Our Glass is Half Full


Well, we have a form of words. But as many commentators have already written, ‘Nothing is agreed until everything is agreed.’ No matter, the Brexit talks can stumble forward to the next hurdle…

Meanwhile Donald Trump has antagonised 95% of the world by recognising Jerusalem as Israel’s capital, Kim Jong-un is threatening to fire ICBMs on an almost daily basis, Germany doesn’t seem to have an effective government and China is threatening to take over the world. Oh, and the financial world will surely be rocked any day now when the Bitcoin bubble explodes.

Make plans for 2018? Only a madman would think of starting – or expanding – a business.

Welcome to the madhouse.

A recent report from accountants UHY Hacker Young revealed that more businesses were established in the UK last year than in any of the world’s other developed economies. Hacker Young put the number of new businesses at 218,000 – a 6% increase on 2015.

But across the road at the Institute of Directors they are three times as bullish, saying that 650,000 businesses were created last year. I suspect that Hacker Young are counting limited companies and the IoD are counting companies and those registering as self-employed. Whatever way you look at the stats and whatever measure you choose, it’s a remarkable statement of confidence in both the individual entrepreneur’s determination to succeed and the future of the UK.

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And yes, of course confidence comes naturally to an entrepreneur. What is remarkable – and heart-warming – is not just the number of start-ups but the absolute conviction that they will succeed. In the IoD survey 83% of those who replied said they felt optimistic about next year – whereas just 5% were optimistic about the wider UK economy.

Of course concerns remain – chief among them being lack of access to finance and lack of information about the government help available for start-ups and those looking to expand their businesses. Awareness of the British Business Bank, for example, was just 17%. Clearly the Government needs to do rather more to get its message across…

Closer to home, I see the same optimism around the TAB boardroom tables. Optimism, coupled with a steely determination to make it happen. Everyone acknowledges that the road is going to be bumpy – but everyone in the TAB family is determined that next year will be an outstanding success.

As for me, twelve months ago I was the owner of TAB York – and someone who was keeping very quiet about some very complicated negotiations. You all now know how they turned out: to say that 2017 has been an eventful year for me is one of the year’s great understatements!

However much I thought I knew what running TAB UK would be like the reality has been very different. Easier than TAB York? Harder? Neither: simply very different and very exciting – and I see more opportunities for us to grow with every passing day.

I’ve been especially struck by how much our TAB members up and down the UK want to be part of the wider TAB community and how keen they are to meet other TAB members, whether that’s from their own region, the wider UK or internationally.

The ten months since February have been a sharp learning curve for me and I couldn’t have climbed the curve without the support of my brilliant co-director Mags, the amazing team at the Harrogate head office or – as always – the love, support and encouragement of my team at home. I hope all of you know how much I appreciate you.

…Which brings me, misty eyed, to the change I was going to announce. I have been writing this blog every week since 2010. I have absolutely enjoyed it and if you’d told me in 2010 that I could have found something to write about every week for roughly 7½ years I’d have said you were mad. Proof positive that, one bite at a time, you can eat the elephant…

However, my new role as MD of TAB UK has afforded me a broader canvas than writing as owner of TAB York. I hope you’ve noticed the posts becoming slightly longer and taking a wider view of the economy and the future. Necessarily these longer posts take more writing, so from next year I’m going to move to updating the blog fortnightly, starting – after a good break for Xmas and New Year – on Friday January 12th. I’m also going to have more of a theme running through the blog: alternating posts between what you might loosely term an ‘overview’ of business and the economy, with a TAB view of the entrepreneur’s journey – from making the decision to go it alone to signing the final contract and walking into the sunset…

In the meantime have a wonderful Christmas and – on behalf of all of us here at TAB HQ – I hope that 2018 brings everything you would wish for.

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Panto Season Comes Early


The scene: an Alternative Board meeting, anywhere in the UK. We’re going round the table, updating each other on progress. It’s Dave’s turn…

TAB franchisee          So, Dave, bring us up to date. How’s it going?

Dave                           Yeah, good. The MD’s coming over at the weekend and we should finally be able to sort it all out. Few wrinkles to iron out in Ireland but we’re getting there

TAB veteran               You said last time that your two divisions in Ireland couldn’t agree on anything…

Dave                           Well, technically, yes. But we’re getting there

TF                                So you’re all set to abandon your current deals and go it alone?

Dave                           Yep. That’s what the shareholders want

TabVet                        So what deals have you got lined up to replace them?

Dave                           Well, technically, none

2nd TabVet                 Sorry if I’m missing something here but isn’t that … well, just a touch risky?

