Issue 2, 2017

Business Builder

FORUM

Sometimes in life, particularly as a small business owner, you can work far too hard and put in far too many hours, but never actually achieve anything. You can grind your fingers to the bone, wear your spirit down to dust and slowly strangle the very passion that made you start in the first place, by blindly following bad practice.

Our teachers were wrong – hard work is not the answer!

The fact of the matter is that hard work is not the key to success. Smart work is! Of course, it helps if you are prepared to work hard and make a huge commitment in time and effort to achieving your goals. But only if that work ethic and ambition is focused in the right direction and guided by proven methodologies. If you are trying to get from A to B and the route you are on is driving you directly towards Z, it does not matter how fast you are going – you will fail! I think I’ve made my point. Now, what can you do about it?

I mentioned earlier about following the industry “norm” and becoming like everyone else. Well, that is basically what happens in most small businesses across most industries: from duplicating competitors’ websites (having rewritten the sentences to avoid plagiarism), through to choosing pricing structures by slightly

Wrong is Wrong, No Matter How Hard You Try!If someone has given you the wrong postcode it doesn’t matter how closely you pay attention to what the satnav is telling you: you will not arrive at your chosen destination. A group of brilliant individual sports stars cannot form a winning “team” without the influence of a uniting strategy they all believe in. And a business that makes every decision based on the industry “norm” will only ever become a replica of its nearest competitor.

As the late, great Jim Rohn would often say, “If someone is going down the wrong road, he doesn’t need motivation to speed him up. What he needs is education to turn him around.”

INSIDE THIS ISSUEWrong is Wrong 1Successful Business Owners Are ... 2A Bright Green Future 3A Quirky Quiz 5How Do You Measure Happiness? 6Enagaged in R&D? 7Featured Add-on 7Introducing Propiteer 8Introducing Propiteer cont ... 9Two New Meades Adventures 10Classifieds 11Book Review: Deep Work 12

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Successful Business Owners Are …People who question everything. It is often said that we live in the Information Age, where knowledge and technical capability is increasing at a phenomenal rate. The default source for gleaning from that vast pool of learning and information (for most people) is to Google the answer. Much like Hoover, Sharpie and Post-It, the company has become synonymous with the action. But is this source always right?

Imagine that five small business owners all searched online for some advice on a particular commercial issue, in an attempt to get ahead of their competition. The assumption is that they would all find the same instructions from the same place. None of them knows the provider of the information, and there is every chance that they are just another small business owner who read something in a book that someone else wrote a few years earlier.

Now, I’m not saying that the shared wisdom of others is always wrong – quite often those experiences and opinions have genuine value. But I would strongly urge everyone to question everything themselves first. If everyone is doing everything in the same way, the Information Age could quickly become an Instruction Age rather than a thinking one.

I learn a lot from Google and I often check my own thoughts, ideas and plans with other people. But I also know that if I’d blindly followed everything that people have told me over the years, my business would be in a different place (and not a good one). So, to be successful you need to question, test, check and then question again.

undercutting competitors, and even having the same list of products and services. The only USPs that most small businesses can come up with are things like: “Our people are more experienced,” and, “We give great customer service.” In other words, they claim the same things and act just like everybody else.

Remember the “always do what you’ve always done …” parable?

When was the last time you actually asked ”Why?” concerning important questions within your business?

If you really do give such a superior service, surely your clients would accept a 10% price increase? Would your suppliers give you a discount if you paid their invoice earlier? Could outsourcing some of your administrative tasks at a low hourly rate give you more time to earn a higher hourly rate? Is there a more efficient method to bring your products and services to market? What else could you sell to your customers that they are currently buying from someone else? What would happen to your cash flow if your customers paid on time? How do you measure and help to increase the performance of your key workers? Are there smart and innovative ways to increase your personal earnings from the same income you currently generate? Are you paying too much tax? And many more smart business questions …

In life and in business there are certain inescapable truths which govern everything. One of those, and one that I challenge my customers with every day, is: “If you always do what you’ve always done, then you’ll always get what you’ve always got.” It is not rocket science (although some of the solutions we generate are pretty cosmic) but it is true!

If you are fed up with beating the same path and getting the same unfulfilling results, if your business is not giving you the results that you’d hoped it would, get in touch and I’ll prove to you that change is far easier than you think and you can change your direction far quicker than you could imagine.

