Top tips for successful business planning

North East LEP Business Growth Director, Colin Bell, gives his top strategies for successful business planning.

If I was to earn a pound for each time I got caught up in a debate about the need to write a business plan I would be a very rich man. I absolutely agree that a business should know where it’s heading, and know what it needs to get there, and this helps with strategic planning and developing the systems and processes needed to achieve the goals. But – I think when it comes to successful business planning, simplicity is key. A beautifully printed and bound plan might look good on your coffee table, but if you can’t simply articulate the plan then the chances are it will be hard to reach your goals.

Here are a few principles I’ve learned along that way that may help you to develop a plan that works for you and they people you need to invest and deliver it.

1. Focus and alignment

You can’t be all things to all people. It’s easy to fall into the trap of being constantly busy but never really moving your business forward. Being caught in this trap is often a result of any of three things:

1. Not planning for growth – resulting in the owner manager ‘doing’ everything. Their personal capacity therefore becomes a major barrier to growth
2. Trying to do too much – spreading intellectual and physical resources too thinly so they don’t have a significant impact in any area
3. Not having the necessary courage or conviction – To get the best out of finite resources means making difficult decisions. Getting old ideas out of your head can be one of the biggest barriers to creativity – stop hanging on and focus on the ‘vital few’ opportunities.

The strategic pyramid is a great way of making sure that the resources identified in your business plan are directly aligned to the achievement of a focused set of goals and vision. It helps you to interrogate every task, every action, every meeting, everything against the key question – is this helping me achieve my goals? If the answer is no – don’t do it.

2. Dig deep for that elusive proposition

Why should I buy from you rather than your competitors? This is a critical question and one that any funder will want to know; it’s what makes you competitive. Don’t fall into the trap of listing all the things that you expect people want to hear, such as ‘we deliver a quality product’ or ‘we offer a personal service’. Customer expectations have risen dramatically and these are now basic expectations. You need to dig deep and develop a value proposition that is ‘truly’ different and better than the competition. Get this right and you are on the road to success.

3. Accessing Finance? Make the executive summary exciting

Although an executive summary doesn’t sound that exciting, it should be! If you are developing a business plan to access funding, assume that the reader will not look beyond the executive summary. If it doesn’t grab their attention then you’ve lost the opportunity. Think about the rest of the plan as an annex the reader will refer to in search of evidence to substantiate the claims made in the summary.

4. Speak the language of the receiver

It may sound obvious but understanding the audience for your plan is critical. If it’s an internal plan then it needs to be simple and action focused, if it’s to access funding it’s got to excite and grab the attention of the reader while proving that the plan can be delivered. For the purpose of accessing finance your plan must:

• Present the opportunity,
• Present the ‘killer’ facts,
• Provide proof that it can be delivered.
• Demonstrate that you can pull it off

This is about demonstrating that you are business savvy; you understand business models, have a creative and innovative strategy and have the necessary action mechanisms in place (e.g. a project or operational plan, effective leadership etc.).

5. Get the numbers right! You’ve got to win minds as well as hearts!

So you’ve written a great plan, done your research, developed a compelling and superior value proposition, a fantastic product and got the funder’s full attention. How many times have we seen this scenario on Dragons’ Den, the pitcher’s passion has won the dragons’ hearts, only for them to get torn to shreds because they don’t have a full appreciation for their numbers. A business plan must capture minds, so get your numbers right or the plan will be discredited.

6. It’s ALIVE

And finally, you’ve put lots of work into the development of your plan so don’t let it gather dust. Success is attributed to 5% planning and 95% effort; so use your plan as a mechanism for action. Bring it to life, build it into a project plan, assign responsibility and ownership across your business, make it timed and track progress against goals and vision.

Implemented correctly a well-formulated plan will raise the energy levels and motivation across your business and engender a culture of creativity and innovation.

Dave declares war on unemployment

A talented war gamer has started his own business with the help of the North East Business and Innovation Centre (BIC).

David Ayre, 31, turned his hobby into a business in May designing and manufacturing buildings for table top war games. David then sells the flat packed buildings to other keen war gamers.

David explains: “It all began when I made my own paint stand using a laser cutter. After realising how easy it was to do, I decided to have a go at creating a few prototype buildings to try out on friends and family, which went down a storm. It was then I visited the BIC.”

David worked with BIC business adviser Margaret Cook who helped him to develop his business plan and supported him through the New Enterprise Allowance (NEA, a national government initiative.

David continues: “Margaret gave me all the help I could ever ask for to get Dave’s War Games up and running. The meetings we had were very relaxed and informal. Having a business adviser who is professional but down to earth and can explain things in ways that I could understand was vital.

