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10,000 SmallBusinessesAn Entrepreneurial Education -supporting small businesses in the NorthWest as they seek to grow

P2 TheBusinessDesk.com - Goldman Sachs North West supplement - April 2013


ContentsForeword:Chris Barry, editorTheBusinessDesk.com .............................P2

Foreword:Lynn Martin, executive director for10,000 Small Businesses, MMU...............P3

Unlocking growth for the region’sbusinesses............................................P4-5

Learning with your peers .....................P6-8

Support for the journey .....................P9-11

Round table discussion....................P12-14

TheBusinessDesk.comPortland Tower, 53 Portland Street,Manchester M1 3LF

editor:Chris Barry e: [email protected]

publication editor:Joanne Birtwistle e:[email protected]

business development manager:Lee-J Walker e: [email protected]

t: 0161 238 4922f: 0161 238 4905

THE Goldman Sachs10,000 SmallBusinesses initiative isdesigned to help smallbusinesses to growby providing greateraccess to businesseducation and businesssupport services.The programme is based onthe view that greater access

to a combination of business education and supportservices is the best way to address barriers to growth,creating jobs and economic opportunity.

This supplement looks at some of the areas consideredimportant to bolstering small business growth, suchas networking and peer learning opportunities andthe new ideas, knowledge and skills which are generatedthrough this process.

In these economic times entrepreneurs should focusnot just on growth but also on sustainability and developstrategies to ensure longevity – a theme that is also anintegral part of the 10,000 Small Businesses programmeand further explored in this supplement.

The case studies that run throughout this supplementhighlight the diversity of the types of businesses - fromfamily business with the legacy handed to son, to auniversity spin out, to a social enterprise - that havetransformed and grown as a result of their participationin 10,000 Small Businesses.

I hope this supplement gives food for thought andwill help you to drive your own business’ future growth.I encourage any business owner with a desire to expandand develop their business to contact ManchesterMetropolitan University for further information on the10,000 Small Businesses programme.

Chris Barryeditor, TheBusinessDesk.com

Chris Barry - editorTheBusinessDesk.com

Small businesssupport

‘Greater access to business educationand support services is the best wayto address barriers to growth, creatingjobs and economic opportunity.’

Understanding howfirms grow andsupporting theambitions of smallbusiness owners togrow their businesseshas been the focus ofthe Centre forEnterprise atManchesterMetropolitan

University for over a decade.

Our experience of supporting businesses to achievetheir full potential has shown us that establishedbusinesses can make strategic changes in theiroperations and management that can positively impacttheir growth trajectories.

Manchester Metropolitan University is the lead deliverypartner of the Goldman Sachs 10,000 Small Businessesprogramme in the North West. 10,000 Small Businessesis a unique, practical programme designed to helpthe leaders of established small businesses andsocial enterprises define and achieve their businessgrowth aspirations.

The programme equips participants with tools,networks and support to help them overcome a rangeof obstacles and lay the foundation for long-termsustainable growth and job creation.

Manchester Metropolitan University has convened aunique and experienced group of local smallbusiness experts to deliver 10,000 Small Businessesin the North West.

Participants learn from leaders in their field who haveextensive experience working with small businessowners. We invite guest lecturers to share their specialistknowledge and organize panels of entrepreneurs thathave grown successful businesses and local fundmanagers that provide capital for business growth.

In addition, each participant is provided with anexperienced business coach to support their learningthroughout the programme. We also leverage ourwider university network of contacts and knowledgeto support participants as needed.

Applications are now being invited for the programmestarting in September 2013. If you’re the leader of asmall business or social enterprise with five to 50employees that wants to grow and create new localemployment opportunities, you can apply now byvisiting our dedicated websitehttp://www.10ksbnw.co.uk/ or call 0161 247 3854referencing 10,000 Small Businesses.

Professor Lynn Martindirector of the Centre for Enterprise and professorof entrepreneurship at the Centre for Enterprise atManchester Metropolitan University

‘Manchester Metropolitan Universityis the lead delivery partner of theGoldman Sachs 10,000 Small Businessesprogramme in the North West.’

Lynn Martin - executivedirector for 10,000 Small

Businesses, MMU

Equipping the region’s businesses with the tools for growth



SMEs (small and mediumsized enterprises) are a vitalpart of the UK economy and adynamic, growing SME sectoris recognised as contributingsignificantly to futureeconomic growth.

According to figures from theDepartment of Business,Innovation and Skills (BIS), thereare approximately 4.5 millionSMEs in the UK, forming 99.9%of all businesses.

These enterprises account for morethan half of private sectoremployment and almost half ofall private sector turnover.

