Bottom Line Spring 2012

8/3/2019 Bottom Line Spring 2012

http://slidepdf.com/reader/full/bottom-line-spring-2012 1/20

A Shining light Forge Europa’s Peter Bartonrecalls the moment he decided to start his own business

For businesses that want to be better. By Moore and Smalley

Funding university costs

dealmaker’s view entrepreneursFight back the Funding world 2012hr update become a linkedin expertexecutive health check

Sca s QR code o vew

boomeo yoursmar poe

issued in spring 2012

...



2 w

A a me we fres resouos

are made – ad a oo ofe

fa by e waysde – oe

commme we soud sck o 2012

ad beyod s o be beer.

no maer wa e of busess we

are , we mus a rase our performace.

no oy w s make our ow work

more reward, w aso mea we are

do our b o au UK pc ou of e

dodrums. Recovery w come – ’s up ous as a busess commuy o deerme

ow soo s appes.

i as ever bee more cruca o

focus o e fuure ad o aow e

ecoomy o be a excuse for aco.

tere are pey of opporues o make

beer decsos, acke caees w

reaer resove, ad maae our affars

more efciently.

ts ssue of Boom le

ureservedy promoes our resouo o

be beer.

We we ak abou success, we urscvey o our erepreeurs ad

o paes 10-13 some of e reo’s mos

fed busess eaders ve us some

sra ak abou ow we ca overcome

obsaces o prospery.

Access o fud s essea

o row ad, aou o easy o

come by, nance is out there for those

prepared o ook ard eou. O paes

14-15, members of our corporate nance

eam expa e mporace of are

exacy e r ype of fud for

dffere busesses varous suaos.Opporues for dvduas o

proec ad preserve er wea

are aso avaabe ad o pae 16

graam gordo ooks aead a a raf

of vesme prospecs, we o pae

four Davd Bee dscusses ways of ax

efciently funding university education

a a me we our cdre are fac

uprecedeed uo fee rses.

Esewere s ssue, our eme

of be beer s pcked up our Food

for Thought section, where you will nd

be-szed arces o every from

oras mees more effecvey o

be a maser o lkedi, e busess

soca ework se.tere s aso our usua roud-up of

news from around the rm, illustrating

ow we a Moore ad Smaey ave bee

do our umos o pus ourseves a

e b arder.

i do ope you ejoy e read.

w

Spr 2012

c s: Peer Baro

2. w

3. n

t

Compusory pesos

4. t

Reduc uversy coss

5. y

Ufar dsmssa caes

6. t ’

tous for e year aead

7. o

gosbkes

8. t

Peer Baro, Fore Europa

10. t m s tps from e erepeeurs

14. F

te Fud Word 2012

16. t

Be baaced

17. F f

20. s

Davd iram

Maa parer

8

7

14

4



3

Dealmaking spree continues for corporate nance team

Moore ad Smaey’s corporae

nance team has completed a

urry of deals on behalf of its

ces rece mos.

The rm advised the owners of Cumbria-

based bookmakers Cas Keda o e

compay’s sae o be a gaa Cora

group.

i aso aced for Backpoo-based

sofware specas MAP ld o s sae o US

a Auodesk ic ad for Skemersdae-

based safey-swc maufacurer Meca

Coros for s purcase of PJO group.

Stephen Gregson, corporate nance

drecor, sad: “We worked o over 40

corporate nance projects in 2011 including

busess saes, acqusos, merers,

fundraisings and nancial modelling.

“Despe e obvous ecoomc

caees, we kow of a umber of

busesses wc acpae carry ou a

rasaco 2012 ad so we’re expec

aoer busy year.

“if e curre suao s ‘e ew

orma’, may ead some busess owers

o cosder a ex sooer raer a

aer. For some, ’s key o be rue a f

made sese o se 2010/11, w s

make sese o se 2012 ad i expec dea

voumes o od up reasoaby we.”

r s g’ d’

v 6.

l w,

, gb e

i udersad e k

bed e caes ad

naturally see how it will benet

empoyees. i fee a empoyers

w o wa o bear e cos

compeey. i aso k a

w ake a we for empoyees o

udersad a er eoaed

saary w ave o corporae

a eeme of empoyer’s

peso corbuo ad w

o erefore be ake as waes.

tus we coud ed up a

poso wereby empoyers ad

empoyees saary expecaos

may become somewa skewed.

s h,

a i l

ts pocy w force some

empoyers o freeze wae rses

o cover er coss. i s a

addoa admsrave burde

a resrcs compeveess

ad dampes row. te

overme soud pay a dece

sae peso o a, fuded by

a redsrbuo of e fa ca

nal salary pension schemes

ejoyed by e pubc secor ad

reduc e eormous expese

of a abused ad ou-of-dae

wefare sae.

d b,

, b

Yes, e dea of forc peope

o save for er rereme s

soud ad w wde prvae

secor peso coverae. W a

ae popuao, e burde

w oerwse fa o e sae.

tere w be adm ad payro

coss, parcuary ard for

SMEs, bu busesses coud see

as a way o arac ad rea

key empoyees, by offer

creased corbuos. i’s a

muc-eeded sep, ep e

ao o sar rebud for e

o-erm.

l b,

, ibex

May busesses see as

aoer form of ax. Empoyees

w do oo. i ecourae savs

bu busesses ad empoyees

soud ave bee cosued o

e bes approac o sov

e peso probem. i a

environment where nancial

resources are for bo

busesses ad peope, ow

s o e bes me o be

cosder addoa coss.

For may busesses, ey may

coose o od back pay rses o

fud nESt wc coud mpac

morae ad producvy. i wo’

do e ecoomy ay favours.

a f f f

?



4

Using the family rm to By d b, ax parer a Moore ad Smaey

d btax parer

01772 [email protected]

‘c f , , f ,

£9,000 .’

Sed your cd o uversy

w become eve more expesve

from Sepember 2012 we mos

uverses’ uo fees w rse o £9,000

auay.

We uo fee oas are eeray

avaabe, ere s a sorfa for maeace

coss. gras are o avaabe for ouseods

w come exceed £42,600 ad oas

for v coss rae from bewee jus

£3,575 ad £5,500 per aum.

Coss for accommodao, rave ad

subssece, o o meo books for sudy,

are esmaed a aroud £9,000 a year,

wc creaes a fud ap of bewee

£10,000 ad £20,000 for a ree year course

– a of wc mus be pad from axed

come.

