Zebra fuel

Listening to the BBC I came across Zebra Fuel, who are a start up in London who will come round to your house and fill up your car.  They claim to be no more expensive than your local petrol station.  Which in London is apparently turning out to be not so local.

In the North of England where I live land is not so important.  But London has reached some quite staggering land and property values.  I am constantly amazed that the commercial infrastructure continues to work as for almost any business in London there is more money to be made by closing the shop and selling the building than can be made in a generation of hard work.  Ok, I have not done a detailed financial analysis, but I hope you can see where I am heading.  The average 2018 property is selling for £600 000.  Working on a 5% profit margin a shop has to bring in £12m to make that much money over a period of 24 years, say £500k per year, that is £10k/week, or £2k per day.  How many shops turn over that much?  Actually for a petrol station most, as that is only 40 fills - though really probably 80 would be needed as petrol only has profit margins of about 2.5%.

Anyway my point is that if you own a petrol station in central London you can have a quick windfall by selling it for development, or a long slow slog to make the same amount of money.  (let's not worry about future property values, and net present value of money over 24 years...).  Which would you do?

Petrol stations therefore are closing, and likely to continue to do so.  Electrical vehicles will only make this trend worse in the medium term.The prevalence of small corner shops and Supermarket Local branches means that the petrol stations other role as the shop of last resort is covered.

Zebra therefore makes sense as a value proposition - they can invest in out of London depots and delivery vehicles (ironically possibly electric to avoid the congestion charge), which may turn out to have lower costs that being physically based in London.  The customers don't waste their time finding a petrol station and then filling up.  So in theory there could be lower operating costs, and customers (in future, once the principle is established) willing to pay a premium for convenience.

Sounds very plausible. 

Apparently they have ambitions for Paris, but I suspect it will take a long time to come to Yorkshire.

It reminds me of a company in Manchester called Diesel Weasel who would go round and top up generators on construction sites on a daily basis.  They are no longer around (it appears) but I think Zebra have a good chance.  In business you never get more than that.

Digital and Marketing Mixer 21st March 2013

The Connecting Manufacturing event at the Shay in Halifax was a big success, and we are following it up with a Digital and Marketing industries mixer at the same venue on Thursday 21st March 2013.  See the flier below.

Knowledge Transfer Networks

Bradford University School of Management

These workshops are free and are delivered by the Knowledge Transfer Network@Calderdale and are part of the Business Growth Calderdale programme, part financed by the European Union. The project has attracted £1.1 million from the Yorkshire and Humber European Regional Development Fund (ERDF) Programme 2007-2013.

The Digital and Marketing Mixer

21^st March at the Shay stadium in Halifax.

Registration for delegates will start at about 8.45am and the event will run through to 12.30pm

If you are having difficulty with strategy and marketing; sales or brand; if web and e-commerce are hanging like a weight around your neck. This is your chance to ask the daft questions, get some guidance and search for some solutions all in one neat bundle.

The ‘Digital and Marketing Mixer’ event on the 21^st March at the Shay stadium in Halifax. It will run 9.00 a.m. though until 12.30. Registration for delegates will start at about 8.45am.

It will be pretty fluid on the day but it would be helpful if you could indicate what your interest at the event might be:

·        Look for collaborations (some indication of specialist areas or skills you might be looking to link with)

·        Question an expert panel about a digital or marketing related topics (half an hour)

·        Air a problem in an advice clinic and get some concise advice (15minutes or so)!

·        Look for suppliers and customers

·        Listen to some development presentations (presentations will focus on sales, social media and PR).

There are no costs or fees for attendees as it’s fully supported by the European Regional Development Fund and by Calderdale Council under the Business Growth Calderdale initiative. It doesn’t matter if you come from outside Calderdale you can still attend.

The idea is to bring together lots of marketing, e-commerce, applications, software, PR and design businesses in one place to show the strength of the region and to create some opportunities to build partnerships and strategic alliances and get some business done.

If you want to register for the event please reply to ktnetwork@bradford.ac.uk in the first instance by email and we will get someone to contact you.

Thanks and hopefully see you soon.

Update on Connecting Manufacturing 28th Feb 2013

We shall have 10 Buyers, about 30 exhibitors, more than 100 delegates, and 4 presentations.

I am giving 2 of them, which may or may not increase the attractiveness of the event to you.  But they are both short.

