Category Archives: Scotland

Engaging Hearts and Minds – with John Maguire of The Phoenix Car Company

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Wikipedia: Employee engagement, also called worker engagement, is a business management concept. An “engaged employee” is one who is fully involved in, and enthusiastic about their work and thus will act in a way that furthers their organization’s interests.

So, employee engagement is a business management concept. It’s also a hot topic. But how does it translate into the real world of business?

John Maguire, MD of The Phoenix Car Company (once rated as the Fastest Growing Privately Owned Company in Scotland) not only embraces it, he practices it.

Keeping his employees engaged and motivated has been central to the company’s success since it launched in 1993, at the former site of Chrysler in Linwood, next to Glasgow Airport. Since then, the company has progressively grown to include 18 dealerships spread across Paisley, Glasgow, Edinburgh, Grangemouth and Stirling.

“People are your greatest asset”. It’s been said many a time before but, speaking at a special event in Glasgow, John made the cliché real.

“I have heard this many times before,” said Graham Steed, “But John made the cliché real and demonstrated the impact that engaging your staff fully can have.

“Also, the focus on attention to detail, constant professionalism and getting it right first time, every time.”

Graham, SEO Business Intelligence Division
 BiP Solutions, said John’s Phoenix story was “inspirational”.

“John’s presentation style, experience and down to earth attitude made the time go very quickly. Hearing about his vision for his company and how quickly he made it happen was inspirational.

“John demonstrated that the best leaders understand what the pulse of their business is, and stay in touch with the key drivers of it regardless of what else may be going on. His personal role in hiring staff was also very interesting and underlined the importance he places on having the right people in the organisation.”

Mike McCloskey of Rainbow Delivery said he took away 3 key tips from John’s talk; the first being to invest in your people to make them winners. “I take that as much as ‘time is money’,” said Mike.

“You need to make people feel like they are part of a business doing something good. Why? It lifts my thinking out of the grunge and focuses my mind on helping my team do the same.

“From now on we’ll be placing more emphasis on our ethos/mission ‘Delivering Peace of Mind’ and more fun and engagement in the wider community.”

Feedback

“Key tips for me – start new staff who are energetic and motivated to work for the company and not just for money. Take time to hire the best staff. Don’t settle for staff that ‘will do’. Create a company culture that everyone believes in.”

“Tips for me – acting as an agent for the consumer. What to look for in new employees; energy, enthusiasm, intensity and excitement.”

“John’s enthusiasm was contagious. It helped me remember that it’s about more than delivering parcels (i.e. what our “job” is). I also liked John’s attitude to investing in his people to “turn them into winners”. It reaffirmed my decision to get more involved and John’s version of Open Door policy ties right in with that!”

Pressurefab Group’s Hermann Twickler – Annual Conference 2013 – Highlights

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With just as much enthusiasm as with his award-winning acceptance speech at the Annual Dinner, Hermann took to the stage at the Annual Conference.

He spoke of his passion and enthusiasm for entrepreneurship and shared his journey from beginning – as a child – until now.

A fascinating tale, but it was Hermann’s focus on how to fix the UK’s “broken economy” that proved the talking point.

The government and banks are looking to “us” to get the country out of recession, he said. “They need us to have the vision and to take the risks, to create the jobs and opportunities. “

But if they want us to do that, said Hermann, then they need to do something about payment terms. He called for the government to make it a legal requirement that companies pay suppliers in a timely manner.

“If the government really wants to improve business conditions they need to address payment terms, make it normal for businesses to pay each other in 30 or 45 days. Even make it illegal to ask for longer payment terms.

“I would go so far as to say the British economy will thrive on this, or stagnate if we don’t do anything about it.”

And Hermann knows it will work – because he has done it himself.

In 2010 Hermann’s company was struggling. Money had dried up because of 90 day payment terms, and in some cases, longer.

So Hermann closed all the accounts that weren’t willing to pay in 30 days. He explained how important it was to pay him on time, how important it was that they have a strong supply chain to work with and how important it was that they have a supplier with a stable business.

Within a few months Pressurefab recovered well. Long-standing debt had been settled and he was being paid on time. So he started to pay his own suppliers in 28 days.