BIS says that the majority ofnew jobs in the UK are created bysmall businesses - large firmscontribute just 24% to new jobcreation compared with 76%for small businesses. Of these,existing small firms contribute44% of new jobs created whilstnew business start-upscontribute 33%.

The importance of smallbusinesses to the UK economycould not be clearer.

But for many smaller firms the keyto achieving significant growthrests on finding the right accessto capital, support and educationservices - something that is easiersaid than done.

A BIS report in 2011 looked atthe main barriers to the take upand use of business support. Itfound that in the previous threeyears, only two fifths of SMEemployers (more than 400,000firms) used formal businessassistance.

The Goldman Sachs 10,000Small Businesses programme isdesigned to provide high-quality,practical support to the ownersof established small businessesand social enterprises as theyseek to grow.

It is run by leading universitybusiness schools Leeds UniversityBusiness School, ManchesterMetropolitan University BusinessSchool, Aston Business School atAston University in Birminghamand University College London,with input from Saïd BusinessSchool, University of Oxford.

The programme, launched in2010, brings together groups -known as cohorts - of up to 30entrepreneurs in Yorkshire, theNorth West, The Midlands andmost recently, in London.

Based on the broadly held viewof leading experts that greateraccess to a combination ofeducation and business supportservices best addresses barriersto growth, and designed byexperts to help small businessescreate jobs and economicopportunity, the programmealready has powerful andenergetic alumni of nearly 400entrepreneurs putting whatthey have learned into practicewithin their own firms.

Just 3% of all start-ups reach aturnover of £1m after three years- around 7,000 businesses out ofthe 300,000 that are launched.



Unlocking growth for theregion’s businessesThe UK economy’s continuing attempts to leave recession behind andpush ahead towards recovery will be driven in no small part by small firmsacross the regions - by David Parkin

‘The key to achievingsignificant growthrests on finding theright access tocapital, support andeducation services.’

‘10,000 SmallBusinesses is designedto provide high-quality, practicalsupport to the ownersof established smallbusinesses as theyseek to grow.’

But what happens to those firmsthat survive the crucial first threeyears of business life? Where dothey go next? Only a small numbercan find the accelerator pedal.

Dubbed ‘the vital 6%’ - only 6%of firms increase turnover by 20%for three consecutive years andare therefore classed as “highgrowth” by the Organisation forEconomic Co-operation andDevelopment (OECD).

Jonathan Lawson, enterprisefellow at Manchester MetropolitanUniversity, says that unlockinggrowth for businesses on theGoldman Sachs 10,000 SmallBusinesses programme can be asmuch about giving themconfidence in their potential asproviding them with straightbusiness advice.

“Unlocking growth is very, verycomplex because each business isdifferent and personal,” he says.

The uniqueness of the 10,000Small Businesses programme isthat it provides a combination of

factors, such as group-basedlearning and peer-to-peersupport that enable what he calls“social learning”.

Lawson says:“It’s notabout cashflow butaboutbuildingconfidencethat these arefantasticbusinessesthat have the

opportunity to take their growthbeyond their initial aspirations.

“Many of them have imposed theirown limitations on growth.Everyone has their ownperceptions.”

Changing these perceptions canbe transformational for a businessand life-changing for anentrepreneur.

“People say that they nowunderstand that the sky is thelimit,” Lawson says of 10,000Small Businesses alumni.

“These moments oftransformation are starker forsmall businesses - it happensquickly and you can see it.”

10,000 Small Businesses stressesthe importance of sustainablegrowth to each participant -businesses can grow too quickly.

Those running the programmeunderstand that there is a balancebetween stimulating a businessthat has long-term, high growthpotential and making sure it doesnot become a shooting star withhuge early growth that later fizzlesout.

Each business owner has their owngrowth plan, developedthroughout the programme,which sets out their growth targetfor the next three to five years.

Deepak Jayaraman, head ofcorporate engagement forGoldman Sachs in Europe, theMiddle East and Africa, isdelighted with the programme’s

achievements thus far butrecognises there is a lot more workto be done.

“We have all been very pleased byits progress,” he says. “GoldmanSachs came in at an interestingtime in 2010. It was following theelection and dismantling of theold regional development agencynetworks that had been in placeup to that point,” he says.

“We recognised that businesssupport was dominated byinitiatives in the start-up space,so we went into white space toaccelerate growth.”

Jayaraman is clear that theprogramme is only focussed onambitious entrepreneurs that wantto drive their firms to the highestpossible level.

Since its launch three years agothe programme's alumninumbers have grown from theinitial cohort of 25 businesses tonearly 400 firms.

