I’ve been fascinated recently with what happens to successful small businesses that have been bought by larger corporates. I know of a few great businesses that were sold and suffered at the hands of the new owners. These sales have been through the result of administration as well as strategic purchases – but all with the same problems.
Why does this happen? It seems that incorrect decisions can be made as to personnel and who should be retained and who is detrimental to the business. Failure to understand the market sector, audience or products by new owners is common. I think that there’s also a misunderstanding about the value of personal relationships with key clients and then finally it appears that there’s often a clash of culture. In extreme situations I have seen ethical companies fail when taken over by money grabbing companies who have no regard for doing “the right thing”. Customers and employees suffer as a consequence.
But just as my mother always said “what goes around comes around”….
This year I have seen those entrepreneurial business owners who sold great businesses (or whose business went into administration) have had sufficient time to reflect and recover. The next stage of course is to pick themselves up and dust themselves down and start again. Starting again is key, using all that experience and revisiting loyal customers, suppliers and even loyal employees means that success is in sight and I for one am standing at the side line as a supporter for two businesses in particular that I know will be fabulous again. It seems that a year or two is needed in between but eventually there’s no ignoring the need to get back in the game. I have so much admiration for these guys and I know from my own experience that your hunger just increases and as soon as the time is right it’s time to start over but with even more determination.
My time is almost here…and I’ve never been more ready!
I was recently bought a copy of the John Timpson book “Upside Down Management“. Anyone that is aware of John’s writing will know that he has an eloquent way of putting things and isn’t afraid to be open whilst maintaining a light hearted approach. Of course this book is exactly the same.
As a fellow family business owner I can share many similar anecdotes to those in the opening chapters of the book but there’s one that stood out to me. Chapter One discusses the 1960’s and how business was built upon status – ”our office was full of status symbols”. Well I remember that all too well when I used to visit our family’s company as a young child back in the late 70’s. John explains that there were 40 parking spaces on the way to the entrance of the building and these were strictly allocated according to seniority.
At T Saveker Limited whilst at our Phillips Street site we had a senior staff car park to the right of the main building and another car park to the left for everyone else. The ‘family’ were permitted to use the one to the right and yet I deliberately chose not to and much preferred to park with everyone else. I guess the fact that my car when I started with the company was more in keeping with the left hand car park meant in fitted in well. Once I could afford a slightly better car I didn’t see why car parking arrangements should change.
In 1997 when we moved premises (to Aldridge Road by Perry Barr Grey Hound Stadium) a senior family member and board member instantly parked next to the entrance, irrespective of any potential disabled drivers etc. This was clearly an indication of status as he perceived it. As he arrived reasonably early each morning it set a challenge – to get in even earlier and park there. So I did.
John Timpson commented that as you moved up in the company management structure you could move closer to the door. This was so true and something I resented when I became Managing Director and later CEO. There were no set parking spaces from the moment I became MD.
Family businesses can have wonderful traditions and many look after employees well but status can continue to be a big issue – and yet as John explains, real success comes from empowering the workforce – given you have the correct workforce and no “drongos” as Timpson puts it!
Good news, for some…
It would seem that Marks and Spencer have announced profits today of £632.5m for the last financial year. Chairman, Sir Stuart Rose has suggested that the UK has now come through the worst of the recession. In so many ways I would agree that it does sound like that especially with such profits being stated in the press.
The bad news, for some….
However, the bigger picture is that those profits have been achieved by squeezing the suppliers. Major retailers such as M & S, Next (reporting 18% increase in profit), Sainsburys (who recently boasted a 17% hike in profits), Tesco’s (who reported record profits) and others have been able to dictate prices to suppliers for a long time and the recession has certainly allowed them to hold all the power. As the CEO of a manufacturing SME in the Midlands during the worse of the recession we supplied shopfittings to the retail, leisure and construction sectors and I know first hand how these big players had no regard for the backbone of the UK. We were crippled – the phone’s stopped ringing in October 2008.
The sad news…
My family’s 106 year old business had no choice but to enter administration in March 2009 and I still wonder about all the other victims that have fallen by the wayside as a result of the recession – and in particular as a result of big retailers and car manufacturers ensuring they survived regardless. Of course as a businesswoman I understand the cut throat decisions that have to be made at times – that’s the duty of the directors but I just hope we realise that the headlines have a great deal more behind them and that the ongoing impact of the recession will cascade for months if not longer. What about the third sector and so many others?
The horizon in the UK is radically different now and we have a pool of highly skilled executives that have been thrown into the pot, professionals that have left or been discarded and it will be an interesting two years – of course we also have the new Government and faster moving technology… so interesting times ahead and they’ll be nothing like we have known before.
Having said all that, I still believe that we have a world of opportunities at our disposal and it’s time to seize them!
I’ve finally put one of my concepts for supporting young adults and children with careers advice and preparation for their life journey into a visual format! I now have a proof of concept to start making this idea a reality. The idea started to take form in 2009 after putting a company into administration.
I hear so often “I had a good idea…” but nothing ever happens! The easy bit is the idea but the real value is in the delivery. Seeing something through is certainly made easier when you absolutely believe in it 100%
What made things start to fall into place for me and this particular concept was seeing the latest book released by Gallup… “Wellbeing”. Basically the book looks at 5 areas that need to be nurtured in order for us to have complete ‘wellbeing’. It’s an area that fascinates me, from being a CEO of 100 employees and looking at reducing absenteeism to being frustrated by employability issues with young people. I also think that the last 12 months I have experienced have also allowed me to reflect and address a number of my own ‘wellbeing’ issues.
Gallup’s book is by Tom Rath and Jim Harter and explores areas that we all should take care of:
- Career Wellbeing
- Social Wellbeing
- Financial Wellbeing
- Physical Wellbeing
- Community Wellbeing
We’re absolutely thrilled to announce the launch of the Jeeves Services lifestyle management website ‘Jeeves Exclusive Living’.
Jeeves was something I started in January 2010 and we have gently shaped the brand towards lifestyle management.
What’s that?
Well, basically we provide a service to high profile and busy professional clients by taking care of anything that they do not have the time, expertise or inclination to do themselves. So we mainly arrange and manage house keeping, laundry, dog walking, landscaping, plumbing but equally can get asked to source Orangeries and corporate events for team building. This is provided through clients retaining our services on a membership basis.
Contact me to find out more on 07812 99 27 26 or email
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