The result is that Pressurefab is now saving 15% on its purchasing strategy.

“I believe it was my breakthrough as an entrepreneur,” explained Hermann. “I had hit rock bottom, I couldn’t pay anyone, I couldn’t draw or transfer funds, my hands were tied behind my back by someone else blocking my business.

“This is real entrepreneurship by my standards, it’s not just about throwing capital at a business, it’s about finding a solution from within.

“Since then my business has grown to more than 100 employees and £10m turnover this year.”

Parkmead’s Tom Cross at the Annual Conference – Highlights

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Tom Cross, Annual Conference 2013

Tom Cross, Annual Conference 2013

Tom spoke passionately and honestly about growing a business in Scotland with an international perspective. He shared lessons learned the hard way from Dana Petroleum and before. Tom believes absolutely that businesses of all sizes experience the same challenges, and offered advice from his own experiences.

For example, Tom still believes he listed Dana too early, a mistake he learned from quickly.

“There’s a great mix of people in this room, some small businesses, some startups, just like mine – I’m involved in startup businesses right now,” said Tom. “I would advise you to think very carefully about going public. Advisors often push you in that direction but it’s not a panacea. I still regard going public so early with Dana as a mistake, I should have worked harder to find alternative funding.”

Dana was listed in 1996 because the banks, said Tom, were a “non-starter”. He grew the business over 14 years from just £200k seed capital. By the end of 2010 the company was worth $3.1bn, it sat just outside of the FTSE100 with $600m t/o.

An incredible performance, especially considering the very small team, which was making $5m profit per employee.

Tom’s access to boards of directors and government officials across the world enabled him to see a bigger picture, he says it helped crystallise his determination to form a new type of oil company, one that was free from nonsense, one where he could just get on with it, simply find a lot of energy and supply it to people who need it.

The philosophy worked. Within 12 months of starting up Parkmead, they had their first production. It’s the thing he is most proud of with Parkmead and not surprisingly, when you consider the average in the industry is probably 5,6,7,8 even 9 years.

“All this makes the difference, you get cash coming in and you have choices,” explained Tom.

“We all share the same challenges, looking after customers and partners,” said Tom. “Another thing I have learned the hard way is to temper your enthusiasm. All of us are completely enthusiastic, we see an opportunity and want to push, push, push, grow, grow, grow and sometimes you have to reign back a bit.

“For every 20 opportunities we explore, we probably do one, it’s a very high filter rate. We are ruthless in terms of taking opportunities forward. But when we take on that one, we are ruthless again.

“You are never going to get everything right. If we get 7/10 or even 8/10 we will do well.

“I have an open door policy and have stuck by it in the 20 years I’ve been in business. I encourage people to come to me with their ideas, it doesn’t matter if it sounds crazy, drop me an email, tell me you’ve got an idea, I’ll always look at it and if I can’t do it, I’ll point you in the direction of someone who can help.”

“Entrepreneurs do this naturally guys. We’ve been building Parkmead over the last 18 months and it already has a value of £200m, but what has made that possible is all the goodwill coming back. Our very first deal was with Exxon Mobil, the biggest company in the world – not the biggest oil company – the biggest company.

“If you can do well with Exxon Mobil, as a tiddly little company in a 2up 2down in Aberdeen, that’s serious credentials. So try to make sure you help others.”

Tom is passionate about the future of Scotland. He speaks regularly to groups of young people and encourages them to think big, and give entrepreneurship a try.

“I absolutely believe Scotland has a unique formula, an ability for growing businesses. We are surrounded by excellence, we have great schools and universities, targeted at business. We have a very intelligent, experienced workforce, it’s not huge but quality makes up for quantity. People deal with people who are trustworthy.

“We have shown the way with fantastic world beating public companies, large and respected private companies, and great smaller companies working to become world leaders in their area in Scotland.

“I see Scottish companies operating all over the place, it fills me with pride and makes you want to do more.

“There is no doubt in my mind, and I say this to many young people, we have the potential and framework and mind set to build many more world class companies right here.”

