Back from the brink of disaster

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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.

Are business plans a total waste of time?

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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.

Negotiating: 10 ways to get better results

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Negotiating isn’t extraordinary, of course. It’s something that most of us do many times each day, whether formally or informally, in our business or personal lives.

Some of us are natural negotiators, while others struggle. However, negotiating isn’t simply a question of enforcing our will to get what we want.

Sometimes you get more than you expected; sometimes you have to settle for less than you wanted

Negotiating involves trying to reach agreement. Sometimes you get more than you expected; sometimes you have to settle for less than you wanted. Negotiating is about finding a solution that’s acceptable to both parties, which is why some negotiations take so long or why they ultimately prove fruitless.

So, what’s the key to getting better results when negotiating?

1 Be well-prepared

Proper preparation is key. You must know what you want from the negotiation, what your alternatives are and what you’ll concede if asked. You also should try to understand what the other party wants, what they’d give up and what their other options are. Ahead of the negotiation, practice answering any questions you’re likely to be asked and make sure you can back up all claims you’ll make, because it could strengthen your negotiating position.

What works in some cases may not work in others, so take time to decide the right approach 

2 Use the right negotiating strategy

Good knowledge of the other party can enable you to know how best to approach the negotiation. Your strategy will be slightly or entirely different for different people and situations. What works in some cases may not work in others, so take time to decide the right approach to take in each instance. 

3 Choose the right time and place

You need somewhere free of interruptions, where both parties can talk openly. Make sure there’s enough time for the negotiation, so that deadline can’t be used against you. Very early on, explain what you hope to achieve, but don’t reveal concessions you’re prepared to make, because these must be negotiated.

4 Believe in yourself

Lack of confidence will undermine you when negotiating. If you’ve prepared well, know what you want and have a sound strategy, you should feel confident. Also make sure that your appearance and body language is right. Be firm but fair when negotiating. Speak clearly and with authority, but remain open to questions and comments.

Don’t issue ultimatums or allow things to get heated. Stay cool and don’t take things too personally

5 Stay calm and keep it friendly

Negotiations should be friendly, with both sides professional, polite and respectful. The tone shouldn’t be adversarial – aim to build bridges not walls. Don’t issue ultimatums or allow things to get heated. Stay cool and don’t take things too personally – even if the other party is rude or overly dominant. Smile and stay focused.

6 Be a good listener

You must carefully consider the other person’s point of view if you’re to reach an agreement. Don’t talk at or over them, instead, seek to create and sustain a good conversation. Also be patient, because negotiating can take time, especially when matters are complex or the stakes are high. During the conversation, if you don’t understand any points, seek clarification.

Don’t allow yourself to be bullied into revealing your bottom line too early on

7 Be prepared for negotiating tactics

Experienced negotiators employ various tactics, especially when buying or selling. Be prepared for someone to play tough, but don’t allow it to affect your confidence or determination. Don’t allow yourself to be bullied into revealing your bottom line too early on. There should be some room to negotiate on the other party’s opening offer.

8 Concede ground when necessary

But ask for something in return. So, if they want a cheaper price, agree only if they buy more from you. If they want more credit, try to ask for a higher price. Where possible, avoid giving concessions unless you get something in return. And never appear desperate, because it can weaken your position severely.

Drive a hard bargain, but remember – the deal must be fair for both parties, if the relationship is to last 

9 Seek concessions when possible

If you feel you’re in strong position and close to agreement, try asking for concessions, but only if they offer real value for your business. If you’re buying, by all means drive a hard bargain, but remember – the deal must be fair for both parties, if the relationship is to last. 

10 Walk away if you can’t agree

No deal really is probably better than a bad deal. If you want to consider an offer, ask for more time. If no agreement looks likely after there has been sufficient time to talk, politely end the negotiations and part on good terms. They might later make more concessions to rekindle your interest. If you can’t come to an agreement that works for your business – explore other available options.

• Blog written by Dead Good Content founder, Mark Williams.