nebusiness

The highs and lows of Contract Hire

Tue, 30 Jun 2009 17:57:39 +0000

Is your company firmly embedded in the world of Contract Hire to procure vehicles for your business? If so, prepare to be bitten on the rear end! For as long as I can remember Croft has used Contract Hire as a means to source all sorts of vehicles as there are some sound reasons to do so. The obvious reasons are that your company does not have to manage the risk of residual value deviations, maintenance cost arguments are not your problem and in our case, it allows us not to have a full time Fleet Manager. Enter stage left the quotations for our batch of cars due to be replaced in September. I wish the lady who handles renewals within Croft, Margaret Welsh, had said "put your tin hat on" before giving me the bad news. A like for like quote for a Mazda 6 over a three year term, with no increase in the list price, resulted in a £104 per month increase. And before my heart started to beat normally again this good lady followed up with "and there is a 3% list price increase on the way as well." I am trying to come to terms with what the Contract Hire companies are trying to achieve with this move. Is it to recover from the horrible losses they must have been hit with because of the unpredicted drop in residual values, particularly over the last 12 months? Surely they can't be expecting these values to drop even further at the same alarming rate over the next three years! Of course, if the price leasing companies get when they send "end of term cars" to auction is some £3,000 or so down from the book value they would like to achieve then surely this is compensated by the current list price being discounted by a similar amount. Where is this leading to for our company? Have we hit the point where, during this current turbulent time, we revert to outright purchase? There are deals to be done however a strict and tough write down policy needs to be in place and provisions for remedial repairs and servicing costs need to be considered to ensure the profit and loss account isn't hit with black holes. However these things are trivial compared to the return of the ding dong battles that will take place between Margaret and the service outlets we will use over why they are charging us for brake dust cleaner and who asked them to charge us to fill up the washer bottle with expensive windscreen washer fluid!!!!

Keep it simple to take pain out of pensions

Tue, 23 Jun 2009 13:22:06 +0000

THE pensions crisis is a huge millstone around the neck of public finances - and the private sector will be next to feel the pain. From 2012 the Government's new Pensions Bill comes into force and will require employers to make a 3% financial contribution to pension schemes for staff earning between £5,035 and £33,540.

Outlook's bright - but recession is still here

Tue, 23 Jun 2009 13:22:06 +0000

FORGET the feel-good stories, the recession is not yet over for businesses. A raft of positive data has lifted some of the gloom surrounding the economy - but try telling that to Corus and other firms still mired in the fog.

The must-have gadget of the summer or is it all hype?

Fri, 19 Jun 2009 09:15:40 +0000

So, the big day has arrived. It has already been labelled the must-have gadget of the summer and it goes on sale across the UK today. The eagerly anticipated Apple iPhone 3G S looks the same as the 3G version launched last year but Apple say that this version is bigger, faster and has better features. But is it worth the additional cost and the extended contracts needed to get your hands on it? Aesthetically the iPhone 3GS looks the same as its predecessor - the same 3.5in touch-screen, the same glossy piano-black finish, the same minimalist design. The only real change is the coating used on the screen - the display on the iPhone 3GS is oleophobic, meaning it does a better job of repelling greasy fingerprints and smears, and is more easily wiped clean. The biggest changes are the hardware and software used. It is bigger - now coming in 16GB and 32GB sizes - doubling the previous memory capacity. It has also introduced picture messaging, a video camera and an upgraded 3 megapixel camera. There are also new features - voice control, tethering, Bluetooth, a landscape keyboard - a lot of the previous niggles have really been tidied up in this new version. However, anyone with an iPhone or iPod Touch can upgrade their software to version 3.0 - allowing people who have already invested in an iPhone to take advantage of the new software and features. I would advise anyone to get an iPhone - I have had one for some time and it is a fantastic tool, both socially and for business - but in my opinion the new version isn't different enough to justify going out and buying it if you are already tied into a contract.