Dave                           It’s what the shareholders want

TF                                OK, so what impact is this all going to have on the company?

Dave                           Huh?

TF                                About six months ago you said you were doing an impact analysis on the effect this would all have. On every division of the company

TabVet                        Yep, I remember that

2nd TabVet                  Me too. Remember asking if you thought you could get it done in time

TF                                So where is it?

Dave                           Well, technically…

TF                                It was so in depth that you haven’t finished it yet?

Dave                           Not quite

TabVet                        So when will it be ready?

Dave                           That’s a difficult one to answer

2nd TabVet                  Why

Dave                           We haven’t started it yet.

There is silence around the table. A pin drops…

TF                                So you’re telling us, with our experience in business, that you are planning a major, major overhaul of your business, abandoning trading relationships you’ve had for forty years, you have nothing ready to replace them – except hope – and you have done no analysis at all of the impact it might have on your company?

Dave                           Well, technically…

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The TAB blog is politically neutral. And whatever my personal views, I try to be strictly neutral on Brexit. The blog is not, however, common-sense neutral. And when I read the stories coming out of the Committee on Exiting the European Union (let’s just call it the Brexit Committee, shall we?) on Wednesday I was, bluntly, staggered.

Were the UK Government – in the shape of Dave – a member of any TAB board (and frankly, Mrs May, right now I think it would be money well spent) he would not have survived the meeting. I can think of no instance in my seven years with TAB UK in which a member has gone ahead with a radical overhaul of his business without doing some seriously in-depth analysis of the potential impact. If a member of TAB York had acted in that way I would have questioned whether I was any good at my job.

And yet, on Wednesday morning, David Davis sat down in front of the Brexit Select Committee and said that Her Majesty’s Government had done no significant work on the impact Brexit might have on major parts of the UK economy.

Translate that into business terms. If you had tasked your finance director with doing these impact assessments and six months later he came back and said he hadn’t started then there would only be one outcome. He’d be clearing his office the same day. Even if he hadn’t been tasked with doing the work – but hadn’t shown the initiative to do the assessments – the end result would be the same.

David Davis has argued that there is no point in preparing impact assessments because the scale of change will be so big. Again, if you translate that into business, it’s just nonsense. “We’re going to make major changes in the company – a complete change of direction. And because the changes are going to be so big we’ve decided not to bother making any plans.”

Yep, that would go down well with your TAB colleagues.

Enough lampooning politicians. Sadly, they’re an easy target. There must be a reason for the Government’s failure to carry out due diligence…

Theresa May – the MD in our example – famously campaigned for Remain in 2016. A few weeks later she was roundly declaring that ‘Brexit means Brexit.’ She had seen the shareholders get rid of the previous MD and give her the job – with a clear mandate to deliver something she’d very recently campaigned against.

This is the time of year when I traditionally write about planning for next year. And that’s where the lessons of Brexit apply. Because if you don’t absolutely believe in your plans, targets and goals – if they don’t reflect what you want both for the business and as an individual – then you’ll end up exactly where Theresa May and David Davis now find themselves. Trying to deliver a plan that you don’t believe in and, consequently, controlled by external events – when it should be the other way round.

That’s it for this week. Next week will be the last post of the year and I’ll be looking forward optimistically to 2018. And also announcing a change…

Three Ideas we Must get our Heads Round in 2018


It’s generally believed that the oldest board game that has been continuously played is Go, dating back to China more than 2,500 years ago. For those of you that haven’t played, the aim is to surround more territory than your opponent. The game is played on a 19 x19 grid and it’s far more complex than chess: the number of possible moves is put at 2 x 10170 – or, more simply, there are more potential moves in one game than there are atoms in the universe.

So quite a lot.

Anyway, last month Google-owned DeepMind introduced AlphaGo Zero, their latest evolution of a computer programme which defeated the Go World Champion earlier this year. You remember those possible moves? More than there were atoms in the universe? The programme mastered them all in less than 72 hours – with no human help.

The simple fact is that machines are going to surpass human intellect in any given intellectual task: right now, the AI community believes that 2060 is a reasonable estimate for its arrival – but not so long ago driverless cars weren’t going to be on our roads until 2040…

We all need to get our heads round Artificial Intelligence and we need to do it quickly. Worryingly US Treasury Secretary Steve Mnuchin says he isn’t worried about AI and automation: it’s so far away apparently, “that it’s not even on my radar screen.” Presumably he’s not yet read McKinsey’s report saying that robots will take 800m jobs worldwide by 2030…

Meanwhile Home Secretary Amber Rudd cheerfully stands up at the Conservative Conference and admits she doesn’t really know how encryption works.