Annual Conference 2013 – Kevin Dorren, Diet Chef

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Kevin Dorren, founder and CEO at Diet Chef

Kevin Dorren, founder and CEO at Diet Chef

Kevin Dorren is the founder and CEO of Diet Chef, the UK’s leading delivered diet company.

Diet chef was started in 2008 and has grown organically to more than £15m in revenue in the last five years. The company makes dieting easy, tasty and convenient by delivering a month’s worth of chef prepared and calorie counted meals to your door.

The company began after Kevin spoke to a friend about dieting. She said that she wanted to be like a Hollywood celebrity with her own diet chef who would do all the shopping and cooking so she could just sit back and lose weight.

Originally a chef by training – and passionate about food – Kevin thought it was a brilliant idea and decided to create a diet chef that would be affordable for everyone. It was very important that the Diet Chef meals would be prepared by real chefs in a kitchen, not just mass produced on a production line, and he also wanted to make sure that meals would be “healthy with absolutely no nasty artificial ingredients”.

Diet Chef is now the largest diet home delivery company with more than 50,000 customers from all over the UK, Northern Ireland and the Republic of Ireland.

In 2010 Piper Private Equity bought a minority equity position in the business for £3m and has worked with the founders to expand the team, geographic reach and marketing channels.

Prior to founding Diet Chef, Kevin was a founder of Orbital Software, a knowledge management company that grew in Edinburgh and Palo Alto and was listed on the London Stock Exchange in 2000 before being sold to Sopheon plc in 2001.

Enlight Foundation – Giving Something Back

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Work hard, play hard, give something back. It’s the philosophy that Entrepreneurial Exchange members live by, and Enlight is the product of that philosophy.

Enlight is the Entrepreneurial Exchange’s charity, it supports non-profit organisations working with vulnerable young people under 25 in Scotland to enable them to achieve their full potential.

There are currently over 15,000 children in Scotland who are looked after by local authorities. Their futures are bleak;

• 42% leave care with no destination and become a NEET (not in employment, education or training) statistic
• 29% have been in trouble with the police in the last year
• 45% of 5-17 year olds were assessed as having a mental disorder – most often conduct related.
• 30% of young homeless people have been in care
• 1 in 7 are pregnant or already mothers
• 23% of adult prisoners have been in care
• Poor educational attainment – 25% don’t achieve even 1 Standard Grade at Foundation level

Mark’s story illustrates why Enlight’s work is so important.

You can help young people like Mark, by helping Enlight.

Enlight has developed a series of exciting and innovative opportunities to work with local authorities to make a step change in achieving better outcomes for these most vulnerable children. The focus is on improving educational attainment. By ensuring young people have the skills and confidence to contribute to, and be part of, the wider economy we give them the secure footing they need to change their lives and, over time, the lives of their own children.

But they need your support to deliver these programmes to the widest possible group of vulnerable young people.

Work hard, play hard, give something back – please give something back by donating here; Enlight Virgin Money Giving Page

Toughing It Out

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Cost-cutting, down-sizing, de-risking, in challenging economic times every penny is a prisoner and it’s a constant challenge to entrepreneurs.

Sanjay Majhu knows firsthand the importance of financial mastery. A net loss in his business forced him into action, and in just 12 months his tight rein on costs notched up a solid after-tax profit – a significant improvement on the previous year.

Sanjay, of the Apple Harlequin Group, shared his story with Exchange members at a recent Supper Club and the response was fantastic.

• “The value of this event was the nuggets of information which lead to better decisions in my own business and helping to inspire me to be more ambitious and determined in the business.”

• “’Real stories’ of bravery and how if you just stick at it and never give up you’ll make it.”

• “Key tips for me – Important to stay true to ethics – understand every element of your business – foster relations with professionals.”

Sanjay Majhu

Sanjay Majhu

Emma Little, MD of Execspace, found Sanjay’s story “inspirational”.

“It takes guts, bravery and tenacity to build a business, especially in a recession and during hard times. I have always firmly believed that it’s not about being the most charismatic, the most well connected, the most intelligent that brings you success, it’s about having the ability to get up day in day out (even when it’s really crap) and keep going.