“The four-month journey isreally just a start, we are tryingto build a nationwidecommunity of entrepreneurs,”says Jayaraman.

“That community we arebuilding is pretty spectacular.We have great academicpartners and the skills andexperience that they bring isincredible, they are trying to bringa fresh approach.”

“Goldman Sachs is very proudto be in the middle of this. It’sabout adding to a landscapethat wasn’t there. If 10,000Small Businesses helps tostrengthen the UK small businesssupport system, then it willhave succeeded.”



Jonathan Lawsonprogramme director for10,000 Small Businesses,

MMU‘The programme isfocussed on ambitiousentrepreneurs thatwant to drive theirfirms to the highestpossible level.’

‘The moments oftransformation arestarker for smallbusinesses - it happensquickly.’

THE Goldman Sachs 10,000Small Businesses programmecouldn’t be further from thetraditional image of anacademic course.Each cohort of up to 30entrepreneurs on the programmebrings together leaders of smallbusinesses from a wide range ofindustry sectors, ages andbackgrounds. Despite theirdiversity such a group offerscomplementary strengths,knowledge and skills to thecollective.“We know that peer-to-peerlearning and mentoring are keycomponents of any smallbusiness programme. It’s reallychallenging to be a smallbusiness owner,”observesDeepak Jayaraman, head ofcorporate engagement forGoldman Sachs in Europe, theMiddle East and Africa.

“There is a responsibility to yourstaff, to your bank, to suppliersand customers, and to yourfamily. It is on one person’s headwhen they are building teams.10,000 Small Businesses puts themin a programme where they canbe honest.“You are looking for a shoulder[to lean on] and to vent [yourfrustrations and issues] every oncein a while. These businesses havenot had a platform to do that.”Professor Lynn Martin, professorof entrepreneurship and directorof the Centre for Enterprise atManchester MetropolitanUniversity (MMU), says that thepower of the learning experiencefor entrepreneurs is strengthenedby the peer-to-peer element.“When you walk through the door

in the first session you have onebusiness to worry about and whenyou leave you have another 29!”Her colleague Jonathan Lawson,programme director for 10,000Small Businesses at MMU, agrees:“The most important thing is theestablishment of that trust- basedcommunity that enablesopportunities to happen.“The foundation for peer-to-peerlearning is those trusted bonds.Once they realise that trust andthat there is a lot ofcommonality across variousindustry sectors, once thatmoment of realisation comes,that really unlocks the learning.”Martin says: “They know that theothers they are working with inthe group will challenge them.“But they will also celebrate withthem - they appreciate what it’slike to turn a company aroundor bring in a big order more thanI can as an academic.”Adam Patel founded UK GoodDeals in 2004, then launched hisPreston-based motorcycleaccessories business Ghost Bikesin 2006 and three years lateradded Pro-Jump, a websiteselling jumping stilts – some ofwhich were used in the openingceremony of the London 2012Olympics.Now in his early 40s, he startedhis working life in the family retailstores and market stalls business.He admits that it took a short

time for everyone to becomecomfortable with the programme’speer-to-peer learning approachbut once that was established itprovided a huge boost to hisconfidence.

“For the first couple of weeks somepeople are fairly quiet, but I wasquite open.“People do become much moreopen as you get to know andtrust each other and soon afterpeople were asking for my helpto finish their growth plans – itgives you confidence. Therewere people who wereeducated to doctorate level onthe course and they werelistening to me as much as I waslistening to them.“It certainly feels more equalthan when you were at school!”he laughs.Jayaraman says that 10,000 SmallBusinesses is designed to placeparticipants “in an eco-system ofbetter support”.“What they share is a commonexperience so we start to hear thatfolks don’t feel that they are onan island any more,” he adds.



Learning with your peersThe unique element of peer-to-peer learning on the Goldman Sachs 10,000 SmallBusinesses programme is something all the alumni put high on the list of benefits- by David Parkin

‘In the first session youhave one business toworry about andwhen you leave youhave another 29!’

‘You get to knowand trust each otherand soon afterpeople were askingfor my help.’

Lawson says the diversity of thebackgrounds of those on theprogramme is one of its majorstrengths.“There are very few educationprogrammes where you will havesomebody that left school at 15with no qualifications sat next tosomeone with a PhD and theyare learning together.”Martin agrees: “We take anysector really and we look fordifferent stages in the businesslife - it could be a family businessrun by the second or thirdgeneration, for example.”Such a mixture means theentrepreneurs are challenged with

new questions and viewpoints ontheir own business from otherprogramme participants.“We have social enterprises oneach cohort but the thing theyall share is that they havesimilar issues, whether that betackling costs or making a

difficult employee work better,”adds Martin.