Well no – we don’t need our Home Secretary to pop back to her bedroom after a Cabinet meeting and do a bit of coding. But it would be useful if our political leaders had a vague idea of what’s coming down the track. Google, Apple, Amazon and Facebook most certainly do know what’s coming – and it is going to impact your business.

Let me give you a simple example. I don’t know how many possible ‘moves’ there are in deciding whether to lend you or me £250,000 to buy a new house or build that new factory. I do know that it is significantly less than the number of atoms in the universe. I’m acutely aware that sooner rather than later I’m going to need to offer Dan and Rory some careers advice: bank manager may not be top of the list.

Now a rather more basic idea that far too many people still need to tackle: like AI it needs to be on your to-do list at the start of 2018 and crossed off it by the end of the year. The very basic idea is equal pay.

I was reading a salary comparison produced by a TAB member: very clearly, women in North Yorkshire – even in senior roles in the professions – are paid less than men. One line in the report leapt out at me. In comparison to men, women effectively work for nothing from November 7th onwards.

Just say the following out loud. “I’m sorry, you’re bald, we’re going to pay you 80% of what we pay people with hair.” Or try this: “Yes, well, obviously it would have been £3,000 a year more but you’ve got ginger hair…”

…And if you still have a problem with equal pay, go and sort it out now. Equal pay is ethical, it makes business sense and – bluntly – it is just the right thing to do.

And the last idea? Disruption. Henry Ford disrupted horses, Uber disrupted taxis and – as above – AI and ‘fintech’ are going to painfully and permanently disrupt traditional banking. Oh, and the nice, cosy world inhabited by Gillette and Wilkinson Sword and impossibly good-looking men with impossibly smooth chiselled jaws? I’m very sorry, but the Dollar Shave Club is coming to the UK.

Whatever industry you are in – and not for one minute do I exempt peer-to-peer coaching from the list – it is going to be disrupted. We need to be the disruptors, not the disrupted. At the very least, we need to be thinking a long way outside the box, so that we’re prepared when the Dollar Shave Club – or its equivalent – appears on our horizon.

Negotiating with Friends: How we got it Right


Negotiation is very rarely about the short term. It’s an area where you really need to think ‘win/win’ because nine times out ten you’re going to have an ongoing relationship with the person across the table. So don’t set out to ‘screw’ someone: in the long run that attitude is unlikely to be profitable.

That was what I said last week when I was discussing the general principles of negotiation. ‘Think win/win. Nine times out of ten you’re going to have an ongoing relationship.’ But that becomes even more true when you’re negotiating with a friend – as I did when I bought TAB UK from Paul Dickinson and Jo Clarkson.

“Never do business with a friend,” is an old business maxim – and it’s probably saved a lot of friendships – but sometimes doing business with friends and, ultimately, negotiating with them is inevitable.

“Loan oft loses both itself and friendship,” said Polonius, giving advice to his son Laertes before he set sail for France. Well negotiation can do exactly the same: the negotiations can flounder and the friendship can be ruined. Worse still, the negotiations can apparently ‘succeed.’ And then one party gradually realises he’s been ripped off: that he’s been taken advantage of by someone he previously considered a friend. Not any more…

The negotiations to buy TAB UK were long and complex: there were two people involved on both sides, plus accountants, bankers, lawyers – and our respective families.

As Mags and I sat across the table from Paul and Jo I had four priorities:

  • I wanted to buy the UK franchise for The Alternative Board: I’d talked it over with Dav – at length – and I absolutely believed it was the right thing for me, and for my family
  • But like any business deal, I wanted to buy it at the right price
  • I wanted to make sure the negotiations did nothing to damage TAB UK going forward
  • And I wanted to retain the friendship of two people I liked, respected and valued greatly as business colleagues and confidantes.

So how did we set out to achieve that? There were three key rules that guided us through the negotiations and which protected and strengthened our friendship.

  • First and foremost, we set the stage. Both sides were absolutely open about what they wanted to achieve in the negotiations. We constantly asked ourselves a simple question: ‘Is this fair to you? Is it fair to us? And is it in the best long-term interests of TAB UK?’ That question was, if you like, the mission statement of the negotiations
  • …Which inevitably brings me to one of Stephen Covey’s ‘7 Habits.’ “Seek first to understand, then to be understood.” There was a real willingness to see the other side’s point of view. If you do find yourself negotiating with a friend it’s vital to see the negotiations from both sides of the table
  • So there was plenty of goodwill on both sides. But even with all that goodwill, there were bumps in the road: that was inevitable with such complex negotiations. The key was to look ahead and anticipate problems, to be open about setbacks and to clear up any misunderstandings as quickly as possible.

