Small Businesses

The Road from Newport Pagnell

Posted on by edreidyork


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 [and] transformed lives.

Those were words I used in my final paragraph last week. Some of you may have detected a valedictory tone.

Well, it’s not farewell. It is, however, time for a change.

Seven years ago I ‘pushed my breakfast round my plate in a desolate motorway service station’ and decided that enough was enough. I walked out of Newport Pagnell services determined to start my own business. In December 2009 TAB York was born and the journey since then has been by far the most rewarding of my business life.

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But, you come to a fork in the road: you have a choice to make and that choice determines your future direction.

In 2015 Paul Dickinson and Jo Clarkson offered me the chance to take over TAB UK – to become the franchise holder for the whole of the United Kingdom.

I thought about it long and hard. It was a significant financial commitment and it meant giving up the regular contact with the majority of my Board members. But that chance – and the challenge – had been offered to me. And – like so many TAB members up and down the country – I didn’t want to think “what if…”

I talked it over with Dav – several times – and thought about little else as I drove around North Yorkshire. And then I committed myself.

So I’m delighted to announce that from today I will no longer be responsible for TAB York: I will be responsible for TAB UK. It will be a challenge, but it’s also a huge opportunity for me. I’ll be going into business with an old friend, Mags Fuller, who’ll be my brilliant co-director and co-shareholder. And right now I’d like to place my thanks on record for all the help Mags has given me in getting the deal over the line, and to Paul and Jo for the incredible work they’ve done from the start.

So I’m looking forward to working with her, with all the franchisees and with Suzanne, Rena, Emma, Nathan and Nick – the outstanding team at TAB UK’s Harrogate head office.

Will I have regrets about giving up TAB York? Yes, of course I will. I’m no longer going to have the same monthly contact with several of my TAB York board members, all of whom have been a huge pleasure to work with and who have contributed to my life. As I said last week and repeated in the opening paragraph, it has been a privilege to work with them.

I will still be running one board, with Paul taking over the Board I’m relinquishing. Now, I’ll also be chairing our internal boards of the 28 TAB franchisees: that will see me leave Yorkshire for London and the North West once a month. Breakfast at Newport Pagnell? Maybe once, to reflect on how far I’ve come and how much TAB has given me.

And the blog? EdReidYork? Rest assured that it will continue: the tone and the content may be slightly different, but writing these words every week has been a central part of the last seven years: it’s given me a chance to pause and reflect and – in doing some of the research – I’ve learnt a lot. And the feedback has been consistently brilliant: intelligent, insightful and supportive.

So a chapter has ended – but a new, and very exciting one, is about to start. Let me finish for this week by saying thank you: firstly to the members of TAB York, who have simply been outstanding over the past seven years. And secondly to Dav and our boys for their support and encouragement as I take the next, exciting step in my career.

Rather more prosaically one of the next steps I take will be on to the ski slopes in Morzine. The blog will be on holiday next week as I try to keep up with Dan and Rory and will return on Friday March 3rd., tanned, relaxed and hopefully not aching too much!

Many Hands Make Light Work – Thanks to Crowdfunding

Posted on by edreidyork


Last week I looked at the growth in social lending, particularly through sites such as Zopa and Funding Circle.

This week, another possible way of funding your business: another idea whose time has come and which will play an increasingly important part in business – especially for start-ups – in the coming years. Welcome to crowdfunding.

The idea behind crowdfunding is simple – lots of people come together to fund a project, which might be a book, a film, travel… Or a business.

However, there’s one crucial difference between social lending and crowdfunding: with social lending, you’re borrowing money and you’re going to have to pay it back. With crowdfunding the money isn’t quite a gift, but you’re definitely not going to be asked to pay it back.

The best way to explain the concept of crowdfunding is with a real life example. So let me ask you a simple question: Would you Marry a Farmer?

Lorna Sixsmith is a wife, mum, ex-teacher and social media consultant. Crucially, she’s married to an Irish farmer – and she wanted to write a book about it. As you’ll see from her site, she estimated that the total cost of the book would be in the region of €9-12,000. She wanted to raise around half of this money through crowdfunding, and used an Irish funding site – www.fundit.ie

Well, congratulations to Lorna, because she’s raised the €6,000 she wanted, from a total of 191 people. (I’ll save you the trouble – it’s an average of €31 each – around £26 at the current exchange rate.)

