Ideal Marketing Company Blog

Tough times ahead?

Who can help in a turnaround?

In a turnaround, businesses often need help from people who are familiar with this type of crisis situation and who possess the specific experience and skills needed. But there are differing types of help available so it is worth understanding who’s who in the world of CROs, IPs, IMs and other professionals you may encounter, some of whom work within your business and some of whom work simply as advisors.

A Chief Restructuring Officer or CRO, is a turnaround professional that management hire on a temporary basis to provide support and assistance.

A CRO’s job is firstly to help the business analyse its position, providing an experienced eye to look over how deep the crisis is, assess the options and make an informed judgement as to whether the business is salvageable.

CROs then move on to help to drive through the actions needed to deal with the situation, acting as a crisis manager to handle issues with the urgency, independence and sometimes ruthlessness required. CROs therefore need to be people who can cope with the challenges and difficulties that this implies in a professional way.

The CRO also brings to the business a body of specialist knowledge of relevant commercial and insolvency issues such as redundancy processes and wrongful trading, so helping to manage these risks.

A CRO brings their experience of dealing with not only a business in crisis, bit also their experience in keeping financial stakeholders such as banks on board supporting the turnaround. A CRO has the ability to talk to the bank and insolvency advisers their own language, so giving the business the best chance that it will receive funders’ support through its difficulties.

The help provided by a CRO is generally therefore extremely ‘hands on’ in nature. The contrast here is with the professional advisers such as the insolvency practitioner or the lawyer who, however close the relationship, do remain outside the business. The CRO sits on your side of the table at meetings and actively works on behalf of your business, often becoming part of your business by taking on the role and responsibilities of becoming a director to take charge and drive through change for the time needed to make the plan happen.

The Institute for Turnaround provides formal accreditation of UK turnaround professionals, and such they may also be a member of the US based Turnaround Management Association. They often work alone but increasingly are operating as teams, often in conjunction with or organised through the firms who are also involved in supplying in specialists on a temporary basis known as interim managers to deal with particular functional aspects of the business (such as a temporary finance or production director) as may be required to turn the business’ performance around.

But there are many other resources available that a business can need apart from CROs. As a turnaround affects all areas of the business, so the business tends to need assistance from a broad range of specialists.

Business owners should always take formal insolvency advice from either lawyers or an insolvency practitioner (or ‘IP’) if the business is in severe difficulty to see whether they are safe to continue trading the business. An IP will be able to advise on use of any of the business rescue procedures under the Insolvency Act such as a Company Voluntary Arrangement; will be able to help the directors in assessing the business’s position. They will also often have a strong working relationship with the bank and so may be able to to help gain bank support for a turnaround, as well as introducing or working with a turnaround professional.

Often there is a need to raise new or replacement finance to provide funds to deal with the initial crisis or to support the subsequent recovery and regrowth of the business. These funds will come from specialist asset financiers either directly or more usually through a broker who knows the market and is used to placing such business.

Legal advice is almost always required and the business will need a recovery specialist as a lead advisor who can call upon expertise within his or her firm across a wide range of areas such as insolvency and debt collection in the early stages; through key issues for restructuring a business such as employment and redundancy, as well as contractual disputes such as problem contracts; right through to corporate finance specialists if there is a need to raise new equity or arrange a sale of the business.

Interim Managers are often used as a flexible resource to meet the changing needs of a business during the different phases of a turnaround. A typical case might require significant assistance from an interim financial controller on tightening up management of its cash to survive an initial crisis. Then the business might need an operations specialist to address manufacturing issues, before then bringing in a marketing expert to provide a boost to regrowing sales, while the whole strategy is overseen by the CRO.

Mark Blayney has 20 years experience in business rescues, is an IfT member and is the author of Turning a Business Around  visit www.markblayney.co.uk for more ideas.

The Angel Hotel

FREE BUSINESS SEMINAR – THE 7 STEPS TO SUCCESSFUL GOAL SETTING

Vanilla Recruitment is delighted to present a free goal setting seminar in conjunction with Alastair Campbell of The Ideal Marketing Company at the Angel Hotel, Market Harborough

When we run our own business or department, it is very easy to become absorbed in day-to-day tasks without taking the time to look at the ’bigger picture’.  This interactive seminar covers a simple process we can all learn to make sure that life doesn’t pass us by and how we can achieve the things that are important to us. You’ll learn how to focus on the priority areas at work - as well as having more time with friends and family.  And finally you’ll discover why the great philosopher Bruce Forsyth was trying to tell us the key to a successful life – we just weren’t paying attention.