The net result? A very successful negotiation and both sides happy with the outcome. Was it easy? No, but then readers of this blog don’t need telling that few things that are worthwhile are easy. Ultimately, I’m absolutely delighted with the outcome – I’m equally delighted that Paul and Jo will be friends for life.

As it’s Easter, let me finish on a slightly lighter note – and a warning, if you’re planning to spend four days in the garden…

When I’m writing these posts I always – irrespective of how well I know the subject – check with Google, just to see if the Harvard Business Review or one of the entrepreneur magazines has a different perspective. And I’m increasingly astonished at how few words I need to type in before Google guesses what I’m after.

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Or I was – until this morning. How do you negotiate with I tapped in. Before I could add a friend, Google completed the sentence for me. How do you negotiate with a Sim eating plant? Seriously? That’s the most popular query about negotiation?

Well, fair enough. I always preach the value of knowing and researching your market…

So for those of you whose Easter might otherwise be ruined by the death of your carefully-nurtured Sims, I present perhaps the most useful advice ever offered on this blog. (Warning: the video contains violent scenes which some readers might find distressing. It also contains a teenage son doing nothing while his father is eaten by a tomato plant…)

Agile Leadership? Or Fundamental Truth?


Agileadjective: able to move quickly and easily. Or, increasingly, relating to software development: relating to or denoting a method of project management characterised by the division of tasks into short phases of work and frequent reassessment and adaptation of plans

And – even more increasingly – the new buzzword in management thinking. We’re now supposed to be agile leaders and agile managers. Our companies need to have an agile culture and, of course, the work is done by our agile teams.

But is ‘agile’ really a new way of thinking? Or is it simply the latest spin on what have always been the best business practices? The Emperor’s latest new clothes – and maybe I’ve seen them all before…

The more time I spend working with business owners and entrepreneurs, the more I’m convinced that – to borrow a line from a classic – the fundamental things will always apply. Hire good people: don’t hire for the sake of hiring. Give them responsibility and remember that your job is to lead. As Stephen Covey said, “keep the main thing the main thing” and – as this blog constantly repeats – never stop learning. If you don’t grow, your business cannot grow.

Unquestionably business is moving at an ever faster pace. It used to be only companies like Dropbox that boasted of employing staff all over the world: I forget the exact quote but it was something like ‘thirty staff in ten different countries in 12 different time zones.’ But now I notice an increasing number of local entrepreneurs working with suppliers and contractors in different countries, knowing exactly what time it is in the Philippines and as happy to price in dollars as in pounds.

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Is this ‘agile?’ No, it’s change. As an entrepreneur said during one of this week’s inevitable discussions on Brexit, “We’ll do what business has always done: we’ll adapt.”

What about the ‘agile culture’ we’re all supposed to use in our offices as we build our ‘agile teams?’ I saw it suggested recently that we should use an agile culture ‘to foster a healthy and positive working environment that takes advantage of the talent within.’

“No surprise there, Sherlock” as the PG version of Dr. Watson would have said. No entrepreneur succeeds alone – and if you don’t foster a positive working environment and take advantage of everyone’s talents, you’ve no chance. In the seven years since this blog started I have lost count of the number of times I’ve preached the benefits of trusting people and giving them responsibility. You should never be the only person in your company with the ability to say ‘yes’ to a new idea. That’s not ‘agile,’ it’s simply the best way to build a business.

…As is constantly being aware of the way your market – and new markets – are developing. “Agile leaders constantly see their business as a start-up” was another quote I read. If you started in a railway arch and you’re now employing 100 people and turning over £25m I suspect it’s quite hard to still see yourself as a start-up. But every entrepreneur I know who has built to that level is as open-minded and outward looking as any fresh-faced start-up.

My big fear with ‘agile’ is that we’ll all feel we should work at a faster and faster pace: that if we’re not Skyping Chicago at 9pm or instant messaging Manila at 5am we’re failing as entrepreneurs. I remember, nearly 20 years ago, reading an article about Gerry Robinson when he was building Granada – and famously, going home to his wife and children at 5pm. His philosophy was simple: if he couldn’t achieve it between 9am and 5pm, he was unlikely to achieve it between 6am and 8pm.

Trends, theories, buzzwords – and lucrative book deals – will continue to come and go in the realms of management and business but, whatever they’re called, the basics will never change.

…And a little over a month into my new role with The Alternative Board, I’m delighted to see those basic beliefs, practices and values running through every TAB franchisee and every TAB member that I’ve met. Yes, of course the next two years are going to throw up difficulties – some that none of us have yet contemplated – but there will be opportunities as well. And I know every TAB franchisee and member will do what businesses have always done – adapt, and meet the challenge.