The presentations are;

o           Presentation 1: Making the Most of your 10 minutes, Paul Wright MD of PAWA Consulting

o           Presentation 2: Dragons for Breakfast, Chris Hopkins MD of Ploughcroft Ltd.

o           Presentation 3: Cost to Serve, Simon Hopkins, MD Hatmill Ltd.

o           Presentation 4: Innovation, Paul Wright, PAWA Consulting Ltd.

Further information below;
http://www.businessgrowthcalderdale.co.uk/announcements/118/Connecting-Manufacturing

To book send an e-mail to

ktnetwork@bradford.ac.uk

Book Review: Intervention - The Battle for Better Business

As the economic continues to bump along the bottom in the UK, there is a continual focus on the ways to increase entrepreneurship and stimulate the economy.  Many of the people who have found themselves outside of regular employment are setting up in business for themselves, creating a new wave of business start-ups.  There is considerable academic (and far from academic) debate about how best to support entrepreneurs, whether we should, and if we do what types of entrepreneur to support.  Should support be focussed on so called “high growth” prospects, which have the capacity to grow rapidly from a few founders to companies employing hundreds?  Should we instead focus support on the large established companies that employ significant numbers of people?  Or are those businesses types of business able to support themselves, and should we focus on the small one man band new entrants to the commercial world?

These arguments are not new, and I have just finished reading a book that covers some of this ground.  Intervention – the battle for Better business (by Elliot Forte) covers the history of the BusinessLink business support group in the UK since its introduction by Michael Heseltine to the effect abandonment of the model under the current coalition government.

In the name of full disclosure I should point out I was both a client of and supplier to a variety of Business Link organisations, and so benefited greatly from their activities during the past 15 or so years.

The book is written by a Business Link insider who obviously valued their activities, and sees it as a shame that they have been closed down to be replaced by a website containing basic business information.  He is hardly uncritical of the way the organisation(s) operated, and in particular the way they had to adapt to constantly changing political priorities.  (one Business Link Operator I worked with closely changed its name, remit and organisation every 2 years for a decade – which was hardly beneficial for productivity).

I tend to agree with his conclusions that Business Links were particularly beneficial for the smaller operators.  There is an argument put forward that most of the information needed to setup and run a successful small business is available on the web – but many people setting up for themselves are practical people who benefit from a conversation rather than trawling through web pages.  For the same reason the excellent books provided by banks to new starts tend to sit on the shelves.  I think these micro start-ups are the ones who benefit from business advisors – but they are exactly the people who do not have the money (or self awareness) to employ one.  The larger and potentially more successful businesses can buy in their own support rather than using a government subsidised service.

Perhaps the biggest problem is the 10 to 50 man business that would benefit from external business advice, but is sceptical of consultants and will not employ them.  Here the Business Links provided a good introduction at subsidised prices, often free.

The book highlights the relatively low cost of Business Links and the large number of businesses that they touched – however lightly.   The current Business Link website largely duplicates and consolidates  information available in other places.  The government is focussing resources on companies with potential for rapid growth through the Regional Growth Fund, which is equivalent to the running costs of Business Links for a decade.  So we are placing quite a large bet on companies meeting their potential.

My concern is that we have a new community of small scale entrepreneurs starting in business during the depths of a recession.  Those that come through this will be the foundations of Britain’s next entrepreneurial community – but many will fail when their redundancy money or savings runs out.  A little bit of government funded support could increase the percentage making it through, and give a stronger business community in the future.  I too think the Business Links were a useful, if far from perfect, contributor to business success in the UK.

Government becomes an office landlord

The government has just announced a scheme where empty office space in public sector properties will be leased to small businesses.   The aim is to encourage entrepreneurship, and strengthen the small business sector whilst helping to generate income from public properties that will otherwise sit idle.  These are laudable aims, but I have strong reservations about the scheme in practice.

Firstly, the government is setting itself up in competition to private sector commercial landlords.  I don’t know about in London, but in much of the country there is no shortage of commercial space available at low rents and flexible about the size and duration of the lease.  It may be a big problem in London, but it is not in Leeds where the scheme was launched, or Bradford where I am based.  In fact there is a problem of too much space chasing too few tenants.  The government offering their surplus space, whilst a reasonable commercial proposition, is likely to end up undercutting the commercial offer (by offering better facilities, infrastructure. decor etc. for the same price) which in the end may lead to a lessening of total space available and in the short term may drive some commercial spaces out of business.