“I knew how I wanted to run the business but had never written a business plan or looked at a financial forecast. Margaret explained costs that I had not factored in which I would have come across later had she not pointed these out.

“I love the flexibility self-employment allows you and the sense of achievement you get when you have a happy customer. I recommend anyone with a business idea to at least go and talk it through with a business adviser, and that way at least you’ll know if it can make a viable business.

“I believe I am the only company of this kind in the North East. I plan to increase each product line and continue to make contact with stores that are willing to sell my product.”

Margaret Cook, business adviser at the BIC commented: “I am delighted with the progress David has made and to see his creativity come to life. He is a great example of someone realising that their hobby has potential and using that to their own advantage.”

The NEA programme aims to help those in receipt of benefits to start up a new business. For more information contact the business support team on 0191 516 6149.

In conversation with David Land, North East LEP Board member, about the Manufacturing Growth Programme

David Land, North East LEP Board member, discusses the Manufacturing Growth Programme.

As a Board Member at the North East LEP I’m often asked how we can encourage and support growth in the North East economy.

If we want to achieve the LEP’s ambition to create 100,000 more and better jobs by 2024, what approach should we be taking?

I believe SMEs are part of the answer. It might come as a surprise to learn that small businesses accounted for 99.3% of all private sector businesses at the start of 2015 and 99.9% were small or medium-sized*. SMEs are the backbone of our economy and if we want to see it flourish and grow, we need to help these businesses scale up.

The Manufacturing Growth Programme – part of the North East Growth Hub – is one of the ways the North East LEP is supporting SMEs to grow. Aimed specifically at SMEs operating in the manufacturing sector, the Manufacturing Growth Programme is designed to help businesses identify barriers to growth and work with them to improve business performance and increase sales.

The year-long programme was launched in July 2016 and we already have three businesses enrolled in the scheme. What we’re looking to achieve is to provide companies with longevity; a path to long-term success by giving them access to the right resources, quickly and effectively.

The Manufacturing Growth Programme places experts within participating businesses to help senior managers prepare and plan for growth. We see it very much as a mentoring role, sharing knowledge, experience and identifying the areas organisations need support with.

The programme covers all areas of manufacturing, from automotive and oil and gas to pharmaceuticals and textiles. It’s also open to SMEs of all shapes and sizes. We need to help the small businesses become medium sized businesses and larger SMEs to become the big businesses of tomorrow.

We’re only weeks into the programme but we’re already seeing tangible results.

If you’d like to know more and explore opportunities for your business visit www.ne-mgp.co.uk to check eligibility or contact Tracey Watson at BE Group via [email protected] or call 0191 389 8434.

We look forward to working with you.

David Land
North East LEP Board member

*www.fsb.org.uk

BIC is just the job for high-growth recruitment business

Fast-growing HR GO Recruitment is the latest business to move into the North East Business and Innovation Centre (BIC).

The long-established firm with offices across the UK believes the centre’s great location and well-appointed offices will support rapid growth.

The North East business has moved from older premises in Newcastle.

Cindy Hare, HR GO commercial director, said it needed larger offices because it was stepping up its permanent recruitment business.

Permanent recruitment, running alongside HR GO expertise and achievements in temporary employment, was poised to “grow massively,” she said. The Sunderland operation had already taken on new staff and would be adding more over the next few months.

“We viewed several office locations but chose BIC because it was in the right place and everybody has been so friendly and helpful. The move went really smoothly. Moving to Sunderland means our staff have nicer offices and more space to grow.

“The offices are three times bigger than what we had before and it’s a very positive move. It felt right for us.”
She added that most of her four-strong team, managed by Helen Walton, lived in Sunderland and the BIC’s convenient location made travelling a lot easier. Free parking was also a big advantage. “They know Sunderland, live round the corner and can target the area with gusto.”

She is confident that the North East, already a vibrant region, offers huge potential for further economic growth.
HR GO was founded in Kent in 1957 and celebrates its 60th anniversary next year. From humble beginnings, the business has grown into a £90 million operation, with several specialist businesses under the HR GO plc umbrella.
Its North East operation in the BIC is one of more than 30 outlets nationally. It employs around 300 staff.

HR GO Recruitment serves clients and candidates, finding people with the right skills for permanent and temporary positions.

Company chairman Jack Parkinson has pioneered joint ventures, as a successful way of growing the business while leaving entrepreneurial managers with a stake in the operation.

David Howell, director of operations at the BIC adds:

“As always it is a privilege to welcome another well established, successful company to our multi-purpose business centre. It’s fantastic to see HR Go and other businesses appreciate the opportunities available in Sunderland and the North East.

“Here at the BIC we have a unique mix of companies which make up our business community and I am delighted that HR Go are now part of this.”

