START-UPS & SUCCESSES Start-Up Successes Ian Dormer CBE
The most profi table phase of my business was when working out of a spare bedroom.
Overheads were low and I could work all the hours needed without wasting time on a commute. In fact, it was so profi table, employing
someone to help out ended up being essential, which meant a move into rented premises. Fortunately by then we had a great head of
steam and growth has continued. My business is moving into a new factory in April – our fi fth premises. Yet as we do not rent, but own outright, our overheads are technically lower again as it is all paid up with minimal cash out fl ow. Being alone when running a business can
be tough. Being in a business incubator space can be worthwhile to alleviate such issues, but it costs. I joined the Institute of Directors instead and used the camaraderie and educational opportunities available there. I found this to be of great value. Early on I decided I needed to get as much
training and education into how to run a business. While the tutors were excellent at the IoD, for me the real value came from the interaction with other delegates. They shared their wisdom and experience. One key early lesson for me was that cash is king.
For years I ploughed profi ts back into the
business and resisted the temptation to draw out money for a fancy car or lavish holiday. Sometimes I would think, “I have made a good profi t this year from hard graft, so I deserve to take the money out, don’t I?” No. Not if I wanted a better car, or better holidays in years to come. This approach has meant that as a fi rm we can ride out the cyclic phases in any business
One key early lesson for me was that cash is king
environment. We invest quickly in new opportunities. We never have to justify anything to bankers. In fact, bankers now court us. Not enjoying the fruits of your labour in
early years is tough. I used to work six days a week and dared not count the hours. I also drove 50,000 miles a year rustling up new orders, and took on tasks that were alien to me. In those days wages were done in ledger
books by hand. I did them on a Sunday when it was quiet and I could concentrate. I watched every item of expenditure. Pens from hotels
Managing Director of Rosh Engineering and former Institute of Directors chair
were taken so I did not have to buy them. Anything that could be re-used in the business was. I tell staff that I even insist on this now, as I am such a keen environmentalist. That
is
partly true, but I now also have a tight-fi stedness ingrained in me from the early years of my business. Taking on employees is a great step. It means
you can concentrate on the things you are good at. But never forget they will not have that same commitment you do. They will also be happier spending your money than you are. Profi tability will never be as good as when you were in the spare bedroom but turnover and opportunities will hopefully mean you can grow that bottom line. After nearly 30 years I can now start to
enjoy the benefi ts of the early years of graft. It is also wonderful not to have to ask permission to leave early to see my son in a school rugby match. There are still times when I have to work seven days a week or 12 or 14 hours a day, but I do it for myself and the great team around me. And they are a great team. I can now go away on holiday and trust them to do their job.
B.
Do you need more sales? 4Networking is the cost-eff ective way to fi nd new customers
Promotional Feature Sales are the lifeblood of any business, without them it’s an expensive hobby. Business networking meetings are the most effi cient way to put yourself directly in front of people who want to buy your products and services. You can also build your own group of trusted
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“Attending business networking meetings is important. People buy people, not just products and services, so the success of your business depends on the strength of your relationships.”
• Jason Dutton, Managing Director. Why try a 4Networking meeting?
• You’re not tied to one local group and there’s no compulsory attendance. As a member, you can attend any of the 5000 meetings in the UK each year.
• 4Networking’s tried and tested format includes three 10-minute 1-2-1 conversations with people you have chosen. You leave with genuine contacts you’ve met face to face, not just a collection of business cards.
• Every meeting is 50% business, 50% social… and it works. You can try up to two meetings to see if it’s right for you before you join.
“When you go to 4N regularly those new relationships become trusted relationships and then you refer business to each other," he says. "The ethos is on creating an environment where people come together in a non-threatening way to engage, learn and support each other and the business will follow.”
• 4N member Mukesh Savani is area leader in London. He runs Savani Consultancy and has worked in fi nancial services for 30 years.
In the South-East there are lots of groups: 27 within the M25 alone and many others in easy reach, such as Stevenage, Guildford, Maidstone and Chelmsford. They off er a choice of breakfast (8-10am), lunch (12- 2pm) and evening (6-8pm) meetings to suit your schedule, why not come along and bring a big smile with you. Call the 4N team on 03451 234444 or email
supportdesk@4networking.biz with a specifi c query.
U
My Five Key Tips Are: 1. Work hard. Nothing beats that.
2 Watch cash, hoard cash, manage cash. If you have cash in the bank you can pretty much survive anything that hits you.
3. Do not take profi ts out too early. This helps point 2.
4. Talk to as many other people in business as you can. It saves re-inventing the wheel and gives you assurance when you think you are doing it wrong…you are probably right.
5. Enjoy it. The freedom and fl exibility is wonderful. Every so often sit back and remember why you started in business. You need to do this to stop getting bogged down in the detail.
O
Don’t be tempted to draw money out of the business early on.
GET IN TOUCH!
Discover the 4N diff erence – register for free at
4Networking.biz/info and then choose and book your fi rst meeting.
Be Your Own Boss distributed with 51
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