But as you’ll see from her site, these people haven’t just given Lorna the money – they’ll be getting something back in return, ranging from an e-book (for €8) right up to €1,000 which allows the donor to name a calf on Lorna’s farm, have a blog about the calf and, as you’d expect, receive plenty of books. €1,000 might sound a lot of money to fund someone else’s project, but used properly – especially by a company that supplied farmers, for example – I could see it as a quirky and very effective piece of advertising.

So far so good – and haven’t we all got a project at the back of our mind that would cost around five grand and we’d love to do. Especially if someone else will pay for it…

But it’s not that easy. As Lorna says in an excellent article on what she’s learned about crowdfunding, it’s like a full time job. You’ve got to promote yourself, and you have to be prepared for rejection.

But with the banks continuing to be cautious in lending to small businesses – especially start-ups – I can see crowdfunding as a viable way for embryonic SMEs to generate capital. But your project needs to be worthwhile in the eyes of other people – and like Lorna, you need to give something back to your funders.

So what can you give back – especially if you don’t have a book or a massively photogenic pedigree calf? There are three things which spring immediately to mind: your expertise; the experience of crowdfunding and one very simple commodity – your time. I was really impressed reading through the range of offers Lorna made – which you couldn’t get anywhere else. That’s the key question to answer: what can my business give someone that they can’t get from anyone else?

So that’s social lending and crowdfunding: two sources of business finance whose time appears to have come and that you need to be aware of. I’m not suggesting you immediately abandon all forms of conventional funding – but I am saying that the next few years are going to see different and imaginative ways of funding your business. And that when the bank manager says, “I’m very sorry, the risk assessment unit have had a look…” it may be the beginning, rather than the end.

Every Crisis has a Silver Lining

Posted on by edreidyork


Where to begin? Good news? Bad news?

I mean, it’s desperate isn’t it? The other week Mervyn King announced another £75bn of Quantative Easing, talking about the “worst crisis ever.”

Then the October figures from the Chartered Institute of Purchasing and Supply came out, showing manufacturing “dropping like a stone” to a 28 month low. David Noble, the Chief Executive said, “We live in worrying times” and reported that the mood among his members was “sombre.”

And that’s before you factor in the latest Greek crisis. I’m writing this on Thursday morning. They’re going ahead with the referendum. Merkel hates Sarkozy. A Europe-wide recession is inevitable. And it’ll probably be even worse by the time you read the blog.

So the situation’s damn near hopeless. There’s nothing for it but to batten down the hatches, take no risks at all and hope you’re still in business when the storm’s blown itself out. If it ever does.

And yet. And yet…

Today is November 4th.

170 years ago today the first wagon train arrived in California.

17 years ago today the first ever conference was held looking at the commercial potential of something called the World Wide Web.

And three years ago today a hopelessly inexperienced politician from Chicago with a ridiculous name and funny ears became the first African American President of the United States.

The settlers in California; the Web pioneers; Barack Obama – they didn’t batten down the hatches. They took risks, because they believed in something. And they believed passionately.

No, the economy does not look promising right now. Then again, travelling acrossAmericain a covered wagon with the Sioux on one side of you and the Comanche on the other probably didn’t look too promising at times either. But the settlers had a simple goal – to reach California and to start a new life. And if you have a simple goal – to see your business succeed – then stick to it and you’ll get there.

Clearly there are some basic things all businesses should be doing in these tough times. Make sure you cut out all unnecessary expenditure (just go through your outgoings and ask ‘do I really need to spend this?’) Make sure you give outstanding customer service; keep your debtors under control and keep up to date with technology.

But it’s still OK to dream – so keep your faith and keep your focus as well. Maybe that’s where The Alternative Board can help. Anyone running a business right now is bound to be gaining a few grey hairs: we wouldn’t be human if we didn’t need some support at times. As I’ve said, the only people who truly understand the pressures are other business owners. And maybe they’re the only people who understand the dreams as well.

Despite everything, there are still some great opportunities out there, and still some companies making giant strides. Ten years from now you want to be able to look back (possibly as you pay for your sunbed in drachmas again!) and say, ‘Yep, those were tough times. But I never lost sight of what I wanted to achieve. And look where I am today…’

Have a great weekend. And keep dreaming…