< Previous20East Midlands Business Link www.eastmidlandsbusinesslink.co.ukTAXGoing for growth - astrategy for boom or bust?By James Pinchbeck, Marketing Partner at Street Chartered AccountantsIt is often stated that businesses that don’t growor strive for growth go backwards or even gobust. The absence of a drive for growth or ex-pansion allegedly leads to declining revenues,profits, share of market, competitive advantageand even a loss of key employees. However, mostpeople want to own, run, manage or work for avibrant and successful business, and growth isoften seen as an indicator or measure of success.Seemingly then, growing a business must be theright thing to focus on with any strategy or busi-ness plan being at the heart of such activity. Wellperhaps it is not the case for all for a number ofreasons. In recent years we have seen many large entities,including PLCs and privately owned enterprises,that have pursued growth on a gigantean scaleand come unstuck, with some going bust andsome having to be bailed out by the tax payer.Certainly, it might be the case that in larger enti-ties, where CEO’s are appointed to run the busi-ness, a Board exists and there are externalinvestors. Exponential growth is very often at thetop of the agenda, with the basis for this rangingfrom individual egos, pressures on return on in-vestment or share price.Perhaps all too often this is linked to a measure ofperformance, the need to make an impact andthe average term of engagement for senior busi-ness leaders in such entities. It is not untypical forsenior roles in larger entities to be anywhere from3 to 5 years. As a result there is often a need toadvance a career, to line up the next role to makea mark. Whilst growth in revenue might not occurearly doors, the plan seems to be in place toachieve such results. Often though, promisedoutcomes do not come to fruition.Big businesses aside, why should or might smallto medium sized enterprises be concerned aboutgrowth? Perhaps the starting point is understand-ing the key drivers or motivations for growth. Forsome it is the opportunity to exploit the marketopportunity for a winning business formulae, be itthe provision of a product or service for whichthey have a competitive advantage. For others itmight simply be the need to address declining orstatic sales or profitability. Both, however, comewith their own set of challenges, but equallysome common themes. With either scenario oneof the fundamental building blocks is having a re-silient, well managed, structured and resourcedbusiness, not least financially. Often growth strategies are pursued with a senseof optimism, hope and whim. It is not untypicalfor those in management to be naive too or bliss-fully unaware of the inability for the organisationto actually deliver growth. Frequently there is adisconnect between the coal face and the Boardroom. The pursuit of growth often stretches peo-ple, systems and processes to breaking point. Ul-timately, it can lead to both a decline in existingbusiness and failure to deliver the business ex-pansion it aspired to. Throw into the mix the un-expected business interruption, be it the impactof the loss of a key customer or supplier, GDPR,Brexit, or a more serious political or social issue,then it is easy to see how growth plans can bescuppered.Given the background then, perhaps greaterthought needs to be given to reasons and basisfor growing a business. More businesses mightbenefit from focusing on improving their businessas opposed going for growth, and focusing onsustainability as opposed to the perils of therollercoaster ride of uncontrolled and unmanagedgrowth.Planning forChristmasPlanning forChristmas22East Midlands Business Link www.eastmidlandsbusinesslink.co.ukIt’s an age-old tradition, and one that manycompanies have to start planning even inJune, but is it really worth holding aChristmas work party in this day and age? Most people don’t tend to think of Christmasin June, though given the weather of the pastfew months, flicking between snow, sun andthunderstorms, maybe it’s not so unusual. Still,while June may feel like an early time to bebringing out the tinsel (and it most certainly is),it’s still around the time that many companies willstart booking venues for their Christmas party.Meaning that if you hesitate, the best spotsmight soon be taken, leaving it all for yet anothersmall do in the office. Never a good idea.But why do we focus so much on theChristmas party – and is it still worth holdingone, when it would be cheaper to simply let staffgo home a little earlier. Plus, they would like thatmore as well, surely? Well, it turns out that thereare actually a number of reasons for why it isimportant to keep up that Christmas tradition,and all of them do come down to benefitting thebottom line in some way. It thanks staff for their hard workIt might at first seem that wages do this wellenough, and aren’t staff to be expected to workhard so long as the company employs and paysthem? But whatever a Manager believes shouldbe the case doesn’t really matter in the long run.Studies have shown time and time again thatemployees often do not feel appreciated orrespected for the hard work they put in. Aroaring Christmas party is the company’s way ofshowing that this is not the case, and that theManagers have put some real effort intochoosing an event that the staff will genuinelylove. Having yet another boring drink with party hatsat the office might be cheap and convenient, butit also shows staff that the company doesn’tconsider them worth putting any real effort into.And if the managers aren’t motivated – whyshould the staff be?18 u© SHUTTERSTOCK.COM / FIZKESwww.eastmidlandsbusinesslink.co.ukEast Midlands Business Link 23It promotes teambuildingIt also promotes romance, as studiesshow that office parties are primelocations to pick up a life partner, butthat’s not the real goal here. Withoutknowing anything about any companieswho might be reading this article, it’sprobably