Sunday 31 March 2019

'Everyone needs a Willie'

So Margaret Thatcher famously said about Willie Whitelaw.


He was her Home Secretary when she was Prime Minister in the late 70s and early 80s. He went on to be Leader of the House of the Lords and during this time he became more of a confidant to her. She was a passionate and driven leader and one not inclined to listen or compromise. Whitelaw was one of few trusted advisors who could give her honest and direct feedback and perhaps help to soften some of her harsher inclinations. Thatcher still divides opinion but Whitelaw undoubtedly helped her cope with the demands and pressures of being number 1 and probably made working with her a little more tolerable.

In business too there are many examples of supporting actors backing up charismatic and high profile leaders. Charlie Munger with Warren Buffet, Steve Wozniak with Steve Jobs to name two of the most prominent. Who knows if these business superstars would have reached such great heights without their lesser known compatriots?

Premiership football is one of the most public and hostile arenas to be a leader. Everyone has an opinion and performance is there for all to see, week in, week out on the football pitch. The pressures are enormous. So having a trusted lieutenant can be very important. Jose Mourinho was sacked by Manchester United several months ago. There were probably multiple factors which brought this about but some have cited the departure of Jose's longstanding number two, Rui Faria a few months earlier as the start of his fall from grace. Alex Ferguson too had several assistant managers during his time at the top - Brian Kidd, Steve McLaren, Carlos Quieroz and Mike Phelan stand out.

An interesting observation, particularly in the football world is that these brilliantly successful 'number two's' rarely go on to have stellar success being number one. Many have a go but often revert back to being number two somewhere else. That is their strength. They don't crave the limelight or the plaudits. They quietly get on with doing what they need to do to help their boss and their team be successful.

Small businesses are often founded and managed by a single individual. It can be a lonely place and the pressures can be significant. The more successful business owners build a team.

Being a boss often means having to do things the team don't like, but are best for the business. Having one or more members of the team 'on side' can help to ease the pressures and make managing the business more enjoyable.

So whether it's a Willie or a Steve or a Stephanie, I think on this point at least, Maggie had it right.

www.base52.co.uk

Tuesday 26 March 2019

The annual budget still has its place

Accountants like scorekeeping.


Keeping accounts up to date, reconciling the bank accounts, reporting monthly profits. This is  'bread and butter' work and an essential part of maintaining financial control for a business.

Another key tool is the annual budget. Typically in our business we do this towards the end of the current financial year. Already at Base52, we are thinking ahead to the next financial year. Plans are taking shape, things we would like to achieve. Extra costs we need to allow for. Pulling the budget together brings this to life. 

In a larger organisation, preparing the annual budget can be a major exercise taking a Herculean effort from the company accountants and senior management. In a small business, it might just be the business owner and their spreadsheet. 

Often the first draft is a disappointment. The projected profits are lower than expected. Then some tweaks and adjustments and it starts to take shape. Decisions are made about priorities.

Voila! You have it. 

Your financial plan for the year. You now know what is possible and what you need to do month by month to reach your financial goals.

Of course, that's the easy bit. You now need to work with your team and your customers to deliver the plan.

Without the budget or target, scorekeeping on its own is missing something. A bit like a runner recording his time without having a target time to aim for. Roger Bannister would probably never have achieved the 4 minute mile if he hadn't set it as a benchmark.

So in my view the annual budget should be an essential step for all small businesses.

It's one more thing to add to the already very long list but it should pay back many times over by providing clarity and improved financial control.

www.base52.co.uk





Wednesday 20 March 2019

A hotel with a difference

It's good to be different in business.


Marketeers call it having a ‘Unique Selling Proposition’ or USP. It’s what differentiates you from your competitors and gives your customers a reason to buy from you rather than them.

On a trip to Morocco with my wife we booked to stay in a Riad close to the Atlas Mountains, a little over 20km outside of Marrakesh.

We arranged to stay for a few days as a change from the hustle and bustle of the city and maybe to do a little walking. The reviews were good so we settled on Riad Sougtani.

What we stumbled upon was something very different from a typical hotel.