Olympic Lessons

Tue, 16 Jun 2009 11:43:55 +0000

At the Northumbria University Sports Dinner last night, the address was given by Chris Cook, a Northumbria University graduate and a member of the record breaking British swimming team at last year's Olympics. The address was short. Chris wanted to share with us some of the key lessons he had learnt during his competitive career, in the hope that they may be of use to us in sport or in business. Now, I'm not a great fan of the Olympics. The national obsession once every four years with five a side knitting or underwater judo just because there's a South African competing for us whose mother lived in Peckham as a teenager a bit much to take, particularly when these sports are roundly ignored by the general public for much of the next 3 years until the next Olympiad approaches. Now, as everyone knows, I am not a cynical person, but I couldn't help let out a gentle sigh as Chris set out his stall. I was wrong. Not only were the lessons highlighted by Chris of direct application to the numerous young sportsmen and women in the hall, they were of equal relevance to their peers who are in the process of trying to start a career or go into business for themselves. I didn't have a pen on me; I'm doing this from memory. So some of the lessons have passed through my sieve-like already. But these are the ones I remember now. You've got to have a dream and you've got to hold on to it. You'll understand why, when Chris said this, I was thinking I was in for a yawn-fest. But when he explained the lesson, I realised he was absolutely right. A vision of what you want to accomplish is vital in starting a career or a new business. It doesn't matter whether you want to set the world alight or whether you simply want an occupation that stimulates you and makes you look forward to going into work. Without this, you have no incentive to progress. You have to be prepared to fail. Pushing yourself to the limit means that you are bound to have setbacks. It's how you respond to them that is the indicator of your long term success. If you never experience setbacks, you are, as Sir Alan described Howard Ebison, a steady eddie. Not that there's anything wrong in that. You'll just never quite realise your true potential. If you fail initially but you persist, you exhibit one of the key traits of a serial entrepreneur, particularly if that persistence is coupled with an 'I'll show you' attitude. You have to focus on the next step. Chris was convinced that anything is achievable if you can break it down into small enough chunks. There's the classic cricket story of Derek Randall, trying to bat all day with Mike Brearley I think, to save a test match in the 70s. They were breaking each session down into 15 minute chunks. After an especially difficult over faced by his teammate, Randall walked down the wicket and offered these words of encouragement: "Come on Skip, in 5 minutes it'll be 15 minutes until tea". That is something successful sportsmen and women have in common with successful entrepreneurs: the ability to be entirely focussed for a short period of time on what lies immediately in front of them, and to put it out of their minds when the moment passes. Never compromise on quality. Chris suggested that at the moment, it's easy to find excuses. Absence of facilities, no budget, no time. A champion may rationalise his choices but he never compromises on quality. In other words, if you can't afford what you want, work out what you need and prioritise that. It's something that start up businesses face on a daily basis. It's also a lesson that many in professional and business support services could do well to heed. Deliver an excellent service to your client and keep its needs as your key objective. Your own success depends upon it. Keep it simple. Chris said that he swam best when all he thought about was swimming two lengths of the pool as fast as he could. He put everything else to the back of his mind. It reminded me of the Bill Shankly quote: "football is a simple game made complicated by idiots" and of the Nike strap line: "just do it". Or as John Daly put it: "grip it and rip it". I remember playing the course at Hunstanton Golf Club (where I was a member years ago) in gross 76, to win the Club Cup with a net 64 I think. I was a poor student at the time and had been cooking breakfast for my Mum's B&B guests that morning. I was half asleep when we teed off and all I could think about was where I was going to hit the ball. It was the best golf I have ever played. When my playing partner said to me at the 18th tee "you know, you could win this", I hit my drive into the beach huts and narrowly escaped with a double bogey 6. The only thing is, because I was so sleepy, I hardly remember any of the shots I played. But I think there's something in this and in business, I try to follow Warren Buffet's philosophy. He has a rule that he will never invest in anything he doesn't understand. It is, at its heart, exactly the same message. What you're doing might not be simple to other people, but if it's simple to you, don't try and complicate it by drawing in additional and unnecessary factors. There were some other lessons now that I'm struggling to remember, and time is pressing sadly. I'll post them if they occur to me (typically this happens when a computer is very far from my reach, unfortunately). But in five minutes Chris Cook covered more than many a management consultant teaches in half a day. So when he hangs up his goggles for the final time, I suspect a career in motivational speaking may be open to him.

