Q What were the highs and lows of the last year for you?
A This time last year our shops were suffering in the snow, we were two weeks away from a 2.5pc increase in VAT and prospects for the economy looked bleak. Like other retailers we wondered how to make the best of a bad market.
Experience of several cycles has taught me you can't control profit. Managers have screwed up many a good business by trying to supply short-term satisfaction to shareholders and the City. When turnover falls you are almost bound to make less money. By all means economise but stick to you ...
Read More
Q. A recent academic study suggests that family businesses would benefit from some more professional management and that it is often dangerous to hand over control to a son or daughter. Don't you think that at a certain size every family company needs the experience of a properly trained top team?
I wonder what criteria academics use to define a professional manager. I suspect they envisage an executive who follows best practice with a fair dose of good governance, risk assessment, appraisals and KPIs.
Business schools are bound to preach the importance of a prop ...
Read More
Q. The world of football is seemingly unable to get to grips with racism. Have you ever had to tackle this issue in the workplace and how would you advise Sepp Blatter?
A. Sepp Blatter is out of touch, which is bad enough when he stands in the way of action replays and then awards the World Cup to improbable locations, but when he appears insensitive to racial abuse it is time to put the good of football ahead of his desire to hang on as FIFA President.
I checked with Gouy, our People Support director, hoping that racism doesn’t exist at Timpson. I was reass ...
Read More
Q As a long established employer, if there was one thing you would like the Chancellor to do in his autumn statement, what would it be?
A I don't envy George Osborne. I studied Economics at Nottingham University where I got a reasonable grasp of supply and demand curves but when it came to Macro Economics (lectures that covered interest rates, balance of payments, GNP and inflation) I was confused. I never really understood how the economy works and now wonder whether anyone does.
The mystery ingredient seems to be confidence. Whatever happens with the Euro, at Th ...
Read More
Q. Do you see merit in issuing bonds to customers as a way of raising money and building loyalty? I’d far rather pay a coupon to my customers than the bank. And as King of Shaves and John Lewis have shown, if you also hand out free shaving products and discounts it can prove a very attractive investment.
A. I applaud the initiative shown by King of Shaves’ Will King who has found a novel way to create cash with the bonus of giving his company positive PR. At a time when it is best not to need to borrow from the bank smart businesses give cash flow a big ...
Read More
Q. What is the worst piece of advice you have ever been given?
A. I wish no one had ever suggested it was worth opening a shoe repair shop on Wardour Street right in the middle of Soho, but I only have myself to blame.
I looked at the site three times before giving the go-ahead, and on every occasion the area was buzzing with people. I saw them all as potential customers – especially for the repair of stilettos – their slim heels quickly wear out.
When the shop opened I quickly discovered my mistake. Our kind of multi-service shop wasn't providing ...
Read More
Q How has your IT spend been affected by tight budgets and have your thoughts on all this hosted IT systems marketing that we get bombarded with been affected by the recent collapse of BT's business broadband?
A As soon as I read your question I went into our IT department to find out more. As I looked around the modest office with Paul and his team of five looking after all our IT needs I knew we weren't overstaffed. “We don't do that many new projects,” said Paul, “so there's not a lot of potential cost to cut”
Although IT is not at the ...
Read More
Q We’ve cut our training budgets for the last two years and while everyone has noticed, no one has complained. Given our long list of other priorities I just can’t see it coming back any time soon. Are we alone in adopting this approach?
A In these difficult times most companies need to cut costs to improve short-term cash flow, and many have found the training budget provides a pretty painless way to save money. But beware, it could be a short-sighted move that does long-term damage.
Fine, if you can cut the cost of training without bothering the busi ...
Read More
Q. How do you keep your over-60s motivated? We don’t have a dedicated human resources function and I personally find it
difficult to approach long-serving staff to tell them that they need to make more effort.
A. If you need to tell people to make more effort you have probably got the wrong people.
This isn’t a question of age – your business should be able to inspire every colleague however old they are. If the business is exciting, it will stimulate anyone with a positive personality.
Employees don’t suddenly go off the boil just beca ...
Read More
Q Last year all our young male office staff started wearing cardigans on a cold day. This year we have already seen tight knitwear, and even more frightening, roll neck sweaters. Why can't they stick to a suit? At a push I can cope with a smart tank top.