The Five Lessons I’ve Learned


I was talking to a potential new member of TAB York last week: explaining what I did, how the concept of peer coaching worked, the benefits it had brought to my members… And looking back on the seven years I’ve been running TAB York.

“So,” she said. “What are the five key pieces of advice you’d give to an entrepreneur?

Five? I thought. More like 55. Or 555. But let me try and answer the question more successfully than I answered it then. What are the five most important lessons I’ve learned in the past seven years – and by definition, the five most important pieces of advice I’d give?

Lessons Learned written on chalkboard

1.The job of a leader is to lead

You’ve pushed your breakfast round your plate in a desolate motorway service station: you’ve decided that enough is enough. It’s time to start your own business. You owe it to yourself: you owe it to your family. Sooner or later your new business will be employing people – and your job is simple. It’s to lead them: to say, ‘this is the where we’re going, follow me.’ There are plenty of other things you need to do – realise you don’t need to be an expert in everything and don’t be afraid to hire people who are brighter than you – but it is your drive, determination and vision that will carry the company forward.

2.A mistake is only a mistake

I made Spaghetti Bolognese at the weekend. I broke a bowl, tipped pasta sauce on the floor and left the gas on under a pan. They were mistakes – and that’s all they were. No-one (not even my wife) is suggesting that I give up cooking and never enter the kitchen again. So your latest idea didn’t work out: the guy you hired who was going to transform your business transformed it in the wrong direction. Move on: you live to fight another day – your vision is still the same. No-one scores 100% with their decisions – and as the saying goes, ‘the man who never makes a mistake never makes anything.’

3.Keep on Learning

I think we can say that the world has changed since I joined The Alternative Board in 2009. In that year Facebook had 360m users and 20m iPhones were sold. Today the figures are approaching 2 billion and over 200 million. In 2009 Apple had just introduced a fledgling service called the ‘app store.’ The pace of change over the last seven years has been astonishing, and it’s not going to slow down. You need to set aside time to learn – and as I wrote a few weeks ago, if you don’t develop and grow, then your company can’t develop and grow.

4.Nothing can replace your KPIs

Having just written about change, let me turn to something which can never change: your Key Performance Indicators – the numbers and metrics which tell you the current state of your business and go a very long way to predicting its future.

If I’ve seen one cause of business failure over the past seven years it’s not knowing your KPIs. Checking your KPIs every month is simply essential to the continued success of your business. And ‘How much have we got in the bank?’ is not an adequate check. Sadly, it is almost always followed by ‘Can we afford to pay the wages this month?’

5.Your product is more important than anything

Despite the internet, despite social media, despite e-mail marketing and despite every change that’s happened over the last seven years, your product (or service) remains the key to everything. And if it’s not excellent, you’re in trouble. To paraphrase the old saying, stories about bad service are half way round the world before good service has got its boots on. Not only is the world changing, it is spawning a lot of hungry competitors: if you’re not innovating and improving, then someone else will be, and they’ll be telling your customers.

6.We all need friends

Clearly I haven’t learnt to count, but where else can I finish? Over the last seven years it has been my privilege to listen to some outstanding business advice from the members of TAB York. It’s been advice which has transformed businesses, transformed lives and – on at least one occasion – saved a marriage. We all need friends and – in business – you will never find better friends than your colleagues round a TAB boardroom table. As the man said, we all need a little help

The Monday Morning Quarterback


It’s just about the perfect description. Instantly, we all know what it means…

So the wide receiver’s wide open. 20 yard throw straight into the end zone. Hell, even my six year old can do that. What’s he do? Tries to run it himself. Gets sacked. Turnover. And it’s game over. Season over. See you in September.

There isn’t an equivalent phrase in the UK, but no office is short of an expert round the watercooler on a Monday morning.

Seriously, he thinks X is a centre back? He needs to buy Y. And no wonder Z didn’t try an inch. My mate’s brother says he’s been tapped up by City.

Whichever side of the Atlantic you’re on, no sports fan gets a decision wrong on a Monday morning. Hindsight is a wonderful thing – and it guarantees you a 100% success rate.

Sadly, the entrepreneur doesn’t have the benefit of hindsight: he has to make decisions every day – and he’ll get plenty of them wrong. As a recent article in the Harvard Business Review put it, ‘The problems entrepreneurs confront every day would overwhelm most managers.’