S f

however, ere are ways of fud s

shortfall tax efciently. Parents who run

er ow busess ca rasfer sares e

famy compay o cdre over 18, eab

dvdeds o be pad drecy o em. no

ax s payabe, provded e sude’s ross

come s ess a £42,475 a year.

te f mus be our, w o

arraeme for e reur of e sares, as

s woud rer a-avodace esao

a woud effecvey rea e cd’s come

as e pare’s.

Despe e a-avodace rues, s

possbe o pay dvdeds a e requred

eves ad avod er rae ax. i addo,

woud be possbe o cace sares

rasferred o e cd a a aer sae.

w f f Aou oas are avaabe for uo fees,

may pares prefer er cdre o sar

work fe free of deb. Pares ofe ask

us weer er famy busess ca pay off

e uo fee oa wou curr a axcare ad s s possbe were e sude

reurs from uversy o sar work for

e famy busess. As usua, ou, ere

are src codos.

Frsy, e course mus provde

kowede, sks or persoa quaes a

w be usefu o e job a e raduae s

abou o sar. ts coud cover a wde rae

of sks, for exampe probem sov sks

deveoped dur a pyscs deree coud be

apped a wde rae of posos ousde

the more obvious scientic roles.

Secody, e oa mus be repad

we e sude s empoyed by e famy compay. hMRC akes s a sae furer,

requr a e sude soud ormay

be empoyed by e compay we e

course s be uderake.

Aou ere s currey e suppor

for s vew case aw or esao,

evdece of e k bewee e empoyme

offer ad compeo of e course s

essea. i may make sese for e sude

o be empoyed by e compay we a

uversy ad work ere dur summer

odays, as we as for e busess o make

a offer of fu me empoyme codoa

o compe e deree course. Assum e codos are me, e

famy busess w oba ax reef for e

expese, ad e remburseme w be

exemp from ax e ads of e ew

raduae.



5

uf

t chR cosua ad empoyer servces maaer


‘b f prole change is

qf f

f f

.’

O vera ooks as ou 2012 w see

oy a med umber of caes for

empoyers o acke, aou ere

coues o be a far amou of acvy

the pipeline, with much still to be conrmed.

uf By far the highest prole change is the

exeso o e quafy servce for

ufar dsmssa cams from oe year o

wo years. ts cae w come o force

o Apr 6, 2012. tere as bee muc

debae as o weer or o s cae w

ave e desred effec of v busesses

the condence to start recruiting again. It

soud be oed a empoyme areas a

currey requre o quafy servce for

a cam, suc as dscrmao or asser

sauory rs, rema ucaed.

t f As we as e above, e overme s

ru a cosuao proramme o

aer feedback o e roduco of fees

empoyme rbuas. te am of e

proposas e cosuao docume s o

reduce e axpayer subsdy of rbuas by

rasferr some of e cos o ose wo

acuay use e servce. te curre cos of

admser e cams ad appea servce

o e axpayer s £84m per year.

te cosuao cudes wo opos for

cosderao:

• A a fee of bewee £150-£250

for a cama o be a cam, w a

addoa fee of bewee £250-£1,250 f

e cam oes o a ear, w o m

o e maxmum award. Or;

Some basc caes aroud sauory

paymes are as foows:

• From February 1, 2012 e maxmum

amou of a week’s pay used o cacuae a

sauory redudacy payme creases

from £400 o £430 per week.

• From February 1, 2012 e day rae of

sauory uaraee pay creases from

£22.20 per day o £23.50 per day.

• From Apr 1, 2012 e rae of sauory

maery, paery ad adopo pay

w crease from £128.73 o £135.45 per

week.

• From Apr 6, 2012 e rae of sauory sck pay w crease from £81.60 o

£85.85 per week.

• te maxmum ufar dsmssa

compesaory award creases from

£68,400 o £72,300 from February 1,

2012.

• A se fee of bewee £200-£600 bu

m e maxmum award o £30,000

w a opo of a addoa fee of

£1,750 for ose wo seek awards above

s amou.

For bo of ese opos e rbua

woud be ve e power o order e

usuccessfu pary o remburse fees pad by

e successfu pary.

te cosuao w cose o Marc

6, 2012 w a vew o roduc e fees

afer 2013/14. Furer read s avaabe a

www.jusce.ov.uk



h f , f By s g, corporate nance director

6 ’

heo. i am s ere e mdde

of wer az ou of e wdow

ad woder weer we w ave

sow soo. i ceray fees cod eou

ousde w s wd ad occasoa

asoes sues some muc worses jus aroud e corer. Bu we i ook

a e emperaure aue, ere s more

udery warm a you woud k.

Cod, yes for sure, bu o useasoaby so.

A we ad ood you m k, bu

wa as e weaer o o do w a pece

o e ecoomy? no a rea dea a drec

sese, bu sruck me as a ood meapor

for were we are a e sar of 2012.

w fimprovemes avaaby of bak

fud, a ecoomy wc as’ (forow) dpped back o recesso, o as

may busesses o bus as ad bee

feared; ese are peraps e backroud

emperaure. te eurozoe suao,

addoa UK pubc secor job cus,

cosay fa overme row

forecass, ures o e srees; ese fee ke

e c wd.

I am not an economist, so you will nd

o ere wc aemps o aayse

ofe arcae sascs. Bu ere es oe

of e coudrums a e as ree years

or so as row up – a ecoomcs s o

a scece e sese a maemacs ad

pyscs are. hece ay prescrpos uered

by oe roup or aoer as o e bes

way ou of e curre ecoomc suao

always stem rstly from a particular political

vewpo. ts suess a ere cao be such a thing as a dispassionate ‘scientic’

assessme of wa eeds o be doe.

O e oe ad, we ave ose wo

beeve a a we eed o do s pus e

baks o ed furer ad faser a ey

ave doe o dae so a e moey suppy

o busesses creases, aow em

o ves ad cosume ad us eerae

row.

