The Entrepreneur’s Journey: Taking the First Steps

So you’ve done it. You’ve pushed your breakfast round the plate, wondered why you weren’t with your family and said, ‘That’s it. There has to be a better way.’

And a few days later you’ve burned your bridges – or at least written a letter which can be boiled down to two words: ‘I resign.’

Child Climbing Steps

You’ve committed yourself to the entrepreneur’s journey. Now you need to take the first steps: you need to write a business plan and you need to raise some money.

The chances are that you’d already ‘written’ a business plan before you wrote your resignation letter. I’ve seen potential entrepreneurs – for now, still employed – with business plans at every stage of completion: from neatly bound, carefully worded documents complete with a three year cash flow forecast – to four lines on the back of the proverbial envelope.

For some people the lead up to the resignation letter is calculated and carefully worked out. For others – as it was for me – it’s the moment when that gnawing sense of unease suddenly crystallises. When there really does ‘have to be something better than this – and it has to be now.’

Most of us know the basics of a good business plan – but I am always conscious that this blog is also being read by people who haven’t yet been tempted to tell the MD what they really think… So let me recap the essential details of a business plan:

· What are you going to do? Simply put, what’s the business about?

· What are your goals and objectives?

· Why are you the person to make it work?

· What’s the market? And what’s your marketing plan?

· Who are your competitors? What makes you different?

· If you’re designing and/or developing a product, what are your plans for that?

· Operations and management: how will the business function on a day to day basis?

· How much money do you need? If you’re investing money in the business, where is that coming from? And if you’re borrowing money, how are you going to pay it back?

· And lastly some numbers – projected profit and loss and cash flow forecasts

Those are the basics – but this is The Alternative Board. We’re about a lot more than the basics. We’re about keeping your work/life balance well and truly balanced. About the business working for you, not – as the vast majority of entrepreneurs find – you

working for the business. So your business plan needs to contain something else – something you need to get right from the outset.

Your business plan needs to contain two commitments – to yourself and to your family. To yourself a commitment that you’ll take time off, that you’ll make the time to keep fit – mentally and physically – and that you’ll invest time and money in self-improvement. Because if you don’t grow, your business cannot grow.

Secondly, a commitment to the people you love. That you’ll be there for them. That you won’t have your body at home and your soul back at the office. However high up the mountain you climb, the view is a lot better if you’re sharing it with someone.

I also like to see a business plan contain a statement of values: this is what we believe in, these are the ethics that underpin the business. Your business needs to be profitable: it needs to be one you’re proud of as well.

And now let me backtrack to the business plan. Because there at the bottom is the thorny question of finance. How much money do you need to start the business? Where is it going to come from and – if you’re borrowing the money – what are you going to use for security? Despite the increasing popularity of new initiatives like Funding Circle, Kickstarter campaigns and venture capital investors, the bank is still far and away the most popular option – and the bank will ask for security. Personal guarantees are never far away for the owners of most SMEs and in many cases, neither is your house.

This is the moment when the price of building your business really hits home. This is the moment when you say to your husband/wife/partner, ‘The house is on the line. The bank want some security and, I’m sorry, that means the house.’

That’s a difficult moment for your relationship. The house you bought together, where you’re raising your family: the house you have plans for… Suddenly there’s the spectre of someone else holding the keys: of a letter arriving from the bank politely inviting you to move out. However much someone loves you, that’s a difficult moment. It’s the moment you realise it’s not just you that will be paying the price.

Which is why that line in the business plan is so important. Time with your family. Yes, you’re building a business – but making sure you don’t miss the Nativity Play is every bit as important. Fortunately, you’re among friends: everyone at TAB UK is committed to making sure you’re sitting proudly in the front row.


Carillion: Incompetence on an Industrial Scale

Well, I’ve been through the post three times – yes, home and work. Checked my e-mails. Facebook, obviously… And it’s not arrived. Clearly an administrative oversight. Can’t get the staff I expect. So for yet another year I won’t be going to the World Economic Forum, the annual meeting of the great and good in the Swiss resort of Davos.

But tempting as it is to write about it instead – to spend the next 800 words with Theresa May, Donald Trump and Elton John’s speech on ‘5 Leadership Lessons from my Darkest Hours’ the real story right now is the collapse of Carillion.


