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Insights and business expertise
The first in a series of webinars looking at building your organisation for future resilience will be held online on Thursday October 9th with the support of one of our Associates, Paul Dalton.
In today’s rapidly changing environment, business owners face unprecedented challenges, from market volatility and shifting customer demands to the disruptive potential of AI. Planning for the future has never been more important. The most resilient, valuable businesses are those built with the end in mind. Companies that can thrive independently of their founders, adapt to new opportunities, and be ready for succession, sale, or scaling at the right time.
One of the tools he uses is the Exit Readiness Diagnostic which is available on this page.
Try it and book your time with him direct or find out more and book your seat for his webinar here: https://events.humanitix.com/exit-ready-every-day
For any of our clients who are considering exiting their business, we often ask them to think about the legacy they are hoping to leave. For some owners they are happy to move out of the business without a backwards glance but for others it is essential that they know that the business they created continues to prosper for the benefit of clients and employees. For the latter, exploring employee ownership is a great possibility to explore as it enables owners to pass on their business in a tax efficient way but also ensures that the staff have a tangible stake in the future running of the business.
To assess whether employee ownership might be the right option for you South West Growth Service will be hosting a workshop, sponsored by Triodos Bank UK, which will be considering the following key questions:
This event will be on Thursday 12th October between 0830 and 1130 at Devon Business & Education Centre. For tickets, click here
Family Compass is a Charitable Incorporated Organisation that offers therapies and support services to young people and families. The support they offer is typically aimed at improving wellbeing and helping young people to overcome anxiety and other barriers to education and inclusion. The team also provides dedicated post-adoption support.
Having received funding from the Enterprise Development Programme, Operations Director Lucy Capron and Development Director Keda Johnstone decided to engage the South West Growth Service to run a strategy planning event.
“We thought it would be a good opportunity to evaluate where we were, and where we should focus our energy for the future,”explained Lucy.
“Chris Lorimer initially engaged the whole team in the process to get a really good understanding of how we work. This helped to make the subsequent strategy day really productive,” said Lucy.
The strategic review examined the overall offer and how traded services were priced. The first step was to clarify how Family Compass makes money, before looking at how to achieve greater financial sustainability and how to fund growth.
“The big advantage of working with SWGS is that they bring a wealth of business experience and also empathise with the aims and ethos of charitable organisations like ours,” added Keda. “Having got to grips with our aims, ambitions and sources of income, Chris was able to offer straightforward, considered and welcome advice about how we should move forward.”
Lucy and Keda realised that traded services and, in particular the KiT Boxes of wellbeing activities that are sold through the website were critical.
“We understand where we’re going and that marketing and commercial activities need much more of our attention. We hadn’t appreciated the full significance of the KiT Boxes in terms of providing an income stream and helping to enhance our profile and reputation. We now have a clear plan including looking for larger premises to expand our offer.
Without the impartial and objective view that Chris brought to our strategic planning I don’t think we’d have such a clear sense of direction or confidence about what we’re doing.“
In the face of increasing demand for their services, founder & CEO Lyn Brown needed advice on a host of business expansion issues. A LinkedIn contact suggested contacting Chris Lorimer and South West Growth Service.
As Lyn puts it: “I felt it would be helpful to have a few sessions to help with IR35 legislation, employing staff, sustainability and premises, but actually the process delivered much more”
So how did SWGS assist?
“Talking to somebody with experience of the business growth process helps to speed up much of the decision-making involved in scaling up a small start-up business. It also helps you steer around some of the unforeseen issues and pitfalls,” said Chris Lorimer commenting on his work with Inspire South West.
This sums up Lyn’s experience: “One of the most valuable aspects of working with SWGS was having a knowledgeable and confidential sounding board. It was incredibly helpful being able to talk candidly about all aspects of business alongside the concerns around employment costs and needing to secure different contracts.”