A I can understand why you want to keep up appearances – casual clothing is sometimes a sign of a slack workplace, but it depends what business you are in. Bankers are expected to stay fairly formal, especially if they are meeting customers, but it is fine for an advertising office to dress down all week.
...
Read More
Q Our not for profit company is doing well and we recently introduced a graded scheme to increase salaries for staff doing more responsible work. For years we could barely afford the national minimum wage. All staff were involved in the consultation, and individual appraisal interviews. The result has been bitter dissapointment. Everyone has received a pay rise, but most are more intent on making comparisons than counting their luck. Is this just normal human nature? I'm tempted to scrap everything and go back to the minimum wage.
A I am not surprised you have had a ...
Read More
Q. We’re getting calls from energy consultants saying that with energy prices rocketing again we should re-examine our return on investment assumptions from buying energy efficient lighting and insulation in our warehouses.
What sort of approaches have you heard businesses adopting?
A. As I lack the patience to dig into the detail, I leave our cost cutting to my colleagues, but I notice that every time they examine energy costs they manage to save some money.
There will be a mathematical formula that will tell you whether to change light bulbs. You need ...
Read More
Q How do you decide whether to stock a new item in your shops? Do you canvass staff or check what your competitors are doing?
A Because our shops are not controlled by a computer, our branch colleagues have the freedom to order their own stock, but normally they can only select from the range we have in the warehouse. From time to time we let a shop try something totally different, but it seldom works.
We are mainly a service business (less than 20pc of sales come from merchandise) so we concentrate on stock that complements our range of services – shoe car ...
Read More
QHow do you instil confidence and a sense of pride in new managers as it’s an odd job moving, as I see it, from doing to delegating?
A I have seen plenty of newly promoted managers who think a job title gives them the right to wear a suit, drive a company car, carry a briefcase and race round issuing orders. That is not the way we operate.
We think that the manager’s job is to help and support their colleagues, clearing obstacles out of the way so that every individual in their team is free to perform to the best of their ability.
This management ...
Read More
Q. Sharing advice and your experience in books and newspaper columns is one thing but are you not worried that your competitors gain an advantage by learning your secrets?
A. Look at other shoe repair shops and you will find that many seem similar to Timpson. Over the years they have copied many of our ideas and, indeed, we have copied many of theirs.
When we turned half our shops over to key cutting most competitors noticed and nearly every cobbler started cutting keys.
In 1996 we went into watch repairs and plenty of people in our trade thought we had made ...
Read More
Q We've been getting little response from the police for some years now to shop lifting and even one occasion of extortion. The recent riots have only reinforced in my mind that there is little meaningful protection for shop owners. What are your relations with local police officers like around the country? Are they patchy?
A During the recent riots we had a few minor incidents and one major problem. Our shop in Salford was ransacked and set alight. No complaints about the police who had the difficult job of restoring order and protecting the other premises, but wha ...
Read More
Q I am the owner of a small training business which has a main office staff and freelance trainers scattered around the UK. Despite our sector being hard hit by the recession, we are holding our own, actively planning for the upturn by increasing the number of courses and trainers we can offer, and I can see a clear way forward to grow, including diversifying into online training. The problem is, I am 65 and need to find someone to take on the day-to-day running of the business to release me to (a) take more of a back seat and (b) plot and guide the way forward. This per ...
Read More
Q I started a small charity, in Somerset raising funds for able and disabled young athletes in their quest to be part of Team GB for the 2012 London Games and beyond. Due to the generosity of the trustees it has incurred no costs whatsoever, all money raised has gone to the applicants and to a long-term Healthy Living fund. However, being based in a county far removed from London and the golden triangle of the SE we have great difficulty in raising funds. While I appreciate this is not the usual type of question you get asked, I would welcome your advice.
A I admire ...
Read More
Q Apparently I can apply for a job just by sending my LinkedIn profile. All well and good, but I feel that might look a bit unprofessional. And do I really want the personal detail that’s in a CV on a site the public can access? Would you ever consider accepting job applications in this way?
A I’ve looked at LinkedIn and I can understand the attraction to a networking executive who hopes to progress by moving from company to company.
We almost exclusively appoint from within. All of Timpson’s field management team started as apprentices. The onl ...
Read More
Q: I've just had two large customers push out payments terms to 120 days and have had to take it on the chin. I'm not a bank and need to manage my way out of this situation but they represent 40pc of our total sales. What would you do?
