Today's Business Woman 2/08

Interview
How do you think SME owners are The signs have been there – the American You talked about the credit crunch
coping? market has directly affected us – but the fact affecting your businesses, how have
Well the ﬁrst thing is, if you had a company of the matter is, can new businesses start in you found the last few months?
prior to the credit crunch and you’re reading this period? I believe it’s a very good time The consultancy is absolutely on ﬁre,
this you’re still trading well, because a lot of to start. I would always prefer to start a new and the reason is because we do real
people have already fallen foul of the crunch. business in the depths of a recession than at consultancy, we’re not a business that
When you’re talking about somebody the top of a buoyant market, because there writes reports and then says this is what
who has been deeply affected, one of my is scope for growth. Some of the richest, I recommend. In January I’m launching a
businesses has. You have my congratulations most successful people I’ve ever met started brand new nationwide sales academy that is
if you’re still there, because a lot of people right at the bottom of a recession, the reason actually for real people, not just people who
have gone bust. being that you cut your cloth. If you start want to sit in a classroom. This is teaching
a business and you ﬁght for every penny people how to sell across the board,
What’s the best way to survive? that comes in and you know exactly what’s whether they’ve sold before or not. It’s a
It’s simple, it’s all about being consistent and spent out of every pound, as you grow your real course that will provide real skill.
proactive and ensuring that every single deal business will become stronger and that’s With the ﬁnancial brokerage, it [the
you do is commercial. We’ve been through what I call sustainable growth. credit crunch] has put things into context.
a buoyant period where everyone has been This time last year we had 30 lenders, and
really out there ﬁghting for business, and now I’ve got four. The problem is not the
in a way the customer, whether that’s a
I would always
customers and whether they want it, it’s
business or a consumer, has the ability to
prefer to start a
supply and demand. The demand’s there, I
negotiate now. It’s a situation of supply and just can’t supply!
demand, there’s a lot of demand out there,
new business in the
but it’s whether people can supply at a Unemployment levels are rising; do you
commercial rate.
depths of a recession
think people should think hard before
I’ve been working with a courier business,
than at the top of a
they look for other jobs?
and obviously they’ve been hit really hard I think there are a lot of jobs still out there,
with fuel increases, but for some unknown
buoyant market
I’m recruiting at the moment and there
reason they had this major issue passing the are deﬁnitely vacancies out there. I think
cost on. I turned round to them and said well, the difference is, and this is where it really
if you actually call any of your competitors, Any ﬁnancial advice for people starting hits home, you get your plodders and
you’ll ﬁnd that that cost has to be passed on, up now? then you have people who actually want
as long as the communication is open and I think it’s not just the funding but what to go and work. The people who want to
you’re not ripping your customer off. It’s they do with the money; the buying cycle’s go out and want to improve will, there are
all about justifying and communicating to changed. I think most people ﬁnd it quite odd opportunities; it’s all about the attitude and
people why that is. when I say I would prefer to start a business the hard work.
Which is why when it comes to the now, but I really would.
recession or credit crunch, it is crucial If I started a business in 2006 when I And what would you say are the secrets
to have the right staff in your business. could have turned over £1million in the ﬁrst to your success?
Businesses cope with poor performers, year, I’d struggle to do £250,000 now, so First thing is I always know what I want,
but not in a ﬁnancial situation, not in the what would actually happen is the business and I’m not talking about world peace, or
economic climate that exists today. would have been deemed to fail. When in the next 10 years, I’m talking about what
doing it the opposite way, if I’ve got £25,000 my objectives are the day, the month, or
Do you think it’s still possible for small to start a business my God, I’ll spend every whatever period I’m planning for. Second
businesses to start up successfully in penny ensuring I’ve got that business up and thing is, they’re realistic, so when I’ve
this downturn? running. worked out what I want, I work out how I’m
Absolutely, recent statistics show more new Businesses fail within the ﬁrst 18 months going to do it, and the third thing is, I know
businesses have been started in the ﬁrst because of two things: marketing failure what I earn, by the day. Which is incredibly
six months [of 2008] than the year before. I – people just do not understand who they’re important, so the moment I know what my
watch things in a cycle and the one thing I’m aiming at – and the cost of marketing, I will monthly target is, I work out what my daily
always very aware of as a business person is, only spend on it if it generates money, I’m target is, and once I’ve smashed that I plan
it’s never always good. And it goes full circle. a bugger like that. The second reason is from there – but don’t forget I’m motivated
We had a buoyant period from 2002 until businesses don’t know their breaking point. by money, everyone’s different. The next
2006, then what is dictated in the ﬁnance When I go into businesses that are failing, the thing is I do something I enjoy, and I have
world as “the credit crunch” hit in August ﬁrst thing I do is cancel every direct debit; if fun doing it. If I get up on a Sunday and
last year, because that’s when lenders started they can’t justify to me why they’re spending I think I don’t want to go to work, then I
to pull out of the mortgage market. that money why should they spend it? change my job.
TODAY’S BUSINESS WOMAN 49
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