Carving a fair living

Tue, 16 Jun 2009 09:23:04 +0000

Today Joan and I are hopping on a local bus and heading into the heart of Rwanda to visit COPABU (Coopertive du Producteurs Artisans de Butare). This is the final organisation that we will visit during this evaluation trip and it sounds like they have really taken the training on board. The group is the first to put into action the environmental training in particular. In April this year the cooperative planted 5,000 jacaranda and sederera trees in their community. The declining tree population is a great concern to this group as they rely on it to make an income. They specialise in wood carving and it is becoming increasingly difficult to source the raw materials. So we are off to meet with Annonsiate Nyiramisage, the cooperative leader, to visit their tree nursery and record their story as a Shared Interest Foundation case study for others to learn from.

Cards from Africa

Mon, 15 Jun 2009 15:47:32 +0000

Well after a long day yesterday - 12 hours of report writing and working through baselines, evaluation forms and training reports - I was more than happy to be out and about visiting producers again today. We set off bright and early, around 8am to visit the first group of the day, Cards from Africa. I mentioned this group on my blogs from my last trip in January this year. I couldn't wait to meet again with Arthur, the manager to see how they had progressed over the last six months and to check out their new designs. I was not disappointed. Arthur got chairs for Joan and me and we sat outside under a tree, sheltering from the intense heat of the African sun to hear about how they are doing. Arthur was pleased that we were visiting during their busy season so we could see the organisation and production line at full throttle. People were busy everywhere we looked, soaking recycled paper to make the card, dying the materials and then finally making the designs. The room was buzzing and this is an excellent example of fair trade at its finest. All of the workers at Cards from Africa are genocide survivors and on top of that they are all from orphan headed households. Arthur told us how much the training meant to him and his organisation. Steven Kagarama (another employee that attended) said: "I learnt how to gather information on our workers, for example whose children go to school and whose do not. This information is important as it will provide us with knowledge about how we can better assist our workers; understand the challenges they are going through. "The most important thing for me was that I learnt the practical implementation of the information provided and skills taught and how to bring this into the business. This was very interesting for me." We also met with Rachel, the lady we carried out a Shared Interest Foundation case study on in January. She is doing very well and was happy to hear that we had shared her story. She is extremely busy just now working on a big order and says that she likes working at Cards from Africa as she gets to learn new things and spend her days among friends.

Social media - temporary fad or essential business tool?

Sun, 14 Jun 2009 20:28:11 +0000

I get excited by new things, it might be policy, electronics, ways of doing things if it is new. Like shiny things to a magpie and lights to moths the attraction is absolute. There is a price to pay for being an early adopter, but I'm generally happy to pay the price. Lee Moor is an example of the long history of firsts that I am so keen on. My only worry is the saying " It's the second mouse that gets the cheeses!"

Banana wine and Mushrooms

Fri, 12 Jun 2009 10:35:29 +0000

Well this morning I woke up bright and early, with the sun shining over the hills of Rwanda. Today I am setting off to carry out an evaluation of all of our tier one organisations (those exporting their products) with Joan Karanja, Regional Director of COFTA. Yesterday was an exciting day for us, as we heard directly from the craft makers on the ups and downs of our training. Rwandans definitely say it how it is! The first group we visited are based in Kigali. They are called BN Producers, an inspiring organisation that have only been around since 2006. Their main products include banana wine and mushrooms. The manager, Beatrice, took great pride in demonstrating (in detail!) how these products are grown and made, so now I feel like an expert in this area! It was so interesting and very labour intensive. They take health and safety extremely seriously, sterilising all of their equipment regularly and measuring temperatures of their stock rooms three times per day. We interviewed Beatrice to see what she had learnt from our training, what she has been able to take back to BN producers and put into action and what improvements we could make to our programme. Some of the key changes that she has made as a result of the training include: "We now do stock control, recording everything that is coming in and going out of our organisation. "The main thing we learnt is the importance of financial management systems. I take the money to the bank instead of keeping it in the office, which I now know is not a safe way to do business. "We have also improved our business plan including a budgeting section, which we did not have before. This meant we had no book keeping or way of seeing if we were making a profit so could not plan for the future." The project also includes an environmental component. Rwanda is the most densely populated country in Africa. With a population of well over 8 million there is a lot of pressure on the land. All of our craft makers use natural resources to make their products and therefore rely heavily on the environment around them. Beatrice stated: "We need a healthy environment to make or grow our products so we have to look after it. "During the training we learnt about afforestation; where to grow trees, which type are best to grow, to ensure we don't suffer from soil erosion. "We now plan to run a tree planting day with our farmers, which will be good for them and the environment" It's so exciting to start seeing the fruits of Shared Interest's labour, and with that we are off to the next organisation!