A: Any customer that asks for 120 days credit must either be immoral or in trouble. Unfortunately, you may have to continue trading with them over the next few months – but make sure they don't feature on your long term list of clients.
If they need so much time to pay you have to wonder whether they are heading for admini ...
Read More
Business Secretary Vince Cable identified some retail regulations to remove as part of the Government’s Red Tape Challenge last week. If you could remove just one regulation, what would it be?
Although we don’t sell liqueur chocolates or fly spray (which will now be free from red tape) any reduction in the rules must be welcome. It is common sense to get rid of petty regulations, but to make a real difference we need more freedom and less government.
Wouldn’t it be wonderful to be in a world of simplicity with a tax and benefit system which is so ...
Read More
Q I recently sold some shares in my business and took on a new director, thinking it would be good to share responsibility and the input of someone with broader experience than my own, which would help grow my business. All he's done so far, as far as I can see, is put a whole load of big company process into the equation, the most irritating manifestation of which is endless meetings in which nothing gets decided. How do you make meetings actually achieve something in your business?
A: Sounds like you picked the wrong man, proving the point that plenty of professi ...
Read More
Q. Your column on safety raised interesting points. It is indeed outcomes that matter, not process. No amount of paperwork ever saved lives, it is the creation of a genuine safety culture where everyone understands their role and takes responsibility which delivers real results. How do you think we can inject more common sense into health and safety?
Judith Hackitt, chairman, Health and Safety Executive
A. It was a welcome surprise to discover you share my view of regulation.
When I started in business 50 years ago women were paid less than men for doing the ...
Read More
Many years ago I had a client with about eight butcher’s shops. When one of his shop managers went on holiday, Mr H. would go into the shop on Sunday and scrub down all working surfaces, floors etc. Come Monday morning, a lady comes in for two chops. "Would you like a sausage to go with them and some bacon?" he would ask. And then he’d say: "Madam, I’ve some lovely this season’s English lamb coming in on Thursday. See you then."
He said it was so easy. When the manager came back from holiday, there would be left a note of t ...
Read More
Q My husband is over 65 and has worked at a golf club over the past 10 years, never having a day off sick. As a caddie master this job entails taking bookings on the computer, together with acting as a ranger over the two courses.
In March the club wrote to say they have now put in a retirement date for him and he must leave at the end of September. He has the right of appeal which he is going to do, but he feels it will be a formality. My question is, there are six caddie masters and the club is keeping four. They have given notice to the two oldest. The club is n ...
Read More
Q We’re a retailer and need to shift some stock as we’ve over-ordered. What works best?
A The best stock clearance sale I ever had was in 1975. At that time the Timpson shoe shops were part of the UDS Group (along with other retailers like John Collier, Richard Shops and Allders). I had recently been put in charge and like many new managing directors I was keen to clear the decks by attacking a lingering legacy of slow-moving stock.
It was a bold move. I closed all 250 shops for two days, completely covered the windows with posters and advertised on ...
Read More
Q. I run a business supplying specialist services to the public sector that has been savaged by the cuts. We’ve gone from 20 people 18 months ago to just me and one part-time, long-standing employee – and she is just about to go on maternity leave. The company is solvent – just – and I’d really like to quietly close it down, but under maternity legislation I cannot make the remaining employee redundant, meaning I have to continue trading or go into liquidation. The former is not practical and the latter will leave a stain on my record as a d ...
Read More
Q We are switching away from a key long-standing supplier because we can get a better price and hopefully service elsewhere. How do you handle it?
A I believe in cultivating long-term relationships with our suppliers, by developing a partnership based on an open exchange of information. But from time to time the bond between buyer and seller breaks down. Often the supplier simply fails to keep up with the market or sometimes they get too greedy.
It’s often a mistake to drop a supplier on a whim. It isn’t just a question of price, think about service an ...
Read More
Q I am interested in how you measure the financial performance of your private company. Presumably you have sales and profit targets for each of your 800 plus shops, but do you have KPIs for the group as well as cash flow, profit and sales targets? If so, how do you chose some indicators over others?
A A long time ago I learnt that having a lot of figures doesn't mean you are better informed – it just makes life more complicated.
In the 1980s, we set budget sales figures for every shop every week, our Finance Director insisting that individual shop numbers a ...