What is the cost? The seminar is sponsored by Vanilla Recruitment and The Ideal Marketing Company and is free to attend.

When is it? January 27th from 10.00am till 12.30pm. The seminar itself starts at 10.00am with the opportunity to register and network from 9.30am and also afterwards.

Where is it? The Angel Hotel, High Street, Market Harborough, Leicestershire

Tea, coffee and soft drinks will be served upon arrival.

Vanilla Recruitment is hosting this event and would welcome you to attend for no charge and bring up to 2 guests. The event is likely to be fully booked so it is important to register your place in advance to avoid disappointment.

To reserve you place see www.vanillarecruitment.co.uk or call 01858 898 058

Who do you know?

I’m a big fan of Malcolm Gladwell’s book ‘The Tipping Point’  which partly talks about how people’s behaviour can lead to large surges in the popularity of a new product.

In 1967 Stanley Milgram performed an experiment called “Six degrees of separation” which showed that average number of personal contacts standing between you and any stranger is six people. Duncan repeated the same experiment in which 60,000 people across 166 countries were asked to forward an e-mail via personal contacts to one of 18 target recipients. The results were astonishing. The majority of cases required only six steps and the message chains “did not rely on a few highly connected individuals”.

This partly goes against Malcolm Gladwell’s theory which states that different types of people have different types of influence: “Mavens” – experts in the field; “Connectors” – widely networked individuals; and “Salesmen” – passionately persuasive people.

Word of Mouth advertising is one of the oldest and most effective ways of communication as borne out by the 1967 Stanley Milgram and Duncan experiment, but I believe in Gladwell’s point that some people are key to making a message travel quickly and efficiency.

penny wise - pound foolish?

Marketing ways out of recession

I read a YouGov survey recently which showed that small businesses plan to increase their marketing budgets over the next 12 months inspite of the current economic climate.

Marketing is important for SMEs in UK as in a survey of nearly 1,000 small business owners found that 38% plan to invest more in marketing.

SME’s can be shielded from recession by reducing external costs and consolidating suppliers. Further protection can be given by bringing in-house traditionally outsourced speciality tasks, such as production of marketing materials.

The survey by YouGov reveals that only 40% respondents will bring professional quality marketing material production in-house and only a quarter said they’d be unlikely to do so.

“The survey results highlight how businesses are looking to reduce external costs through bringing printing requirements in-house, with the ability to produce professional quality print material themselves, rather than through an external supplier,” said Officejet Brand Manager, HP UK, Beth de Avila.

The survey also reveals that 79% of those businesses that advertise rely on printed and online advertising as their primary means.

Added to the information given by the same survey 40% used print as their primary form of advertising and 7% were with event based advertising.

“These results highlight how UK business owners are not panicking in their attitudes to marketing during the current economic downturn, and are budgeting for the long term as well as the short,” added de Avila.
“Previous recessions have shown that those businesses that market themselves well during fallow periods are significantly better positioned when the good times return.”

It also showed that 13% respondents spend more than 80% of the company’s marketing budget on print advertising and 27% spent more than half.

The research was conducted by YouGov and surveyed 943 micro, small and medium sized business owners from 10th – 12th June 2009.

Sales Growth

Direct Marketing simulates Sales: Survey

With majority of recipients making a purchase, Direct Marketing remains one of the best ways of generating sales as figures suggest.

Almost three-quarters of people who received direct mail advertising from a business responded while the success rate for television was ten per cent lower according to ExactTarget’s 2009 Channel Preference Study.
Print media channels such as direct mail is more popular among younger people.

Robert Keitch, chief of membership and brand at the Direct Marketing Association, told the website: “Direct mail has long been the most effective of all direct marketing channels, which explains why the medium still accounts for 25 per cent of all direct marketing spend.”

Also the consumers are more likely to respond to direct mail promotions.

PMDG Marketing Communications is launching a direct mailing campaign to encourage more Mexicans to cross the border to shop in Texas, according to Business Wire.

I still think that direct marketing is the most effective of all marketing channels and is still popular among the youth. This survey shows further proof that it still works for improving sales.

Seminars Market Harborough

I ran  marketing seminar for Vanilla recruitment in Market harborough in May.  They are going to run a new seminar hosted by Rosie Garwood in September on aspects of making the most of your existing teams and they wrote about this in a recent newsletter.  Thought you might find it of interest.

How can I make my employees happier?

The happiness of your employees has a remarkable effect on the overall success of your business. As well as increased productivity, a happy workforce generally means lower staff turnover rates which is what any business wants.

