17


money out of the business each year to reward their efforts and compound their wealth. “Focus on the ‘now’, but also keep an eye on what ‘next’ looks like and what you’ll need to fund this.”


Ponan began thinking about ‘Me’ in her second business year, when preparing her five-year plan. “It moulded what I was doing with the business and made me consider lots of different strategic approaches, including exit.” Mentored by Richard Reed of Innocent Smoothies, Ponan was advised that running a business blind is not an option, and future scenarios should always be considered and solutions prepared.


culture, ‘chemistry’ may be very different to your own.”


Clarify had done significant work on building a recruitment process to attract candidates that suit its company’s operational and cultural requirements, she admitted. “We are designing our organisation based on the skills, behaviours, values, motivations that we want our people to have, using tools such as psychometric profiling and behavioural interviewing.


“You can’t hire perfect people, but you can do a lot by understanding and profiling people you want in your business.” Small companies can’t always promote from within,“ she added.


Richey advised: “Be very clear that you know the DNA of your business and whom you want within it.” She accepted she had her own straight-talking South African way of working and ‘chemistry’ did matter to her when interviewing candidates. She also admitted that she now respected the accuracy of psychometric profiling procedures, and didn’t rely purely on gut instinct as she had when starting out in business.


David Sanger


Richey suggested companies should aim to make themselves attractive to potential buyers, perhaps by aligning their corporate culture or operational synergies.


Sanger: “Don’t build a business for exit. The right priority is to build your business better and bigger. If you build a good business, it will be valuable and saleable. Keep only a small fraction of an eye on exit and who your buyers might be.”


Having been a business-selling owner and once an NED hired to create a business exit he explained: “It can be a really, really awful process. Mine took nine months and was twice as bad as I thought it would be – maintaining the workload, the secrecy, dealing with corporate finance, lawyers, due diligence, plus you don’t know if the deal will fall over till the very final day.” He advised hiring professionals to externally manage the deal.


Marsh: “I work very much in the moment, and realise the perils of not being business focused.” He warned of distractions such as investors “semi-bullying me to think about exiting” and thoughts during meetings about trading partners or large suppliers who could become potential buyers.


Recruiting the right people through science and chemistry


Edmunds: “Getting good people is probably one of the most difficult things, particularly when hiring valuable experienced people, whose working


THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2016


Rees: “When we recruit, candidates meet a number of people in the business and if there is any uncertainty from anyone then we won’t proceed with the individual. We’ve learnt from experience that a good cultural fit is crucial.” Redwood’s intake tends to combine gifted Russell Group graduates with senior industry talent, often recruited via networking links.


Multiple candidates attending group assessment days also helps. “The talent quickly shines through and you can also see who will fit in best with your culture.”


Aiming to grow a minimum of 30% this year, Redwood has started to recruit in batches to enable group induction and rapid integration throughout the company. Successful candidates are often sent to international offices to experience and share company culture.


Richey says BEcause does the same by placing staff on international secondments which often invigorate smaller offices, while enhancing corporate bonding. She also mentioned recruiting through loyal staff acting as ambassadors for their company, using their own contacts.


Sanger suggested inviting an office junior to give the candidate a post-interview tour of the business, then asking the ‘tour guide’ for feedback on the candidate. He also advised asking candidates to send a follow-up letter inviting the potential recruit to explain their understanding of their proposed company role, why they wanted the position, why they should get it, and to provide something that made them stand out from the crowd. “Recruit a personality not a CV.” And, employ based on a probationary period.


Rich Marsh


What keeps you awake at night?


Marsh: “Seeing the tumbleweed blowing through my bank balance because we need to get to the next level …. Oh, and my bad back.”


Continued overleaf ... www.businessmag.co.uk


SOUTHERN entrepreneurs


Richey always took potential recruits to lunch. “You can learn so much from someone in a comfortable environment.”


Recruitment: What happens when you get it wrong?


Edmunds: “If it is the wrong person for your business, it is the wrong job for them too.”


“No-one is too important that they can’t be let go,” said Rees. “A lone-wolf within a business creates issues, and unless they are superb at what they do they have to go,” added Richey. “The minute you know someone is not right, say ‘Good-bye’, but in doing so remember to be respectful to the process. In the ‘now’ is where you make the future.”


But that can be a very difficult, emotional and distracting business experience, suggested Ponan.


Outsource the pain by hiring an impartial HR professional to manage their exit with tact and legal correctness, advised Richey. “No-one enjoys having these difficult conversations with people they work with, but even if they are good at their job, they may not be right for the overall business. Releasing their talents to the marketplace can often be best for both parties.”


“If you get the recruitment process right, you won’t get misfits or lone wolves later. Leopards don’t change their spots either. Your first responsibilities are to you and your business.” Sanger summed up.


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