Lawson says a lot of work goesinto trying to find the right blendfor each cohort.

“We do put an awful lot ofthought into that. It is a nuancedprocess, it’s about thinkingabout the needs of the businessesand trying to get a group thatworks well for each of thedifferent members.

“It’s about them as learners andbusiness people.”

Martin says the groups gel soclosely that they forge strongrelationships.



Diane Burridge – MoneylineMONEYLINE is a not-for-profit social enterpriseoperating in the non-standard credit sector.Set up in 2001 as a local initiativeto tackle financial exclusion in EastLancashire, it is now the largestnot for profit lender in the UK,with 17 branches concentratedin the North West, as well as inSouth Wales, Humberside andStaffordshire.The organisation is looking tofurther expand its branch networkand ways of trading – for exampleby offering services to repeatcustomers through the internet.It currently has around 20,000customers a year and the ambitionto reach 100,000 by 2015.

“Onlineservices aremore lowcost toprovide andwill allow usto reachmorecustomersbut we stillalso intend toextend the

face-to-face element throughbranches, in order to continue tobuild relationships with ourcustomers,” said chief financeofficer Diane Burridge.One of the key impacts, afterparticipation in the Goldman

Sachs 10,000 Small Businessesprogramme, has been that shenow has a clear long-term visionfor the business and how toachieve the company’s goals.

The business has grown steadilyover the past few years and has75 staff members – a 50% increaseon last year.

Turnover for the financial yearending 2012 was £9.5m - a30% increase on 2011. The planis for turnover in the core businessto hit £25m by the end of 2015.

According to Burridge,participation in the GoldmanSachs 10,000 Small Businessesprogramme, which she concludedin July 2012, has enabled her tofocus on the future of the businessrather than concentrating herefforts on the day-to-day running.

“The course material was reallypractical and the sessions allowedme to distil our USP [unique sellingpoint] and do an analysis of ourstrengths and weaknesses. Youstart by taking the businessapart and examining all of the

elements and then building it backtogether.

“There was a transition period tomake the business sustainable butalso investment ready, sowe could say we are sustainablebut also we can make asignificant social impact if youinvest in us,” she said.Burridge started pitching toinvestors whilst on the programmeand since finishing 10,000 SmallBusinesses, has raised £2mthrough major investors in thesocial investment space, whichshe says will enable her to growthe core business by 40%.She wants to raise a further£10m through a second roundin 2013 to open more branchesand expand other ways ofdelivering the products andservices in the next 18 months.“The credibility of saying I was onthe programme run by GoldmanSachs and MMU is powerful – theyare clearly credible partners towork with,” she added.

In focus...

‘The course materialwas really practical andthe sessions allowedme to distil our USP.’

Diane Burridgechief finance officer,

Moneyline

Moneyline - Growth enabled

‘We look for differentstages in the businesslife. It can be a familybusiness run by thesecond or thirdgeneration.’



Liz Clarke – BikeRight!LIZ Clarke first set upBikeRight! as a communityproject but it really tookoff so she registered thecompany and gave up herday job in 2003.The Manchester-basedorganisation, which provides cycletraining for schools and adults, aswell as cycling events, cyclingpromotions and consultancy, hasgrown steadily and now alsooperates in Newcastle, Merseysideand most recently Birmingham.

It employs 75 full-time staffand turnover for the year thatended in April 2012 was £1.3m.BikeRight! is on target to hit atleast £1.6m by the financial yearend in April 2013, while profitmargins are also steadilyincreasing.“We are very staff heavy becausewe are a service business butwe are looking at ways tooptimise staff so that we can

further increase profit margin,”said Clarke.The Goldman Sachs 10,000 SmallBusinesses programme has helpedher become more strategic andforward looking.

“You knowwhat youshouldbe doing buttrying to do itis hard. It’simportant toget the rightpeople inplace so thatreleases youto work on

the business. I no longer do theday-to-day – I have an operationsmanager, who I had justappointed when I started thecourse and am now utilisingproperly,” she said.“I have taken business coursesbefore but not in the samedetail as 10,000 Small Businesses– it’s a much more comprehensiveprogramme. The approach wasvery different from previouscourses and the applicationprocess meant people took itseriously,” she said.She found peer support one ofthe most valuable aspects of theprogramme.“You never let your guard downin business as you are trying tosell your business, so that was

very important – lots of peopletook that guard down. That’sthe best thing about 10,000Small Businesses and we arestill meeting today,” she said.

