inches is collectively added up and all those inches could make the difference between winning and losing, making that presentation outstanding to win that new contract, adding an extra few thousand to your bottom line, or just in surviving or thriving.

A business that grows in the current market is the one where the team are each willing to give that inch. As a company owner you can’t make each team member do it, but you have to create a culture where each and every member of your team can look at the colleague next to them, look into their eyes and see someone willing to give that inch with them.

Having spent time with many of Hamdi Ulukaya’s staff across the whole Chobani organisation, whilst he is unique to have grown a company employing over 2,000 staff and generating a turnover of in excess of $1BN within 6 years with no external funding and operating a pretty flat organisation structure, it is clear that it is not just his yogurt that is grown from culture, but every element of the company and that really is something that we can take a taste of.

Read more:
The inches, eighths & movement involved in growing your business

Margaret Thatcher was famous for needing only four hours of sleep. That’s the popular wisdom, at least; her critics might argue that chronic sleep deprivation explains some of the iron lady’s policy decisions.

What researchers now appreciate about sleep is that, as your brain tires, it sucks energy away from the areas needed from critical thinking, in favour of those areas that keep you alert. So you can turn up–you just can’t think very well.

What is striking about leaders, however, is that even those who do get a decent eight hours a night are mostly early risers. According to their birdsong tweets friends Shaa Wasmund, author and founder of Smarta, gets up at 5 AM and Emma Jones, co-founder of StartUp Britain & founder of  Enterprise Nation gets up at a similar time and during a recent interview the entrepreneur and TV dragon Peter Jones said that he gets up at 6 because, as he put’s it: “Life is too exciting to sleep.”

I suspect there’s a virtuous circle here: Great jobs make you want to get up early–and the better the job you do, the more exciting getting up early becomes. Could waking late could be a sign that your brain doesn’t like the day you have planned for it?

But with daily schedules starting so early what they do with those early hours? The very disciplined have learned not to start shooting out emails at 5 AM. At the very least, they park them draft until 8. Some go to the gym, or in Shaa’s case run along the beach of her beloved home town of Whitstable, Kent. Others use the time to think and collect their thoughts before the day begins.

For myself, I like to wake up early, at around 6, and lie in bed with iPad or laptop and go through emails, logging in to the various dashboards that report on the activities of parts of our business and plan the work that lies ahead of me. It means that, when I do get up, I feel mentally prepared.

However, the downside is that, as I live alone, I can become  become so absorbed in doing things that I am still there at 9am, but before the phone starts to ring and my inbox chimes with new messages, those few hours are the most productive of the day and also map out the 8 or 10 hours that they precede.

If you’re sleeping late; what does that mean? Are you exhausted–or just disengaged?

Read more:
They say the early bird catches the worm: But what should you do when you wake up?

I spend a lot of time with small business owners, either Business Matters readers, Trends Research panelists, or through the mentoring I do directly or through my involvement with The Prince’s Trust or Startup Britain and I am amazed that many of them don’t, or won’t, allow employees to remote-work.

I have been doing this myself and allowing my employees to do the same for a few years now and I believe business owners’ objections are out of date and misguided. You don’t need to see all of your staff everyday, you just need to know that they are working everyday!

The Capital Business Media office is in London’s Canary Wharf and prior to last years Olympic and Paralympic Games I received numerous warning from about 18months out about how bad the traffic flow through the area was going to be and how staff should avoid the peak hours. A problem when you have a staff of twenty five in a deadline based business!

We all know that todays technology allows employees to be productive from almost anywhere. One member of the editorial team says that some of his best writing is done at the local Starbucks or while sitting at home of an evening un-pestered by the phone, colleagues, or the ping of incoming emails. I myself far prefer to look at detailed spreadsheets of an evening for similar reasons.

We are not alone. Companies large and small have implemented flexible work schedules, including full home-working and offering this option can definitely lead to a happier and more productive workforce.

The direct costs to an employer in offering this facility is also far less than you would expect, and when factoring in physical office costs + a possible boost in productivity it will probably add and not detract from your bottom line.

But that’s not to say a work-from-home policy is something to enter into lightly. It must be implemented correctly to get the greatest benefit.

It is also not just established companies who should be re-thinking their processes as why if you are just starting out do you need to have an office cost on your overhead?

Entrepreneurs and small business owners are a bunch of rule breakers, part of the whole benefit to being a small company is that you can react to things at a James Bond Sunseeker’esq pace compared to the Oil Tanker manoeuvre pace of larger rivals.  Most SME owners are therefore opposed to having too many rules and policies, preferring to keep the company structure loose and flexible, I know I am.

But for issues like home-working, I have learned it’s important to set the ground rules for your employees. Many workers actually perform better with a clear structure.

The guidelines need to include direction on when and how you will allow home/flexible working. A prime example is the recent disruption following the snow fall. If a staff member is going to battle their way in arriving at 10.15 and wanting to leave at 4.15, why make them do that?

Also is this something that employees have to earn? Do they need to reach a certain job title or have been with the company a specific length of time?

Is there a limit or a framework–a certain number of days per month or per week? How do work from home days link to school holiday periods or holidays? Employees always want to “work from home” the days before or after a holiday: Are you ok with that?

Can a home working policy be universal or are there specific roles in your organisation which are not possible or suitable?