Understanding a range of strategy and business planning tools and how to apply them effectively to individual circumstances is another strength of SWGS. “The Orbit Visioning tool – helped me see where we needed to go much more clearly,” said Lyn.
Following the project, Inspire South West has a much clearer vision and a solid understanding of how to approach multiple business growth issues.
The organisation took the decision to expand into East Devon. “If we hadn’t worked with SWGS the decision to expand into other areas would have taken much longer. By working with Chris we had the confidence to know that we’re going forward on a firm footing.”
Cornwall Heritage Trust (CHT) is a registered charity whose mission is to preserve and promote the unique heritage of the Duchy. It owns and operates multiple historical sites and manages several attractions on behalf of English Heritage.
As with many other charitable organisations, the Covid-19 pandemic caused the trust to re-evaluate their operating and financial models. For CHT it highlighted how they were over-reliant on external and volatile investment income and the need for a viable plan to secure long-term sustainability.
During the pandemic-induced period of uncertainty the makeup of the board of trustees changed significantly. These factors prompted CHT to ask South West Growth Service (SWGS) to conduct a root and branch review of the Trust’s business plans and priorities.
“We were delighted to assist”, said Chris Lorimer of SWGS, “we care deeply about South West heritage and CHT’s role is critical to protect and celebrate Cornish prehistory and history.”
SWGS identified the key themes CHT needed to address by using a wide range of evaluation approaches which Chris outlined:
“Desktop research, peer comparisons, site visits, in depth interviews with Trustees, staff and stakeholders all help to create an informed picture for detailed business planning.”
Armed with a well-researched understanding of CHT’s opportunities and constraints, SWGS held engagement workshops with trustees and staff to help shape conclusions.
“We were particularly interested in understanding the development opportunities around brand and identity, the CHT membership offering, volunteering activities and partnerships,” commented Lorimer.
SWGS presented clear recommendations to CHT that were fully endorsed by the trustees. These included proposed changes to governance arrangements, new staff roles and a clear route to achieving financial sustainability.
“We‘re now in a much better place with a clear map for how to move the trust forward. Andrew and Chris quickly gained the confidence of the staff and trustees and created an environment where we could explore ideas and challenge our assumptions and each other.
Engaging with an outside organisation with such a wealth of experience and credibility got us to a situation where we’re clear about what we need to do to achieve our goals and deliver our mission. And, just as important, what we need to stop doing . We’ll be hitting our 40th anniversary with a much more resilient organisation and a clearer sense of purpose.”
Cathy Woolcock, CEO
South West Growth Service (SWGS) were delighted to host an event at Dartington Hall, sponsored by their partner Triodos Bank UK, exploring how organisations could create reilience through Ethical Leadership. The event, with 20 organisations from across the South West, listened to some exceptional insights from Pete Russell - Founder of Ooooby.com, Isabel Carlisle - Director of The Bioregional Learning Centre and Phill Bate - Regional Manager of Triodus UK.
"We were delighted with the range of ideas covered by the speakers and the inputs of the delegates", said event convenor and SWGS Director Chris Lorimer, "which surfaced multiple reasons on why Ethical Leadership is not a "nice to have" but an essential component of how business leaders should behave if they want to provide long term direction, connect with clients and build a sustainable culture within their organisation."
Pete Russell (pictured), founder of Ooooby.com - a company which is building local supply chains for food delivery retold his business' journey where he and colleagues had to recognise the importance of following the long view versus the quick route to growth through supplier relationships with large commercial organisations. "The trouble is", Pete said “they don’t meet people, they meet numbers”. Whilst in the short-term, growth might be constrained, long term value was built through linking with local suppliers who connected with the long term vision.
Isabel Carlisle explained the approach of The Biregional Learning Centre which creates connection through communities with the goal of achieving long-term climate resilience. "Working in and at the intersection of economy, ecology, learning, arts and culture and the gaps in between", said Isabel, "we would encourage people not to do what’s expected, but to do what’s right”.