Return to Rwanda

Thu, 11 Jun 2009 16:15:08 +0000

Well here I am back in Rwanda, seeing the final stage of our first year of training come to life; and what a year it has been. We - Shared Interest Foundation and COFTA (Cooperation for Fair Trade in Africa) thanks to the Big Lottery Fund - have trained 60 participants from 30 organisations throughout Rwanda in business and financial skills, marketing and environmental awareness. So now I'm here exactly one year on to evaluate the first year of training, to assess the successes and challenges and to plan for the next two years. Over the past year alone, we have recruited a project coordinator, set up an in-country office, built partnerships with local bodies such as REDO, Rural Environmental Development Organisation (who we have contracted to carry out the environmental component of the project for us) and RPSF, Rwandan Private Sector Federation, who are very kindly hosting our project coordinator in their office. We have also trained 17 trainers in key skills needed in order to ensure this project is a success. They have undergone intensive seven month training programmes and on Saturday they will all be fully certified in training of trainers and business counselling skills. These 17 trainers have worked tirelessly and been empowered to create their own manual to go on to train our 30 organisations. They have ownership of the manual and it is specific to the needs of Rwandan craft makers. Over the next few days I will be sharing some of the progress made and giving real insight into the businesses we are working with.

Reply to the Telegraphs Milo Yiannopoulos

Thu, 11 Jun 2009 12:15:38 +0000

So I was browsing my tweets yesterday and came across this article by Milo Yiannopoulos - Sun Tech Mission 2009 its still grim up North looks like Milo has managed to upset quite a few people and in my opinion people are quite right to be outraged. I thought that the article warranted a reply. I started to put a few thoughts together myself and thought I would contact a few people in the region and collate some comments/replies and post them in addition to my response. This morning I received a few comments and also links to replies which have already been written. It looks like Milo has even responded to some of the blog posts and comments as well.

So I have scrapped my response as I fully agree with all the comments below in one way or another. There as also been a large number of comments on the blog itself so be sure to go and read.

Sarat Pediredla - Partner & Co-founder - hedgehog lab

Read Sarats blog post in reply to this article which has also sparked a response from Milo and others - Looks like the telegraph taking over from techcrunch

Paul Smith

Read Pauls open letter to the Telegraph - An open letter to the Telegraphs Milo Yiannopoulos/

Worth having a read of his twitter stream also... some good comments!

- @mattymoran it's great debate if it's informed and well researched. Otherwise it's pointless, damaging and trollish behaviour. - Nobody claims there aren't challenges @yiannopoulos, but your piece provided no objectivity or researched facts. It was pure link bait. - @mattymoran ok? Matt, it effectively scrubbed clean the NE of any achievements, including social events. How many attended your last event? - @mattymoran I'd be more inclined to consider them if named sources had experience of the region, rather than nameless quotes that haven't.

Mark Easby - Director - Better Brand Agency

I would add that in the past 10 years I have been in the industry in the north east things have moved on dramatically. We have seen schemes driven by the public sector such as digital city, IDI, codeworks, and software city gathering momentum and profile on a local, national and international stage helping to slowly turn around perceptions of what's going on in the North East. I admit, and i am sure they will, that they don't always getting it right but it's very much moving in the right direction. We've also seen a buzz from the private sector with groups such as Refresh Teesside, Super Mondays, and Thursday Fizz which again are gathering support and momentum driven by a genuine passion to improve our skills, our individual capabilities and the overall perception of the industry in the sub regions and overall north east.

