| These were the words of Judy Piatkus, founder of Piatkus publishing, when she spoke at Entrepreneurs in London in November. It is a theme that is developing in the media, too as companies like Woolworth's and MFI go into administration and several major UK banks (and a number in the USA, too) move into effective nationalisation. As I write this, a rescue package for the big 3 motor manufacturers in the USA (all of them significant in global terms, too) has been voted down by the US Senate. The bloodletting has begun and the opportunities are out there. Take Woolworth's. A fixture on the UK High Street for 98 years, it is fighting for its life and, whilst there are potential buyers for some of the stores in a break up, no one seems interested in taking it on as a going concern. Whilst, in some ways, that is not a surprise the High Street stores have lost their way and the brand may not be worth saving in others it is very surprising and a little concerning. Inside the Woolworth business is Entertainment UK, a hitherto profitable and growing wholesale business specialising in CDs and DVDs. That, too, will close its doors soon as no buyers have come forward to buy it out from the Woolworth carcass. We do live in cautious, risk-averse times. This period of trading will also separate the true entrepreneurs from the 'lifestyle' business owners. Indeed, finding opportunity in the face of major challenge was a clear theme of the conference. Several speakers emphasised the need to remain open and vigilant for new opportunities rather than just battening down the hatches. As I note elsewhere in this months newsletter, taking on challenges is for me a distinguishing feature of entrepreneurs. We will certainly have a few to face in the coming months. Entrepreneurs in London took place in the Methodist Central Hall, Westminster on 20th November this year and around 650 people attended a great turnout given the prevailing economic news. Around 150 of those were invited through the Academy for Chief Executives. The event was organised by Fresh Business Thinking who also publish this newsletter and the Academy for Chief Executives was pleased to be able to support the event. Two of the speakers at the Conference, Ian McGeechan of London Wasps and Gareth Malone of the LSO and TV Presenter of 'The Choir', have inspired separate articles this month. I've picked just a few of the themes and learning's from some of the other speakers to highlight in this article. What makes an Entrepreneur?
John O'Connell, Chairman of London Wasps saw the essential attributes of an entrepreneur as drive and passion, vision and leadership. Optionally they also should have a sense of humour and financial acumen (or know someone who has). Having good luck and impeccable timing would also be useful, he suggested. Gerard Burke of The Business Growth Partnership at Cranfield gave his take on the '10 Steps to Growth'. They included the importance of being passionate and wanting to succeed, working on the business not in it and being clear about your direction. Judy Piatkus remembered the importance, in her publishing career, of trying to keep ahead of the trend. Her business carried a lot of risk and had much money committed. How should Entrepreneurs approach the downturn?
Gerard Burke suggested (as did Ian McGeechan), that you take time to know your 'enemy' and that you watch the pennies and know your numbers. Most successful businesses grow by doing more of what they know best rather than exploring new markets or developing new product categories. We should, he suggested, be aiming to become "small, big businesses and not big, small businesses". Growth, he said, is down to you, especially taking the time to develop your own skills and abilities and I can only agree. Zak Goldsmith, former editor of the Ecologist and prospective parliamentary candidate emphasised that there are good business-based reasons for businesses to consider green activity even in an economic downturn. In a word where raw materials cost more and the cost of waste disposal is escalating, it makes economic sense for businesses to consider how to avoid wasting raw materials in the first place. As a business turnaround specialist, Anthony Holmes shared his rules for surviving in a downturn. Most businesses will be affected to some extent; he contends and so must take action to avoid the worst effects. Always make sure you have multiple options to pursue, keep close control over implementation, limit your objectives and retain cash and maintain flexibility were some of his suggested approaches. Reducing time pressure by keeping things important but not urgent gives you more options and maintaining communication with banks, creditors and staff will ensure that there are no nasty surprises. John O'Connell added a timely reminder that the cheapest source of finance is your customers. The more that you sell of your product, the better the cash flow and cash flow is the lifeblood of businesses, especially now. Mike Southon, The Beermat Entrepreneur, who hosted the afternoon session, added his own advice from his experience. In difficult times it is best to keep things simple and, where possible, to get advice and mentoring from someone who has been there. The Academy for Chief Executives leaders learning with leaders.
Investing in your own skills and knowledge is an important element of surviving in difficult times. The Academy for Chief Executives is a leading provider of Experiential Business Learning. It inspires its members to learn from each other, to creatively solve both business and personal issues and to ultimately become great business leaders. Through peer group learning where Chief Executives and Managing Directors learn from each other, practical experts, a network of successful business leaders and expert coaching, Academy members are guided on a journey to greater success. With their Academy Chairman and peer group acting as mentors, they develop and grow their businesses and are inspired to be the best.
By Brian Chernett
December 2008
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This article first appeared in Freshbusinessthinking.com's Virtual Director Newsletter. Visit www.freshbusinessthinking.com to subscribe. |