“It’s like an inner strength that keeps driving you. I loved how much crap he’s been through and how by keeping going and leaning on his family for support he’s still here. Real strength of character.”

For Emma, her key takeaways from the event reflect her own philosophy: “Honesty’s the best policy – i.e. just tell people straight. I’d always kind of thought this and have been accused of ‘shooting from the hip’ but it really did reaffirm that this is absolutely best course of action – always.”

She intends to start monitoring each individual’s performance on a day to day basis, not just the team as a whole. And maybe open up a bit more to those close to her when it is tough. “It can be a lonely job,” said Emma.

It was Sanjay’s advice to come into work everyday in your business and drive it forward no matter how you feel that resonated with Tim Cocking, Director at Bright Care.

“I also liked that Sanjay really valued and protected the relationship with his wife throughout his business journey and it is a reminder to make sure I make time for my own family regardless of how busy things get,” said Tim.

“I am more inspired to grow and push my business forward and be prepared to face the challenges of that head on.”

Speaker biog – Sanjay Majhu

Highlights from An Evening with Colin Robertson – part 2

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Colin Robertson’s talk was honest, humourous and hard-hitting in parts but the Exchange members lucky enough to attend all found something relevant to their own business they could take away and apply.

Here the members share some of the highlights of the evening, and what they learned from Colin’s story.

John Gardiner of TALENTStream was busy taking notes to take back to action.
“I’m taking away very rich ideas you can apply directly in your business and know they are proven.”

Joanna Dunbar, Stewart First Aid, thought Colin had a brilliant story to tell.
“It’s fabulous to see something started in Scotland and going all over the world.”

Nicola Gillespie Syme, Gillespie Financial, loved the humour Colin used to get his message across.
“Colin’s fundamental belief and passion in everything he does is infectious.”

Robin Wornsop of Rabbie’s Trail Burners appreciated the information about how Colin turned the business around.
“The key things were communication around making sure every one knows where you are going and what your vision is to take the company forward so you get the company behind you – every one actually wants to be in a winning team.”

Highlights from An Evening with Colin Robertson – part 1

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If you weren’t at An Evening with Colin Robertson, then you missed out on a quality event.

2012′s Entrepreneur of the Year Colin Robertson was on top form, his talk both entertaining and educational.

In part 2 of this blog we’ll share highlights from the evening through the eyes of some of the members who attended, but for now you can listen to Colin talk about de-risking Alexander Dennis Ltd, growth in products, sales and profits, customer retention, moving out of comfort zones, and hitting £1bn t/o in the not too distant future.

Trust us, this is one video you really want to watch.

Acquisition Secrets Revealed – Jim McColl

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Growth by acquisition can be exponential, exciting and financially rewarding. If you get it right. But in many cases the acquisition doesn’t work out, the acquiring company struggles to integrate the new company, and the new company fails to fit in.

Jim McColl

Jim McColl


So how do you make successful acquisitions? Who better to ask than Jim McColl of Clyde Blowers whose successful acquisition strategy over the past 10 years has seen the business develop into a truly global portfolio of 90 companies in 30 different countries, employing 6,000 people, with an annual turnover in excess of £1.35bn.

Murray Strachan chaired the evening. He summed up Jim’s key advice quite simply:
• Focus on what you’re good at, what you can add value to and/or leverage.
• Remember the best business to be in is the one you’re already in.
• Research competition, market/industry sectors and look for gaps, potential and to identify targets.
• Development and implementation of a 100-day plan is the key to integration and success.
• Motivate the management team, help them understand the vision and let them help in developing the storyboard.
• Be careful with the brand of the target, and/or eroding its inherent value.
• Always present an acquisition as a merger.

“Jim’s key approach came down to four factors, said Murray. “Big ambition, a “can do” attitude, understanding your markets and thinking globally.

“There were so many lessons and golden nuggets from Jim my arm hurt writing them all down. What a guy!”

For Amanda Boyle of Bloom VC the key lesson was that successful acquisitions focus on the return not the cost and the most valuable due diligence is carried out on operational issues by an internal team before professional services are engaged.

“Planning and ambition are important at every stage of building your business,” said Amanda. “It’s important to map and articulate these then share with everyone, every day… so that’s what I aim to do!”