In addition to this there are also many more initiatives to support private sector and University involvement not only to support graduate start up but also improve the way new businesses/entrepreneurs get support (access to mentoring, finance etc.) to increase the chances of the business idea being sustainable, and encourage them to stay around in the North East to build their business. Organisations such as the Entrepreneurs Forum (which i understand is unique to the north east), and the individuals involved in them, are fully committed and passionate about supporting these business and signposting them to the best advice, mentoring, investment networks and support, and to be honest from what we've seen the results of this have been inspirational.

We speak to a number of people regularly from digital companies in our network including Visualsoft, THAP, Mango, AYO Media, Hedgehog Lab, and OrangeBus and the outlook couldn't be more positive. From both an individual and business point of view, the north east is a great place to do business. As businesses we are developing our teams, our product/service, our client bases and gaining regional and national recognition for this. We are also always learning and sharing to individually and collectively grow within our own niche areas and specialisms. Again, I feel some of this idea sharing and collaboration is part of the unique culture within the north east.

For the recent graduates i feel there is genuinely no better place to be if your in digital, which seems to be backed up by these videos (from Thinking Digital: The Next Generation) - http://www.vimeo.com/3878837 - i watched the Paul Callaghan (Chairman of Leighton Group) speech and it was truly inspirational, i wish i could get hold of the video for this as it was first class when it came to positioning the north east as the place to be for digital start up and support. Again, organisations like the IDI, Codeworks etc are helping with this, but it is also people like Paul (and plenty of others) who are driving this from the private sector and are influencing ONE and the other funding bodies to invest their support (financial or otherwise) in the right places. I am also involved in a codeworks scheme to engage further with the university courses to influence how students at this level are prepared for the digital industry to ensure that are Universities build on their growing reputations and ensure that the graduates coming out are some of the most exciting across the UK, again this is not a quick fix but a long term plan to continue to change perception and reverse the graduate flow out of the north east.

Could go on for ages!....

Tim Johnson - Business Development Manager - Visualsoft UK Ltd.

I can see why this has rubbed a few of you up the wrong way (it was its purpose obviously). I work at Visualsoft (we are a northern based web development company who specialise in ecommerce). At the moment around 70% of the enquiries we get is for website redesign, re-building failed websites or finishing projects that 'agencies' have won but failed to deliver results or complete the project or delivered a sub-standard solution. But you find these bad companies aren't specifically northern companies, they are throughout the UK.

I think the north east is a good place to do business. But in terms of growing as a company you think you need to look outside of the region if you want to be really successful. We have seen both sides of the coin. We have London based clients who love us because our prices are half that of our London based competitors. And we find that London is riddled with 'middle men' agencies who seem to make money for doing very little - just getting between you and a client and charging a fortune for it. We have also lost out on projects due to being in the north, for many of our southern based clients our location isn't an issue - but some do insist of having an agency on their doorstep. I think you'll find that there are fewer companies in the north who make money for doing nothing. In London there are so many 'agencies' who charge a fortune for doing very little. So if you want value for money, then you will struggle to find better than what you'll get in the north east. Also you'll find most of us very straight talking (blunt almost) meaning you can save time and effort beating around the bush - and get straight down to talking bottom line and what is/isn't going to work for your business. You don't get this in the south, they tend to 'talk a good game' and charge you for it.

In terms of successful businesses in the North East region - we have grown in the last 12 years to have an IN-HOUSE team of 32 designers/developers. We are going from strength to strength; consistently winning projects over our competitors in the south. We currently have over 60 sites in development and are forecast to do 300+ medium to large ecommerce sites in the next 12 months. Few companies in our industry (north or south) can boast such a good track record - especially in the current climate. I don't think this success has anything to do with our location; its to do with good business acumen, good staff, good service and as always a little bit of good luck along the way.

