Groactive newsletter March/April 2015

IN THIS ISSUE:
Great news from
client:
Stephen Smith of
Sphere Risk Health &
Safety Management
TIP TOP HOT TIP
for business growth
Client Spotlight
Kelly Fryer of Chrysalis
Consulting Ltd
groactive
Accelerated Excellence in Business Growth
March/APRIL 2015 issue no 10
groactive
This issue’s
feature
Shaz speaks to
Steve HoughtonBurnett
3
Steve’s hands-on approach
is growing his business
TRIVIAL
FACTS
1
Have you ever felt so tired you
could ‘sleep on a clothesline’.
It’s not funny, because in
the days when tramps used to
be accommodated at overnight
dosshouses, a line was strung
Stephen Smith of Sphere Risk
Health & Safety Management Ltd
tells us about what his company
has accomplished recently!
between two points for the tramps
to lean their arms over, in order
to sleep. In the morning the spike
fixing one end of the line was pulled
out and the tramps received an
unceremonious awakening – hence
the nickname ‘the spike’ for these
establishments.
2
Another phrase to do with
sleeping arrangements is
‘show a leg’. When ships
were in port, the sailors were
allowed to have women sleeping
with them in their hammocks. When
the call came, if the occupant
put out an obviously feminine
leg, she was allowed to sleep on
undisturbed!
3
In Shakespeare’s day,
mattresses were supported
by ropes strung from one
side of the bedstead to the other.
Pulling the ropes tighter made
the mattress firmer and more
comfortable – hence ‘sleep tight’.
Sphere Risk Health & Safety Management
Ltd, based in Oundle Road Peterborough,
is a health & safety and environmental
consultancy with a difference. You may
be used to H & S practitioners who offer
advice on the systems and processes
you should install and implement – but
Sphere sees itself as offering practical
and pragmatic solutions to your H & S and
environmental issues, whether you are a
sole trader or a large company.
Managing Director Stephen, a Chartered
Health & Safety practitioner started the
business ten years ago, he heads up a
team which offers you immediate and
‘hands-on’ advice and help to find a
workable solution which will enable you
to meet your legislative, moral and ethical
obligations towards your workforce,
customers and suppliers. ‘Two years
ago the firm was just me and a lady who
came in part-time to deal with invoices
and admin. Now we have six full-time
employees, and have started offering
apprenticeships. A customer has the
choice of outsourcing the whole of its H &
S to us, or we can advise on a consultancy
basis. Whichever you choose, you have
access to immediate advice and help from
one of our qualified team, by telephone,
email or through the website’, says
Stephen.
Recent innovations include a complete
ICT update and the development of what
Stephen describes as ‘process maps’, a
form of mind-mapping which promotes a
greater understanding by the Sphere team
of all the issues involved in a customer’s
query. The company is also an accredited
training provider offering face-to-face
training for the customer. As Stephen
says, you can only learn so much from
on-line training – would you go out and
drive a car for the first time after watching
a video? The firm’s ‘hands-on’, customercentred and practical approach has
ensured that it’s always had a full orderbook, and Stephen describes the firm’s
approach as being ‘very much a solutionsprovider’.
Sphere is focussed on continuing its
impressive business growth, and has been
working with aa Chartered Accountants,
using its business growth accelerator
tools to forge the way ahead. Why did
they choose aa? Stephen says ‘We like
to work with Shaz because he’s someone
who’s already been there and done it.
He provides a service which is very much
focussed on us and keeps us focussed on
where we’re going’.
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Shaz speaks to Steve Houghton-Burnett
A great leader in the field of building
a formula for your success!
Steve has nearly 25 years
experience running businesses
with the last 10 years delivering
change by leading large programme and project environments.
He has real coal-face experience
of how attitudes and behaviours
can either deliver significant
success or massive failure.
He started, grew and helped in
the sale of one of the UK’s first
Internet Service Providers. The
sale was for £300 million and
happened six weeks before
the .com bubble burst. Staying
in control of his emotions and
attitude was key to the successful
execution of this strategy.
He goes to great lengths to
make his audience the heroes
and heroines of their own great
adventures. More importantly he
shows them how THEY can build
their own secret formulas for
success.
Tell me a bit about your
background
I’ve always been a bit of an
entrepreneur, right from my first paid
assignment for £58 when I was 12.
I was first exposed to the internet back
in 1990 - and I started creating ideas
in my head. After 363 days, and over
80 pitches, I secured £80K (from the
person I first pitched to!) and started
an internet service provider company
- NorthWestNet - only the fifth one
in the UK and targetting Manchester
only (we had the first internet mention
of Manchester United and Coronation
Street!). Five years, two mergers and
three rounds of funding later, we had 106
staff and changed our name to Telinco.
Steve Houghton-Burnett
People join a company but they leave a
boss – you have to engage your team
in a personal way.
What does a business need to
grow effectively and efficiently?