still a safe bet to say that 90%of people have not send their staff onany kind of dedicated team-buildingexercises or trips. These almost feel likeevents of the past or trips limited toAmerican firms who like those sorts ofthings. Once again, people from the UK– and our regional especially, seem toassume that staff should come togetherover work. Forming lasting friendshipsthat will help them rise to the best oftheir ability – for the betterment of thecompany. The truth is obviously less clear-cut.Disputes between staff, arguments orjust a lack of social interaction can leadto numerous problems. This is especiallyimportant where teams work togetheron projects, as you need staff to bewilling to talk to one another at everystage to make sure everyone is workingfrom the same hymn sheet. Christmas24East Midlands Business Link www.eastmidlandsbusinesslink.co.ukparties help to break the ice, but also encourage staffto keep in touch over the Xmas break – be it throughFacebook or texts. This means that even in a two weekbreak, staff are more likely to maintain bonds with oneanother outside of work – making their teamwork backin the new year, all the better. It can lower staff turnoverIt’s important to keep in mind that it lowers this inmany cases, but cannot prevent it. New year, new youmay be all the rage come January, but the last thing acompany wants is to find out that applies to their jobsas well. The Christmas period is a prime time forpeople to look for new work or consider new careers –with a large number of employees changing jobsduring it. While it might be impossible to completely stop this– in many cases it comes about as a result of a longbreak, time to think and the financial pressures ofChristmas – it is still possible to build loyalty to thecompany by giving them a royal send off before theytake their break. This makes sure the final memory theyhave of work before Christmas is a pleasant one, asopposed to them recalling a miserable group ofpeople sat around the photocopier with some plasticglass of beer. Imagining the last scene, it’s perhapseasy to see why people might look for a change.Lowering your taxAn accountant might want to be checked on thisfirst, but there are some things you can set aside as taxdeductible when it comes to the Xmas party. The UKGovernment website can be helpful for finding exactfigures, but the HMRC does understand that aChristmas party is important to the continued successof a company. www.eastmidlandsbusinesslink.co.ukEast Midlands Business Link 25Finding out what is and is not tax deductible isimportant. Last year the figures said that annual functionscan be tax-free where the total cost per person attendingis not more than £150 per year (including VAT), but thatmight have changed in the last twelve months. If indoubt, always seek advice from an accountant.It prevents Directors looking like misersThis is perhaps a less altruistic reason to hold a staffparty, but no less an important one. The distancebetween owners and employees will always be acontentious point, but the short of it is that mostemployees will always look unfavourably on theirManagers if those people are saying how they will bejetting off to some tropical retreat, while the staff need tomake do with take-out food in the office. Again, poor memories of work or Mmanagers beforethe Christmas break can lead to increased staff turnover,lower morale and job satisfaction, all the way through tohigher levels of absenteeism in the New Year. All of theseresults need to be avoided where possible, and while afantastic party may not be the panacea that turns acompany around, failure to have it can be the final nail inthe coffin.All in all, the Christmas party is something that is hereto stay for many in the business industry. The EastMidlands has a wide array of venues that cater to eventslarge and small, whether it’s a huge party with staff, musicand dancing – or a more formal dinner with speeches. Itall depends on the company involved and what theydesire for their employees. Either way, the venues in ourregion are always on hand to help.But make sure not to delay too long. There arethousands of companies within the East Midlands – andmany of those will already be booking their events thisfar in advance. © SHUTTERSTOCK.COM / OLGA SAPEGINA© SHUTTERSTOCK.COM / VGSTOCKSTUDIO26East Midlands Business Link www.eastmidlandsbusinesslink.co.ukNETWORKING10 steps to success andlongevity in businessby Fiona Duncan Founder/Director of RSViP Business NetworkAs RSViP Business Networking Agency celebrate their tenthanniversary this month, Founder Fiona Duncan-Steer sharesher views on what it takes to reach such an impressivemilestone in business, achieving the success many hopefor….Passion- Without it, what exactly are you doing it for, oneof the main advantages of owning and running your ownbusiness is to explore, thrive and enjoy your chosen vocationin the industry you want to be in, so passion should naturallyflow through everything you do and be the reason behindwhy you do what you do- Remember your ‘why’. Instinct- Follow it- always, because nine times out of ten itwill be right. Hard Work and Determination- Sounds a cliché but inorder to run a business, make it a success and to stay relevantfor as long as possible, it takes pure hard work, which comesin many forms. There will be knock backs and it will be arollercoaster, as they say, which is why determination tosucceed is a must- Which leads on to my next point...Resilience- Over sensitivity and leading with too muchemotion can be a catastrophe in business, yes stay true toyourself and your values, yes follow your instincts, but remainprofessional at all times, even when all you’d rather do isscream (unless you’re in the middle of a field then its fine!)and brush off that bad day because tomorrow is anotherchance to start again and another amazing opportunity tomake it a game changer.Professionalism and Likeability-So many times I havecome across people