Read More
I'm starting to get those panicky calls from friends who own businesses looking for reassurance that they are making the right business decisions in this tough economic climate. What's your sense of how well the people running established companies are coping with the current trading conditions?
There is sense in the suggestion that some of the best decisions are made during a downturn and it is probably true that many major mistakes are brought about while business is booming.
When times got tough two or three years ago weak businesses were exposed, especially those ...
Read More
Q The Government has repeatedly said that business must create more jobs to get the country out of this patchy economic recovery. Are there any incentives that would encourage you to create jobs? For instance, if companies received directly the unemployment benefit of an individual for the first three months of his or her employment with you, would you be more likely to take on extra people?
A I have yet to find a government subsidy that is provided without strings attached. Three years ago we searched for a formula that would allow us to receive support for our ap ...
Read More
Q One of my shops is in a small town which is becoming more run down each week. I am sure you will be familiar with the scene. Shops are closing and customers are disappearing. I have three other shops, which can support this loss-maker but not forever. When should I cut my losses and close the shop?
A Cut out any loss-makers as quickly as possible but before deciding to close check that the shop really should be losing money. Textbooks say that retailing is all about location – if you have a pitch in the perfect spot you are bound to do well. I disagree, in m ...
Read More
Q. My company has a cash flow problem brought on not by the recession but by the extraordinary spell of fine weather in March and April and by this year's sequence of bank holidays. Sales are significantly down as our customers have had other priorities. I do not know if these lost sales can be regained. Do you have similar experiences and, if so, can these lost sales be recovered?
A. I used to hate the heat – shoe repairs always do better when it rains, which makes sense when you think about it: puddles provide the perfect indication of holes in your soles. B ...
Read More
Q I’ve got a hot-headed co-director who’s making my life a misery. He overreacts to everything – he even threw a computer monitor across the room when it broke down last week, and has visited customers personally to deliver some colourful language when they’ve been late paying us. I want him out of the business, but fear he’ll try and sabotage us if I get my wish. What would you do?
A I am wondering whether your co-director has always been so impossible, or is this a recent change in his behaviour? Have some serious problems cropped up ...
Read More
Q We’ve had a remarkable spate of departures lately, including some key staff. Sales seem to be holding up and I’m pretty happy with the replacements we’ve brought in, but hiring is expensive and I’m worried that company morale is suffering. How should I investigate – would exit interviews do the trick?
A I wouldn’t bother with exit interviews – we don’t. They seldom tell you anything that you don’t already know – and leavers often lie about the real reason for their departure.
The more useful interviews ...
Read More
Q I've spotted a budding office romance in the company. I trust the staff concerned to be discreet but should I be worried about the distraction it might cause?
A It all depends on whether it is a romance or an affair. If the liaison is likely to break up a marriage or you are faced with an over-friendly colleague in finance who is flirting with your sales director's young daughter while she is on a week's work experience it is wise to have a word before too much damage is done.
In most cases, however, courting colleagues are a normal part of company life. A ...
Read More
Q. I’ve just been on Facebook to check out a new recruit and she looks like a right party goer judging from the pictures. It’s making me think twice about employing her as we need to be completely professional with clients. Does Timpson use Facebook and do you check out potential recruits?
A. Despite the repeated pleas from PR and marketing consultants we resist all temptation to use social media to promote our business. Instead of weaving a devious web of contrived comments on the internet we prefer to spread our reputation by giving our branch colleagues ...
Read More
Q. I've just received a doctor's “fit note” from an employee who has been ill and it is gobbledegook to me. I've sent him home again to get better – I don't want to open myself up to a potential claim if he crocks himself on the job. Have I done the right thing?
A. Even if you can't read the doctor's writing, don't worry, there is no need to stick to his timetable. His notes should simply be treated as advice, they are not an instruction.
If a colleague wants to return before the time specified by the doctor, arrange to meet the employee ...
Read More
Q We're a family business and last year hired a non-family director to take our business in a new direction. We needed some fresh perspective and she's brought that. But now we need to keep her and the thorny issue of equity has cropped up. How have you kept key non-family members on-side?
A Presumably your family hopes to keep control of the business and there are no plans to sell. There is therefore no short term prospect of a capital gain. Family members receive a dividend and those who work in the business also get a salary.
If your non-family director is pl ...
Read More
Q We haven't been able to offer pay rises to our employees for almost two years and I'm concerned about retention and morale. A contact has recommended investigating alternative benefits such as offering share options to staff. Have you ever considered such a move?