For more information on HR GO visit www.hrgo.co.uk

Projects shortlisted for Local Growth Fund support

Twelve projects have been shortlisted, following a call for projects seeking support from the Local Growth Fund which closed in April.

More than 50 applications were received in total, which were all appraised by the North East LEP Board. The projects which have been selected to progress to the next stage will all go through thorough due diligence before any funding is finalised.

The 12 shortlisted projects are:

• Beacon of Light – World of Work and Education (Foundation of Light)
• Eagles Arena (skills) (Eagles Community Arena Ltd)
• Northern Centre for Emerging Technologies (Gateshead Council)
• East Sleekburn Enterprise Zone site (Arch Group)
• Medicines manufacturing and medical technology innovation infrastructure (CPI)
• Explorer grow on work space – NETPark (Durham County Council)
• Auckland Castle Welcome (Durham County Council)
• Cowpen Road, Blyth (Northumberland County Council)
• Smart @ Pendower Hall (Tier One Capital)
• Durham City Incubator (Durham County Council)
• Phase II, Intersect 19, Tyne Tunnel Trading Estate (North Shields – UK Land Estates)
• Monkton South Business Park (South Tyneside – Hellens Development)

The North East LEP’s Local Growth Fund capital programme forms a key element of the North East Growth Deal negotiated and agreed with Government in July 2014. It is enabling the North East LEP and its partners to take forward ambitious growth measures to achieve the objectives set out in the Strategic Economic Plan (SEP).

Find out more about the Local Growth Fund.

Free event: Go Digital to boost your international sales

Do you want to increase your international sales online? UKTI’s “Go Digital to Boost Your International Sales” free taster session is full of top tips, case studies and practical examples to help grow your business.

Download further details of the event here: UKTI Digital Marketing Taster Session July 21 2016.

Presented by UK Trade and Investment, (UKTI), in partnership with Norma Foster Associates and Business Durham, this workshop will show you ways to win more international business online and develop your digital skills to create an action plan for success.

For more information, contact Sue Beverley, E-Commerce & Digital Trade Adviser on 07966222258 or email: [email protected]

Training Company expands to the BIC

A training provider has opened a second office in Sunderland as it gears up for growth.

(Photo caption: director of Milltech Training, Derek Freeman and some of his team)

In addition to a city centre training facility, Milltech Training have opened a second office at the North East Business and Innovation Centre (BIC) acquiring over 2000 sq ft of office space.

The company, which boasts an 88% success rate and Grade 2 Ofsted, has moved into the BIC’s Riverview to focus on recruiting adult learners onto management courses as well as providing new 16+ apprentices for businesses in the city centre and at the BIC.
With just over 250 apprentices on Milltech’s books and over 21 employees, the company were keen to offer two locations to suit all employer and learner needs, director Derek Freeman explains:

“Most of the businesses we work with are within a 40 mile radius of Sunderland so to offer facilities at the BIC with ample free car parking makes sense. Likewise a lot of our learners either rely on lifts to our training centre or public transport so to retain presence in the city centre made perfect business sense.
“We are delighted to join the BIC’s business community, with over 140 businesses on site we hope that we can continue to build on our existing strong connections at the BIC. We wanted somewhere that our employees could feel proud to work and I feel that the BIC is the best environment.
“We needed a large space all on one floor and one that could also offer private offices and a training room, and Riverview at the BIC was ideal. We wanted to ensure we had a large presence in our own building.”
The company is now into its 33rd year of operations and works with over 350 local businesses in recruiting and training existing staff in administration, management, and customer service, team leading and motor vehicle. Derek continues on the benefit apprentices can bring:

“With our learners who have recently left school there will be a unique opportunity for the employer to mould them into their own business ways and routines and ‘growing your own’ and bringing a high level of loyalty to the employer. The minimum wage for a learner is also below the equivalent for a non-apprentice also giving a small economic advantage.”

David Howell, director of operations at the BIC added:
“As Derek mentioned the BIC have worked closely with Milltech in the past, we have had many apprentices from the company which I am pleased to say of which 10 have been able to gain full time employment with businesses on site.

“We welcome Milltech to our community.”

Call Abby or Suzanne at Milltech Training for more information on apprenticeships or adult learning 0191 510 0414 or email: [email protected] or visit www.milltechtraining.co.uk

For more information on the space available at the BIC call the team on 0191 516 6066 or visit www.ne-bic.co.uk

ENDS

Media Contact
Sarah Spence
0191 516 6073
[email protected]

North East LEP seeking Government assurances on EU structural funding

The North East Local Enterprise Partnership (LEP) is seeking reassurance that European (EU) funded projects already signed off by Government will continue to be delivered.

To date, the North East LEP area has £89.5million of its £437million EU structural funding committed to projects for the 2014-2020 period.