Clarke makes particular use ofthe online forum, which isprivate to just her 10,000 SmallBusinesses cohort.

“All the course notes are onthere but also we cancommunicate with each other –people blog or add informationabout events,” she said.

The company is now working hardto develop partnerships andrelationships with larger firms,which Clarke says has beenachieved in Birmingham.

“We are on quite a few frameworkagreements around the countrynow and I work with theDepartment for Transport, whichmeans we have more influenceand it helps with profile raising,”said Clarke.

In focus...

‘The approach of theprogramme was verydifferent and theapplication processmeant people tookit seriously.’

Liz Clarkemanaging director,

BikeRight!

BikeRight! - Realising growth potential

“Our very first cohort still keepin touch. They go on holidaytogether and they have set upventures to help their localcommunities,” she says.

“What the programme tries to dois allow businesses to help eachother,” says Patel.

“You are definitely challengingeach other to do well. When youare the managing director of abusiness you can easily hide stuff,but working in a group you don’twant to let anyone down. Youdon’t want to miss a session.”

“Our group within the cohort stillmeets up,” he adds, furtherillustrating the strength of the

bonds forged between those onthe programme.Uniquely, the programme bringsentrepreneurs and thoserunning social enterprises togetherwithin the cohorts. It helpsreinforce the view that in thesechallenging economic times,entrepreneurs should not just beconcerned with business growth,but with the sustainability oftheir business.Martin of MMU says: “They havealmost a missionary zeal to helpothers, they will identify a gap inthe support provided.”She says the programme’s focuson the impact of business on acommunity has the participants

recognising their value and impactas entrepreneurs in their localcommunity.“A few have set up a socialenterprise, they have alsorecognised the soft benefits suchas confidence, trust-basedrelationships, it has helped to makesense of who they are.”There are many highlights, shementions one which perhapsshows the softer as well as thefinancial impact of theprogramme.“When one of our participants firstcame in she was struggling toexplain her business in a fewsentences. Seeing her turnoverdouble, that was wonderful.”

SUPPORT along the waycan help all types ofbusinesses reach theirfull potential.

Having the right support networksare crucial to entrepreneurs andthe value of mentors should notbe underestimated.

Many small business ownersand experts find that running abusiness can be a lonely experienceand having a sounding boardcan help.

Business support services representa key part of the Goldman Sachs10,000 Small Businessesprogramme. These services includespecialist workshops, one-to-onebusiness support and local alumnimeetings. All of which are helpingparticipants to be part of anational 10,000 Small Businessescommunity network.

Jonathan Lawson, enterprisefellow at Manchester MetropolitanUniversity, says that it is theholistic and integrated approachof the programme which makesit so effective for the businessowners.

“It’s the mix - the modules eachhave a different focus. We bringin academics and expert speakersas well as entrepreneurs.

“One-to-one support frombusiness coaches is absolutelycrucial. Business coaches willhave extensive practicalexperience, their role is to helpwith individual challenges. Theyact as a great support and as avital sounding board but also askthe difficult questions.”

He highlights the fact that theprogramme is focused as muchon what you know as who youknow.

“It’s about knowledge but alsocontacts. We bring in people withexpertise in accessing finance andthey become part of the 10,000Small Businesses network.

“One of our guys has just had over£500,000 of investment from acouple of different sources andsix months ago he said hewouldn’t have known where togo for that.

“Often a new confidence growsin these businesses: that they aremore than a little special; that theyare great investment prospects;and that they have this hugepotential. It is fantastic to see.”

Adam Patel, who launched hismotorcycle accessories businessGhost Bikes in 2006 and laterPro-Jump, a website sellingjumping stilts [see p6] saw salesfrom his businesses reach £3.6mlast year and they are projectedto be £4.2m this year.

He says the course helped himfocus a lot more on his existingbusiness rather than purely onexpansion.

He found the access to a businesscoach useful, with whom he

would explore in greater detailsome of the issues covered inthe group sessions.

“They come to your business toprofile it and identify what youneed to solve some of yourproblems,” he says.

“10,000 Small Businesses getsyou out of the business to thinkabout it and work on yourbusiness.

“I would recommend anyone togo on the course. My business isbetter because of it, it’s a goodfoundation for the next level.”

Lawson says that those on the10,000 Small Businessesprogramme don’t just focus ontheir own business; there is a realteam ethic among the cohorts.



Support for the journeyIf you are going to run a successful business then you cannot do it alone - by David Parkin

‘We bring in peoplewith expertise inaccessing financeand they becomepart of the 10,000Small Businessesnetwork.’