A You have every reason to be concerned – if your pay scale has been frozen for two years, expect some of your top performers to be looking to move elsewhere. The offer of share options in a business that can't afford to pay a proper rate for the job is unlikely to persuade unsettled people to stay.
...
Read More
Q How are you coping with the planned abolition of the default retirement age from April? Are you handing out the long-service clocks now while you can?
A In my view (and I am nearly 68) this bit of legislation is another example of a regulation that (while purporting to protect employees) has the potential to make matters much worse.
When I hear employers are worried about being accused of ageism if they politely ask 60-year-old employees when they plan to retire I am finally convinced employment law is drawn up by bureaucrats that will never be fit to run a ...
Read More
Q As a new business developing its distribution network, long-term success rests in being able to get an established retail chain on board. What advice do you have for small businesses looking to supply to retail multiples?
A Before committing yourself to a multiple retailer it is worth thinking through the implications. Every big buyer is going to look for the best price. You don't have to be the cheapest but you must offer good value for money.
Assuming your products compare well with the competition and can retail at a price that gives both you and the retail ...
Read More
Q Two thirds of my company's revenues come from one activity – sales of a cheese – and my business partner thinks we should split this from our other food product activities so it gets the attention it deserves and we appear bigger. I disagree – won't this just mean we add costs, become less efficient and dilute the brand?
A Your question doesn't really give enough information. You say that 65pc of the sales are cheese, but what else do you sell? Perhaps you are in the yogurt business, or is it something completely different like baked beans or ban ...
Read More
Q: What makes for a perfect sales pitch?
A: No magic formula can guarantee sales success. There are some essential ingredients – a good product, knowledgeable sales team and diligent preparation and often you need a bit of luck.
Some years ago we tried to define what makes a great shop manager. We found that the star performers came in all shapes and sizes. The one thing they had in common was their positive personality. Most of our managers are pretty competent at shoe repairing, key cutting and watch repairs but the best sales are produced by colleagues w ...
Read More
Q How do you keep the required paperwork, such as policies and documentation, ready to hand and up to date in all your shops and business units? In my small businesses, there are large amounts that legally need to be kept and brought out from time to time, some expensively issued by solicitors. Is there a system I can adopt?
A Each of our branches has a folder containing policies on sickness, holidays, discipline and equal opportunities. In addition, every colleague receives a handbook covering all these points and many more. Everything is written in plain English.
...
Read More
Q You entered Sainsbury’s in Winchester with a flourish, offering five shirts washed and ironed for one price with a four-day turnaround. The branch is now charging more and the turnaround has risen to eight days, having earlier gone from four to five to six. You cannot be expected to know this level of detail, so my question is, how do you ensure your regional management are aware of the service levels and then put in place action plans to effect change?
A Your letter poses a specific question about how we ensure our area team keeps the required service stan ...
Read More
Q: We’ve been trading for three years now and my business partner and I have been through some tough times. The business has survived but our relationship hasn’t. I’m loathe to rock the boat now we have new orders coming through the door but I know one of us has to raise it at some point. What would you do?
A: You have already decided there is a problem. If you leave it to fester much longer you are in danger of damaging the business. Differences at the top are bound to disrupt the day to day management.
What result do you want? Is this a passing ...
Read More
Q The large high-street retailers and supermarkets are getting tougher on their suppliers and I’ve had enough. If I can’t make any money from selling to them, I don’t see why I should. It means turning away a large volume of our work and making people redundant, but I don’t want to be a busy and penniless fool. What do you think?
A If you can’t offer great value for money don’t bother the supermarket buyers. They are trained to get the lowest price and their promotion prospects depend on making the maximum margin. Some can be difficu ...
Read More
Q The snow has caused chaos again and I've noticed my local Timpsons was closed the other day. How has it impacted on your business and have you applied any management lessons from the heavy January snow falls this year?
A It has been a difficult week. The snow might be good news for shops selling sledges and sheepskin coats but it is a killer for cobblers.
However, there is no point in panicking, there is nothing I can do about the weather and I certainly can't blame our branch colleagues for the drop in turnover.
I have received reports from all over the country ...
Read More
Have you considered running your business by the 80:20 rule? If you shut 80pc of your shops, would you retain 80pc of the profits from the remaining 20pc high-flyers? If you did this I’m sure life your would be a lot simpler.