Condence O e oer, some arue a e reaes

probem we face ow s e coecve

collapse in condence among lenders,

borrowers ad cosumers as o wa erpersoa ecoomc fuure m ook ke;

ad w suc a coapse comes e aura

desre o o cur reaer debedess, bu

raer o focus o pay dow exs deb.

to my md e wo are probaby ked

in that greater condence among funders

coud ead o reaer ed (or w fewer

codos) wc ur may ead o reaer

borrower condence. But that is not to say

i am jo e bad a says f oy e

baks e more, a woud be r. i’m o

covced a fe s a smpe.

So, wa does e fuure od? i do’

kow. Ad i am very wary of ayoe wo

cams a ey do. Oe i do kow sa ofe mes pas ‘op for e bes

ad prepar for e wors’ as bee sae

advce. As a od eacer of me used o

say, ‘e darkes our s jus before daw’ –

ad se was usuay r.

‘e

.’

s gCorporate nance director




7

Bikers’ gear rm accelerates f

‘i 2009 e,

25

.’

A moorbke co ad accessores

reaer a sared fe a spare

bedroom as become a £4m urover

busess w reasc ambos o ead e

Europea marke by 2017.

Preso-based gosbkes ams o

aceve s oa by dever a asse-free

buy experece a eabes peope o buy quay bk ear a compeve prces,

w eves of cusomer servce.

gosbkes, e rad ame of pare

compay UK good Deas ld, was se up

2004 by ower ad maa drecor Adam

Patel. His rst employee was Ian Moore, who

s ow e compay’s saes drecor.

e “i 2009 we expaded saes across Europe,

se our producs 25 coures ad we

ave pas o row s umber cosderaby

over e com mos,” sad Adam.“Our dedcaed purcas eam cudes

aoa-eve moorcyce rders wo are

cosay researc ew producs a we

ca offer o our cusomers.”

gosbkes, wc empoys 30 saff,

s prcpay a oe operao, bu s

sore Preso as expaded o become a

signicant part of the business. Based at the

compay’s dsrbuo premses Deepdae

M Sree, e sore offers a producsavaabe oe.

Cusomers are offered a wde seeco of

moorcyce ad moocross emes, oves,

co, armour ad accessores from op

brad ames cud Ara, Soe, Spada,

Aro, Caber, Sd, O’nea, nro, Ducc,

gv, ad Oxford.

a Ghostbikes’ success has been reected in a

sr of dusry accoades. i lacasre’s

Be ispred Busess Awards (BiBAs)

2010, e compay wo e Bes use of

eBusess caeory, as we as reac e

nals in the Small Business of the Year and

Exceece Cusomer Suppor caeores.

Eve reaer success foowed 2011 we

Ghostbikes became the rst business to

w ree BiBA caeores – leadersp

ad team, Sma Busess of e Year ad

Exceece Cusomer Servce.

Adam coued: “We are ook odeveop a are rea ad dsrbuo se –

effecvey a oe-sop sop – o reac ou o a

wder cusomer base. A e mome we are

raer dde away ad eed o be a more

prome ocao.”

m fgosbkes eds o ake advaae of a

umber of sraec opporues, cud

expad s rae of ow-brad producs

ad ad dsrbuo, we row

the rm’s network of suppliers and product

raes.“i addo, we pa o deveop our

markets and channels as well as benetting

from greater efciencies through more

auomao,” sad Adam. “We w e be

a sro poso o repcae e busess

mode across Europe, e USA ad oer

eraoa ocaos.”

Caees cude keep aead of e

compeo e it secor, sream

sockod, ad mprov busess

processes o boos producvy.

“We are aways ook a ways o

eace e cusomer experece, booe ad -sore,” added Adam. “By

ras our performace across a areas of

e busess, we am o keep our servce

eves ad our prces ow.”(L-R): Reece Rothwell, Adam Patel and Chris Alldritt



8

l p b, boss of mu-award w

lED ad sod sae busess, Fore

Europa, aks abou sar a busessdur a recesso ad be amed iOD

nor Wes Drecor of e Year.

W e you cosder Peer Baro’s

famy sory, ’s ardy

surprs e ured ou o be a

successfu erepreeur.hs faer was a farmer, oe

radfaer ra s ow spade fore, ad

e oer operaed a arae busess we

moo as a fuera drecor.

As e boss of Cumbra-based lED ad

sod sae busess, Fore Europa,

Peer adms a muck ou e ps o s

faer’s Uverso farm ceray spred a

sro work ec.

“i was ood ra o e farm - o

a a aracve, jus smpe ard work,” says

Peer.

“i s ave a o of admrao forfarmers, ey e a errby bad press eve

ou ey work sx ad af days a week

wou e eve of remuerao ey

probaby soud be e.”

i Despe drv a racor a 10 years od,

Peer decded o o foow s faer’s

fooseps. i fac, s sef-cofessed

independent streak meant he didn’t nd

wa e waed o do u s eary res.

hav bee a sra A’s sude a

Uverso Vcora h Scoo, e weo Uversy Coee lodo o sudy aw,

bu e boy from e coury foud cy fe

dd’ work ou e way e paed.

“hav doe exremey we a scoo,

it did not easily translate into a high-ying

uversy career as i ou woud a a

me,” e expas.

Peer, e youes of four cdre (e

as ree oder ssers), came back o eNorth West without nishing his degree.

i was e eary 1980s ad back a s

oca job cere Uverso, e aswered

a adver o work for a oca eecrocs

maufacurer a made compoes for

eecoms, srumeao ad defece

dusres.

A umber of dffere roes aowed

Peer o deveop s busess sks ad e

successfuy reured o uversy o a

a accouacy deree – a asse a woud

later prove invaluable in running a protable

busess. he aso oed s erepreeurasks by reova ouses s spare me.

c Despe s success empoyme, Peer

says he was extremely dissatised.

“i was o acev wa i waed

o ad i suppose es o a sae were

you ave o decde weer you’re okay

w fe as s, or weer you’re oo move ou of your comfor zoe ad do

some roudbreak ad uery more

worwe.

“My sef-beef ad sese of

erepreeura erae drew me o e

cocuso a i ad e poea o creae a

successfu busess of my ow.”

Peer was 31 we e sared Fore

Europa o Marc 5, 1993, e compay ame

be a combao of words a spred

m o ake e pue.

‘Fore’ comes from s radfaer’s

spade fore, wc made oos for e ocam dusry, ad ‘Europa’ from e

grad Europa hoe e Czec Repubc,

were Peer was say o oday w s

wife when they nally decided he should go

aoe.

cz “i was s av coffee ousde e oe

Wecesas Square coempa my

fuure. i jus ou ‘’s ow or ever’.