running businesses who basically don’tseem to have any kind of business acumen orprofessionalism, which dumbfounds me when they arerepresenting their brand, service or product. You are thewindow into your business and people buy people. Find theperfect balance between professionalism and likeability andyou’re 75% of the way there to a new client, contract or deal.Balance- Work/life balance is so important- We live in asociety where it’s the trend to be so damn busy and is seenas a badge of honour if you haven’t managed to find the timefor a holiday this year- well I’ve got news for you, you’re onlyharming yourself, take care of your mental health and wellbeing, focus on good quality sleep, have a non- work relatedhobby to help re-set your brain, spend time with friends andfamily because life is too short not to and eat as clean as youcan.Be Competitive- I have always had this streak in me and Iguarantee this is how I have ended up running one of theleading business networks in my industry in the country.Don’t let your competitors bother you enough to de-motivateyou and cause restless nights, but do keep an eye on themfrom a distance and stay not one, but ten steps ahead ofthem in every aspect you possibly can - meaning you needmore than just one USP for your business - why not have twoor three? Don’t forget to also be competitive with yourselfand set yourself goals, smash them, then set yourself the nextone - grow and diversify. Be Creative- Even if you’re not naturally, bring someoneinto the business who is. Innovation in business is the key todeveloping new ideas, inventions and brands. Think about it,there are still thousands if not millions of ideas, services,products and brands that have not yet even been launched,invented never mind thought of - mind blowing eh? Spendtime ‘brainstorming’ or ‘mind-mapping’ away from your deskand work environment. My best ideas have come fromcountry walks, sunbathing on holiday or somewhere elseinspirational, where my mind is relaxed and I am at peace. Embrace Change- I’ve said it once so I’ll say it again -grow and diversify. In a world of digital reliance andtransparency, nothing much gets done these days withoutsome kind of complex matrix system surrounding it, so weneed to move with the times. Be a risk taker (to a certainextent) and dare to be different, these qualities also make fora great leader. Never Become Complacent- A friend of mine, and ownerof a well respected award winning restaurant, once told meto “never become complacent” and those words rung true.Relating to embracing change, complacency in business isone of the deadliest of sins. Market, PR and celebrateachievements in your line of work continually - never standstill and expect customers to keep coming through the door,go get em!For more information contact Fiona Duncan, Director, RSViP, Tel:0115 9417 548 Email: fiona@rsvipnetwork.co.uk, Web: www.rsvipnetwork.co.uk28East Midlands Business Link www.eastmidlandsbusinesslink.co.ukCONSTRUCTION & MACHINERYSales in the British construction machineryand equipment industry is witnessing a boom.In fact, we are now exporting two times as muchas we import, and exports now account for 60%of Britain’s machine production. According tostatistics released by the ConstructionEquipment Association (CEA), exports grew 8%in Q4 of 2017, marking the fifth quarter ofgrowth for exports of construction equipmentfrom the UK. This increase is arguably a result ofincreasing demand for the equipment inoverseas markets and the weaker poundexchange rate following Brexit.Within the UK, construction equipment salesalso grew 8% in 2017. It was found that thesales of equipment was helped mainly by theinflux of popularity in mini and midi excavators,which experienced a 16% growth last year andis at its highest number for over 3 years. Thisincrease has been attributed to the demand forthese machines in the house building sector,which thrived last year.This upwards trend has continued in thesector’s most recent data for Q1 of 2018, whereconstruction equipment sales have grown 5.7%,according to the CEA. This is particularlypositive when considering widespread concernsover a weak start to the year for theconstruction industry. So far, the main differencein Q1 of 2018 for Britain is that it is telehandlersthat have seen the strongest growth (27%) incomparison to Q1 of 2017.While traditional equipment is continuing tobe popular in sales, the construction equipmentused is starting to see an influx of innovation. Ofcourse there are highly useful advances withalready commonplace machinery like the newautomatic 2T TEFRA coupler, made for the evermore popular mini excavators (announced thisyear), and the constant evolution of engines.While these certainly improve on what is alreadyavailable substantially, there is also moredramatic, industry changing machinery andequipment coming into play, more so than everbefore, particularly with the acceptance of thedigitisation of construction.These changes have been attributed to the4th Industrial Revolution and the keytechnologies driving it: VR and AR, robotics andautomation, 3D printing, machine learning,artificial intelligence, the industrial internet ofthings and connectivity.Due to its noted rigidity in the past,construction has been considered ratherresistant to embracing major technologicalchanges that other industries are now usingsuch as AI. However, if the UK constructionindustry is to keep up with the pace at whichthe world is changing, it needs to fully embraceinnovation, especially while it is facing majorproblems like the skills shortage, efficiency, andsustainability, which can all be assisted withEmbracingInnovationConstruction machinery and equipment are on the edge of majorinnovation. Though drones and robots may sound like sciencefiction, they are quickly becoming a reality.EmbracingInnovation30 uwww.eastmidlandsbusinesslink.co.ukEast Midlands Business Link 29CONSTRUCTION & MACHINERY© SHUTTERSTOCK.COM / PHOTOMONTAGENext >