Back from the brink of disaster

The Masons.jpg

Covid-19 may have proven disastrous for your business, as it has for many others. And getting up and running again may seem like an impossible challenge. But coming back from the brink is possible, even in the most extreme cases.

It’s a day that Karl Mason (pictured above), co-founder and director of Masons Dry Yorkshire Gin, will never forget. On 2 April 2019, the day began like most others, but would end like none before. “About 8am I was getting ready to have a shower before heading off to work,” he recalls.

“An employee phoned to say our premises were on fire and it was big. It came as a shock. My wife Cathy [Masons co-founder and director] and I jumped in the car and headed off to the distillery, in Aiskew, near Bedale [North Yorkshire], about a mile from our home.”

“We lost everything in the fire – about £300k worth of stock, the same in equipment and premises damage. The distillery was completely destroyed and the stills ruined.”

Worst nightmare 

As they drove down the hill, in the distance the Masons could see a huge smoke cloud billowing up into the sky. Karl adds: “We were both a bit numb, wondering what we’d be faced with on arrival.” What greeted the Masons was every business owner’s worst nightmare. Fire had engulfed their premises, from which they had operated since 2017 (the business was set up in 2013). Fire crews were busy trying to curtail the blaze.

“Eight staff had been on site, but thankfully they’d escaped and no one was injured. That was the most important thing,” Karl stresses. “They were in shock, having had to run out of the burning building, there was no time to collect their personal belongings or car keys. 

“But we lost everything in the fire – about £300k worth of stock, the same in equipment and premises damage. The distillery was completely destroyed and the stills ruined. Everything we’d worked so hard to build had gone up in flames in a few hours.”

“Although it was a big blow, we never considered giving up. Why? It was our business; our livelihood; what our team were employed to do and what we all took pride in.”

Rising from the ashes

Early the next day, staff assembled at the Masons’ home. “Someone brought a white board and we sat around our dining room table, others sat on the floor, because we didn’t have enough seats, and we created a plan,” Karl remembers. 

“We knew temporary offices in town were available, so we rang them. And we knew of distilleries that weren’t at capacity, so we could rent those and produce stock. It was a real time of staff coming together and just getting on with it.”

The Masons never once believed that their business wouldn’t survive. “A company’s only as good as its people and we just had amazing team spirit – full credit to everyone. And although it was a big blow, we never considered giving up. Why? It was our business; our livelihood; what our team were employed to do and what we all took pride in.”

“No one lost their job – we’re very proud of that. Our team pulled together and just kept going, often under difficult conditions.”

High spirits

Karl describes himself and his wife as naturally resilient people. Neither allowed their emotions to affect them (later on it hit them more, he concedes). But their immediate focus was simply to start again, which gave them a new goal. 

“The support we received from local people and other businesses helped keep our spirits high,” Karl says. “It made us feel proud and humbled. And no one lost their job – we’re very proud of that. Our team pulled together and just kept going, often under difficult conditions.”

In March 2020, Masons moved into a brand new, purpose-build distillery in nearby Leeming Bar. Then came the Covid-19 lockdown, about which Karl seems philosophical. “It almost felt like we were already prepared for it – it was just like an extension of last year’s hardships.”

So, what advice does Karl offer to small firms trying to rebuild following the lockdown? “Never give up,” he replies. “And you and your staff together must stick together through the highs and lows. Don’t worry if you don’t have a detailed plan. If you have a good team, you’ll get through it,” he smiles.

The Pages Barber Shop.jpg

Disaster recovery

Father and son Vernon and Aaron Page (pictured above) own and run The Barber Shop Shrewsbury. It is located in the centre of town, close to the River Severn. In February 2020, parts of Shrewsbury had to be evacuated, following some of the worst flooding for years.

“We had to close early on the Monday, because the river had risen so much,” Vernon recollects. “Later that night, the shop floor was under eight inches of water, but on the Tuesday night, we were able to clean up the silt, brush and mop the floor. We cleaned and dried things on the Wednesday, and I fixed the phone and electric sockets. I’m quite a practical person,” he reveals.

The Pages opened up and traded for three days, before the river rose much higher on the Sunday night, breaching defences and leaving the barber shop floor under two and a half feet of water for three days. “The clean up process was even more arduous. The smell was really bad,” Vernon confesses.

“I went down to try to get into the shop, but it was impossible. Walking back to the car, I broke down. I’m not normally like that, but I was sobbing like a child.”

Upbeat and resilient

“Some customers offered to help, which was really heart-warming. We lost a week’s earnings and our reception desk and one of our chairs was ruined. A few thousand pounds worth of damage was done, but we received a local council flood grant, which helped us. It was tough, but we were back up and running pretty quickly.”