“i was e foruae poso were i

was s reavey you ad coud afford

o be broke for a we wc s a esseapre-requisite for a edging business. Even

more foruaey, my very oera ad

supporve wfe fe e same way.

“By early 1995 I was condent I could

make a v, ad by Crsmas 1996 i kew

it was going to be a signicant success.”

‘m f-f f

i

f f .’



9

te busess’ formave years were

spe mak lED dspays for producs

ke ved maces ad srumeao,

before raduay bea o deveop oa busess mak cusom-desed lED

producs for ces across e obe.

neary 19 years aer e compay as oe

of e mos y-sked R&D eams e

coury. Suppored by a sro, eccay-

raed saes ad marke eam, e

compay devers vaue-eeered

souos o cusomers o me ad w

bude.

i as wo a cuc of awards, cud

a Quees Award for Eerprse e

Ousad iovao caeory, ad s

producs ca be foud a wde umberof appcaos may dffere secors

cud commerca , auomove,

mare ad rea.

Ad e fuure remas br for ecompay, wc as 30 saff, as more

busesses become wse o e evromea

and performance benets of LED and solid

sae .

“We ave aways ad a vared cusomer

base ad a as eped us save off e aes

recesso. lEDs as oer a radoa

incandescent, halogen and uorescent lights,

bu ey aso use far ess eery, wc meas

a we are perfecy aed o e ow carboaspraos of overme.”

To demonstrate these benets, in 2011 the

compay vesed a purpose-bu l

Souos Cere, 100 per ce umaed by

lEDs. A addoa oscs facy as aso

opeed o accommodae creas demad

for Fore Europa’s may projecs.

o f to op off, Peer was amed as e isue

of Drecors’ nor Wes Drecor of e Year

2011. Bu s dow-o-ear roos mea

success as’ oe o s ead.“i’s ce o e e pauds, bu you ca’

do every yoursef. You ave o ave a

sro maaeme eam aroud you ad

professoas wo ca advse you o e

s you’re o a exper o. Above a, you

ca’ be successfu wou your eam wa

o work ard ad do a ood job for you.”

This team ethos is also reected in the

compay’s commuy work wc Peer akes

a sro eres . i 2010 e compay

rased over £33,000, more a £1,000 per

empoyee, o suppor ospces a ome ad

abroad rou a sposored cyce rde ee of Cumbra.

Doaos from cusomers, suppers, ad

e oca commuy were 50 per ce mac-

fuded by Fore Europa ad e compay s

pa aoer are fudras eve for

2012.

p b’

f

1

teacy s vasy

uderraed. Do’ ve up.

2 Beeve your dea. if you

do’, you’re do e wro

.

3

Do’ ry o e rc quck as rarey works ou. i

akes me o e s r.

4 i e oer erm you eed

o deveop a ood eam, you

ca’ do a aoe.

5 i s essea your peope

kow were ey’re o.

ives me

commuca your vso.

6take your corporae socaresposby serousy ad

you will nd that this has a

uey posve effec o your

busess.

‘i ff

w sq

f. i j ’ .’



10

Entrepreneurs taket m s



11

i s ofe sad a adversy brs opporuy, bu as edowur rumbes o, erepreeurs eed a er quaes of

judme, resece, veveess, ad appee for caee.

if e reo s o pay s par drv e recovery, s eerprsdvduas mus be ready o sep up o e mark ad ead e way o

beer mes.

to evauae ow s ca be accompsed, Boom le asked a roup

of erepreeurs, advsers ad academcs o ve er ake o essues for eerprse e reo.

te pae comprsed: p b, maa drecor a Fore Europa; s b, eerprse

maaer a UCla; b cff, maa drecor of gp lode hoe; J g ,

carma of Ceaur tecooes; k h , drecor a Woresaws; ad m

pf, a parer a Moore ad Smaey.

h

2012?

s b: By be posve ad ook for

opporues. We ave rea UK busesses

a are ovave ad creave. We eed o

back em every way. tere s far oo muc

eave ak. tak posve, ac posve,

ook for opporues ad rab em.

b cff: i’m be opmsc. i

e esure ad ospay secor ere s a o

o o a we ca ake advaae of, suc

as e Oympcs ad e Quee’s Damod

Jubee. By be opmsc, we ope o make

e mos of e opporues a come our

way.

m pf: We mus be

reasc. 2012 s key o be aoer year of

cosodao raer a expaso, bu aso

e oe’s busess a poso o reac

qucky we e ss of mproveme

the economy lter through. In the autumn

saeme severa measures were aouced

a opefuy w ep e SME secor oba

nance to expand.

J g : A e mome i am

voved se up a ew busess –

Ceaur tecooes – so i’m upbea abou

e fuure. te ecoomy oes cyces ad

aou we’re a rou r ow, we w

see a recovery.

h

f

?

k h : We’ve bee a dowur

sce i sared e busess, so o me o

as reay caed. From day oe, we’ve

aways ad o k very carefuy abou every

pey we sped ad s w coue o be

e case.

b cff: My persoa aude o rsk

as o caed, bu seems ke e baks

ave caed er aude. i ave a o of

condence in my business and I’m sure many

oer erepreeurs fee e same way abou

er ow busesses. We jus eed e suppor

of e baks.

p b: A ood produc or servce

backed by soud busess prcpes w make

moey ay busess cmae. however,

a recesso s probaby more mpora o

kow your cusomer we before er roubes

become yours.

J g : i ave aways advocaed

a cauous aude o rsk, so my aude o as’ reay caed. Yes, ere are more

pfas ou ere, bu f you are busess,

you soud be aware of em ayway.

s b: Erepreeurs ave o be rsk

akers bu ey ave aways doe s a

h ’ .

on the ght



12

calculated way. Difcult times may call for more creative solutions

particularly in nancing but we have to continue to take risks to stay

aead. i k UK erepreeurs are very ood a s.

w f ?

p b: You eed o ave a vso, work o e pa w

focus, have tenacity in the difcult times. Don’t be pessimistic or

opmsc, jus reasc.

m pf: We erepreeurs are very dffere as

dvduas, ey sare may commo arbues. tey are usuay

passoae ad se-mded abou wa ey are do ad ave a

vso of were ey wa o ake e busess. ter commme o

e busess s 100 per ce, ad ey eeray spre ose aroud

em o sare a deermao.