Phill Bate of Triodos Bank UK cited the purpose of the organisation as outlined by CEO Bevis Watts "We can no longer measure success purely in terms of growth when our resources are finite. We can work harder to create a global economy that works better for people and planet.” Triodos have consistently applied this principle and will only lend where organisations can show social benefit.
South West Growth Service and Triodos Bank UK have joined forces to support South West businesses who are seeking finance to help their companies grow and prosper. Triodos Bank is one of Europe’s leading sustainable banks and only provides loans for projects that have a positive impact on society, culture and the environment.
Chris Lorimer, Director of South West Growth Service, commented, “This is a great opportunity for us to help our wide ranging clients across Devon, Somerset and Cornwall who are looking for business finance. Triodos have an exceptional pedigree of supporting innovative and sustainable businesses and we are really keen to ensure our wider network is aware of the support they can provide”.
The Relationship Manager for Triodos Bank in the South West is John Sharpe. For more information go to triodos.co.uk or contact John by phone on 07759 933361 or by email on [email protected]
Remote working has become a staple for many businesses due to the exponential growth in working from home following Government advice this year. While many firms may already have had home working implemented, the majority have had to learn to work with it in some shape or form.
As businesses overcome the challenges remote working brings and identify the positives that this change is making for both colleagues and their productivity some firms are considering more significant change.
Stephen Jennings, Head of Tozers’ Employment Team, has seen an increase in requests for advice in relation to 4 day working weeks, with firms of all sizes, including multinational businesses, exploring the concept. For example Unilever is the latest organisation to take up the 4 day working week concept.
Stephen says, “Many firms recognise the potential a 4-day working week has in developing positive outcomes, which can include helping recruitment and staff retention, reducing burnout and sickness absences, as well as increasing productivity”.
Stephen adds, “These benefits are positive goals to aim for, and in looking to achieve these outcomes it is important for any business to think through the potential negatives or key considerations in its implementation. We would strongly encourage any business to think through how it will work in practice, and to engage with employees in planning out these practical points so that employees really feel involved in the process, and the employer sets up the best possible conditions to encourage it to work”.
So, where to start when considering a 4-day working week? Stephen suggests the following points are a good place to begin when starting to consider this change;
Some businesses may have a requirement to provide services during ‘normal’ office hours, which would mean introducing rotas and considering handovers etc. Others may have work which can require an urgent turnaround. There may be real practical difficulties in these scenarios.
Much may also depend on what the employees do with their extra day; e.g. if they just use it to take another job, it would be fair to assume any productivity gains would be reduced. Moving to 4-day weeks may therefore benefit those who will actually do something different with their extra day, not those paid at the lowest level who may take on new responsibilities. Employers cannot of course control how employees spend their time off but it may be sensible to take soundings in advance to see what employees are likely to do with their extra day. A related point is considering flexibility in terms of which day will be taken off; can the employer change this to suit its needs?
There are considerations about overtime here, especially with increased home-working. Does the quantity of work or capacity enable this to work? If workload doesn’t decrease, will employees simply end up working evenings and weekends, or the new day-off to keep up? Will employees actually get to enjoy increased time off, and see the benefits? Otherwise this will may actually disincentivise employees resentful of not being able to take the extra time they have been promised.
How is productivity to be measured? How will the employer gauge success or failure? If this isn’t carefully managed, the employer just ends up paying 20% over the odds for a reduced amount of work. This is where the success of a 4-day working week will come down to how well its managed, and the employer’s flexibility in tailoring the idea to fit its own business.
What happens if after moving to a 4-day working week, and analysing its success a business finds that it doesn’t work, or only partially works? Employers moving to this model may wish to do so on a trial basis that gives them sufficient flexibility to tweak or even roll back the scheme, either in whole or for certain areas of the business, if it doesn’t work. Such a decision may be unpopular though; ideally clear criteria for measuring success would be agreed at the outset with employees so that there is transparency and the basis on which decisions are made is understood.