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self-fly hire. There were many more adventures along the way, mostly under the Chal-something name, but that is a different story – back to Chalmor …

Breathing new life and heat into the business

After sitting dormant for many years, Chalmor Limited reopened in 1980 under the ownership of Steven Henry (Charles’s son). The new business was very far removed from publishing, as it emerged with phoenix-like fire in its wings, selling magical heating potions and products.

After finishing his management sciences degree at the University of Manchester Institute of Science and Technology, Steven was all set for

stardom in an accountancy career with Arthur Andersen LLP (one of the “big five” accountancy firms, before their fall from grace in 2002). He deferred their offer for a year to take a bit of time out and found himself working for Chalbar, a local heating company in Radlett. As one of their sales people, his portfolio included heating controls for boilers, and specialist liquids that stopped diesel fuel freezing in the winter.

Eventually the entrepreneurial gene

emerged in Steven and he started buying the heating control units himself and developing them into EMUs (energy management units) to sell on under the Chalmor brand. The business grew and the thought of a city career in the cut and thrust world of accounting never got another mention.

Chalmor is one of those wonderful businesses that delivers a very modern solution, but has a decades-old and highly eclectic history hidden beneath the surface.

The company was founded in 1952 by Charles Henry, who is still a shareholder in the business today. Originally a publishing firm (and just one of many ventures that the serial entrepreneur launched over the years), its most famous periodical was the overseas visitor magazine, This is London. Although long since acquired by another publisher, this magazine innovated the idea, now commonplace, of being made available free to readers. Chalmor was subsequently put into sleep mode while Charles’s focus switched to other things.

Many more Chals …

Charles’s other commercial forays included Chalwest, which operated all types of coin-operated amusement and gaming machines (eventually purchased by Ladbrokes); Chaltan, a property company; and his current interest, Chalrey, which owns aircraft for flight training and

From a Colourful Past to a Bright Green Future

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Springing into the light with award-winning innovation

In 1987, Steven’s brother-in-law (who had previously been selling matches), joined the firm and introduced a lighting division, which fitted nicely under the “energy” umbrella. The lighting side of the business grew, even as the market changed through its various fluorescent guises (T12, T8 and T5) and more recently and dramatically into LED. This latest light revolution has brightened up the whole industry and created significant energy and performance benefits. Together with its heating control expertise, Chalmor’s headline message was now firmly established as the energy saving experts.

In 2006, the company achieved innovative acclaim with the development of its patented eTRV (electronic thermostatic radiator valve) which won that year’s Shell Springboard Award. This clever little gadget enabled heating control and energy-saving automation by sensor, long before today’s apps had even been imagined. In most instances a saving of 30% could be achieved, and the company continues to generate similar results today.

A timely and telling tale of too many accountants …

It is a well-known fact that one of the most consistent elements in any small business is their accountant. Most simply do not change; come what may, a small business accountant is an accountant for life. For Steven, the man who almost walked through the door to big city accountancy himself, however, things are different. Unless they are adding value, they have to go! So, with six previous accountants (across a 35-year history) behind him, Steven set about

finding the seventh. This time he was determined to locate his accountant for life and that meant careful selection.

The first criterion was that they had to be an AVN registered firm: that fact alone would mean an intelligent rather than simple number-crunching approach. The next, and perhaps even more crucial match was someone who would offer insight, honest assessments, frank observations, modern thinking and get involved in making the business work.

Steven was given a copy of Paul Meades’ first book (How to Make Your Company Fly) in 2015 and met him later that year, before making the seventh switch to Meades & Co. The impact was instant and Paul’s involvement in board meetings, giving clarity to the numbers and steering the business, was exactly what he wanted. Then came Xero …

From Xero to hero!

When Louise first turned up from Meades & Co to talk to Chalmor’s staff about Xero, the world’s leading cloud accounting solution, it caused a bit of a stir. In fact, her enthusiasm for the time-saving and efficiency-giving benefits led one of Chalmor’s most loyal and best-performing staff (the office manager) to quit – fearing for her job. After a conversation with her mum (often the wisest person in any situation) she soon returned and was accepted back with open arms, keen to help implement and make use of all Xero’s magical genius.

For Chalmor, the reduced manual effort and faster processing that Xero brings is important, but it is the extra accuracy and insight that has made all the difference. Duplication has been eradicated,

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You can count on us for a Quirky Quiz:(Check out the answers and explanations at the bottom.)