Like all big companies, Carillion had a strap line: ‘Making tomorrow a better place.’ As everyone now knows, the company went into liquidation last Monday with debts of £1.5bn and a pension shortfall of at least £600m – so for Carillion, there is no tomorrow. For the handful of hedge fund managers who made millions out of betting against the company tomorrow may not be a better place but it will certainly be a richer place.

But for the thousands of Carillion staff, and many, many small businesses, tomorrow looks anything but a better place. I have absolute sympathy for every single member of Carillion’s staff – with the exception of the directors – but in this article I want to concentrate on the 30,000 small businesses that will be impacted by Carillion’s collapse.

Carillion was created in July 1999 by a demerger from Tarmac (which was originally founded in 1903). With the Governments of David Cameron and Theresa May continuing the Blair/Brown practice of using the private sector as the supplier of services to the public sector, Carillion was effectively the Government’s ‘go-to’ contractor.

And yet there was plenty of hard – and anecdotal – evidence that the company was in deep trouble. In 2017 it issued three profit warnings: there was also plenty of gossip.

I have not previously used the comments column of the Daily Mail as a source, but two replies to a recent piece on Carillion are worth repeating:

Carillion have been shaky for ages. We were asked if we would undertake a multimillion pound project [for them] as a sub-contractor. Based on some reliable info we said no – thankfully, or their crash and non-payment would have taken us down too.

[They] have been using ‘dodgy’ business practices for years. Undercutting on quotes to the point where competitors know the figure is unsustainable. Writing that piece Mail City Editor Alex Brummer called Carillion a ‘giant Ponzi scheme…’

Effectively Carillion was using the cash flow from their latest contract to paper over the cracks – or fill the black hole, choose your metaphor – from the previous contract. Ultimately – like Mr Ponzi’s investment scheme – that was unsustainable.

Did anyone pay attention to the profit warnings and the dark mutterings? Yes, the hedge funds did. Carillion was ‘the most heavily bet-against company on the stock market’ and the hedge funds will apparently profit to the tune of £300m from the company’s collapse.

Sadly, Her Majesty’s Government did not pay any attention. Despite the profit warnings and the gossip the Government continued to award contracts to Carillion. For example, a week after the first profits warning the Department of Transport announced that Carillion would partner another construction company on a £1.4bn contract as part of HS2.

There was another profits warning in September of last year – swiftly followed by another key infrastructure contract, awarded at a time when Carillion’s CEO and finance director were both leaving. The Government may not be to blame for Carillion’s collapse but it has left senior ministers looking at best naïve and at worst incompetent.

It has also left them with the lot of explaining to do to the owners of small businesses. ‘It’s got 450 Government contracts, the company must be alright’ is a not unreasonable deduction to make.

But now one industry group estimates that up to 30,000 firms are owed money by Carillion, with the firm having spent £952m with local suppliers in 2016. Clearly many small companies will face uncertain futures and/or will need to consider laying off staff to reduce costs. Carillion may have employed 20,000 people in the UK but the 30,000 firms owed money will have employed considerably more. There are real fears of a ‘domino effect’ among smaller companies, with liquidators PricewaterhouseCoopers saying they will not pay any bills for goods or services supplied before the liquidation date of Monday January 15th. Carillion’s creditors have already been warned in court documents that they are likely to receive less than 1p for every pound owed to them.

Bluntly, that is a disgraceful state of affairs. I am trying to keep calm about this but Carillion captures so much of what is wrong with British business – and which the Government could so easily put right. It’s not just the continuing award of contracts, there is also the small matter of Carillion’s terms of business – 120 days.

I’ve used this line before but it bears repeating. When the boys were little they’d occasionally do something and we’d say, “No, you can’t do that. It is just plain wrong.”

That’s how I feel about 120 day payment terms. It is just plain wrong. At best it is asking small business to finance big business and at worst it is pure and simple exploitation. ‘Do the work in January, send the invoice at the end of that month and we’ll pay you at the end of May.’

Back in September 2016 I took Liam Fox – the Secretary of State for International Trade – to task for his description of small business owners: ‘fat, lazy and off to play golf.’ No, Mr Fox, they are anything but ‘fat, lazy and off to play golf.’ They are trying to plug a hole in their cash flow that your Government could fix with one simple piece of legislation. And some of them are wondering how they’re going to save the business they’ve built from the effects of a corporate crash: one that could have been avoided by a Government with an ounce of business acumen.

Some of the smaller companies affected by the debacle will be TAB members. Carillion will unquestionably be one of the problems brought to future Board meetings.