He says: “It becomes a kind ofholistic approach. They alsolook out for each other. One ofour cohort members went to atrade show not only selling hisown products but also theproducts of others on theprogramme.

“We oftentalk abouthard metricson things likeemploymentand turnover.But there arethings youcan’t measurethat 10,000Small

Businesses participants gain likeleadership skills. It’s exciting to

see the changes when we getback together for alumniactivities.

“Our job is really secondary togetting the right people togetherand the energy that you getfrom getting 30 fantasticentrepreneurs together in a roomis incredible.

“It’s about stepping back fromthe business. Even though time isa concern they find their time hasbeen spent much morestrategically.”

He adds that getting theentrepreneurs to realise their ownpersonal value and the value oftheir companies is crucial.

Deepak Jayaraman, head ofcorporate engagement for

Goldman Sachs in Europe, theMiddle East and Africa, says10,000 Small Businesses had tobe the highest quality it could beif it was to truly fully benefit theentrepreneurs who got involved.

“And making sure it isimplemented by leading businessschool partners in each region iscrucial,” he says.



Matthew Deasy – BeanmachinesMATTHEW Deasy wasjust 26 when he launchedBeanmachines with hiswife Sara, after spottingthe opportunity to leaserepossessed coffeemachines to offices andcafes eight years ago.“We came up with the businessidea during the credit crunch –people couldn’t get finance forcoffee machines. So we decidedto buy machines from strugglingbusinesses or receivers and passthem on as rentals,” he explained.

One of the changes that Deasyhas made since attending theGoldman Sachs 10,000 SmallBusinesses programme in 2011,is to put a greater strategicemphasis on the sales andmaintenance side of the CheadleHulme-based business, havingidentified the potential for greaterprofitability in this area.

Since then, turnover hasincreased 30% to £470,000and he expects it to hit £650,000by April 2013.

Deasy said he benefitted hugely

from being on a cohort witholder and more experiencedbusiness people.

“It was like having a virtual boardof people - and they would tellyou if you had a good or badidea,” he said.

When he started 10,000 SmallBusinesses, Deasy felt very awarehe was the youngest person inhis group and had the newestbusiness. Over the course of theprogramme, this ceased to be anissue as he gained a great dealof confidence from workingwith his growth group.

“It gave me the confidence to acton these ideas – quite a fewpeople asked why we were justtargeting independent caféowners and that we should alsobe selling to big companies. So

we did – we used to avoid chains,which is embarrassing lookingback now – it’s much easier tomanage one big client than 50smaller ones,” he said.

10,000 Small Businesses madeDeasy think differently aboutsocial responsibility andfollowing the module on socialenterprise, Deasy came up withan idea for a brand new socialenterprise company that wouldcomplement his existingbusiness.

“I try to be a good person andwanted a business that also doessome good,” he said.

The plans for that are top secretbut Deasy said: “watch this space!”

In focus...

‘He gained a greatdeal of confidencefrom working with hisgrowth group.’

Beanmachines - acting on growth advice

Jonathan Lawsonprogramme director for10,000 Small Businesses,

MMU

‘One cohort memberwent to a tradeshow selling notonly his productsbut also products ofothers on theprogramme.’

For many participants,accessing suitable forms ofcapital can be critical toimplementing their customisedgrowth plans.

Jayaraman says: “10,000 SmallBusinesses helps prepareparticipants to grow theirbusiness, understand how tomaximise their balance sheets, andwhen it’s appropriate to accessgrowth capital.”

Following graduation from theprogramme, participants have theopportunity to get involved withnational and regional alumniofferings such as workshops,conferences and networking

events as part of building abroader 10,000 Small Businessescommunity network.

Jayaraman says that the growingalumni numbers are a powerfulforce to support the nextgeneration of cohorts on theprogramme.

And as the alumni communitygrows, Goldman Sachs 10,000Small Businesses will provideopportunities for participants tokeep in touch and continue theirpersonal and business growth.

“We are exploring ways toleverage technology platforms toenhance the community and alsobring participants back togetherfor regional and national events,”says Jayaraman.

The legacy of 10,000 SmallBusinesses is that alumni continueto learn and grow through theuse of such networks, long aftertheir cohort's programme hasformally concluded.



David Forrest – Compliance ControlDAVID Forrest first set upCompliance Control in2006 as a specialist inregulatory complianceand validation services forthe pharmaceuticals andlife sciences sectors.He has since developed andrefined the business throughthe provision of a Software asa Service (SaaS) ElectronicQuality and DocumentManagement System.