Enough sympathy for the landlords (sorry Ben and Helen, who provide my office space).  The bigger worry to me is that the government is sending a message that start-up businesses need formal office space.  Some do – but they can probably look after themselves.  Obviously manufacturing tends to need dedicated premises, which is one reason it is so hard to start successfully.  Service industries, including retail these days, often do not need their own office until they are large enough to pay for them at commercial rates.  New businesses are often better setting up from the kitchen table or garage until the cash flow is strong enough.  I was based at home for nearly 10 years.  People starting off in business are sometimes seduced by the glamour of setting up, when what they need is to strip out anything that does not generate cash.  A website is a much better investment than an atrium.

Feel free to disagree.

Business Basics: Looking after your health

The Head of Lloyds TSB, Antonio Horta-Osorio, is taking medical leave after suffering from physical and mental exhaustion.  There has been speculation about whether he will ever return, but thankfully relatively little suggestion that his illness showed that he was not up to the job.

There is a common machismo in business that can easily lead people to overwork without taking care of themselves.  It is an easy trap.  Office life is pretty sedantary, commuting is both stressful and sedentary, and much business life revolves around either lunches or fast food grabbed on the run.  It is easy to put on weight and take no exercise.  And to cap it all wine or beer often accompanies the lunch or dinner, or is an easy way to relax after a stressful day with the boss, co-workers or customers.  Holidays are distractions from the office, and thanks to blackberries and the internet often not even that much of a break.

I'm not being moralistic, and my wife will point out that I am guilty of much of the above.   Especially not taking at holidays and working at weekends.  My self justification is that my income depends on the level of work I do, and so a holiday costs double in both the cost of the holiday itself and lost income.

This cuts little ice.

And rightly so.  What we often dont think about it that if we do not take breaks, eat and drink moderately, and excercise well it actually interferes with our ability to do the job.  Maybe not in the short term, but for most people the working career is long.  And getting longer.  We can now expect to be at the coalface for 45 years or more.  That is a marathan not a sprint.

When we are stressed and have poor health we tend to make poor decisions.  We tend to be depressed and morose, or occassionally manic, and our judgement goes.  Of course we don't notice it.  But it happens.
And we are no use to the business if we have a heart attack (or worse).

Exhaustion is easy to fall into.  Your body and brain just pack up with the stress and exertion.  Some people come back more aware and able to prevent it in future.  Others never come back.
  So no matter the workload and the crisis, try to put some effort into looking after yourself.  Athletes train and watch their food to ensure they perform at the top level.  Business people need to do a bit of the same.  Only a bit - today I have just had a delicious bacon butty, but I did go to the gym.  I found that setting gym visits as a KPI helps me to go regularly - otherwise it is just something I intend to do but don't get round to.  I might not make my 100 gym trips per year, but recording how many I have done (and how many still to go) helps me focus.  For you it might just be scheduling a daily 10 minute lunchtime walk to the coffee shop.  My today list has a little section for personal development which includes going to the gym.

Your doctor probably gives you all the advice you need on this (mine has wanted me to lose 10kg for 20 years), and I don't to be another nag.  Just that you need to think about and prioritise your health to ensure you can work at peak performance for nearly half a century.  The usual suspects - watch what you eat, stop smoking, try not to drink too much, take regular holidays (ideally somewhere with no Blackberry reception - I recommend the Scottish Borders!), walk or take regular exercise.  You are no use to anyone if you are dead.

And incidentally the same applies to your staff and direct reports.

Basics of Business - Networking

Networking is one of the elements of business that is sometimes taken for granted, but is actually still a source of discussion.  While salespeople, consultants and other snake oil sellers see networking as essential, there are still plenty of people in business who don’t see it as essential.

The arguments against networking are several – that it is time away from the office that should be spent on productive work, that it is expensive, that staff use is as an opportunity to promote themselves rather than the company, that it is entertainment rather than work, that there is no guaranteed benefit, and that it is full of salesmen rather than customers.

 All of these can have some validity  - but if you think that by stopping your staff from networking they will not meet other potential employers, then you are underestimating the work of recruitment consultants.  You are also missing out on a lot of potentially valuable information. 
A couple of anecdotal incidents from the past week or so.  A colleague I met at a networking lunch has just rung me up from the Middle East to tell me about a London based company looking for some training providers. 

Secondly, last week I was at an event where a colleague found out the top management of  a major competitor had resigned en masse to set up their own company.  This is not the sort of information  that  comes out quickly through formal channels, and it means that there are opportunities to take advantage of the distraction of the competition – at a least for a while.  And yes, a potential job vacancy to be considered too.  Without networking it is likely that much of the window of opportunity would have passed by unknown.