J g : A ope md ad a rea aby o k

sraecay abou were you are ry o o ad ow you ed o

e ere. Some peope see erepreeurs as peope wo are mpusve

by aure, bu i reay do’ k you soud soo from e p.

You soud orouy udersad a e ssues before you make a

busess decso.

k h : I would say exibility, creativity and resilience.

You ave o be abe o adjus o waever busess fe rows a you

ad o e sebacks dra you dow. te aby o keep com up

w ew deas s essea.

b cff: Creavy, focus ad ood commucao sks

are e oes a sad ou for me. Creavy ad focus do’ aways

o ad ad, bu f you ave bo, you ca be successfu.

s b: Erepreeurs are passoae ad rese. tey ear

from er msakes ad use e ear o do beer busess. tey

are creave, ovave ad ofe fearess. tey do’ s back ad

wa for overme or b busess. tey are roubemakers wo ca

upse e saus quo bu a’s ow s are caed.

w ?

s b: Aa Roddck, fouder of Body Sop. Se ook er dea

from kce abe o mu-mo poud, eraoa busess.

Se caed e way e cosmecs dusry dd busess we

campo uma rs ad campa o evromea

issues. She was also a great example of being a gurehead for your

busess.

m pf: i very muc admre Duca Baaye. he

as bu a subsaa busess empre from o bu as o

forgotten his roots and provides signicant input to his charitable

work Afrca.

k h : Rcard Red e co-fouder of ioce Drks.

i admre wa e’s doe w e ioce brad ad ow e’s

maaed o keep fres ad you. he’s aso eped e brad o

maa s ery, despe par of e busess be sod o

Coca-Coa.

J g : Cares Dusoe of e Carpoe Wareouse. he

sared s busess w £6,000, bu e kew were e waed o o

ad wa e waed o aceve. he’s ow wor £1b persoay. no

bad a e over 20 years.

b cff: i as o be James Dyso for s creavy

reve ouseod producs. Bra as aways bee creave, bu

as ofe faed o cover s o commerca success. Dyso as

used e creavy, bu aso masered e maufacur.

What have you learnt from previous nancial

?

p b: Be aware of our coury’s rece sory as we ave

ad a seres of ecoomc cyces – ad do’ beeve a you read e

papers. 2012 s s a muc beer ecoomc evrome o ru a

busess a ay me bewee 1970 ad 1982.

‘c f ’

.’

Barey Cuffe

‘e

.t f .’

Say Bae

‘t

.’

Krsy hesaw



13

J g : te ecoomy aways bouces back ad recessos

are rasory. te caee s o pa aead so you are a poso

o ake fu advaae of e recovery, wc w evaby arrve.

b cff: i was a b oo you for e as major recesso

before e mos rece oe, bu my faer aks abou av o

dea w eres raes of 14 ad 15 per ce. i e rece sump

we’ve acuay ad very aracve eres raes as far as be a

erepreeur s cocered, so i k we’ be abe o smuae row

very qucky oce we a sar fee more posve.

m pf: i may be a oe’s memory fades w me,

bu ey dd o fee as bad as e prese sump ad e upur was

qucker ad more proouced. te ssues e were abou keep

good control of costs and managing the cash ow, but I think the

availability of external funding was such that there was more exibility w overdrafs. te ssue e was more abou avod overrad

e upur ad ru ou of cas.

w f ?

J g : ts do’ aways mprove as qucky as you woud

ke. You eed o be ru a sp a e me, o smpy we

ere’s a dowur. Peope somemes ask me f i ave baeed dow

e aces ad my aswer s a e aces are aways baeed

down. You should always keep costs low and promote efciency.

s b: te mporace of av e r eam ad surroud

yoursef w a ood suppor ework. i’s easy o fore e ood

times. Yes, many things are connected to nancial issues but people

make suc a dfferece.

b cff: to cace my ewspaper subscrpo. te

perpeua reurao of eave ews s credby demoras

ad s do us o ood. We eed o ear more abou e ood ews

of interest rates being at record lows, of ination now going back

dow ad row e ecoomy. i may be very weak row, bu ’s

row.

k h : i’ve eared a you ave o make e mosof wa’s aroud you, suc as e suppor avaabe from dffere

orasaos ad busess meors. Woresaws as bee ucky

o be abe o make use of e excee busess servces provded by

UCla.

p b: Be aware of e creas ecoomc power ad

capabes of e deveop easer ecoomes. if we are o coue

o do we e fuure, UK pc s o o ave o work a o smarer.

t f

p b: teacy, eacy, eacy. Remember a a your

efforts are worthless unless you are able to make a prot and also,

mos mporay, e pad.

m pf: Do not be put off by the difcult economic

conditions. If you have a good idea, go for it, but do look at the gures

carefuy, ake professoa advce ad make sure you facor some

sesvy o e umbers.

b cff: Fd a meor. Erepreeurs, by er aure, are

very drve ad eusasc peope. tey jus eed someoe wo’s

bee ere before ad wo ca ep em avod e pfas.

s b: napoeo sad: “Waever e md ca coceve

ca aceve.” Keep av deas, keep pus boudares – be a

roubemaker.

k h : trea peope w respec, ear from every

you do, ad do’ be afrad o make msakes.

J g : have e us o foow rou your deas. toomay peope ave a ood busess dea bu decde o o ake a rsk,

wc s a same.

‘i d

b.h

f .’

Mcae Proudfoo

‘t

.’

Jeremy gorck

‘r ff

prot.’

Peer Baro



w

f 2012?

tere are varous ypes of aerave

fud, suc as lacasre Couy Couc’s

Rosebud Fud; busess aes (dvdua

vesors); ad e overme-backed

nor Wes Fud. Aoer source s peer-o-

peer ed, operaed by orasaos sucas Fud Crce wc maces busesses

ad dvduas wo wa o ves w

busesses ook o borrow.

h

benets?

if you ca’ e adequae fud from

oer sources, aerave fuders may be

abe o ep. however, s s usuay o

brde fud aps a occur we a bak

s prepared o offer some, bu o a, e

nance needed.

w f

?

Aerave fud eds o come w

oerous codos wc cude reoa

or sector-specic requirements. The

Rosebud Fud, for sace, ams o promoe

row ad empoyme opporues

specic sectors in Lancashire, which can

make usuabe for may busesses.