But amid the rubble there is a silver lining – and that silver lining is the meetings of The Alternative Board, and the accumulated wisdom of your colleagues round the table. ‘We’re thinking of signing a contract with X’ is a phrase I’ve heard any number of times. And on a few occasions I’ve also heard that intake of breath and seen the slow shake of the head – the one the garage mechanic used when you asked if your first car could be fixed – and every time it has proved invaluable.

You’ll never be able to take out insurance against the greed of big business and the incompetence of the Government, but your colleagues around the TAB table are the next best thing.

Happy New Year. You’re a Hero…

Happy New Year – and welcome to my first blog post of 2018. I hope you all had a wonderful Christmas and New Year – and I hope you’re now well and truly back in ‘work mode.’ I know a few people who had trouble remembering their own names last week, let alone remember what they did for a living…

As I mentioned at the end of last year, I’m going to take a slightly different approach with the blog this year, with longer pieces published every fortnight. I’m also going to alternate the posts between a TAB view of ‘the entrepreneur’s journey’ and a wider look at the economy, business trends and what the stable geniuses that make policy have in store for us.

So congratulations: you’re a hero.


Last year, as I flew to Denver, I found myself reading about ‘the hero’s journey:’ the classic, storytelling structure that underpins so many novels and films. I’ve re-read the article a few times since – and it’s an almost exact parallel with the journey we take as entrepreneurs.

How does the hero’s journey start? It starts in the ordinary world. Harry Potter lives under the stairs. Peter Parker is a nerdy student bullied by his classmates. Frodo lives in the Shire and visits Bilbo Baggins. Ed Reid has a secure job, a company car, and a decent salary.

Then something happens: the inciting incident, or the ‘call to adventure.’ Letters from Hogwarts start arriving, Peter Parker gets bitten, Gandalf tells Frodo he must destroy the One Ring… Oh, and Ed Reid eats his breakfast in Newport Pagnell service station, wishes he was with his family and thinks, ‘There has to be something better than this.’

Initially, our hero refuses the call. ‘I’m just Harry, I can’t be a wizard.’ Peter Parker decides that winning cash at a wrestling match is the best use of his new powers. And Frodo is reluctant to leave the comfort and security of the Shire.

…Just as so many of us were reluctant to leave the comfort and security of the corporate world. We had mortgages, commitments, wives, children, a future with the company.

But we knew that there had to be something better…

I was reading an article on Richard Branson over Christmas – on an Australian site, the internet is a wonderful thing – and he was talking about most businesses being “born out of frustration” that the existing players aren’t doing a good enough job.

It’s important that you know instinctively that you can do it better (than someone else). If you can come up with an idea that will have a positive impact the figures will follow. It’s very rare that special things go bust. Sometimes they do, but it’s rare.

I take his point – but isn’t it also the point that most, if not all, entrepreneurial careers are born out of a sense of frustration? How many people reading this have had their own ‘Newport Pagnell moment?’ (Not quite ‘the road to Damascus’ but you know what I mean…)

As I sat and ate my breakfast I thought, ‘There has to be something better than this. What am I doing here when I should be with my family?’

So yes, my entrepreneurial career was absolutely born out of frustration. I was frustrated that I wasn’t seeing my children grow up and I wasn’t spending enough time with my wife. And I knew that I was ready to create and build my own business.

Yes, of course there were frustrations with the company I was working for. But the frustrations that drove me to start TAB York were internal, not external. I strongly suspect that holds good for 95% of people reading this blog and – if the figures are to be believed – it will hold good for a record number of people in the UK this year.

But what about the second part of Branson’s quote? It’s very rare that special things go bust. Sometimes they do, but it’s rare. Sadly, that’s not true of small businesses. Four in ten don’t make it through the first five years.

What is very rare, is entrepreneurs who are members of The Alternative Board not making it. Over the last nine months I sat in on any number of TAB meetings – and I never ceased to be amazed at the wisdom, knowledge and laser-like insight of our TAB members. It was a privilege to watch them in action and I can’t wait for more of the same in the coming year.

…As they continue on their hero’s journey.

They’ll be tested by their enemies (Snape, then Voldemort: the Green Goblin, Sauron, business competitors), face their final battles and eventually – in the classic ending – ‘return with the elixir.’ Harry ultimately defeats Voldemort, Peter Parker embraces his role as Spiderman and Frodo and Sam return to the Shire.