It is run today by the nephews of one of the descendants of Caid Omar who completed the construction of the Riad and an adjacent Great Kasbah in the 19th Century. The brothers inherited the Riad in a run down state and have painstakingly restored it to its former glory.

Their ethos has been to recreate the welcome and sanctuary the Riad used to provide for their forefathers and their special guests who used to stay there. A beautiful central courtyard is fully enclosed by high walls and 6 self contained apartments. Guests and their families used to stay in their own accommodation and gather together for meal times and to discuss family business.

The atmosphere is less of a hotel and more akin to staying as a guest with welcoming and attentive hosts. There are no set meal times. You just turn up when hungry or pre-book if you choose to. There is no menu, but for breakfast and dinner an array of simple Moroccan food is served. Trips can be arranged to the mountains, back to Marrakesh or further afield. For the less active, lazing around the Riad is not a bad option.

The brothers could have chosen to make the Riad into just another hotel, with smaller rooms, a varied food menu, maybe a spa, lots of extras.

In choosing their USP they may be less wealthy than if they had chosen a more conventional format.

They are however generating enough income to keep their beloved Riad well maintained and  through their guests their illustrious family history lives on.

That is a rewarding and distinctive legacy to keep going and more satisfying I suspect than the pursuit of ever increasing profits.

Being different isn't just about making more money.

www.base52.co.uk

Saturday 16 March 2019

The perfect sales pitch

Have you ever met a brilliant salesperson?


My wife and I met one on a recent trip to Marrakesh.

We went on a walking tour through the ancient souk with our jovial and knowledgeable guide, Fouad. The souk is a labyrinth of alleys with stalls selling wares of every description. We strolled along for an hour or two dodging people and motorbikes and marvelling at the sights, smells and sounds.

Then almost imperceptibly we crossed the threshold into a carpet shop. We were greeted by the charming and fluent Omar who welcomed us and ushered us inside. We explained that we were not really looking for carpets but this did not dint our garrulous host's enthusiasm.

He asked us to go upstairs to, 'Admire the beautiful building' and have some mint tea. 'No pressure we are just friends speaking together'. Fouad nodded encouragement so up we went.

Pleasantries were exchanged - Where were we from? How long were we staying? Then the show started.

Omar's helpers proceeded to roll out carpets of all shapes, sizes and colours. He tells us they supply Liberty, John Lewis and other prestige British stores.

'Which do you like?'

'Er...we're not looking for a carpet but maybe a small one?'

Omar claps his hands and shouts a command. More helpers arrive with armfuls of small carpets. By this time Omar has noticed that my wife is more receptive to his charms than I am. 'Let's choose the ones you like - just say yes or no'.  In no time at all he had narrowed it down to 6 'possibles' and then 2 'most likely.'

Now to talk money. 'These are hand made. Every one is unique. A work of art.' Omar tells us, 'They are a snip at 1,000 of your English pounds each.'

'They are really very nice but we are not looking for a carpet.'

'Ok you make me an offer'

At this point my wife leaves (she hates haggling) and goes off to find Fouad.

This is where my years of watching Antiques Road Trip and Bargain Hunt on the telly pays off. I make a ridiculously low offer (which I would be happy to pay) and refuse to budge despite Omar's pleading and big reductions from his initial price.

Eventually he gives up. We parted friends (I think) - Omar still with his carpets and us with our money.

I reflected on the experience afterwards and especially Omar's sales technique - being referred by a trusted mutual contact, the lovely welcome, building rapport, demonstrating credibility, offering choices, changing the conversation from, 'Do you want?' to 'Which ones do you want?'.

All brilliant and much to admire and learn from. Except one important thing. He didn't really listen to what we wanted.

Omar's well rehearsed theatre undoubtedly works for one off sales where he is unlikely to meet the buyer again. I'm sure there are lots of mild-mannered tourists who leave Marrakesh with expensive carpets they never knew they needed.

If we want customers to buy again and spread the word about our business, we need to listen and try and give the customer what they want. Sure, sometimes we may need to help them appreciate what is possible but we are still listening and fulfilling what is right for them.

Sprinkle that with a little bit of Omar's magic and I think then you may be close to the perfect sales pitch.

www.base52.co.uk