This is like a three-legged stool - all the
legs are needed or it won’t stand up!
First, make sure you have good cash
flow management and a plan to
efficiently utilise the cash that you have.
Have a healthy respect for money. Think
like a deep-sea diver using his oxygen
supply!
Then look at customer service – people
have to be delighted with the service
they receive from you. They want to be
treated like people, so make it personal
and welcoming.
Finally, marketing - people have to know
you’re out there so invest time and
money on marketing and track the return
on investment.
The company was sold to World Online
for £300 million – 50% cash and 50%
shares - making 14 millionaires in the
process.
Why do so many small businesses
fail to grow despite their intended
plans?
They don’t actually execute their strategy
in line with their business plan (which
they probably don’t believe in the first
place). You must re-visit your plan on a
regular basis.
What did you learn in the process?
That it worked for me being a disruptor
in the business world. But don’t forget
that everyone has something to add. As
entrepreneurs, it’s our job to see this in
other people.
Of all the books you have ever
read, which ones stand out as the
ones you would recommend to
anyone else and why?
‘7 Habits of Highly Effective People’ – this
changed my life.
What were the main challenges?
It was a constant hiring cycle and
finding the right people was difficult.
Viktor Frankl – ‘Man’s Search for Meaning’
‘The Mind of a Trader’ by Alpesh B Patel.
This books talks about how good stock-
traders work the market and win. It’s a
metaphor for life.
If there was one skill you would
teach everyone else what would it
be and why?
True Communication – not to make
assumptions, but to question everything
and wait to hear the answer.
You must deal with lots of different
organisations and companies. What
in your opinion are the biggest
mistakes they make and how would
you suggest to them that they do
something different?
Companies lose personality and process
takes over from people – this is a
slippery slope. Keep connected to your
workforce and you customers.
If you had only one piece of advice
you could give to someone who
wanted to be more successful,
what would it be and why that one?
Know what success looks like to you.
This is what really matters and everything
else will fit in.
What one question would you like
someone to ask you – that would
enable you to share your key
thoughts on being successful?
‘At what point in your life did you realise
that this was the only that you have.
‘It was 2 December on a Tuesday
when I realised my purpose in life and
everything became clear.
Go to www.theformulaguy.com/
personal-growth/a-million-gratitude to
let Steve know one things you’re grateful
for!
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Thank you!
A Big
This issue our thanks for
referrals go to Victor Sacks – an
Independent Financial Adviser
working with Ringrose Grimley.
We also thank Victor for his
regular support at our seminars
and workshops.
Accountancy Archie’s Technical Round-up
The Chancellor’s Fifth
Budget supported a resilient
economy with targeted help
for the makers, doers and
savers and more specifically
for bingo playing, beer
drinking house builders! That
is of course if he gets the
chance to implement his
plans after 7 May!
The outlook for personal income tax
looked brighter, with immediate and
projected increases in the annual
personal allowance and replacing the
10% starting rate for savings income
with a 0% rate on a band widened
from £2,880 to £5,000. On the other
hand the threshold at which you start
paying 40% has dropped during the life of this Parliament by just under £2,000.
On the business front, corporation tax is payable at 21% from 1 April 2014 but will
drop to a uniform rate of 20% from1 April 2015. Thresholds for VAT registration and
deregistration have increased in line with inflation.
Annual Investment Allowances for businesses have been doubled to £500,000 for
an extended period, but it is planned that they will revert to £250,000 so do contact
us to see how you can take advantage of this. Research and Development tax relief
for SMEs has been increased so if you are developing new products or systems,
don’t forget to check whether this relief is available.
Pension reforms were announced to give you greater flexibility and access to your
pension pot in the future – so you won’t be tied to the annuity route. However only
25% of the lump sum withdrawn will be tax-free.
Some of you, particularly in London and the South-East, will be facing an annual
charge of at least £7,000 on your residential property – but only if it’s owned by
your company or your pension scheme or any other ‘non-natural person’! The CGT
exemption period where you own two homes is dropping to 18 months, so you’ll
need to come to a decision on which one to treat as your main residence.
The Help to Buy equity loan scheme has been extended to March 2020 but the
Help to Mortgage guarantee scheme for high loan to value mortgages will end
in March 2016. But a £500 million Builders Finance Fund will be created to help
developers to access finance to unlock 15,000 housing units which have stalled due
to difficulty in accessing finance.
And Mr Osborne thinks that bingo halls play an important part in local communities
so from 30 June 2014 the percentage of duty charged on bingo promotion profits
decreases from 20% to 10%!
TIP TOP
HOT
TIP
for business growth
You know that a successful
business needs a business
plan – and one that is
reviewed regularly. But what
should a business plan tell
you? At its simplest it tells you:
•
where you are now
•
where you want to get to
•
how you’re going to get there
•
and, most importantly, how will you know
when you have got there.