She added: “Doing the right thing can be compatible with big ambition. A strong sense of personal values shines through Jim’s approach to negotiation.

The most memorable piece of advice that Tony Banks took away from the evening was that Scotland would flourish as an independent nation.

Tony, of Balhousie Care Group, added:” The highlights for me were tips to get your own team to do most of the operational diligence during an acquisition and then get the ‘expensive’ professionals to only provide confirmatory diligence.

“There will be no major changes in my business but I need to talk to Jim about raising funds and becoming a debt financier,” smiled Tony.

Attendee Thoughts and Key Tips
“Lots of practical advice and guidance, underpinned by focus, patience and sharp vision. What shone through were Jim’s priorities and values, and a very clear sense of self.”
“Target peoples dreams not just how much they want to be paid. Make that dream a reality!”
“Key tip for me – operational diligence before you bring in the expensive professionals to carry out the confirmatory diligence.”
“1. Get to know the firms first, just ‘drop in’ for a coffee whilst you’re in the area – so really get to understand the business from afar 2. Let them think you’re merging 3. Keep staff informed & updated with your goals 4. Do diligence internally where possible.”
“My tips from the evening – Market analysis – get to really know your market and competitors – Key staff – play to their dreams when looking to incentivise – Story board – set out clearly the vision for all to see and buy into – Can do attitude is essential – Look at what you are good at – best business to be in is the one you’re in!”

Jim also recommended a number of his favourite books, his personal top ten list is here. Better get them on your Santa list!

1. Think and Grow Rich – by Napoleon Hill
2. Success Through A Positive Mental Attitude – by W. Clement Stone
3. You’ll See It When You Believe It – by Wayne W. Dyer
4. You Can If You Think You Can – by Norman Vincent Peale
5. Born to Success – by Colin Turner
6. Are You Positive? – by Richard Gaylord Briley
7. The Secret – by Rhonda Byrne
8. A Passion for Success – by Kazuo Inamori
9. Ask And It Is Given – by Esther and Jerry Hicks
10. Abundance – The Future Is Better Than You Think – by Peter H. Diamandis

Biographies “here”

Nominees for Emerging Entrepreneur of the Year 2012

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Tonight we’ll reveal the winner of the Emerging Entrepreneur of the Year 2012 – here are our outstanding finalists:

Alan Bonner – Pinnacle Technology Group plc, Gilad Tiefenbrun – Linn Products, Peter Bruce – Entier Ltd, Michael O’Hare – thebookingroom and Hermann Twickler – PressureFab Group.

Alan Bonner
Pinnacle Technology
Based: Stirlingshire
Started: 2002
Employees: 60+
Turnover: £6.3m

Alan Bonner displayed entrepreneurial instincts as a 17-year-old school leaver when he started a video library that soon became profitable.He moved into the telecommunications industry in 1996 following stints in insurance brokerage and in sales at the BUPA private healthcare operation.

Quick to recognise the opportunities created by deregulation, Mr Bonner developed a firm that sold telecommunications products on behalf of suppliers, which was bought by a rival based in Kent. Since acquiring the then loss-making Glen Group (now renamed Pinnacle Technology) in 2007, Mr Bonner has developed an entirely new service offering. The firm has won a range of big contracts covering events like the London 2012 Olympic Games and used acquisitions to increase its customer base.

The company has reported profits and aims to expand overseas.

Deloitte verdict: “Turning around the failing Glen Group and creating a platform for sustained growth is a major accomplishment, particularly when achieved with no external debt.

“While building his resource steadily, Alan is attuned to the growth potential of his business and has the proven tenacity to overcome challenges when they arise.”

Peter Bruce
Entier Services
Based: Aberdeen
Started: 2008
Employees: 473
Turnover: £25.5m

A trained chef, Peter Bruce spent 11 successful years at Compass Group before spotting an opportunity to start a new business specialising in catering for staff on offshore oil and gas rigs as well as onshore venues.

After quickly building a customer base that includes big North Sea operators such as Apache, Entier has almost tripled turnover since 2008. The company is on course to make its first profit in 2012 with further growth forecast in 2013.