Addoay, aerave fud provders

prefer o work aosde radoa eders.

ats ca be a usefu meas of opp up

your fud eeds, bu ’s by o meas

easy or sraforward. new fuders are

arrv, bu er effecveess remas o

be see.

w

q

2012?

PE ad VC fud voves e fuder

becom a vesor your busess

ad us be eed o a sare of

the prots, which arguably, makes it

expesve. Jus as mporay, PE ad

VC dmses coro of your busess

because e vesor ofe was a sea

o e board. From day oe, you w

eed o focus o row e busess

ad e eveua ex because e

vesor w eeray be ook for

their exit in three to ve years.

h are the benets?

PE ad VC fuds are avaabe, bu

you mus ave a sod rack record

ad very sro row prospecs.

Businesses that nd a suitable investor

can ourish as a result of the strategic

experse a PE ad VC fuders br

o e busess.

w

f ?

PE ad VC fud s o wdey

avaabe o sar-ups – vesors ed

o prefer esabsed (aou s

ca cude eary sae), fas-row

busesses. Aso, some busess owers

may o wecome e voveme of

a vesor, parcuary f e vesor

ad ower ave dffer mescaes for

er eveua ex.

ats s specas fud wc

s oy o o be approprae

med crcumsaces, ad w

vove v up a proporo of e

owersp.

14 f

A ccess to nance is likely to be a continuing challenge in2012, bu busesses ca aceve beer oucomes by maksure the type of nance they seek is right for them and their

parcuar crcumsaces.i s speca feaure, Moore ad Smaey as asked four

members of its corporate nance team to assess the various options.

r g: tF w 2012

p q

By p b, corporate nance senior manager

a

fBy i w,

corporate nance manager



w

nance in 2012?

te me we voce dscou was

seen as ‘nance of the last resort’ is well

e pas ad s ow a masream

source of nance that often sits alongside

oer fud opos, cud deb. i

eera, for reuaory reasos, ad were

approprae, baks prefer o offer voce

dscou raer a overdraf faces.

h

are the benets?

ivoce dscou s ready avaabe ad

dea for esabsed row busesses

because ks your saes eder drecy

o your cred facy. ts meas fud

rows drec proporo o busess

expaso.

ivoce dscou aso works

we for seasoa busesses because

fud mrrors saes. i addo,

as recey become avaabe o a fres

rae of secors, suc as parcuar ypes

of corac busesses, a were

prevousy excuded.

w f

?

ts ype of fud may be expesve

erms of eres ad bak cares

deped o e aure of e busess.

however, f you use e fuds o row

your busess, may be possbe o

e dscous from suppers, for eary

payme, a woud o some way owards

ouwe ese fud coss.

ivoce dscou s o ormay

avaabe o sar-ups, aou eders are

prepared o offer facor faces o ew

busesses. Uke voce dscou,

factoring is not condential, so your

cusomers are aware a you are us e

facy.

a

This is a widely used source of nance in

a y compeve marke a devers

exible funding. It’s extremely well suited

o fas row busesses.

f 15

d f

By s g,

corporate nance director

Invoice discounting and stock nance

By J h, corporate nance manager

w

f 2012?

Deb fud packaes w o be

ceap, bu avaaby may sow some

mproveme foow e Caceor’s

rece aouceme of a £21b

cred eas sceme amed a smaer

busesses. We cosder a

appcao for deb fud (aso kow

as term nance), banks will focus on

servceaby, raer a jus secury.

to oba s ype of fud, you mus

demonstrate strong cash ow to convince

e bak you ca servce e oa.

h

are the benets?

Deb fud s desed for sraec,o-erm vesmes ad s pad off

xed instalments over a longer period, as

opposed to a uctuating overdraft facility.

is advaae over prvae equy fud

s a you ca uderake major projecs,

suc as acqusos, we rea

compee coro of e busess.

w f

?

This type of nance isn’t suitable for short

erm work capa requremes, for

sar-ups, or seasoa busesses, becausetheir cash ow uctuates. In addition, term

fud may o be e mos approprae

solution if you already have signicant

deb because ak o furer deb w

affec your cred ra.

a

Deb fud s aways o o be a e

core of mos fud srucures. i s s very muc avaabe, bu you mus be abe

o make a covc case o e bak.

Pease ca our award

w corporae

nance team on

01772 821021 o

dscuss ay fudrequreme

condence



16

u f f 2012By g g, head of nancial planning and wealth management

g gHead of nancial planning and wealth management


‘w

f f

- .’

goverme cubacks may we ave a

reaer mpac 2012 a as year,

eroding consumer condence and

crea codos for a exeded perod of

med row.

noeeess, ’s mpora o o be

overy pessmsc: we soud o aow

ourseves o be uduy daued by fears of a

doube-dp recesso.

Ination

The Bank of England appears condent that

ination can be pegged back to two per cent

s year, aou ay decrease s key o

be slow, during which time ination will

rema er a ay of us woud ke.

te markes w be eer bus or

bears, ad e peduum w sw back

ad for, drve by e aes repors o

consumer condence, especially in the US,

ad row deveop aos.

O a more posve oe, e word woud

be a very dffere pace f we were o oer

cocered by eurozoe defaus, e US

ous marke recovered, Ca ad oer

developing nations balance ination and

growth, and consumer condence rallied in

e UK.

safe-ave appea, w corporae bods

beer abe o cope w ay creases

eres raes or mproveme ecoomc

ouook.

As for eques, e US ad UK ook

favourabe compared o Europe, w a

smar pcure for commerca propery.

Asa ad emer marke eques are

key o coue o be voae, ye w

aruaby e reaes oer erm row

poea.

geeray speak asse casses w be

affeced dfferey by preva marke

codos. ts as sorcay provded

e baace porfoos. however, for e

as few years ere as bee a muc er

deree of correao. Uforuaey s

may coue.