Forrest, who attended theGoldman Sachs 10,000 SmallBusinesses programme inSeptember 2011, considers oneof the key impacts to have beenthe support he received tobuild a comprehensive businessgrowth plan.“The programme gave me belief,motivation and a frameworkfor my growth plan and put me

in touch with many otherpeople – such as mentors andfinancial advisers.

“I am now inthe thirdphase of myfive phaseplan: firstwas thedetailedapplicationto get ontothe GoldmanSachsprogramme;

second was being part of theprogramme to develop mybusiness plan; third wasunderstanding and finding thefunding I needed. Now I am inthe operational and deliveryphase - going to market with theproduct where I must deliverrevenue, profit and jobs; the finalphase will be an exit.”Predicted turnover for 2013 is£800,000. The company employs12 staff, with plans to grow to20 by 2015.In January 2012, the firm appliedfor a £250,000 grant from theTechnology Strategy Board and afurther £110,000 from the

Biomedical Fund, which wasapproved after a month of duediligence in August 2012.“Applying for the grant was arigorous process but I hadalready done the backgroundwork on the 10,000 SmallBusinesses programme,”he said.Forrest has also sub-contractedsome work to another businessthat was on the programme.He said: “When I applied for thefunding I assumed I wouldemploy most of the staff, but Imet someone from a softwarecompany on the programme whohelped me to design and set upthe core of the new softwareproduct. This allowed me tocontrol costs, but also help thegrowth of another business.”

In focus...

‘The programme gaveme belief, motivationand a framework formy growth plan.’

David Forrestchief executive,

Compliance Control

Compliance Control - Five phase planning

‘The growing alumninumbers are apowerful force tosupport the nextgeneration of cohortson the programme.’

THE Goldman Sachs10,000 Small Businessesprogramme is designedto provide high-quality,practical support to theowners and leaders ofestablished smallbusinesses and socialenterprises as they seekto grow.

It is based on a programmeGoldman Sachs launched inthe US in 2009, to helpentrepreneurs create jobs andeconomic opportunities.

It is delivered through a networkof local partners who combinerelevant academic expertiseand extensive experienceworking with the owners andleaders of small businesses. Inthis region that partner isManchester MetropolitanUniversity (MMU).

Jonathan Lawson, programmedirector for 10,000 SmallBusinesses at MMU, said: “Theselection process is very rigorous

and there are more applicationsthan places. It’s important webuild the right cohort that canreally work together anddeliver growth.”

There is an application and forshortlisted applicants aninterview process. For manybusiness owners this processgives the first outside view thatthey are doing well. “It isrigorous but that’s a positive,”added Lawson.

Oliver Caunt of Bury-basednuclear radiation detectionproducts business John CauntScientific added: “The interviewprocess became the beginning ofquite an outpouring andidentifying where we need helpin the business and where weneed help.”

Goldman Sachs 10,000 Small Businesses North West round table attendees

Join a growing community10,000 Small Businesses targets leaders of dynamic smallbusinesses and social enterprises with a strong trackrecord of growth – and the ambition to keep growing- by Joanne Birtwistle

Attendees:Chris Barry- North West editor,TheBusinessDesk.com(chairing the event)

Paula Turner- deputy director ofthe Centre forEnterprise, MMU

Jonathan Lawson- programme directorfor 10,000 SmallBusinesses, MMU

Lynn Martin- executive directorfor 10,000 SmallBusinesses, MMU

Oliver Caunt- John CauntScientific

Neeraj Takiar- Eternity

Carlos Oliveira- Shaping Cloud

Liz Howarth- KPI Recruiting

Alison Bowcott-McGrath- Bo-Concepts



‘The interview processbecame the beginningof quite an outpouringand identifyingwhere we need help.’

Caunt, and others around thetable, also said they foundcomfort in being able to dropthe façade of confidence withother business people. Many alsosee the unique peer-to-peersharing and learning with otherdelegates on the course ascrucial to its success.

“When I joined 10,000 SmallBusinesses I found there were23 business owners all sharingsimilar problems that we don’tnormally air with people. Youare able to really share and it isamazing how common thoseproblems are. A year on andbusinesses in the growth groupI was in are still supportingeach other, spottingopportunities for one another,”said Caunt.

Neeraj Takiar of Eternity, whichsupplies licensed sportswear andfashion leisurewear to footballclubs and other businesses,added: “It’s a trust-based, noncompetitive environmentwhere you can get other

people’s perspectives to helpfind a solution.”

Carlos Oliveira, who ownsMicrosoft cloud computingfirm Shaping Cloud, agreed:“We are still a new business sowe were in a room withbusinesses that are far moredeveloped. It was massivelyhelpful to hear that theirproblems were similar – theyare still around so we must bedoing okay.”