Vernon describes himself as naturally “quite upbeat and resilient”, but hit a low point one day, while waiting for the second flood to subside. “I went down to try to get into the shop, but it was impossible. Walking back to the car, it hit me and I broke down,” he reveals. “I’m not normally like that, but I was sobbing like a child and passers by asked me whether I was OK.”

Vernon has a massive emotional attachment to his business, he says. “Originally, I found the shop; I ripped it all out; I laid floors; plumbed it; rewired it; decorated it – everything. It took me two months. The shop’s a big part of me. I’ve worked very hard to build it up. We love what we do, and we’re loyal to our customers, most of whom I regard as friends. 

“Although I was down, I wasn’t out. Then, not long after reopening the shop in March, the Covid-19 lockdown came; the government grants have really helped, thankfully we can open again soon. Business and life brings knocks your way at time; you just have to deal with them and pick yourself up again. It’s been a tough year, but what doesn’t kill you makes you stronger. I firmly believe that,” he concludes.

• Originally written for and published by Informi, the AAT’s small-business blog and advice website.

How we started our own micro-brewery business

Albert Dock.jpg

Many people start their own business because they dream of riches, while others simply want to earn a living from something they truly love. The latter is true of Liverpool-based Grateful Dead fan John Marsden and his wife Julie, who set up The Melwood Beer Company in 2013.

“For many years I’d dreamt of running a microbrewery business with my wife, Julie. I’m passionate about beer, but I don’t like the mass-produced, watery, gassy stuff you get in pubs and supermarkets.

“In March 2013 we opened The Melwood Beer Company. We make high-quality beers that taste great and are totally natural – we don’t use chemicals. To start the business, I used earnings from my work as a self-employed hospital operating theatre technician and Julie worked as an administrator at Alder Hey Children’s Hospital.

“Our premises are special. I’d mentioned to a patient that I was looking to open a microbrewery and she told me about an old dairy near her house” John Marsden

Ideal premises

“Our premises really are special. I’d mentioned to a patient that I was looking to open a microbrewery and she told me about an old dairy near her house, which until recently had been home to one of the North West’s first craft breweries.

“After seeing them, we just had to have them. They were perfect, and in such a beautiful setting near to Knowsley Safari Park – some days you can actually see the rhinos and zebras. Our offer was accepted and as a result we started the business sooner than anticipated. It all happened so quickly.

“We fitted the place out with all the necessary tanks and equipment and worked with a brilliant local welder. We also had to source supplies, create our website and develop our branding, as well as try to win our first customers, but come the end of March our first supply of beer was ready.

“We installed a five-barrel system, which enabled us to produce up to 800 litres per brew, which is 20 casks, each containing 72 pints. We had four fermenters, which gave us the capability to brew up to four times a week [ie 80 casks], providing the demand was there.”

In December 2015, John and Julie moved into The Kennels – a larger building which used to house the estate’s gun dogs. The extra space enabled John and Julie to finally do everything they were planning – with dedicated rooms for bottling, kegging, casking and tasting. In May 2016, they were visited in their new premises by the crew of Food Unwrapped who filmed the brewing of a special beer.

“All our beers are single malt varieties and their names are inspired mostly by bands, singers or songs” John Marsden

Grateful Dead

“Music is my other great passion and I play Hammond organ in a Grateful Dead tribute band. All our beers are single malt varieties and their names are inspired mostly by bands, singers or songs.

“We do an ‘Icons of Rock’ series and our first was Mojo Rising [The Doors/Jim Morrison], then there was Fools Gold [The Stone Roses]. Julie also developed an ale called Knowsley Blonde. A while ago, she made a beer called Father Ted, in honour of her late father. We also produce one called Citradelic, which is very popular.

“Our branding incorporates the famous Grateful Dead lightening bolt skull logo, which was originally created by the band’s soundman Owsley Stanley in the 1960s. Sadly, he died in 2011, but I emailed his family to ask permission to use the logo and they said yes.

“We plan to start selling branded clothing through our website, which will hopefully help to raise our profile. I used our home-based computer to create our website and branding and I produce all of our pump clips, stationery, labels, etc at home. As well as saving money, I enjoy doing it. I get a real buzz from seeing the pump clips in public.

“Brewing beer involves a lot of hard work, but it doesn’t feel like it because I love it so much” John Marsden

Labour of love

“The name of our business is inspired by Liverpool FC’s [former] training complex, which is close to our home. Brewing beer involves a lot of hard work, but it doesn’t feel like it because I love it so much. It’s not like a job. Our beers are very good – the reaction has been brilliant – and with our passion and commitment, I’m confident our business will do well. We’ve sell to wholesalers in Yorkshire and Greater Manchester and our sales in Merseyside continue to grow.

“I don’t know whether the business will make us rich, but I’d be happy if it generated a wage for us both. If it does make us rich, that would be the icing on the cake, but just to be able to walk into a pub and see people enjoying our beer means we’ve already achieved a long-held dream.” 