Of course woud be a ruy mracuous

year f a ese s appeed a oce. A

e same, f more a oe was o occur, we

woud be we o e road o recovery.

b

Aas s useed backroud, as

ever bee more mpora o maa a

diversied portfolio. This means managingexposure o a rae of asse casses, o jus

deveoped marke eques ad emer

market equities, but xed interest, property,

s, bods ad commodes.

look a e broad asse casses, may

beeve overme bods ow oy ave



f f 17

ff ,

m Fd lf: Q&a

o m

i a rece BBC news bue, e BBC’s ecoomcs edor Sepae Faders, preseed

a sory a e UK ecoomy ad row a e more a a e expers ad predced. i

woud’ say se souded dsappoed, bu se dd seem a e pu ou.

She then followed it up with a report on economic condence: “A global survey from Ipsos

Mor sows us o o 2012 as oe of e oomes aos o ear.”

i asped a e roy. Afer a, ao w mos aoa ewspaper commeaors ad

BBC puds, se as pedded a cosse de of doom rouou e as few years. i

fac, f you ook serousy Rober Peso’s 20 mue movaoa ecures o e te O’Cock

news, you’d probaby ock e doors o your busess ad row away e keys.

tere are posves o ake ou of e as few years. Weak ad aoy compeors

may ave fae by e waysde. tere are more ew busess sar-ups eaer o do s

differently and with energy to burn. British products still have a rst rate reputation around

e word – ere are ew expor markes o case ad ower cos overseas suppers afer your

business. Standing still isn’t an option, seeking new opportunities denitely is, but you might

wa o ve up Peso ad Faders.

m t n . af j

l 1990, n w 2000

f i m, --

m. h ,

bbc f .

J

v,

nance

drecor, BoosSupermarkes

How did you get into nance?

i aways fe very comforabe work w

umbers ad aks o a spr eacer

at high school I was inuenced to try this as

a career opo. Foow a busess deree

a uversy, e res s sory.

w f

?

Kee Carke s a sra ak

poca wo, we caceor, maaedto signicantly reduce the government’s

budget decit along with interest rates,

uempoyme ad e basc rae of ax. if

oy we ad a b of Ke Carke fary dus o

sprke o e ecoomy ow.

t uk e, ?

As it stands, denitely in Europe, but no to

e se currecy. te EU s desperaey

mpora o e UK. however, Europea

coures are so cuuray ad ecoomcay

dverse ad requre dffere ecoomc evers

o address probems. to ave em ked w a se currecy s, e o erm, a

recpe for dsaser.

if …

Raoas e amou of bureaucracy

ad red ape busess woud ep e

prvae secor mmeasuraby. i aso beeve

e overme coud do far more

ecoura e baks o e ed.

b Fd

to be successfu e supermarke

rea dusry, oe of e oues, mos

compeve ad we deveoped e

UK, is denitely something I am proud

of. to deveop eams ad dvduas wo

ave corbued o s success as bee

exremey sasfy.



18 f f

ff ,

1. c f

Make me o cosder sraec busess

ssues raer a comm a your

resources to reactive ‘reghting’ activity.

i’s easy o pu off s a seem o-

ure, bu you mus e o rps w

o erm pa ssues a are equay

cruca.

2. m

…

Positive cash ow is where money entering

your busess s reaer a moey

paid out. You can boost your nancial

maaeme performace by prepar a

rolling 13-week cash ow forecast; taking

a ood ook a your coss; ad keep a

re o sock coro.

3. … b

-

te key o ras e performace of your

peope s movao. however, e beef

a a your peope are aways moey-

movaed s msead. Cosder us

psycomerc ess o ep you udersad

wa makes dvduas ck ad depoy

a rae of ceves a aow em o

ourish.

4. p –

Successfu busess eaders mus o

oy arac aeed dvduas, bu aso

reass, or eve remove peope wo are

not making a sufcient contribution. It’s

rue a peope are a busess’ reaes

asset, but the ipside is equally valid – the

wro peope e wro jobs ca cos

you deary.

5. c

Ower maaers frequey e so cose

o er busess a ey ca’ see wa’s

work we ad wa eeds ca.

For exampe, you may o rease you

are ou of syc w sfs demad, or

a your busess pracces ave become

oumoded. A exera percepo ca

defy ad ep address ese ad oer

ssues.

w d w,

a ... li

5 … 2012

i’s bee aroud for over e years, bu

few use lkedi o s fu poea. More

busess professoas are owever ws

up ad see e busess soca ework

paform as a powerfu commerce oo.

Weer you ws o everae oe

presence, drive trafc to company websites,

bud up your coacs or smpy ou for

poea ew cusomers, used correcy,

lkedi ca ve you a major advaae.

Frs ad foremos, esure your persoa

prole is up to scratch by adding a bio, image

and sufcient employment history. Using

lkedi’s apps you ca aso corporae a

compay bo or twer accou, wc w

ep keep a cosse feed of formao

on your prole. Ensure you also list your

sks as s w make you more searcabe

o oers.

i s mpora o esabs oas.

Deerme coecos o are,

peope wo you ws o receve

recommedaos from ad sar o use

lkedi’s ew appcao oos suc as

lkedi aswers o a exposure ad

become an expert within your eld. LinkedIn

roups ca aso pu you ouc w oer

expers your dusry. tese ce roups

ca foser dscusso, spread your messaead coec you w key peope. i s aso

rea for your oe repuao. tk PR!

When you are nally condent with

maxms lkedi, se up a compay pae

for your busess. Compay lkedi paes

ave oe rou some of a makeover

aey ad are o oer sac paes. te ew

ook paes are abe o promoe a compay’s

brad, producs ad servces ad ca aso

be used o compeme a orasao’s

overa ere presece. tese paes ca

be cusomsed o cude Youube vdeos,

kabe baers ad saus updaes. i waso ad your searc ee performace.

Oce you’ve compeed e above seps

you ad your busess w be o your way

o ea w over 120 mo busess

professoas.

w m l, mlpr



f f 19

ff ,

Decd wa ad we o ea arecrucay mpora decsos a

w drecy affec your commerca

performace. Ea r meas you

ave reaer eery ad focus o ru your

business. On the ipside, your judgment

s’ a s bes we you’re rabb

ueay sacks we rus bewee

mees.