Another of those to have gonethrough the programme is LizHowarth, founder of KPIRecruiting. When she applied for10,000 Small Businesses sheexpected an academic approach,and admits she did learn a hugeamount academically but saysshe also learnt from those otherson the course.

She said: “It was a supportnetwork and as a group we allbonded very quickly, I thinkbecause we were non-competingand honest with each other. Youdon’t need to have a front thateverything is rosy and there is noother network where you trulyget that.”

All the businesses around thetable have made changes totheir business as a result ofparticipating in the GoldmanSachs 10,000 Small Businessesprogramme.

Caunt’s business doubledturnover in a year and he says agood 80% of that is due to10,000 Small Businesses.

“We knew where we wanted togo but did not have the tools toget there. I took over as managingdirector last year of the 37-year-old family business. I learned somuch from other familybusinesses on the cohort, whichhelped me put a structure inplace at my business and getbuy-in from the rest of theboard/family,” he said.

Howarth started her business inthe downturn in 2009. “Theindustry I was in had suffered ahuge hit and we had to be veryreactive. The danger was that Iwould have continued to bereactive. 10,000 Small Businessesallowed me to be moreproactive rather than just dealingwith things as they came up,”she said.

But there are personal benefitstoo. Alison Bowcott-McGrath,of promotional events businessBo-Concepts, said: “While 10,000Small Businesses is focused onthe business, it has also changedmy life personally. I now spendmore quality time in mybusiness which leaves me withextra time for my family andyoung children. Things havefinancially changed as I’m seeingthe financial rewards. It gave metime to think about my businessand even after completeing theprogramme I still continue toblock out time to think andre-educate myself.”

Oliver Caunt - John Caunt Scientific



‘It was a supportnetwork and as a groupwe all bonded veryquickly, I think becausewe were non-competing.’

‘You don’t need to havea front that everythingis rosy and there is noother network whereyou truly get that.’

Alison Bowcott-McGrath - Bo-Concepts

One strength of the programmeis its ability to adapt followingfeedback or if certain cohortshave specific needs for morein-depth analysis of a particularsubject.

There is also a private onlineportal for businesses tocontinue to interact with other10,000 Small Businessesparticipants once the programmeis complete.

Paula Turner, deputy director ofthe Centre for Enterprise atMMU, said: “The online chat areameans that 10,000 SmallBusinesses participants canpost problems and receivefeedback, new ideas andcontacts within minutes from atrusted community. It offers thewisdom of crowds.”

There are additional alumniactivities offered as well includingmonthly workshops and nationalconferences where specialistspeakers, on social media forexample, are brought in.

“It’s about circles of networks sowe also try to bring togetherpeople from different cohorts aswell,” added Lawson.

It’s not just the entrepreneurswho benefit – those employeeswithin the businesses also seetheir horizons broaden.

Bowcott-McGrath said: “Youdon’t just grow yourself but yourteam grows as well. As you stepaway and take a more strategicrole, you see them step into thatgap and grow too. You see thatthe business does work withoutyou and that’s what you are tryingto do.”

Many of those around the tablefor the discussion were usingthe services of several businessesthat had also attended 10,000Small Businesses.

Oliveira gave one example: “It’snot about selling or trying to sellbut opportunities to collaboratewith other participants do arise.One company I met in 10,000Small Businesses that operates inforensics put a tender in for a bigproject with the UN and it neededtechnology for that. We were ableto provide that service and ithas just won the bid but theywouldn’t have had the skillsin-house for that pitch.”

For some firms, just beingassociated with the GoldmanSachs 10,000 Small Businesses

programme has opened up newbusiness and opportunities.

Takiar said: “The branding andcalibre of people enrolled in10,000 Small Businesses doesopen opportunities.”

Lynn Martin, executive directorfor 10,000 Small Businesses atMMU, said she knows of onecompany that won a tender as aresult of the business ownerhaving the business growth planhe developed during theprogramme with him.

“The tender was down to thelast four on his biggestcontract to date. He was askedhow the business will grow tomeet this contract. He pulledhis 10,000 Small Businessesgrowth plan out of the bag andslapped it on the desk and wonthe contract. The rigors ofparticipating in 10,000 SmallBusinesses say somethingabout you as a person and thebusiness.

“It adds credibility that you havebeen selected for this course –it’s another differentiator.”



‘It’s about circles ofnetworks so we tryto bring togetherpeople from differentcohorts as well.’

‘He pulled his 10,000Small Businessesgrowth plan out ofthe bag and wonthe contract.’

Liz Howarth - KPI Recruiting

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