Paul Sheperia - Technical Director - Applaud Web Solutions

I've been known to chunter on occasion about this and that. The article in the Telegraph was such as occasion. I was disappointed at the editorial slant but before I jump onto some sort of North vs. South bandwagon and be accused of having chip on my shoulder I thought I'd take a step back and see if there is anything in the argument put forward. Certainly, it's obvious that we're being poked with a sharp stick here with the intention of provoking some debate and raising the authors profile. Well, good luck to him - there's always someone around who'll try to get a leg up on someone else's back. It's not my preferred approach but there we have it. To his merit he possibly identified one area that I do question the value of, and that's a pre-lined up trade mission. Has anyone ever gained anything from this type of thing. I do think there are better ways.

I do applaud (no pun, small 'A') the aims of organisations like Codeworks and that the way to change attitudes about the parochial regions away from the capital is to raise our profile by showcasing how good we can be and the Thinking Digital Conference is a case in point. I was very impressed at the response of Sarat.

Value in business isn't just measure by how much venture capital we can raise. I've sat in front of so called industry experts and investors of all types and I can tell you that there's as many of them that know bugger all about business, as there are people sat with shaking knees on the other side of the table. I've banged on long enough about solid business being about providing a solid dependable service, with good value and innovation. The worth of your business is something else. It depends on your goals but remember that raising large amounts of VC isn't the only way to fund a sustainable business, many directors are happy with organic growth through sales or no growth at all so long as they can pay the bills. I wonder sometimes if the "London view" isn't far narrower than anything done on a regional basis. And whilst we're talking technical/digital companies how many big IT companies can you think of that are from the capital? I can think of loads that aren't. And whilst the next flash in the pan VC funded ".com" boom and bust might just turn into the next Facebook, how many haven't got a hope. So here's to the next small same as the rest business as much as the next bleeding edge idea. You find your niche and do a good job, build good relationships and a reputation, work hard and enjoy it and you might just find some good luck. And think on this final point to hold up a small flag for the North East - how many companies of any size will be using Act!, or Saleslogix for their CRM or Sage Accounts to manage their business. And where are they based?

Vinnie Morgan - Managing Director - Mango Studio

Having established ourselves in the NorthEast, we have experienced and witnessed perfect indication that entrepreneurial flair is flourishing - these individuals are fearless and importantly, are succeeding. The entire team at Mango Studio are proud and privileged to be part of the exciting and committed developments, passion and entrepreneurial spirit that continues to accelerate at rollercoaster speed within the fantastic Northeast.

Read his fully article/reply article on the Mango blog

(Update) Herb Kim - Thinking Digital

Read the full reply found on the Thinking Digital blog - Reply to Telegraph: "it's (still) grim up North"

Other...

Either email me your reply and I will add to this article or please feel free to comment below

Strike now for a head start in race to succeed

Tue, 09 Jun 2009 12:04:15 +0000

OUT OF the darkest hour comes the dawn. At least, that's what those responsible for Tees Valley's economic prosperity will be hoping as the recession burns itself out.

Let's fly at the double

Tue, 09 Jun 2009 12:04:15 +0000

THE reinstatement of the Teesside to Heathrow route is essential to the economic recovery of this region. That's why it was good news to learn that Durham Tees Valley Airport bosses are in discussions over a Public Service Obligation, which would effectively ring-fence landing slots for its flights to the London hub.

Time for action to save our steel

Tue, 09 Jun 2009 12:04:15 +0000

IF GORDON Brown is serious about helping business, now is the time for him to show his mettle. With the future of Tees Valley's proud steelmaking industry hanging by a thread, the Government should follow the lead of other states in helping key industries in distress.

The search for Britain's most-wanted

Fri, 05 Jun 2009 14:51:30 +0000

Here's a quick question for you: Who was the UK's most searched for person on the Internet in the last quarter of 2008? Was it Barack Obama following his election in November? Could it be Russell Brand or Jonathan Ross in the aftermath of the now-notorious Sachs prank call? Or could it be the unthinkable and be one of the many celebrities that make you wonder exactly what they are famous for -Jordan, Kerry Katona, Paris Hilton, et al. Surprisingly - leaping above other top 10 contenders which included Cheryl Cole and Katy Perry - it was...