Fruit and veg – at least ve a day

Fruit and vegetables are rich in bre,

vams, ad a-oxdas. take o board

e overme’s advce o ea a easve servings a day of fruit and veg. You’re

o ood o yoursef or your busess f

you ave o ake me off work rou

-ea.

m Ea mea ad sarces separaey. ts

eps deso ad avods boa,

cospao, ad ear bur, a of wc

ca mpar cary of ou a s va

for a busy execuve. ts may mea fewer

pes, bu w ead o a eaer was e

– ad boom e.

m f f f

tess sow a ea breakfas mproves

mea sarpess – bu s does’ mea

uck o a fu Es every mor. A your, pece of fru ad bow of eay

cerea w se you up for e day.

l Do’ make a ab of rabb a sadwc

ad ea o e o. i’s mpora o

ake a break ad ake me o ea. A dea

uc soud cude proe, woe ras,

ad fru ad veeabes. ts w boos

your sama ad ad cocerao we

you eed o say focused dur ose o

aferoo sessos.

k ff

Caffee s especay emp for busy

maaers because ves burss of eery

a ep you rou a eavy scedue.te dowsde s a your eery eves

eveuay cras, eav you eed eve

more caffee. Oe caffeaed drk a day

ad ree or four asses of waer s ood

advce.

h ...

t … 2012

s f –

Effecve mees sar w orou

pa – may ways ke a eera

oras a bae pa. Before you doanything else, establish your nal objective

or desred ed-resu, ad srucure your

pa accordy.

i ?

hav deveoped a pa, ask yoursef f a

mee s e bes souo. Mees are

ofe expesve because seor peope mus

se asde me o prepare ad aed. You

may be abe o aceve your ams rou

poe cas or emas.

d’ ff Esure everyoe you eed o be ere ca

aed. if o, pospoe e mee (o

pck up o e mary aaoy, a eera

woud’ pa a bae wou e ak

commader be prese). if a decso-

maker seds a subsue, make sure e or

se as e auory o ac.

m f f –

Bref a aedees before e mee o

avod was me. R a e sar, form

everyoe wa e oucome soud ook ke.For exampe, you m say: “A e ed of

s mee we eed o ave areed a e

key mesoes for Projec Apa.”

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Se a fredy bu busesske oe a

ecouraes everyoe o corbue, ad sck

o e aeda – cud ms aocaed

o dvdua ems. ts meas you wo’ e

sderacked by mor cocers ad ave o

rus rou mpora ssues.

k Some peope are more asserve a oers,

bu do’ e a sma umber of dvduas

domae e mee. You ca avod s by

ask quesos ke: “Wa do oer peope

fee abou s ssue?”

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Make a follow-up plan with specic

aco pos, cud e ames of e

dvduas wo ave ake ‘owersp’

of ems, daes by wc acos mus be

compeed, ad areeme abou wa

cosues compeo.

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Moore ad Smaey parer Mcae Brs

recey compeed e Amserdam haf

Marao o rase moey for Dera house

Cdre’s hospce.

Mcae, 51, as cocked up more a

10,000 mes over a decade of road ru

ad s op o rase ousads more pouds

for cary by compe 100 races.

he as so far rased over £15,000 for

varous cares afer ak par 89

races of 10km or furer, cud seve

maraos ad 23 af maraos.

Mcae, wo dd o be ru

u e ured 40, sad: “lke may oers

before me, i dd’ e e movao o sar

ru u aer fe we i foud mysef

to be overweight and unt. After a year of

getting up to a reasonable level of tness, my

rst race was the 2001 London Marathon and

i’ve ever ooked back sce.

“i ope o e o 100 races as soo as i

possby ca ad i’m ook o break rou

e £20,000 mark for fuds rased e ear

fuure. W e suppor of my freds ad

coeaues, s w opefuy be w my ex

few races.”

Oer cares Mcae as suppored

cude te Cdre’s Socey, Cdre

w leukaema, Spa Researc, gaoways

Socey for e Bd, leacy Rabow house,

Mary’s Prayer Appea, ad e ieraoa

Ad trus.

s M an a gi n gE d i t or : D ann yH o u gh t on

Wr i t t e n an d M a d e i nF r e s h e l d . w w w ,f r e s h e l d . c om

Preston (head ofce): Richard House, 9 Winckley Square, Preston, Lancashire PR1 3HP Tel: 01772 821021

Fyde: te: 01253 404404 Keda: te: 01539 729727 Krkby losdae: te: 015242 71402lacaser: te: 01524 62801 noam: te: 0115 972 1050 Cera fax: 01772 259441

www.mooreandsmalley.co.uk

Moore and Smalley LLP is a limited liability partnership registered in England and Wales: No. OC313896. Registered Ofce: Richard House, 9 Winckley Square, Preston,lacasre PR1 3hP. te erm “parer” dcaes a member of Moore ad Smaey llP wo s o parersp for e purpose of e Parersp Ac 1890. A s of members s

available from our registered ofce

m

Moore ad Smaey’s expers ave beeep o sape e eades rece

weeks afer be asked o provde comme

ad aayss o e b busess ad

nancial stories.

i e aferma of caceor geore

Osbore’s Auum Saeme, ax parer

David Bennett and corporate nance director

Sepe greso offered er vews o e

mpac o busesses, be ervewed by

pubcaos cud e Backpoo gazee,lacasre Eve Pos ad nor Wes

Busess isder.

Parer graam gordo, ead of

nancial planning and wealth management,

was ervewed by Fyde Meas Busess

ad e nWl Camber of Commerce

maaze for s ous o e Bak of

Ead’s decso o exed quaave

eas measures.

Meawe Moore ad Smaey’s russad esaes maaer lz Procer was asked

by Moey Observer for er ous o ow

o use russ o proec famy wea.

lacasre Busess Vew feaured

Moore ad Smaey corporae maaer Joe

Suva s aua You ‘Us feaure,

proling some of the best up-and-coming

busess ae e reo.

n f l

traee accoua laura naso as

come rst in a series of rigorous regional

accouacy exams afer a e es

scores e nor Wes.

Laura, who currently works in the rm’s

aud deparme advs cares, aed

66 ad 74 per ce, respecvey, er rece

business strategy and nancial management

exams, e es ou of a e sudes e reo.

te exams were ake w e iCAEW

(e isue of Carered Accouas

Ead ad Waes).

laura, 23, pcured w ax parer

Race Marsd, s wo years o a ree-

year ra corac w Moore ad

Smalley, after which she will be a qualied

carered accoua.

F m f f

F You ca ow e access o a our aes ews, vews, ous

ad updaes va our bo, twer feed ad lkedi pae.

... | ./ms |

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Bottom Line Spring 2012