And you? You think back to that morning at Newport Pagnell – and know with absolute certainty that you made the right decision.

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.


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.

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…


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…

The Professionals

Professionalism. Noun. The competence or skill expected of a professional. The practising of an activity, especially a sport, by professional rather than amateur players.

Hang on, just let me read that again. I can’t see any mention of fighting outside a nightclub at 2:30 in the morning. Or driving a lady home who’s not your wife and ending up accused of drink-driving. Or getting into a taxi which unfortunately whacks a lamppost, leaving you with a broken rib.

I refer, of course, to Messrs Stokes, Rooney and Aguero, all of whom might now be in a much happier – and potentially much less costly – place had they looked at their watches and said, “Goodness me, ten o’clock. I’ve an important game in two days; time I was tucked up in bed with a mug of cocoa.”

Ben Stokes and Wayne Rooney are leaders. Stokes is vice-captain of the England cricket team; Rooney, having re-joined Everton with the experience of captaining Manchester United behind him, must surely have been expected to show leadership; to set an example to the younger players in the dressing room.

What price that leadership now? What price their professionalism?

But this is a business blog – so how do I define professionalism in business?

First of all I think it’s about predictability: that’s not someone saying ‘Ed always says the same thing:’ it about people knowing that Ed will always deliver what he promised to deliver. No ifs, no buts, no excuses: professionalism is delivering what you promised to deliver, when you promised to deliver it.

It’s about preparation as well – and yes, I’m aware that I’m almost wandering down the army’s ‘Six P’s’ path here. Whether it is an interview, a client appointment or a speech, the preparation is as important as the performance: in fact the preparation determines the performance. I will tolerate many things, but one thing that used to really annoy me in my corporate days was the time wasted due to lack of proper preparation, even for supposedly ‘make or break’ meetings. For me it was just unforgivable.

And politeness, which includes punctuality. It may well be the courtesy of kings but it’s also fundamental to business: everyone’s time has value, not just yours.

Let me also define professionalism by what it isn’t. It’s not simply being serious: clearly there are professions where being serious is a requirement, but even then not at the expense of demonstrating empathy and personality.

It’s one of the great truisms of life that people buy from people they like. And that still holds good today, even in an age where we are increasingly dealing with people we may have never met. You can still get your personality across with your language and ‘tone of voice’ – even if that voice is only heard through an e-mail.

I remember an early sales manager telling me to watch Michael Parkinson and Terry Wogan on TV. “They would have made great salesmen, Ed. A loss to the steel industry…”

But despite the instruction to watch Parky and Our Tel I probably didn’t smile enough in my early days. You might be doing a thoroughly professional job: but you’re still allowed to smile and laugh while you’re doing it. Let me hold my hand up and say I wasn’t brilliant at this. So thank you to Paul Dickinson, my predecessor as TAB MD, who gently pointed it out to me…

And yes, I’d like to think we’re seen as professional at TAB: not just in that we deliver results but that we’re fun to work with as well. As I’ve written many times, TAB is about enjoying the journey as well as reaching the destination, and I’m absolutely sure we help the members of the TAB family to do that.


One last question: this week’s title references a once-popular TV programme. Do any of you remember it? Just a quick test to see how old you are and if your fashion sense has moved on…

The Valley of Clouds

You know how it is on a long flight: you read anything and everything. A history of the sword making industry in Toledo? What could be more fascinating?

So it was that somewhere at 30,000 feet I came across an article that included this quote: it’s from an author – and a bonus prize to anyone who guesses the author before the end of the post…

There’s a phrase I use called ‘The Valley Full of Clouds.’ Writing a novel is as if you are going on a journey across a valley. The valley is full of mist, but you can see the top of a tree here and the top of another tree over there. And with any luck you can see the other side of the valley. But you cannot see down into the mist. Nevertheless, you head for the first tree. At this stage in the book, I know a little about how I want to start, I know some of the things I want to do on the way. I think I know how I want it to end. And this is enough…


That may well be a description of how the author wrote his books. Isn’t it also an exact analogy for the entrepreneur’s journey – the journey we’re all on?

The long flight took me to Denver, for TAB’s annual conference – as many of you know, one of my favourite weeks of the year. It was great to meet so many old friends and (as always with TAB) make plenty of new ones. The best part of it for me? It was simply going back to basics. After the whirlwind of becoming the MD of TAB UK – after spending so many hours with solicitors, bankers and accountants – it was wonderful to be reminded of the simple truth of why we do what we do.