If you are going to use networking in your organisation, and I suggest that you should, you should consider a few key points;

-          Set a target number of days for networking – say 2 per month.

             -          Consider what you want out of it - sales leads, market info, ideas, contacts, a new job

-          Ensure information is shared back home - a quick note is enough

-          Practice your Elevator speech - if you have a chance to make a good impression be ready

-          Think about what organisations you want to link into - customers, competitors, suppliers, academia, media

-          Follow up on contacts made – and categorise them with bring forward actions

-          Share – be reciprocal.  People want you to give as well as take

-          Be prepared to cut events that are too full of the wrong sort of people

-          Recognise that events with the right sort of people are limited

-          Recognise that it is a numbers game – there is no guaranteed win on any one event

-          Recognise that it is a long term game - sometimes things take years to lead to business

-          Don’t limit it to your sales people – technical people need networks too

-          Practice networking skills if you are not a natural

-          Don’t be afraid to ask questions such as “who do you use for…?”

-          Be aware of any IP that you want to protect (e.g. who you use for…”

-          Make sure networkers are aware of the need to avoid any activities that could be considered collusion or market fixing (e.g. discussing prices).

-          If you are not getting what you want, then consider other networks rather than stopping networking altogether

-          LinkedIn is great – but it is not an alternative to physical networking.

Government support for SMEs

The latest Business Link Newsletter has come round, outlining what the government is doing to support SMEs - in particular in winning business from the government. The news is mixed, and as always with governments of all persuasions contains a mixture of real initiatives, hope, aspiration, spin and the rehashing of existing initiatives as something new.

Large businesses are encouraged to pay smes quickly. This is laudable, but without any real government push behind it is essentially just a wishful idea. Anecdotal evidence is that larger companies are pushing out their payment terms, essentially banking with their sme suppliers, confident that their suppliers are desperate for business. SMEs generally would be happy if their large clients paid on time. Quicker payments would be a real bonus. Quicker than 30 days is probably unrealistic. 30 days exactly would probably be fine for all.

The pressure on major contractors to government to make quicker payments down the supply chain is welcome, but needs some real teeth. When suppliers are dropped for failing to pay sub-contractors they will take real notice. Until then they will pay lipservice until they feel it is safe not to do so. Publishing the data on a website is also to be supported as a general principle, though I am not sure what will be achieved. The public are not interested, and the SMEs already know, and I am not sure that shame will be sufficient. In fact you could argue that the shareholders will be pleased to know that contractors are pushing out payment terms, and therefore increasing their returns.

14 departments have eliminated the PQQ process for low value tenders. This is valuable for SMEs, though as I have argued long and weary a similar benefit could be achieved by all departments using the standard OGC PQQ template for all tenders. Then SMEs would only have to fill it in once. It could even be stored on government servers - as was tried in the One Form initiative in St. Helens. Back in February Robert Peston of the BBC pointed out that eliminating the PQQ process was not a sure fire way to get more competition - see here.

Contracts Finder continues to limp along, and is not really finding traction. The private sector alternative services seem to be able to provide a more extensive service, and so are (if not thriving at least) continuing. The number of contracts published seems low compared to the long standing equivalents in Scotland and Wales. Scotland are trumpeting the fact that their service is now publishing more opportunities below the OJEU threshold than above - which is of real relevance to SMES. It seems like there are lessons to be learned from the existing services.

Contracts Finder has lead to 600 contracts being let to SMEs since February - about 150 per month. Hopefully this will accelerate. The value is over £80m, which means the average contract was for £133 000, or about the OJEU limit. This is fine for some SMEs, but is very large for the smaller SMEs and micro businesses. Real success would be to get that down to, say, £50 000. Then opportunities would be be accessible by even the smallest businesses.


The 9 winners of the government's Innovation Launch Pad Product Surgery competition, out of 350 SMES were able to pitch their ideas to government. Laudable in itself, but why a competition over 3 months to pitch these ideas? Why not a series of Meet the Buyer events which would have allowed all 350 to pitch? The winners look like interesting businesses, of real benefit to the country. However many of them are existing suppliers to the government, and were pitching products that they already sell to the government. Hardly the sort of innovation that we need in these times - they should be being promoted by standard practices. One winner (Learning Pool) has saved the government £30m over the past two years - why do they have to pitch again? Why are they not being rolled out as best practice? More information here. A good idea, but again more needs to be done.