“Find a way to be special – that way people will buy your products rather than someone else’s” John Marsden

John’s three top tips

  • “Base your business on something you love. That way it won’t seem like work and it will drive you on when the going gets tough”

  • “Ask for help from other businesses. We’ve had some really useful free advice from other brewers on Merseyside – you really wouldn’t believe how helpful people have been.”

  • “You must set yourself apart from your competitors. Find a way to be special – that way people will buy your products rather than someone else’s.”

Melwood_owners_249.jpg

• This profile appeared originally on the Start Up Donut website. John and Julie went on to open their own successful micropub, The Bard, in Prescot on Merseyside.

Are business plans a total waste of time?

Do you need a business plan.jpg

A survey carried out by business software provider Exact suggests that more than a third of the UK’s 4.9m SMEs don’t have a business plan and “they could be missing out on an extra 20% of profit as a result”.

Of the 34% of respondents who didn’t have a business plan, 68% said they didn’t see the need for one, while 23% were “too busy” to prepare one, 8% “didn’t have anyone to help them” and 5% “weren’t comfortable with numbers”.

Should we be surprised by these findings and are business plans as essential as some start-up experts would have you believe?

Some experts would tell you that start-up business plans aren’t worth the paper they’re written on

Waste of time

Some experts believe start-up business plans aren’t worth the paper they’re written on. Author Paul B Brown, wrote a piece for Forbes.com called Why Business Plans Are A Waste Of Time., after he came up with the idea for a new book that sought to offer insight from the original business plans of highly successful US entrepreneurs.

But there was a problem. As Brown explained: “Most of the business plans had nothing to do with what the businesses eventually became. People who said they were going to specialise in developing new computer hardware ended up in software, for example. In a surprisingly high number of cases, what was in the business plan ended up having very little to do with what the company ultimately became.”

After writing about entrepreneurs for more than 30 years, Brown believes that creating a “painfully detailed business plan really doesn’t make much sense. The first time you encounter something you didn’t expect, the plan goes out the window. Things never go exactly the way you anticipate.”

Some of the heroes of today’s would-be entrepreneurs, such as Steve Jobs, Bill Gates and Michael Dell, did not have business plans when they embarked on ventures that changed the world

Business plan myth

A few years ago, (“former banker, small-business investor and veteran entrepreneur”) Kate Lister wrote a piece for Entrepreneur.com called Myth of the Business Plan. She highlighted research from Babson College (“regarded as having one of the top entrepreneurship programs in the country”), which found “no statistical correlation between a startup’s ultimate revenue or net income and the supposedly requisite written business plan”.

The study found that: “”Some of the heroes of today’s would-be entrepreneurs, such as Steve Jobs, Bill Gates and Michael Dell, did not have business plans when they embarked on ventures that changed the world”.

Great business plans may earn you an A in business school, but in real life you only get As for achievement

Lister said she was “all for having a business plan in the verb sense. I’m just not a big believer in the noun form”. She continued: “Writing a formal business plan invites the paralysis of analysis. It distracts the entrepreneur from slaying dragons and thinking big thoughts. And it’s largely a waste of time. The result usually is a long-winded missive that’s out of date almost the moment the ink dries. Great business plans may earn you an A in business school, but in real life you only get As for achievement. So stop dotting your i’s and crossing your t’s and go out there and slay something.”

Success Plan

Andy Fox is the founder of “award-winning independent car service and repair specialist” iAutoUK. He wrote an article for the Huffington Post called “Why You Don’t Need a 40-Page Business Plan to Launch a Successful Company” (sic).

“I’ve never had a business plan,” he admits. “Despite this, in three years my company has reached a turnover of over £1m, with £100,000 annual profits. For your business to thrive you instead need a ‘Success Plan’. This is an evolving strategy consisting of three elements. No 40-page business plan needed. In fact, you can write a Success Plan on one sheet of A4.

Look at companies such as Comet, Blockbusters and Jessops. I’m sure their business plans didn’t include going into administration!

“Firstly, you must understand your market place and how your business is distinct from competitors. Secondly, the Success Plan must have ‘Leader’s Objectives’ and you must communicate them to your staff. The final element is to make sure you make money! You must have a system that provides you with daily earnings information, and which can monitor cash in the bank and in the pipeline.

“Such a Success Plan is a short, relevant, real-world document. I believe a Success Plan is more appropriate than a traditional business plan.” Dryly he adds: “Look at companies such as Comet, Blockbusters and Jessops. I’m sure their business plans didn’t include going into administration! Had they had a Success Plan, perhaps their futures may have been different.”

• This blog was commissioned by Atom Content Marketing and appeared originally on the Start Up Donut website.