1. Quickly count how often the letter “F” appears in the following sentence:

“Finished files are the result of years of scientific study combined with the experience of years.”

2. Can you work out the number that should go in the 4th triangle, and why?

3. The first two scales are in perfect balance. What is needed to balance the bottom set?

1. Most people say three. The answer, however, is six, because we tend to overlook the “F” in the word “of” due to it making more of a “V” sound. 2. The answer is three and the solution is: the top number minus the bottom left, multiplied by the bottom right, gives you the number in the triangle. 3. The answer is four diamonds. The combined right-hand total of the first two scales is the same as the left-hand of the third scale (5 x clubs). Therefore the right-hand of the third scale must equal the same as the combined totals of the left-hand of the first two scales (5 x spades + 4 x diamonds).

the real-time reporting empowers their decisions, and the access to information has opened the door to new possibilities. Combined with Paul and Louise working on the business with them, this new chapter has given Steven and Chalmor a strong foundation on which to continue growing, controlling and developing their future.

Going green with Chalmor

As an accredited Carbon Trust supplier, Chalmor are advocates of the Green Business Fund, which entitles small and medium-sized businesses to 30% capital contribution towards energy-saving projects. In one instance a business in Welwyn Garden City came to view the new lighting recently installed at Meades & Co, as an example of Chalmor’s work, before embarking on their own project. Impressed with what they saw and with a £9k Green Business Fund rebate in hand, the return on their investment was reduced from five years to just three years.

If you would like any help with an energy-saving project (lighting, heating controls, retrofit solutions or eTRV) get in touch with Steven or check out the website at: www.chalmor.co.uk.

(If you would like to feature your business in this newsletter, please get in touch with Paul Meades.)

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in touch, as we’d be happy to share this), I would like to point out that these efforts can only go so far in creating a stronger team dynamic. Don’t get me wrong, I believe we are guaranteed happier workers here because of our focus on achieving the goal, but ultimately each individual’s happiness, and the level and consistency of it, is down to them.

Everyone can be influenced by outside forces (bosses, working environments, home life, the government, the news and a whole host of other stuff). But you don’t need to let those things constitute any more than a tiny proportion of your overall happiness rating. It is totally within your power to decide how much you let things beyond your control affect the smile on your face and the warm swirl of bubbling emotions in your heart.

And the measurement of it is very important.

Let’s try a little test. Imagine the thing (person, ambition or expectation) most important to you in your life at this very moment in time. Now think of whether you could do something today (more than what you were going to do before this moment) which would improve your relationship/connection/closeness/achievement/contentment with whoever or whatever is filling your thoughts at this moment. What would make them, you or the circumstances surrounding the situation happier?

I promise you that taking positive action, in line with the happiness-generating activity you have just identified, will give you a few extra points in your tally towards being happy today. That, in turn, will supercharge your outlook, your potential and your health. So, what is stopping you from doing yourself a favour?

Have a wonderful day.

So, How Do You Measure H a p p i n e s s ? OK, so as a firm of accountants you’d expect us to be rather serious, maybe even a little bit dull, and probably not the kind of people who find very much to laugh about each day. If you’ve ever visited the office, however, you’ll have experienced that those assumptions couldn’t be further from the truth. In fact, we believe that “happiness in the workplace” is so important, we actively and accurately measure it on a monthly basis. Most companies keep regular performance and sales records, but we believe happiness is a crucial metric, just as important as any of the financial numbers we record.

Whenever people are gathered together, be it in the office, at home, in a sports team or at an event, the mood will determine how well they get on – and whether the gathering could be deemed “successful”. If there is tension, cooperation will be hindered; if there is disinterest, productivity will suffer; but if happiness abounds then everyone will work better, faster, harder and more proactively together.

The happiness pills are on me!!!!

Most people are aware of the fact that happy people work better, but few business owners or managers actively employ this powerful strategy in their workplaces. At Meades & Co, we decided to measure and enhance our mood instead of just putting up with the consequence, like the majority of other companies. Without going into “how” we measure happiness here (but please get

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Does your firm undertake any form of research and development work? If so, you may be entitled to claim R&D corporate tax relief. Why should your investment in being brilliant cost more than it has to?

Can you answer “yes” to any of these questions?