However, in times of economic uncertainty the potential for an unhappy workforce is dramatically increased, as businesses are unable to provide pay increases and bonuses.  You’ll often find that many staff work harder to ensure they remain employed and unless you recognise and appreciate these efforts during tough times, you may find yourself facing staff resignations once the economy and labour market improves.

You can make yours a happier workplace with little or no expense at all; a place your employees will want to be, in bad times and in good by following a few simple tips -

Show appreciation - Create recognition programmes such as ‘employee of the month’ and other ways to celebrate jobs well done. Take time to give personal praise whenever possible.
Provide opportunities - Nothing feels worse than working in a dead-end job. Give individuals a clear career advancement path and allow for cross-training.
Share perks - Make sure you share out any freebies or invitations you receive. Make it as easy for the new trainee to get perks as it is for the CEO. Use your company’s buying power to offer staff discounts.
Communicate - Meet with your staff on a regular basis to keep them updated and motivated. Encourage employees to come to you directly for advice or with problems or ideas and let them know what can and can’t be done.
Lead by example - If you make a company policy, you need to follow it too. Make sure you show that you’re as committed to the long term future of the company as you’re asking your employees to be.
Stay positive - While it might be a relief to vent your frustrations publicly, nothing has a more negative effect on staff morale. If you have a problem with someone, or a mistake has been made, address it in private.
Let your hair down - Socialise with your staff. The best companies have a family feel to them and you can create a siege mentality when times are hard.
Avoid overwork - More hours spent at work do not always lead to more results. Time away from work increases people’s energy and creativity and is just as crucial. Employees have family and outside interests that help balance their lives.

The happiness you give your staff will rebound on you in positives too. Studies show that people who are happy at work significantly improve the bottom line as they are more productive, motivated and dedicated.

For more tips and practical advice on keeping staff happy, building stronger teams and how to get the best out of your staff book on to our next seminar with guest speaker Rosie Garwood from Reflection Consulting in September. See www.vanilarecruitment.co.uk to book a free place.

Marketing seminar - goal setting

Marketing seminars - When I run one of my marketing seminars I often start with some thoughts of goal setting.  Here are a few through from a seminar I held earlier this year you might find of interest.

Don’t be a clown this Summer

Who wants to act like or be thought of as a clown in their business or personal lives? Yet if you are not clear on what you decide to do with your life, it is all too easy to slip up, look ridiculous or end up having others laugh at your best endeavours.

Clowns date back many centuries and have a noble and important role in society – but you don’t want to be thought of as a clown. We all want our projects to be taken seriously and our efforts to be respected. If we go on a journey, we want to travel at speed and arrive in style – not blunder around with our vehicle falling apart. The purpose of a clown is to make people laugh and engender sympathy – and these are two feelings that you certainly don’t want to provoke in others.

Goal setting is the fastest way to achieve what you want in life, and for many people it has enabled them to become successful beyond what they ever thought possible. From Olympic medallists and successful business owners, to teachers and university graduates, goal setting allows us to work steadily towards what we want in life - once we are sure what it is that we want. By working on areas such as health, wealth and wisdom, goal setting allows us to achieve more than by any other method. Hundreds of books have been written on the subject, but the term CLOWN can help us all in both setting and achieving the goals that we want in life.

Here is a simple five point guide to setting goals for yourself and to stop clowning around with your life.

C is for Clear. There is no point in setting fuzzy, unclear goals which are hard to follow. Any goal you set for yourself should be very easy to follow and you should be clear in your own mind exactly what it is you want to do. Lack of clarity is one of the number one reasons why goals fail, so make your goals simple to follow. For example:

‘I will work harder in my job’ is far too vague. Better to set the goal ‘I will work an extra hour each day and make at least 10 appointments every week’. It is much easier to measure a goal if you are clear about what it actually is.

L is for Long Term. Whilst you might set yourself goals for today or this month, it is far better if these goals are part of a long term picture. Losing 2 lbs in weight this week is fine, but if your longer term, big picture goal is to lose 2 stone before your holiday in July, it is easier to motivate yourself. By all means, set goals to have £2,000 in your savings account, but a goal to have enough money to retire by the time you are 50 - and then work backwards - is far more motivating.

O is for Own. Your goals must be your own. If you are trying to achieve a goal for somebody else, it is actually their goal that you are working on. Goals should always be things that you decide and that you believe in. Let other people set goals for themselves, you need to believe and conceive your goals if you want to achieve them.