That’s why the quotation chimed so exactly with me: all of us start our journey with a lot of faith and not much in the way of a ‘map.’ As the quote says, we know where we want to get to, we can see a few staging posts along the way: but the rest we’re going to discover on the journey – and we accept that there’ll be plenty of wrong turns.

So when we start the valley is full of mist – but we can emphatically see the other side. Most importantly, we can see the people we love on the other side of the valley, financially secure and happy. We can see our future selves as well – not just financially secure, but fulfilled because we have achieved what we set out to achieve and realised our full potential.

I know some of the things I want to do on the way. Yes, when we start our entrepreneur’s journey we do know some of the things we want to do: in my experience we want to do things differently, ethically.

And sure, we can see the top of one or two trees – but none of us can see down into the mist. We can’t see the route we’re going to take.

And that might be just as well, because if the mist cleared and we saw all the late nights and missed weekends, the deadlines and the stress, we might decide that the journey across the valley isn’t worth it.

Trust me, it is.

Some members of TAB UK have just reached the first tree. Some of them are a long way across the valley and plenty have reached the other side. Building a business is exactly like walking through the mist – but if you have a guide, someone who can say ‘I was here a year ago. This is the path I took’ then you are going to cross the valley much more quickly, with far fewer wrong turns.

Let me finish with another reflection on Denver. It was absolutely inspiring: TAB is now in 16 countries and is becoming a truly international organisation. The latest country to launch is India – along with China one of the two fastest growing major economies in the world and a country almost synonymous with the entrepreneurial spirit.

As always it will take me about a month to process everything that went on and everything I learned in the week. But I came away with one key reflection: the strength of our team here in the UK. The calibre of the people involved is both humbling and inspiring. Truly, if you are at any stage on the entrepreneur’s journey – just starting or halfway across the author’s Valley Full of Clouds – you could not wish for better guides than the TAB UK team.

The author? The late Terry Pratchett.

Increasingly Productive – just not Officially…

Well there you are. The Ed Reid Blog scores again.

Joe Root hits the highest ever score by someone captaining England for the first time, and it’s the first win over South Africa at Lords since the average house cost £2,530 and a season ticket to watch Manchester United was £8-10-0d. I tell you, I’m wasting my time writing business blogs…

But the ECB haven’t phoned me, my invoice for ‘sports psychology coaching’ remains resolutely unpaid so here I am – considering the UK’s fairly dismal productivity figures.


Last week the Office for National Statistics released figures showing that the productivity of UK workers had dropped to levels last seen before the financial crisis – hourly output is now 0.4% below the peak recorded at the end of 2007.

We’ve all known for some time that UK productivity lags behind its major competitors such as the US, France and Germany. A quick glance at the world productivity ‘league table’ shows the UK languishing in 13th place. Norway lead the way, from Luxembourg and the United States, but the UK is scarcely ahead of those sun-kissed holiday destinations where everything closes for the afternoon.

The UK has recovered well since the 2008 crisis but – according to the learned pundits and commentators – that is a product of more people working, and of people working longer hours, rather than a function of increased productivity. Kamal Ahmed, BBC Economics Editor, wrote, “Today’s figures are bad to the point of shocking. [The figures] take the UK’s ability to create wealth back below the level of 2007 – and if an economy cannot create wealth, then tax receipts, the mainstay of government income, will weaken.” Others have blamed underinvestment, the uncertainty caused by Brexit and the current political situation, and sluggish wage growth.

But you know what? I think it may be time to reach for one of the more valuable business tools – a healthy pinch of salt.

Because as I look around me, I don’t see falling productivity. I see exactly the opposite. Virtually every business I work with is busier than they’ve ever been.

Yes, there’s uncertainty: but when has there not been uncertainty for the entrepreneur? And no, the vast majority of the people I work with didn’t vote for Brexit: but they’ve moved on. People running businesses are no longer fighting last year’s war: they’ve accepted the result and they’re now looking to future.

For all the despondency from much of the media, I’d say the ‘optimism index’ among owners and directors of SMEs is high. They’re certainly working hard enough: according to this story in City AM half of them took fewer than six days off last year. (Don’t worry, I’ll be taking them to task in the coming weeks…)

So I’m sceptical about the productivity figures. Traditionally, a country’s productivity is calculated by a splendidly complex formula with references to 2005 and 2013 comparators.