Entier has invested heavily in research and development, developing packaging to ensure produce is as fresh as possible when it reaches offshore sites. The company has won business in overseas markets like Canada, Egypt and the Gulf of Mexico and started working with clients in other industries.

Deloitte verdict: “Despite Entier Services still being in its infancy its rapid growth over the past four years is nothing short of impressive and, with almost 500 employees, it can hardly be viewed as small.

“Peter’s commitment to a quality product and service, combined with a loyal team, makes Entier very well positioned for continued success and the possibility of becoming a real powerhouse in the offshore catering sector.”

Michael O’Hare
thebookingroom
Based: HQ in Glasgow with offices in Edinburgh, London, Paris, Hong Kong and New York
Started: 1999
Employees: 133 (excluding drivers sub-contracted for additional international work)
Turnover: £12.8m

A former golf professional at Glasgow’s Sherbrook Castle, Michael O’Hare moved into the transport business by providing cars for weddings at the venue. After buying a limousine, he expanded into offering transport services for corporate events and financial road shows through his Charlton Chauffeur Drive operation.

Mr O’Hare went on to develop thebookingroom as a business which harnesses the internet to offer a chauffeur-driven service specialising in niche markets like events and private aviation.

Based in Scotland, thebook-ingroom now has offices in London, Hong Kong, Paris and New York. Clients include giants like JPMorgan Chase, MTV and Deutsche Bank. The company has maintained a growth rate of around 20% and is now planning further expansion into new markets such as Brazil.

Deloitte verdict: “Michael clearly has a strong understanding of the practical steps required to develop his raw ideas for expansion into tangible business success.

“The continued development and refinement of thebookingroom’s bespoke logistics and customer management software indicate Michael’s awareness of the importance of innovation in staying ahead in the market and gaining a competitive edge.

“To have developed into a business with international scope is testament to Michael’s entrepreneurship and determination.”

Gilad Tiefenbrun
Linn Products
Based: Eaglesham, near Glasgow
Started: 1973
Employees: 174
Turnover: £17.257m

With a background that includes a degree in electrical engineering and five years working in areas like mobile phone operating systems at Symbian, Gilad Tiefenbrun joined his father’s business, Linn Products, with a highly sophisticated understanding of technology

He proceeded to lead a turnaround of Linn with an emphasis on research and development. This resulted in the company ceasing manufacturing CD players in 2009 and focusing on technology designed to capitalise on the rise of digital streaming of music. Appointed managing director in the same year, Mr Tiefenbrun increased the company’s focus on innovation with the creation of a 50-strong product development team.

The company recorded a 21% increase in net profit in 2012 and eliminated its outstanding debt.

Deloitte verdict: “Gilad is an impressive entrepreneur with a very inclusive leadership style. He has successfully steered Linn through a challenging time and has completely reinvigorated the business by adhering to his clear strategy.

“At the heart of this is a commitment to quality and investing in the future of the business, both in product development and the team of people he has working alongside him.

“Under Gilad’s leadership Linn has the potential to do something very exciting in the marketplace.”

Hermann Twickler
PressureFab Group
Based: Dundee
Started: 2009
Employees: 85
Turnover: £6m

A master engineer and shipbuilder by trade, Hermann Twickler honed his skills in the shipyards of Northern Germany and North America before becoming operations director of VT Group in Portsmouth.

After spurning offers of other big jobs, Mr Twickler decided to start his own offshore equipment manufacturing business. He invested his life savings, including the sale of his house and car, into creating PressureFab Group.

Started just three years ago, the group now counts some of the largest operators in the oil and gas sector among its customers and employs 85 staff. It has been profitable since inception.

Mr Twickler says he has no desire to grow the company for exit, but instead has set his sights on wealth creation and achieving long-term growth. The company has plans to expand into new facilities, scheduled to complete in 2013.

Deloitte verdict: “Hermann has built an excellent company serving some of the largest companies in the world and has successfully bucked the trend by exporting Scottish engineering and manufacturing to the Far East and the US.

“Hermann has created almost 90 new jobs in three years, doubled revenue each year and always made profit, and he’s achieved all this during the biggest recession since the 1930s.”