Use home working to your advantage.
Provide a clear distinction between what is a work from home day and what is a ‘holiday/annual leave’ day. For example, I encourage employees to work from home if they have a doctor’s or dentist appointment. In my experience, coming in and out of the office around the appointment is disruptive and unproductive. Keeping the day flexible allows the employee to get their tasks accomplished on their own schedule.

On the other hand, if an employee needs to stay home with a sick child, that may not qualify as a home working day, since their focus is not likely to be on their job.

You might also think about using home-working as part of a salary review process. I am quite happy for London Underground to give my staff a £1,500.00 bonus as they no longer have to buy an annual season ticket to get to work, it means we don’t have to!

Trust & control measures are key
In all of my conversation on this subject, their biggest objection to home working was reduced productivity. But in the same breath most admitted they spend a lot of time on work outside the office, often accomplishing a great deal. In most case their barrier was pretty basic: a lack of trust in their employees.

A year out from the Olympic Games we closed the entire office for a whole week as a dry run to what we would plan to do during the games themselves and productivity went up by just over 20 per cent. There was also more creativity and new ideas coming in, and whilst staff didn’t know it at the time we were able to see what time what time their turned their office phone on and logged into the server and, on average, it was the time that they would leave the house to begin their commute, so there was an average of two hours extra per day being worked.

Yes, we repeated the exercise during the games themselves and whilst there was a general reduction of business activity across many parts and sectors of the UK during the games and we definitely benefited from this decision.

We have invested very heavily in cloud based applications to enable this to work seamlessly, our cloud based phone system means that regardless of where the staff member is sitting – Canary Wharf, deepest Essex or in my case recently Washington – as long as it is plugged into a Broadband line it will ring and react identically. Other staff members can see when it is on, when it is engaged, can transfer calls as though they were sitting feet away, and the office-wide voicemail system tuns identically and is backed up in the cloud.

All stall now have laptops and we have moved to Google Business Apps for email and traditional data storage, which each member of staff having 100GB of space.

Our contact database runs on the SalesForce platform as does some bespoke applications that we have had developed for Trends Research surveys and email newsletter management for our magazines and marketing solutions.

We would have lost a great team member recently if we had not taken this route, as the financial controller for Trends Research, who after giving birth to her first child, felt unable to return to work which involved a one and a half hour commute both ways.

That wasn’t a problem as that company runs it’s accounts on KashFlow and when linked to our booking system and by either emailing or using viapost to mail invoices and statements it doesn’t matter where she is! Plus as a cloud based system, if I want to pull up a report I don’t have to go to her desk and ask her to do it and hang around the printer for it to pop out, I log in and do it myself in seconds. The only thing she can’t do is bank cheques, but we have a process for that.

If you’re concerned about productivity or accountability, have clear ground rules that apply to employees working from home. For example, presence in meetings is still expected. If you have or want to introduce conference or video calling this is easily done and very cost effectively.

Phone calls, voicemails and emails need the same level of responsiveness as one would expect from those working in the office. Across the Capital Business Media group of companies, we use instant messenger linked to both our phone system and SalesForce Chatter to communicate, and it is a requirement that a work from home employee be signed into the system so they are accessible.

Simply put: This is a day away from the office, not a day to ignore the office. Employees are expected to participate even if not present.

So how do you quantify if home or flexible working is for your business? With many roles this is easy to quantify. It might be the number of calls a customer service representative handles in the office vs. when working from home.

Our Trends Research staff do a lot of report writing for our customers and there was a marked improvement in the report progress completed at home versus in office. In fact so much so, that our analysts roles are now home based and they only come into the office for meetings. The same is in fact true of some of the digital team working on Business Matters including this very website.

For other jobs, it may be a judgement call to determine if productivity remains at least consistent or improves. I did find that a productive and effective sales team need to thrive off each other and the sales target looming large on the whiteboard above their heads, and our creative studio, with their 30″ monitors, scanners and photo libraries also need to remain office based.

Allowing employees the flexibility to work from home at least one day a week, and more with others, also helps solve the problem you have when growing a company as bums on seats, the desks, all of the hidden never calculated costs that goes into taking on additional staff is either reduced or removed.

Home working also reduces your company’s carbon footprint, which is an essential requirement when you are tendering for local or central government projects or work from large organisations.

Home and flexible working also increases employees’ quality of life, and since we have been operating this system our staff retention rate has increased to over 90 per cent.

Know when it’s not working.
Managers need to be flexible and adjust their management style. A micro-manager may not embrace the idea of not seeing people at their desks and may need some coaching on how to loosen the reins and trust their employees to get the job done.

I used to be a terrible micro-manager and obsessive about detail, but by choosing systems and procedures carefully you can actually get more detailed data and at an instant. Just moving from an Act database and external mailing system to an integrated SalesForce application saw our capital expenditure cost repaid in three months. That was 18 months ago…

If some of the roles are non-client facing, but deadline driven the results are in deadlines still being maintained and the work produced at the same consistent standard. Working with the founder of a fashion company I have invested in, we changed the company ethos and he now spends at least two days out of the office working either from home or at one of two members clubs the company joined and sales have risen as he is seeing, and being seen by more clients whilst also being able to gain energy and inspiration from his surroundings and not the same four walls of his office and the staff on the payroll.

What I try to impress on entrepreneurs and fellow business owners is that home and flexible, when handled effectively, can, and will, give your company a competitive advantage. In addition to boosting productivity, it can also be an important recruiting and retention tool to differentiate your company from your competition.

Read more:
Increase your company productivity: Tell staff to stay at home