I suspect that we may need a new metric: the nature of productivity is changing. Web designers, app developers, SEO experts – there are plenty of jobs now which did not exist ten years ago and which don’t lend themselves to traditional ‘output’ measurements. London remains the tech capital of Europe and more people are working across borders: it may be that productivity is simply getting harder to measure by the previously used methods.

Then there are the regional differences – output per hour worked in London’s financial and insurance sectors was around seven times higher than in the regions with the lowest industrial productivity – and, even more importantly, the company-by-company differences. I am absolutely certain that if we had a ‘TAB UK productivity index’ we would be right at the top of any league table. I like to think a small part of that is because TAB keeps people focused on being productive, not on being busy.

As Paul J Meyer, founder of the Leadership Management Institute said, “Productivity is never an accident. It is always the result of a commitment to excellence, intelligent planning and focused effort.”

I don’t know anyone who captures that more than the TAB UK members, and it has been a real privilege to meet more and more of them over the last few months. I couldn’t be more excited about all our – very productive – futures.

Are you Still the Best Person?

There’s no better story of the new, disruptive economy than Uber. What could be more set in stone than your local taxi company? But along comes Uber, along comes an iPhone app and everything is different.

Equally there could be no more archetypal disruptive entrepreneur than Uber co-founder Travis Kalanick.

Travis Cordell Kalanick is 40. He dropped out of UCLA (obviously: dropping out is mandatory for the disruptive entrepreneur).

His first business venture – with partners – was a multimedia search engine and file sharing company called Scour, which ultimately filed for bankruptcy.

Next came Red Swoosh, another peer-to-peer file sharing company. Red Swoosh struggled: Kalanick went three years without a salary, had to move back into his parents’ home and at one point owed the IRS $110,000. All the company’s engineers left and our hero was forced to move to Thailand as a cost saving measure. But in 2007 Akamai Technologies bought the company for $19m.

In 2009 Kalanick joined forces with Garrett Camp, co-founder of Stumble Upon, to develop a ride sharing app called Uber. And the rest as they say…

Uber now operates in 66 countries and more than 500 cities around the world. Wiki lists Kalanick’s net worth at $6.3bn. Presumably he’s not living at home any more.

But neither is Kalanick still at Uber. On June 20th he resigned as CEO after multiple shareholders demanded his resignation. We’ve all read the stories: let’s just file them under ‘abrasive personality.’

Looking at Kalanick’s early struggles he ticks every box for an entrepreneur. Dropped out of college, saw the future, first venture failed, money problems, do whatever it takes, absolute persistence, never lost faith in himself and – eventually – jackpot!

We can all imagine some of the scenes: we may not have ticked all the same boxes in our own entrepreneurial careers, but we’ve ticked enough to imagine Kalanick’s journey. And to empathise with it…

But now he’s gone. And his departure from Uber prompts an interesting question.

Are you still the best person to run your company?


When I pushed my breakfast round my plate in Newport Pagnell services and decided to work for myself there were two main motivations. They were frustration: “There has to be something better than this,” and family: “Someone else is dictating how much time I spend with my wife and children.”

In some ways I was luckier than most embryonic entrepreneurs: my experience told me I could manage and motivate a team. But I wasn’t thinking about that in Newport Pagnell: what – after proposing to my wife – has turned out to be the best decision of my life was motivated purely by frustration at what I was then going through, and a determination to be there as my boys were growing up.

I suspect the vast, overwhelming majority of entrepreneurs are the same. We all started by saying, ‘I want to create something, I want to be in control of my own life, I want to build a future for my family.’ We didn’t say, ‘Oh yes, I have the skills necessary to lead a team of 30.’ Famously, even Mark Zuckerberg had to learn how to manage Facebook.

So the skills you had then – vision, a willingness to take risks (with both your career and your family), persistence and that sheer, bloody-minded determination to succeed – may not be the skills you need now. In fact, there’s no ‘may’ about it. Maverick entrepreneurs don’t always make great managers: you may have been the only person who could have started your business, but are you the best person to keep it going? Is it time for the visionary to make way for the general manager?

I’m not going to answer the question: I’m simply going to state that it is one of the most interesting and fundamental questions we’ll all face as our businesses grow, and one we’ll all need to ask ourselves. As I talk to the other TAB franchisees and to more and more business owners who are nearing the end of their entrepreneurial careers, it’s a question which increasingly fascinates me. We can never stand still: we’re always growing, developing and learning. Whether it is internal change or external change, the challenges we face this year are never the same as the challenges we faced last year.