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…And – just like the QB on a Sunday night – entrepreneurs get plenty of decisions wrong. Any entrepreneur who gets 50% of his decisions right first time is doing remarkably well. Fortunately, TAB members can improve on those numbers. They can bring their problems to the monthly board meetings – and rely on the collective wisdom, experience and insight of their colleagues: the Tuesday/ Wednesday/ Thursday quarterbacks. Once a problem – or an idea – has been run past seven people instead of one, the chances of a correct decision increase exponentially.

But I’m aware that not everyone who reads this blog is a member of TAB York: plenty of readers are just starting their journey as an entrepreneur. So here are three of the most common problems, proposed solutions and – ultimately – mistakes that I’ve seen in my business life. I hope they help – and don’t worry if you tick all three boxes: every successful entrepreneur has done exactly the same.

  • No-one else cares like I care. The only answer is to do it myself

That’s true. It’s your business: no-one will ever care like you care. But you cannot do everything yourself. That way lies fatigue, burn-out and your wife telling you that she needs to talk… Embrace the division of labour: we live in an age where everything can be outsourced online. Your job is to manage the business: let someone else do the tedious stuff that takes away your creativity and your productivity.

  • There’s no more money in the budget. The only solution is to throw more hours at it

Let me refer you to one of my favourite books, Rework, and page 83: ‘throw less at the problem.’ As the authors say, the solution is not more hours, people or money. The solution is almost always to cut back. You cannot do everything and, as I wrote last week, success comes from a focus on your core business – not on trying to please all the people all the time. Besides, more hours simply means a second, more serious, talk with your wife…

  • Fire people: hire people

When you’re starting out you’ll be a small team: that breeds closeness – and loyalty. But not everyone who starts the journey with you is capable of finishing it. Sadly, at some stage you’ll learn just how lonely it can be as an entrepreneur: one day, you’ll accept that Bill’s just not up to it any more. You have to act: if you don’t, you’ll cause resentment among the rest of Bill’s team – and risk losing people who are up to it. And when you hire Bill’s replacement, don’t be afraid to hire someone smarter than you. See above, your job is to manage and lead the company, not to be the expert on every single aspect of it.

 

When I write this weekly post I sometimes ‘let it go cold’ for an hour and then give it a final read through. That’s what I did this week and I need to correct myself. The three mistakes above are mistakes we can make at every stage of our business journey – not just when we’re starting out.

It’s all too easy to slip back into bad habits, to think ‘it’s easier to do it myself’ or ‘If I work through the night I’ll have cracked it.’ We’ve all done it. But at least you won’t make the mistakes for long: those quarterbacks round the TAB table will be watching you…

The 6p Café – and the question You Should Really Ask


Just a note before I start this week: I’ve written more than 300 posts on this blog, but last week’s was much the most personal. I’d like to say thank you for all the comments and replies: some of them were touching, some heartfelt and some even more personal than the original post. One in particular buoyed me for the whole weekend: so thank you again.

Anyway – on to business. And a simple question: how much did you pay for your last latte? I’d guess anywhere from £2.40 to £2.90: that’s the going rate and it is, of course, completely ridiculous. Invest not-all-that-much in the right equipment and you can stay in your kitchen and make a coffee that’s equally good for a fraction of the price.

But that’s not the point is it? Because as we all know, Nero, Starbucks and your local coffee n’ cake shop don’t sell coffee. They sell something else entirely.

…And now a café has started charging for it.

Let me introduce you to Ziferblat, a café in Manchester that charges 6p a minute. That’s right, 6p a minute. Stay as long as you want; eat and drink as much as you want and use the Wi-Fi. 30 minutes costs £1.80 and an hour is £3.60.

ziferblat

At first glance that seems remarkably cheap: why do you need to pay rent on an office? An eight hour day at Ziferblat costs £28.80 with no need to go out for a sandwich at lunchtime. Well, they make a profit and the chain is expanding. But it’s not their balance sheet I want to discuss; it’s their willingness to look at an established concept in a wholly new way.

I have plenty of my meetings in various Costas, Starbucks and Neros around North Yorkshire. Am I paying for the coffee? No. That’s the last thing on my mind. I’m paying for convenience, for somewhere to meet, for thirty minutes with a friend, Board member or potential client.

I’m buying the coffee in order to rent a convenient meeting space for thirty minutes. The owners of Ziferblat have recognised this: as one of them says in the video, “Everything is free, except the time that you spend.”

Some of you may remember a post I wrote early in 2014: it was about American restaurants charging different prices for their food depending on when you ate. Re-reading the original piece – and thinking about ‘the 6p café’ – that still seems entirely logical to me.

The reason I make these points is simple. We’re now well into ‘making plans for next year’ season and there’s a fundamental question to ask yourself: what do I really sell?