1. Does the project involve any technical challenges?2. Was there some system uncertainty at the start of the project?3. Will you need to deduce solutions not readily available to solve the challenge?4. Have you increased your knowledge as a result of the project’s challenges?5. Is this project setting new standards in your field?

Engaged in Research and Development? Entitled to Tax Relief!

Featured Add-on

We love this month’s featured app at Meades & Co. In fact, it is a wonder we ever got anything done before we started using it. Wunderlist is the simplest way of keeping on top of all the things you need to do. Whether it is personal or professional, reminders for you alone or projects where friends, family and colleagues have a part to play, or simply a place to capture daily inspirations … Wunderlist will manage it all.

You can set deadlines, update, chase or ask questions of your project buddies, get the super-satisfied feeling of looking back at the things you’ve already done and move forward knowing that nothing has been missed.

Designed To Make Your Life EasierIf we had to sum up this month’s featured add-on, we’d say it is wunderful. Go and download it FOR FREE here: www.wunderlist.com.

6. Was the project setting new standards?

If you answered “yes” to any of those you may be eligible for R&D tax credits; contact our in-house R&D tax specialist, Gareth, at gareth@meadesandco.co.uk to stake your claim.

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Maximising profit through propertyPropiteer is an exclusive members only club providing joint ventures in exceptional property opportunities. Membership is exclusively by invitation for high net worth, commercially aware and sophisticated investors.

Members are receiving a return of at least 36% over two years, dependent on which asset they invest in.

What makes Propiteer different?

INTRODUCING ...

They invest in all of their projects alongside their members, meaning their asset team is yours. Having shares together in each business means the rewards and risks are in the same place.

Want to know more?Just call Paul on 01923 800444 – he’ll be happy to discuss the benefits for your specific circumstances.

How to join the Propiteer Club

Membership is exclusively by invitation. As a Meades & Co client we can introduce you to the club. There’s no obligation to invest and you’ll be kept informed of new opportunities. You can invest as little as £5,000 and monitor projects as they progress.

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The asset team – who’s looking after your investment?

Dave MarshallSpecialist in helping companies grow their business, one of Dave’s clients grew their business by £50m in just 12 months. Founder and owner of the Never What If Group, a £40m turnover company ranked within the top 100 most successful businesses in Essex.

Colin SandyA highly qualified tax adviser, Colin’s career spans working for the Treasury and The Inland Revenue, as well as Deloitte. As FD and Company Secretary for AMShold Group he controlled 30 companies owned by Lord Sugar as well as providing FD support for Tottenham Hotspur FC plc.

Richard IrwinA former Director for Northern Ireland Property Team at PwC. After 6 years, Richard moved on to specialise in investment funds and fund management at Schroders. He is a founding partner of both the Black Pearl Group and Redbrae as well as a Director of Propiteer.

Stephen SymingtonA Director of Propiteer and Redbrae private equity group, with over 10 years’ experience in real estate investment and development. Stephen’s experience spans banking with Ulster Bank (RBS) in the large corporate and property team as well as 5 years at PwC in the Northern Ireland property team.

Tom DaltonOver forty years’ experience in construction and development. Former chairman of Laing O’Rourke (Ireland) Ltd 2005-2008, delivering major residential, retail and infrastructure projects, including the redevelopment of Dublin Airport, Euro Disney Paris, Dubai Airport, and Manchester United’s Old Trafford additional 20,000 seats whilst the stadium continued to operate.

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The adventure carries on in Watford …

It may not seem quite as glamorous and globetrotting back at the Meades & Co offices in Tolpits Lane, but we are still

making a difference here and we love being a part of our customers’

journeys and business growth adventures. Holidays come and go, and we love them, but life is built on building stability for the future.

Jessica had been with the practice for nearly one and a half years and she was a lot of fun to have around. She said, “I have learned so much being here; made so many new friends (both colleagues and customers), and I have enjoyed being part of the best accounting team in Watford.”

As I mentioned earlier, Jessica leaving has been softened by Olivia joining the team. She has a strong background working in another accountancy practice, then in an in-house, industry role, before arriving at our door. Bringing with her wide-ranging experience, a sense of fun and a drive for making a positive impact on her clients’ businesses, she has already fitted in perfectly.

A local girl, growing up around Watford and Bushey, Olivia is a keen football fan (although there is a direct clash with Paul here – so least said …) and also loves her horses. She first met the Meades team about a year ago and liked what she saw, and that impression has sat with her ever since, so she feels a sense of destiny and purpose in finally becoming part of the team.