Sounds easy doesn’t it? Let’s have a look
at some of the points you might want to
include, especially if you intend to start up a
new business or exploit a new niche.
•
Have you done your market
research? Don’t forget that a lot of
valuable information is available via the
internet – about your potential customers
as well as what your competitors are
offering. If you’re already established,
then you should have records of
your existing customer profiles and
preferences and you can use your
customer base as a pilot group for your
new ideas.
•
Is there really a gap in the market
for your idea? Just because you
can identify a gap that is not already
served by your competitors does not
necessarily mean that there is a need.
But do test the market for a new niche
before giving up the idea!
•
Your financial information must
add up. So be sure you’ve made your
best estimate of costs (both direct and
indirect) and practical projected sales
•
Do you know how you’re going to
finance the new venture?
•
Have you taken into account the full cost
of any business borrowing?
•
Are you sure that you either already
have or can fund any resources
needed for the new venture?
•
Have you made provision for your
personal survival budget?
•
Have you put together a cashflow
projection for at least the first year?
•
Have you included a reasonable
contingency in your forecast in case
sales or costs are significantly different
from forecast?
•
Does your plan include recognised and
measurable milestones?
•
Have you planned to deliver and
sustain the success you hope to
achieve?
•
Have you a business continuity
strategy?
Contact us on 01733 555667 if you would like further advice.
Please note that the advice is intended to be generalised and may not apply to your specific
circumstances. aa Chartered Accountants therefore accept no liability for any loss incurred as a
result of any action taken or omission made in reliance on the above unless specific prior advice
has been sought and given by aa Chartered Accountants.
Remember – to fail to plan is to plan
to fail!
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Client spotlight on…
Kelly Fryer
EVENTS
& News
We were very sorry to say goodbye
recently to our administrator and PA
Nikki Cassidy. Many of you will know
Nikki from visits to our office, or from
speaking to her on the telephone, and
we’re sure you will miss her unfailing
good humour and ‘can-do’ approach
as much as we do! Our good wishes
go with her as she moves on to the
next stage in her career. Thanks for
everything Nikki!
Nikki’s role is being absorbed by the
other team members, primarily Aasiyah
Joseph and Matt Simpson. As we’ve
had one or two changes in the team
in recent months, now is a good time
to up-date our website generally and
you’ll soon see the new line-up (and
new photos!) when you login to www.
aa-accountants.co.uk.
This issue the spotlight falls on
Kelly Fryer, Managing Director
of Chrysalis Consulting Ltd, a
company based in Peterborough
with a large London client base
covering all of the UK.
The company has been running about 12
months now, and, as its name suggests,
offers services which enable businesses,
teams and individuals to grow –
emerging from their coaching chrysalis
in the full glory of a butterfly, with all
its beauty and power. The company
concentrates on change management,
cultural change, leadership, team and
employee development and enablement,
with the mission of improving people’s
working lives.
How do they do this? By establishing
and working on the ethos of the
business, identifying core values that the
whole team or workforce can uphold,
and, most importantly, honing leadership
skills. As Kelly says, “You have to start at
the top, to achieve effective sustainable
change throughout the business”.
Asked about the biggest challenge
she now faces, Kelly told us, “I never
expected that the business would grow
and expand as quickly as it has, so the
objective is to continue to sustain growth
at the same rate. My biggest challenge
is getting local businesses to understand
the benefits to them of working with
Chrysalis Consulting, and to appreciate
the importance of investing in leadership
and team/employee development”.
At aa Chartered Accountants, we fully
support Kelly’s views on the importance
of leadership skills, team development
and investing in our employees. If any
of you would like to see what Kelly and
her colleagues can do for your business,
please don’t hesitate to contact her on
01733 865426, by email at mail@
chrysalis-consulting.co.uk or via
the Chrysalis Consulting website www.
chrysalis-consulting.co.uk/contactus.html
If you have tips on business growth which you’d
like to share, or any comments for us, or points you
would like to share with our readership please send
them to the Editor on [email protected]
for inclusion in our next edition.
We held the latest in our series of
Accelerated Profits Forums on 4 March
2015 on a topic dear to all our hearts –
10 Money-making Moves. We had a very
good turn-out of around 30 people to
hear Shaz explaining that there’s nothing
indecent about making a profit and
giving us some tips on how to achieve
this. Do let us know how you’re getting
on! The next event will be in June, so
please let us know if you’d like to be
added to the priority contact list.
If you would like to look at hosting an AA
event yourself, please contact Shaz on
01733 555667 or shaz@aa-accountants.
co.uk
Finally, we were delighted to achieve
recognition at Bronze level as
Investors in People – but our threeyear accreditation runs out in July
and so we’re working towards further
recognition. This time we aspire to Gold!
Inspirational quote:
“Your big
opportunity may
be right where
you are now”
Napoleon Hill 1883-1970
EDITORIAL TEAM
Shaz Nawaz
Director
[email protected]
Hilary Gallup
Editor
[email protected]
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