Do you sell coffee? Or do you sell the convenience, the surroundings and the meeting place?

Quite rightly, you’re now turning the question round and asking, ‘Fair enough, Ed. What do you really sell?’

Let me answer that, because it illustrates the point exactly.

Do I really sell 1 to 1 meetings and peer-to-peer coaching? No, of course I don’t. So let’s look at the reasons entrepreneurs ‘buy’ TAB York:

  • They want to solve a problem and/or address some pain
  • They don’t want to feel isolated/lonely any more
  • They want a fresh perspective on their business
  • They’re stuck in a rut
  • They know they’re ready to ‘take the next steps.’ But they don’t know how to do it, and may not even know what the next steps are

So TAB York sells solutions to specific problems, an end to loneliness, a new way of looking at problems and opportunities, motivation and – as I wrote two weeks – a glimpse of what life and business could be like: ‘permission to dream’ as I termed it.

Clearly, TAB York sells different things to different people – and that doesn’t change even after someone becomes a member. The reasons why entrepreneurs continue as Board members can be very different to the reasons why they joined:

  • The Board meetings are an insurance policy against things going wrong
  • The routine of the monthly meetings forces members to work ‘on the business’ not ‘in the business’
  • It’s the only place they can really talk about their business with people who absolutely understand…
  • Who’ll give absolutely impartial advice…
  • And who care about your success and the success of your business

So in no way am I selling the monthly meetings: I’m selling reassurance, a framework, and the experience, objectivity and commitment of the other Board members. And ‘commitment’ is the right word: members of TAB York have an emotional investment in each other’s businesses.

All the above points have come from Board members over the years – and yes, when entrepreneurs ‘buy’ for so many reasons it makes it difficult to define what my colleagues and I ‘sell.’

The same may very well be true for you and your business. But take your time to define exactly what you do sell – and don’t be afraid to emulate ‘The 6p Café’ and think a long way outside the box. It’s a really worthwhile exercise and the answer may well surprise you – and have a significant impact on next year.

In fact it’s something we could cover at a 1 to 1: maybe over a meal. I’ll drop an e-mail to the Star Inn the City and offer them 6p a minute…

A Conversation with my Wife


Last week I discussed ‘permission.’ That my job is very often about giving an entrepreneur ‘permission’ to grow: to open the door and see what it could be like, to see the potential for himself and his company. But as I wrote last week:

…Going through that door can be painful. Because you’ll need to have a couple of conversations: one with your team, admitting that maybe you don’t have all the answers. And one with your spouse or partner, saying that you have room to grow: that you’ve had a dream, and you’re going to pursue it…

It’s the second of those painful conversations I want to look at this week. There’s no doubt at all that setting up and building a business puts a strain on a relationship. If you Google ‘business success leads to divorce’ the number of results is terrifying.

But sometimes a regular blog needs to go into deep water. Besides, we’ve tackled loneliness and depression in previous blogs: why not marriage guidance?

beautiful-cartoon-wedding-couple-24599388

(A note on pronouns before I start. As around 75-80% of TAB members are men, and as I’m going to relate this to my own experience, I’ve used ‘he’ for the entrepreneur and ‘she’ for the partner. But swap them round and every point I make is at least equally valid.)

So let me share some of my own story…

When I pushed breakfast round my plate in Watford Gap services and made the decision to start my own business, it wasn’t just a decision about me: it was a decision about my family as well. And yes, it lead to a lengthy conversation with my wife. It also lead to a couple of years of being largely dependent on Dav’s income: years when I was building TAB York and Dav paid the price in going without a lot of life’s luxuries.

Dav’s income allowed me to pursue my dream. You might say that in the same way I give an entrepreneur permission to look through the door, my wife gave me that same permission. I’ll be eternally grateful for that.

Were there some tough times in the first two years? Was the cash flow – with two young children – strained at times? Did it get a little tense occasionally?

Yes to all three.

As I’ve already said, starting a business puts a strain on a relationship. But it’s not just the cash flow – and now we move into real Venus and Mars territory.

The entrepreneur starts a business: his thoughts go something like this:

I’m starting this business for the benefit of my family. Sure things are going to be tough for a while, but ultimately we’ll all benefit. She must be able to see that – and she must be able to see that I’ll go insane if I stay where I am.