A further £104.5million worth of projects were put forward to Government for approval in advance of the Referendum.

Collectively these projects will support over 7,400 businesses across the North East LEP area, which covers Durham, Northumberland and Tyne and Wear, driving growth and job creation.

The funding will also support almost 30,000 local people into employment and provide those in employment with the skills they need to progress in work.

Chair of the North East LEP Andrew Hodgson said: “We are hopeful that these projects will be honoured by Government and deliver important support to businesses and local people before Brexit happens.

“It is important to realise we will not be immediately losing the opportunities that EU funding has historically brought to the North East.

“Millions of pounds of projects are still likely to go ahead, bringing new jobs and closing the skills gap in the North East. The truth is that we just don’t know yet if or when we will see changes.

“EU funding has hugely benefitted the North East over the last few decades and we are lobbying Government for clarity and seeking assurances that any potential future funding gap will be filled. We urge the Government to provide this guidance quickly to ensure opportunities to create jobs and growth are not lost.”

There is no formal Government guidance available currently following the EU Referendum result on the amount of European funding that will be available in the future for North East businesses and organisations beyond the projects already approved.

Brexit: What are the options?

In the run up to the EU Referendum Neil Warwick, from Square One Law, the leading EU lawyer in the region, produced two guides which illustrated the legal processes that a Remain or Brexit vote would kick start. In the first week of the guides being in the public domain the Square One Law website received 158,000 hits on its news pages. Its Twitter feed was also constantly being updated with people sharing and commenting positively on the guides as far afield as the USA and Asia.

So what happens now? – Neil Warwick explains the legal process.

Absolutely nothing to start with, the Referendum has no legal force so the Government then has to act and the Treaty on the Functioning of the European Union requires the UK to serve notice on the European Council to tell them we no longer want to be a member. That will trigger a two year negotiation period where the other 27 member states work out what terms they want to offer us. We also have an unstable political situation and it will be the next Prime Minister who has to serve the Article 50 notice to start the process.

What are the existing legal options to leave the EU?

What is important to say is that the models focus on what the law currently says and I would stress that this is what is entrenched in the law at the minute. There may be several other options if we changed the law, but it’s important that we deal with the facts rather than speculation.

There are four legal options currently available for the UK to follow.

    1. Join the EEA (the so-called ‘Norway Model’):

If we follow exactly the same pattern as Norway we would still be contributing to the EU budget. It wouldn’t be at the level that we are now but equally the rebate that we get would be reduced, so there would still be quite a significant contribution to the EU budget.

At the last analysis, Norway was still bound by 93% of EU laws, including the ability of free movement of people so the huge difference for the UK would be that we would have no say in shaping these laws but may be bound by future laws that the EU introduces.

    2. Join EFTA (the so-called ‘Swiss model’):

This model is very similar to joining the EEA. Switzerland does currently contribute to the EU budget and it has agreed to be bound by the laws, although it’s interesting to note that this arrangement took about 10 years to implement through multiple treaties. Switzerland also allows for free movement of people and again, it has no say in shaping EU laws.

    3. A Bilateral Treaty (sometimes referred to as the ‘Canadian or Turkish model’):

This is an interesting case because I’ve had lots of feedback on social media stating that obviously Canada and Turkey don’t have free movement of workers. That’s not what our diagram was intended to say. The probability is that as a country we would still have to contribute to the EU budget if we decide to take this option and would have to agree to be bound by certain laws, particularly competition law.

I think that the likelihood for the UK is that under this model we would also have to have some form of freedom of workers. In my opinion I don’t think it would be possible for us to ask for three of the four freedoms and refuse the fourth one which is very, very important to the EU.

    4. The World Trade Organisation model:

This would see the UK disband its membership with the EU. We wouldn’t have to contribute to the budget and we could shape free movement of workers, but there are certain trade tariffs that could be imposed automatically. At the front end of implementation it is likely that there would probably be a lot of clarity needed in the public domain for people to understand exactly what the cost of importing and exporting goods would be.

It has been suggested by some people that the trade tariffs that would be imposed in the World Trade Organisation Model would actually be somewhat similar to the current cost of being part of the EU, but in reality this would be open to negotiation. Each member of the World Trade Organisation can adjust and negotiate tariffs but it would be done bi-laterally with treaties from individual countries. So it would be possible but is quite an extensive exercise to undertake.

Timescales

The decision regarding which model to adopt will be one that isn’t made quickly and is likely to be played out in the public arena. It is highly unlikely that the UK will leave the EU before the Autumn of 2018 at the earliest. Ironically the guide, which was produced to help with the Referendum, is now being used to explain in simple terms what Brexit will actually mean for us all.