That’s why you need friends. Whether it is your colleagues round a TAB boardroom table, your other franchisees or my team here at head office, they’ll always be there with advice, insight – and the occasional reminder that we shouldn’t take ourselves too seriously…

Lessons from the Maybot

Consider these two newspaper headlines:

South Milford FC win Champions League

Labour win Kensington & Chelsea

Well, you think. A Chinese conglomerate. Don’t see the value in spending £3bn on Manchester United. Decided to do it the romantic way. Small local team – but a million people within 30 minutes. 20 year plan, work their way up the football pyramid. Suppose it could happen…

What was the other one? Labour win Kensington & Chelsea? Have a word with yourself. And don’t forget your medication…

Except last Friday afternoon it did happen. With a majority of just 20, Emma Dent Coad captured Kensington and Chelsea for Labour. And if you want a measure of how completely inept the Conservative election campaign was, there you have it.

‘I didn’t fail. I learned,’ is one the great aphorisms of the positive-thinking industry. Well, Theresa May certainly learned how to take a working majority and turn it into – dare I use the phrase – a coalition of chaos. As everyone knows, she is now dependent on the DUP, whose ten MPs shuffled into the limelight last Friday afternoon like a factory syndicate who had won the lottery.

But this is a business blog, not a politics one. Are there any lessons we as business owners can learn from the election, the Conservative ‘strategy’ and the Maybot? Oh yes…


First and foremost, don’t ever take success for granted. I hope Ian Hislop doesn’t mind: I photographed the Private Eye cover from May 18th as my illustration this week. At the time it exactly summed up the mood in Conservative Central Office: it wasn’t a General Election, it was a coronation.

…Did the Conservatives underestimate Corbyn? Only by a factor of 300 – in much the same way that the Clinton camp underestimated Trump. In both cases the overwhelming favourite said, ‘You can’t possibly vote for my opponent:’ to which the electorate replied, ‘Watch us.’

Whatever you’re doing – whether you’re pitching for a contract, tendering for some work, making a presentation to potential clients – you must show up, give your best every single time and never, ever underestimate your opponents. No-one – clients, customers or the electorate – likes to be taken for granted.

Yes, show up. Sounds obvious doesn’t it? You need to show up, even if it’s going to be tough. Say what you like about Corbyn – he turned up, he was prepared to speak, his events were free and he connected with people. Theresa May hunkered in her bunker muttering “strong and stable.” I am sorry, Prime Minister, when the going gets tough, the tough do not send Amber Rudd.

What’s next? Ah yes, the personality cult. They weren’t Conservative candidates were they? They were ‘Theresa May’s local candidate.’ The cabinet? Never heard of them: are you talking about ‘Theresa May’s team?’ If you want to make it all about your personality – whether it’s your business or the General Election – just make sure you have one.

Have a vision. How many times have we said that the leader’s job is to lead? To have a vision and communicate that vision. End tuition fees, raise in the minimum wage, a hand-up for the many… Whether you agree with it or not, that was a vision.

Trust your team. When she became PM Theresa May shuffled her team. Whatever your view of Messrs Hammond, Johnson and Davis – and Ms Rudd – they are experienced politicians. They’re used to campaigning. If you’ve handpicked your team, you have to trust them. No business grows or succeeds by the boss micro-managing every single decision himself.

Lastly, don’t always rely on the same people for advice. The apocryphal story is that the only person Mrs May would take a phone call from during the campaign was the Queen (yep, probably asking for her coach back…) Clearly the PM’s advice came from her two, now-departed, special advisers and her husband, all of whom were telling her what she wanted to hear. Maybe she should have joined a TAB Board for the duration of the campaign: she’d certainly have received advice at odds with her thinking but – as it so often does for so many business owners – it would have saved her from some disastrous mistakes.

So did Theresa May get anything right? Well, certainly not the Mexican wave on Tuesday night but – as one of my team in Harrogate pointed out – she always wore nice shoes…

I could go on and on – but enough’s enough. The Conservative campaign was easily the most inept in my lifetime. And yes, I know she is still Prime Minster but go back to the end of April. Record approval ratings and a 20 point lead in the polls. It’s the equivalent of a team leading 6-0 at half-time, scoring six own goals and scraping home 7-6. A win is a win, but at what price in the long term? What will it cost the country, the economy and our businesses?