His wife takes a different view:

Our security’s gone out of the window. We might not be able to pay the mortgage this month. The kids need new clothes and I need a holiday. And all for what? So that he can spend his days trying to build “a better widget.” Like the world needs another widget…

Then there’s attention: or lack of it. As Dav would tell you, there were plenty of times in the early days of TAB York when I was ‘there but not there.’ All entrepreneurs are the same. Suddenly your head is full of staff who aren’t performing, suppliers who aren’t supplying, the inevitable cash flow problems. It’s all too easy to forget the things you used to do together: date nights, weekends away, the simple act of listening when your partner is talking to you…

Communication is vital in building your business. It’s vital when you come home as well – especially when you’re no longer the boss, but an equal partner.

I often write about the importance of communicating the vision you have for your business. There’s an exact parallel with a relationship. I don’t want to use the word ‘vision’ as it’s too impersonal: but you need to keep focused on the future; on what you want for the family, and for each other.

That’s what Dav and I had – and it’s what we still have. And more than anything, that helps you keep business in perspective.

So yes, there were tough times: some triumphs and some disasters. But as my pal Kipling would say, we tried to treat those two impostors just the same. And we met with pizza instead of steak and treated those two just the same as well…

The Only Certainty is Uncertainty


From the Daily Mail: 24th June 2017

“What on earth were we worried about?” That was the triumphant cry from Prime Minister Michael Gove yesterday as he celebrated ‘Independence Day’ – the first anniversary of the UK’s historic decision to leave the European Union. “What do we see now?” he asked to loud cheers on the Conservative benches. “The pound riding high, the stock market at a record level, small firms liberated from the shackles of Brussels’ red tape and free to recruit. Foreign firms rushing to invest in ‘the Switzerland of Northern Europe.’ The motion to make June 23rd a national holiday was passed by a majority of 378, with only the SNP and the handful of Labour MPs remaining after last month’s general election voting against. Celebrating with a pint of Late Knights’ Worm Catcher, Lord Farage said it was “a wonderful day for ordinary British people.”

From the Guardian: 24th June 2017

“I propose these measures to the House with a heavy heart,” said Chancellor of the Exchequer Nicola Sturgeon as she announced more tax rises and further austerity measures in her second emergency Budget of the year. “Exactly twelve months has passed, Mr Speaker, since we took the ridiculous and xenophobic decision to leave the EU. We now see the pound approaching parity with the dollar, the stock market plunging and unemployment rocketing.” Prime Minster Dan Jarvis – who seems to have aged ten years in the six months since the SNP/Labour coalition came to power – looked on with a pained expression. He is back in Brussels tomorrow as he tries to negotiate Britain’s re-entry to the EU, but must know that Angela Merkel and the German bankers will make the UK pay a heavy price.

Two scenarios, each equally unlikely.

But this time last week anyone predicting a lame-duck Prime Minister, an even lamer Leader of the Opposition and thirty shadow cabinet resignations in one day would have been advised to increase their medication.

Given the outcome of the Referendum – and the consequent fall-out – we can say goodbye to any hint of certainty for the next few weeks, and possibly for a good deal longer.

…Which is going to make running your SME extremely difficult. Big companies will be reluctant to commit to orders, fuel costs will increase as the pound falls against the dollar and – I suspect – some banks are going to be unwilling to lend as they watch their own share prices drift south.

Uncertainty-is-an-uncomfortable

My question last week was, ‘Does Brexit Really Matter?’ I stand by my thesis that five or ten years from now it will not be the most significant factor in the success of your business or your personal life. But in the short term there will be some very difficult questions for owners of SMEs to deal with.

Confidence, costs and the availability of capital will certainly be three of them – but there’s a fourth, highlighted by this article on the BBC website. Will the pool of talent dry up? When you need to hire someone outstanding to drive your business forward, will there be anyone left in the UK? And if there is, will a small business in North Yorkshire be able to compete?

I was talking to a friend of mine on Monday. “My son’s graduated on Friday,” he said. “Stellar degree from a top university. And now he tells me that he’s far more likely to work abroad.”

I suspect that conversation is being repeated up and down the country. And for the owner of a SME it’s a double whammy. Not only might your top talent move abroad, there might not be anyone around to replace them.

Hopefully you’ve now received (and read, obviously!) TAB’s ‘top tips in the light of the Brexit vote.’ One of those tips is simple: reassure your team, especially if you have EU nationals among them. Over the next 12 months the people you work with are going to be more valuable than ever – and more coveted by your competitors.

As everyone knows, I voted Remain. But living and voting in a democracy means you don’t always get the result you want. Now we have to get on with it. I hope – and believe – that there’ll be goodwill on both sides and that the sensible politicians in the UK and the EU will hold sway. But in the short term, the waters will be choppy. One captain may have resigned: those of us running SMEs don’t have that option. We’ll get through it – but a key part of that will be protecting, nurturing and retaining our teams.