The 80:20 rule is a statement of the obvious that offers very little help to the experienced entrepreneur. In a nationwide chain some shops are bound to perform better than others. It is much easier to take money in Windsor, Winchester and Witney than tougher trading towns such as Bootle and Billingham.
Accountants and statisticians who sit ...
Read More
Is a company car still a justifiable part of a remuneration package? In the past, it was a means of avoiding pay freezes and tax. Now it can be seen as discriminatory, environmentally-unfriendly and costly.
Your question has a hint of the national negativity that does nothing to help British business. I don’t understand why we are so reluctant to celebrate success. It is about time, instead of criticising high achievers, we allow them to enjoy success. For many, the car they drive is an important measure of achievement. I see nothing wrong in that.
The tax a ...
Read More
Do you have a product development team or a new ventures unit? Where are your ideas for new products and services coming from?
We don’t have a department devoted to product development nor do we have a marketing team; we don’t do market research and we have never used consultants to tell us how to shape the business.
This is not an attempt to save money, my son James and I are finding new ideas all the time as we travel round the business. Our "Upside Down Management" style encourages colleagues to innovate, it gives them the authority to do ...
Read More
Q Many suppliers to multiple retailers continually complain they are unfairly treated in price and payment negotiations. Do you have long-term suppliers who have grown with your business or are you in an ultra-competitive market, which means the cheapest offer will prevail?
A If you are purely purchasing a commodity then the major considerations must be price and payment terms. As a result e-auctions are bound to play an increasing part in the buying game. But we still rely on several suppliers whose service level is just as important as price. Personal relationship ...
Read More
Q I have started up a business recently and it is going as well as I could hope for. A competitor has come up for sale and I feel I must go for it. Have you any guidance on the price I should pay, perhaps by the number of years to get a payback?
A First of all, you don't have to do anything. Sometimes what appears to be the opportunity of a lifetime can be a step too far. Before you even think about the price make sure it is a deal you really want to do.
Acquisitions can put the core business at risk, it is easy to take your eye off the ball when the deal is bein ...
Read More
We're swamped with applications every time we advertise a new post and, to be honest, we don't have the time to read them all let alone give them all a chance to impress us. The danger is we'll miss someone really good just because of the volume. Do you have any tricks to filter out all but the very best applications?
Why not ring them up? People can often reveal their personality at the end of a phone. A quick call could save you from a boring interview with someone who is only good at writing CVs.
Try a bit of delegation. You don't have to do all the scree ...
Read More
Q Are you an equity or debt man? I'm debt every time, if I can get hold of any, as I don't need any outside investors telling me what's best for my business.
A Assuming you are heading for success, selling off shares is bound to be the most expensive form of funding. Equity will only seem cheap if your business is about to do badly.
It is almost certainly better to borrow from a bank, but wherever the cash comes from expect some sort of interference – lenders like to know what you are doing with their cash. The only way to be entirely your own boss is to ...
Read More
Is Timpsons having to comply with the Government's carbon reduction commitment as I'm having a nightmare working out our energy use for the period they want (2008)? We don't have to buy any permits on the scheme but do have an electricity meter that means we have to supply the Environment Agency with our energy consumption.
Fortunately we escape as our shops use too little energy to cause us to fill in a form, but that doesn't stop me showing sympathy to those trapped by this irritating bit of bureaucracy, and worrying that Carbon Credits and Permits will create a f ...
Read More
September is always a frantic month for us after the summer lull. What are the best and worst business ideas that you've dreamed up while on holiday and put in place when you got back?
I am on holiday right now and, apart from submitting the copy for this column, my wife Alex has banned me from doing any work. But she can't stop me thinking about it.
Sitting on the beach with a clear mind, the business seems so simple and the ideas start to flow – each one an obvious winner, but I can only remember one holiday brainwave that was a real success.
Fo ...
Read More
Q You cite retailer Richer Sounds as one of your favourite businesses. What is it that they do that your really admire?
A I first came across Richer Sounds many years ago when I read Julian Richer's book The Richer Way. His book was so full of common sense that I filled several pages of an A4 pad with his ideas. The ideas are not only original, they work. Thanks to Richer Sounds we now have holiday homes for colleagues and a residential course for new starters so they can quickly understand our culture.
Richer doesn't follow convention, by daring to be different he ...
