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.

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.

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.

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

Finally, I recently looked back at some of the goals I had when I set up The Ideal Marketing Company.  What seemed like an ambitious dream a few years ago is now part of my day to day reality. 

If you do this, you will look back on 2008 as the year that you accomplished a whole series of things that in 2009 seemed difficult – if not impossible. This process, or similar ones have worked for the most successful men and women in history, from Henry Ford to John F. Kennedy from Mother Teresa to Richard Branson.  It’s used by great athletes and scientists, business owners and authors. Most people who achieve extraordinary things are not extraordinary people.  They are just ordinary people with goals that give them extraordinary enthusiasm and drive.  Now their secret is yours to use for the rest of 2007.

Goal setting is just one of the many areas that I cover in my marketing seminars - call or e-mail to find out more.

Marketing Mentor Seminar

Just come back from running a 1 day seminar at Hothope Hall which I host every other month as part of the Marketing Mentor programme.  The group were very inspiring and a real pleasure to talk to.  It’s important to talk to ‘real’ business people regulalry to see how far away from reality the media portrail the business world is.  A very positive ‘can do’ meeting with a number of people who are certainly going to have a great year in 2009.   It’s not all doom and gloom and this group will prove it in 2009.

Out of 10, how would you rate yourself in 2008 for each activity? Nobody would be expected to have a 10 in each area, but could you do with a higher score in one or more areas?  Have you been so busy achieving a 10 in one area that you have neglected the other 6?  Perhaps all 7 could do with a general improvement?

You may have your own categories and if so that’s great.  But we should all be able to measure what we’re proud of and what we could do with more help in.  Now that you’ve looked back and have decided that, let’s say, your earnings are not what you would like them to be, it’s up to you to decide what you would like them to rise to by the end of the year.  First of all, realise that this is possible and secondly, understand that if you want to increase by more than the norm, then you will have to put extra effort and energy into this area.  So if you want to double your earnings, then you will have to be prepared to double your effort.  You will have to be worth more to your employer, or if you work for yourself, you will have to be worth more to your customers or increase the number of people you serve.  If you are willing to take the time and effort to do this, then there is little that will stop you. 

In short, you need to have a goal for what you want to achieve, a plan for how to get to that destination and then do something to get you there every day.

If you are still struggling with what you actually want to do differently in the New Year, here is a thought for you.  The best way to find the answer is to ask the question.  By asking ourselves questions we can usually find the truth.  Some people can go their whole life without ever considering what they really want out of life, and then wonder why things don’t work out the way that they wanted.  It’s like climbing a ladder only to find out that it was leaning against the wrong building.

Goal setting is just one of the many areas that I cover in my marketing seminars - call or e-mail to find out more.