W is for Written Down. There is an expression that the cheapest pencil can survive the greatest mind. In order for you to remember and be inspired by your goals, it makes sense to always, always write them down so that you can revive them on a regular basis. There is no point in having great ideas if you can’t remember what they are, so always write down your goals and refer to them every day.

N is for Noteworthy. Your goals should inspire you to do greater things to challenge and excite you. If there is nothing exceptional or exciting about your goals, then the chances are that you won’t achieve them because you won’t be moved and inspired by them. Create big goals that will get you out of bed in the morning and make you want to put in the effort to make them happen.

Follow the CLOWN way to set goals that are:

Clear – clarity is always vital to successful goals

Long term – think big dreams to get yourself inspired

Own – if they are not your ideas you are actually working on somebody else’s goals

Written – if it’s not written down you can (and will) forget it

Noteworthy – make your goals exciting and inspiring to get you motivated.

Getting your goals right is no laughing matter. Use these simple ideas and you will generate the success you want in your life – not the laughter of the crowd.

East Midland Franchise Show June 2009

I am delighted to have been asked back to talk at the East Midlands Franchise show.  The event takes place at the Leicester Racecourse on Saturday 20th.  My slot will be in the morning and if you are considering setting up on your own but want the security of working within a franchise than it may make good sense.

This year the organisers are thinking about people who have been made redundant as the following news release indicates.

Redundancy need not mean Redundant – say Franchise Show organisers

As more of us begin to revaluate career options with lingering uncertainty in the workplace, starting up your own business - via a franchise - has long been a route considered by individuals looking to re-invest redundancy pay off.

And most franchising companies will tell you that, although a bolt out of the blue, being made redundant can be the making of you. You could well end up happier, and better off, than someone else’s wage slave.

But are those claims slick sales talk from franchise companies who want you to invest in them? Or is there hard evidence to reassure those who do lose their job that using their pay off to fund a business will “pay off”?

Well the organisers of the East Midlands Franchise Show, arriving at Leicester Racecourse in Oadby on June 20th, claim that 9 out of 10 franchisees report profitable business a couple of years into their licence.

And to reinforce the point, the low level of commercial failure is something that the high street banks have picked up on. In this immediate post credit crunch era, some high street banks have even set up specialist franchise teams keen to invest in what the have judged a “safer bet” – and offer preferential banking terms too

So if the worst happens, why not just set up alone? Why not use the capital you would have to pay the franchise fee and instead launch your own copycat idea?

Marcus Remfry, of franchise show organisers Job Done Marketing, gives as good an explanation as any;

“A good franchise will have a good brand, strong national marketing, good support for the new franchisee and most of all - a ready made, proven manual of how to run the business. None of that is there for a stand alone new business.

Those factors make franchising work. It is a far safer bet for the new business owners to succeed – and make their investment work for them

In addition, the clue is in the attitude of High Street banks. Cutting back on almost all forms of lending is in the news constantly, but some have set up specialist franchise teams to invest in, what they see, as a safer business opportunity”

So if you are one of those facing the push from work, it may just be the push you need to succeed. There are five million self employed Britons working today – and in times of economic slowdown, that tally could rise. Considering all career options – including creating your own career in your own company – is one avenue many will consider more and more.

Background:

The East Midlands Franchise Show 2009 takes place on Saturday June 20th at the Leicester Racecourse Conference Centre, Oadby, 4 miles south of Leicester city centre.

The show is free to attend – no tickets required - and there are specialist career and start your own business seminars taking place throughout which are also free to sit in on.

There are 36 exhibitors with full and part time business opportuntites on offer - a list of whom is available online at www.eastmidlandsfranchiseshow.co.uk.

Working Breakfast members

The networking group I attend every Thursday - called Working Breakfast at the Regency Hotel in Leicester  - has asked it’s member to come up with some practical tips on how the beat the ecconomic downturn.  It’s aimed at small business owners.

The result is an 80 point tips booklet that you can have for free if you call me on 01858 44 55 43 or you can download it at www.workingbreakfast.com  I think that it contains some really good ideas and I’ve been very surprised at how well it’s been received - however numbers are limited to get hold of your copy today before they run out.

Also if you want to ever visit Working Breakfast to see if it’s for you please do so - just let me know in advance and I will bring you along as a guest - which means you get a free breakfast the first time you attend!

We all like to complain about things from time to time.  This BBC page has a summary of the past 12 months most controversial and complained about adverts.

What I always find interesting about these lists is how some things which seem harmless to me WILL cause offence in others.  Also how some very uncontroversial products of service will rely on sex or violence to sell. Judge for yourself at http://news.bbc.co.uk/1/hi/magazine/8020881.stm