Moving to a 4-day working week is a risk. That doesn’t mean it is a bad decision; if properly planned and implemented then it could be a great decision. If you do go down this route we would love to hear from you about how it went – but not on your non-working day!
For more information please talk to our dedicated Employment team.
South West Growth Service has signed a partnership agreement with leading South West law firm, Tozers. The relationship will provide the opportunity for mutual client referrals and business support initiatives for South West SMEs. Established in 1785, Tozers have offices in Exeter, Teignmouth and Newton Abbot providing a comprehensive legal service across the business landscape. Tozers has 26 partners and they are national specialists in a range of sectors, including charities, social enterprises and holiday parks.
“We are really excited by the prospect of working with Tozers who have all the capabilities our clients are looking for”, said South West Growth Service Founding Director, Katharine Bourke, “We were looking for a partner who could provide top level technical support to our clients and contacts but, as importantly, would also show real empathy with our client base. Our business and charity clients need support through all phases of their development whether business formation, rapid growth, reorganisation, acquisition, or exit – Tozers are well placed to provide this support.”
Alex Mackie, Commercial Director of Tozers, said “We jumped at the opportunity to continue building our business networks by partnering with South West Growth Service. We like what they do with their consultancy, coaching and training expertise but also their engagement with a wide range of relationships across the South West. We look forward to supporting their clients through taking time to really understand their needs and then in providing quality and timely support via relationships with our talented and experienced professionals.”
If you are interested in finding out more on how Tozers can help you or your business call them on 01392 207020 or email them at [email protected]
For more information on this partnership arrangement, contact Chris Lorimer, Director of South West Growth Service on 01884 220150 or [email protected]
The Dollar last week had one of the worst trading weeks seen for a long time, with President Trump continuing battle with the US media, China, the coronavirus and local Governors there was little hope for traders hanging on the dollar.
Over the last week and in to this we have seen the dollar weaken to levels not seen since the second week in March. Is this the time to forward buy on the dollar for the short term? i.e. for the next three months exposure, and lock in your profits? The exchange rate of 1.3 is the target for a number of companies but with a six cent loss in a week some feel that now is the time to act as the right level to start to hedge to prevent being caught up in a rebounding market.
Sentiment towards Sterling remains subdued primarily on the basis that the EU and UK remain unable to reach a post-Brexit trade deal, which must be agreed by year-end if the two economic areas are to avoid defaulting to trading on WTO terms.
Nothing seems to be changing this week in regards to the value of the pound which is stagnated and found itself halted by a strengthening Euro which has resulted in the exchange rate throughout most of last week hovering around 1.0950 to 1.10. One blessing is that at least we have not seen the pound weaken further against the Euro which just shows the artificial strength of the Euro and the untapped potential of the pound. Should the Brexit trade negotiations produce a deal we could well see the GBP/EUR exchange rate jump to 1.2 by the end of the year!
Importers and exporters out there is it time to act before you miss out on the possibilities of securing profits before the tides change? Many are reacting to the weakness of the dollar without guaranteeing that we will see the move to 1.3 and those dollar sellers are quickly protecting themselves against further weakness if not done already.
The Euro, being more stable, is not at the moment forcing anyone’s hand to protect profits or costs either way, however I would urge exporters to keep an eye on things, if we are able to secure a deal in Europe, as said previously, you would want to be on the back end of a 9% swing.
We acknowledge that there are a lot of companies out there who get very little insight to the currency markets through their banks and unless the volumes traded are substantial get little or no help with strategies to buy and sell and secure profit or income.
At South West Foreign Exchange, we deal with any sized company big or small, and are happy to help anyone to improve their knowledge of the markets and to explain how hedging currency contracts work.
If there is anything you wish to discuss in this report or if you are exposed to the currency market, in not just EUR, USD and GBP, but other currencies as well, please do make contact.
Tim Sheehan
+44 (0)1548 857009