Read More
Q I need to take some important investment decisions, which will have a bearing on the performance of my retail business in 12 months' time. My problem is that I am confused by all the official forecasts emanating from "those in the know". What is your forecast for the UK retail market in 12 months?
A Don't be deceived by any bullish forecasts coming from your competitors, there are always too many good news stories going around for them all to be believed. It's safe to assume that things will be better than you fear and worse than you hope for.
With ...
Read More
Q: I have an over-achiever in my sales team who delivers great revenues and earns good commission. But a number of employees can't stand working with him and we have had perennial disciplinary problems with him. I don't want to lose him, nor do I want to be seen as a soft touch just because he brings in the cash. How do you manage mavericks in your business?
A: You have to decide whether he is more of an asset than a liability. The others may simply be jealous of his success. They will certainly be conscious that his spectacular performance has raised the bar, making ...
Read More
What's the juiciest piece of gossip, sorry, market intelligence, that you've picked up and what have you done about it?
You may think we gain market information by listening to gossip and market rumours: I couldn't possibly comment. If I revealed our secret sources they wouldn't be secrets any longer, so anything that follows is pure fantasy.
A few years ago one of our managers was in a cafe when a couple at the next table started to talk about a local chain of shops, one of our competitors. They discussed every shop in detail – turnover, profit and staff prob ...
Read More
A key member of my team left about three months ago. While I wasn't too concerned at her departure, in the subsequent months three people she worked with have resigned and I suspect others are looking around. Should I regard this a natural process that will clear out people who don't really want to be here or do I need to take active steps to stop the rot? If the latter, are there any simple steps you've used in your business that I could adopt to boost morale?
You are bound to be worried if people are leaving without being pushed, but if they are unhappy you will b ...
Read More
Question: Our revenues remain down and show no sign of recovering in the near future. The problem is we've always run our sales team on a hefty commission basis. Naturally their pay has suffered over the past year and we're starting to lose some of the good ones. I'm thinking of shifting emphasis on to salary, but some directors think we should move the other way and be even more aggressive with our commission to give everyone a boost. What do you think?
Answer: It is difficult to decide which is your most pressing problem – losing sales or losing salesmen. Le ...
Read More
Did you ever think of franchising your brand? What are the pros and cons?
Franchises work well when the business has a memorable marketing formula and work best when talented people take on the role of franchisee.
Twenty years ago colleagues franchised 15 of our least profitable branches. The 10pc franchise fee immediately increased our profit and most of the franchisees made more money by working on their own, increasing turnover and cutting costs.
A few franchisees were unsuccessful (in retrospect we picked the wrong personalities). As we had originally ...
Read More
Q What is on your list of things to do before you head off on holiday?
A The world is divided into two types – people who try to fix everything before they go away on holiday and the rest who put things off until they get back. It is better to be a "do it now" manager, and leave a clear desk before you head off for the beach.
Announce your holiday dates to anyone who needs to know. It is irritating to ring someone on a Monday morning to hear the holiday voicemail message "I am now on vacation and will be away from my desk until . . .". ...
Read More
Having recently enquired about the number of days paid holiday I receive annually at my current employer, I have been told that I should be receiving another two days a year, as the rest of the staff in the company receive 25 days and not 23 days as I get. I have worked for my current employer for six years. Am I entitled to be paid for my lost days over this working period or at least have my days back this year, thus, getting an extra 12 days holiday this year?
Not good news for you I am afraid. Gouy, my resident employment expert tells me that Working Time Regula ...
Read More
Q How should businesses plan for a long period of uncertain trading conditions? It feels like we’ve been through the mill in the last two years and my nerves are shredded.
A Remember that the tough conditions we continue to experience are the same for everyone else. You might, in the face of lower demand, make less money but you can still aim to make your business better than your competitors.
Be positive, smile as you walk round the office. You don’t want your natural anxiety to transfer to your workforce. But don’t hide the truth. Everyone in ...
Read More
Q If you were starting out in business today and had to pick an entirely different industry, which one would you choose and why?
A It took me so long to find the right answer to this question, I started to dream about it. Even in my sleep I knew enough about myself to realise I was not cut out to be a career civil servant. My maverick attitude would not have enjoyed red tape, but I dreamt of plenty of possibilities in the private sector.
In the first dream I created a restaurant chain, no doubt prompted by our pub on Anglesey, but I confess the success of Th ...
Read More
Subscribe