So, we would like to welcome Olivia to Meades & Co and, if you haven’t met her or spoken to her yet, we’d encourage you to say ”Hi!” the next time you call or drop in for a chat.

A Tale of Two New Meades Adventures! It is always sad when someone leaves the team, especially when everyone gets on so well together and the leaver made such a big contribution to the atmosphere around the office. But this occasion was softened by the fact that another great addition joined us early in March and has started to fill the space beautifully.

Happy travel-days, Jessica …

The excitement of travel and the anticipation of the stories and adventures to come are also a great way to deal with missing a friend. So, when Jessica

announced that she was leaving to go travelling the world, the whole team was thrilled for her and wished her well as she packed her bags at the end of March.

Her trip is following a broad plan, with a few specific highlights along the way and a lot of “see what happens when I arrive” moments in between. Starting in New Zealand for six weeks and visiting both the North and South Islands, she is looking forward to seeing the Franz Josef Glacier and hitting the Lord of the Rings set and cruise. If there is time, she is also planning a bungee jump and a trip to Queenstown.

After New Zealand, it is off to meet her friend in China for a three-day trek along the Great Wall, and then another couple of weeks touring around to Xi’an and Hong Kong. While in the hub of oriental history, she hopes to catch one of their famous light shows and to stand face-to-face with the Terracotta Army.

From China, Jessica’s adventure takes her to other exotic locations, like Kuala Lumpur and Bali, before arriving on the bright beaches of Barbados in June. What an exciting few months she has ahead of her: meanwhile, back here in sunny Watford we are looking forward to hearing all about it as we follow her updates.

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C L A S S I F I E D S

Our newsletter is distributed to all our current clients by post and reaches even more people electronically. Would you like to feature your business here? Simply get in touch with Paul Meades for full details paul@meadesandco.co.uk

ADVERTISE HERE!

ADVERTISE HERE!

If you want to advertise here please contact Paul on 01923 800444

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Meades & Company 39 The Metro Centre Tolpits Lane Watford Hertfordshire WD18 9SBNewsletter design by Dave@deadbunneh.com

CONTACT01923 800444www.meadesandco.co.ukexperts@meadesandco.co.uk

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The information in this newsletter is intended for guidance only. It is based upon Meades & Co’s understanding of current legislation and is correct at the time of going to press. Meades & Co would always recommend you contactthe team on 01923 800444 for specific professional advice before actioning anyof the information detailed in this newsletter.

Business Book ReviewDeep Work by Cal Newport

The full title of this book, Deep Work: Rules for Focused Success in a Distracted World, sums up what it is about and what its author intends to teach you. It addresses the idea that most people spend too much of their time on what Newport describes as “shallow” work (social media notifications, emails, texting, browsing the Internet, etc.) rather than on the kind of “deep” work that actually makes a tangible difference in their work and life.

He suggests that we have all become addicted to distraction and that our minds are no longer capable of serious work for extended periods of time. We have forgotten how to concentrate on one thing. The book deals with the paradox of time management in the age of social media. In a world with so many time-saving devices and strategies, we often have less time because we are concentrating on too many of these “quick fixes”. Newport places the blame squarely on the shoulders of two big evils of the modern world: distraction and multi-tasking.

These issues have become such an accepted part of everyday life that the solution is not easy, and the added emotional pull of instant gratification from indulging in “shallow” work doesn’t help. The book is quite graphic (frighteningly so, in truth) about the potential

long-term consequences of losing the “deep” work skills – both as individuals and as a civilisation.

Newport puts forward the suggestion that deep work is the self-fulfilling answer and that it is a habit we should all practice, persist with and perfect in our daily lives. The more we commit to concentrated periods of self-improvement and put off the need to feed our distraction addiction, the easier it will become to carry on that path.

Ironically, the author seems to overdo his attempt to prove that the problem exists and justify his own authority on the subject. The fact that you’ve picked up the book suggests you agree with the principle. It is, however, worth persisting with to find the practical lessons, inspired insights and realistic strategies it contains to help you escape your own distraction habits. Deep Work is written for people struggling to implement the time management strategies only hinted at in other books. Distraction comes from our modern life and business environments, argues Newport, it’s not just a matter of willpower. Well worth a read if that describes you in any way.