< PreviousLinkingbusinesstogetherEast Midlands Business Link has been bringing businesses together through itsonline pages and we’re now offering even more chances to network andcreate new relationships with a host of special events – and there are numerous sponsorship opportunities to help promote your brand!Round TablesBringing together leading names from local businesses, our round table events debate the latest hottopics. By sponsoring the event you can decide on the topic and help shape the guest list to ensurerelevance. The resultant debate will appear in our pages.Breakfast EventsEast Midlands Business Link's breakfast events present topical and incisive discussion. A panel ofexperts offer their views on business matters in front of an informed and interested audience –alongside plenty of opportunities to network! Sponsors of the event receive access to the delegate list as well as extensive pre- and post-event coverage.AwardsHighlighting the best of local business, there are myriad sponsorship opportunities atEast Midlands Business Link's awards evenings. Bringing together guests from across the region,sponsoring a category or even the entire event will ensure exceptional exposure for your business! These events are also a great place to entertain and welcome distinguished guests.Business Link is renowned as the voice of the East Midlands business scene. By partnering with us at these special events you can take advantage of our strong reputation and enjoy exceptional exposure for your brand!Connectwith us today to see what we can do for your business...DEBTwww.eastmidlandsbusinesslink.co.uk East Midlands Business Link 21Don’t letdebtdrownyourbusinessDebt management company’s commercial director MaryStewart says: “Many small businesses are teetering on the brinkof extinction. Exposure to debt is often necessary but there aresimple steps businesses can take to ensure survival.”Nationally, 60 per cent of UK SMEs are now experiencing latepayments with the average amount owed being £38,186 andone in four SMEs reported that if the amount they are owedgrew to £50,000 it would be enough to force them out ofbusiness.PayPlan has now teamed up with Stuart Ross, business andfounder of High Growth, which provides skills and strategies forgrowing businesses looking to stay ahead of competitors, tooffer tips on avoiding common pitfalls.They include:• Building slowly. By growing too quickly it may be difficult tofill your new customer orders with existing staff. Taking onadditional staff ahead of receiving income from orders can leadto a cash flow crisis and you may need to rely on credit to paythe staff. How do you make the credit payments if yourcustomers do not pay you on time?• Keep tabs on cash flow and don’t put all your profits backinto the business. If your business is doing well put surplusmoney into a ‘rainy day’ account, which will make financesreadily available should you experience a fall in income. • Keep an eye on monthly numbers, key performanceindicators and cash flow figures. These simple figures should bemonitored, recorded and analysed each month, and shouldserve as a dashboard for your business. You wouldn’t drive acar without a dashboard, so why run a business without one?• Businesses should not go it alone. Seek professional advice,either from a qualified accountant or small business specialist.They are an excellent sounding board for your ideas, will assistwith budgets and forecasts, and assess business plans todetermine whether your ideas will be profitable.• Be aware of the ‘shiny toy syndrome’. As a business ownerwith money in the bank, you could be tempted to buy flash newcars or move to ultra stylish new offices. You should adopt thehabit of making a proper business case for everything that youspend money on. Ask yourself if the business would reallybenefit from this purchase.• Monitor your payment terms and debtors. It’s good practiceto be tougher than you’re comfortable with, with late payers andmake sure your methods for following up late payers aresystemised.Ross says: “Plenty can be done to safeguard against the perilsof debt and irreparable business failure. There’s no time like thepresent to review your practices and start planning for a stablefuture.”Stewart adds: “Struggling business owners need not feelisolated. There is plenty of useful help and advice available fromexperienced, reliable sources, some of it free or relativelyinexpensive. Seek advice when you need it, it could prove thedifference between success or failure.”A million UK SMEs are affected by latepayers and many are in danger ofdrowning in debt as they deal with latepayments totalling £39.4bn.East Midlands Business Link www.eastmidlandsbusinesslink.co.uk22ROUND TABLEWhy should companies look outsideLondon to locate and do business?Jimmy Drew: From the enquiries wereceive, there is a mixture of reasons;the central location of Derby, itsexcellent road and rail connections anda lack of congestion. Add to that the factthat 2.1 million people live within 45minutes of the city, the fact that the costof living is low, and the quality of life ishigher. We have a lot of high-techenquiries – mainly because of theparticular heritage of the city’sworkforce in that sector.Mark Robinson: I think that Derby isparticularly focused on the sectors, andfor the reason the city has a lot morecredibility. There’s a lot of clarity aboutits offer – that’s why companies chooseDerby when they’re looking to expandor relocate.Anna Sharman: Being located inDerby - arenaissance ofthe regionsEast Midlands Business Link travelled down to MIPIM UK fora round table, sponsored by Marketing Derby, on how Derbycan attract investment from out of London. The message:clarity is king.Panel:Jimmy Drew, MarketingDerbyHeather Dixon, Flint BishopAnna Sharman, DerbyshireEconomic PartnershipMark Richardson, KierKatharine Bramson,Bellendenwww.eastmidlandsbusinesslink.co.uk East Midlands Business Link 23ROUND TABLEDerby does mean that costs forbusinesses come down, but we do needto have a clear message and then makesure we get that message out there.Geographically, Derby is perfect – and amuch better location that either thenorth-east or north-west.Heather Dixon: Derby also has ahighly-skilled workforce, and the UTCwill train the next generation. Add intothe mix the JCB academy and therecan’t be many other cities who havesuch a resource of talent.What special requirements tocompanies looking to come to Derbyhave?Sharman: They do have skillsrequirements, but I also think that canoften be the responsibility of thebusinesses to bring people in and trainthem up – and that should go down toschool level.Dixon: I agree. Young people need toknow about the different avenues intowork. Some kids aren’t cut out for themore academic side, and they should begiven the opportunity to pursue otherareas.Sharman: We also need to change theperception of engineering; it’s not allfilthy overalls!Drew: In the 1980s and 1990s a lot ofmanufacturers moved their operationoverseas or closed altogether – it wasn’tseen as a “sexy” way to make a living.After the financial crash in 2008, thegovernment does seem to have putmore money into promotingmanufacturing as a career choice, but inDerby we never really saw the change,as we have such as wide and deep baseof manufacturing expertise.Sharman: We need to keep graduatesbetter, too. We need to show thatLeeds, Manchester and Nottinghamaren’t the more attractive places to liveand work. Derby has changed massivelyover the last decade, and the city nowhas some great careers to offer. Weneed to say to them: come to Derby.Drew: When we’re presenting toinvestors, we start off with a slide thatsays, in 2000, 80 per cent of peoplechose job over location. That has nowcompletely swapped around, so that 80per cent of people now choose wherethey’re going to be living over what jobthey’re going to be doing. That’s whywe’re continually trying to improve thestandard of living in Derby, and that’swhy Derby has had to reinvent itself to acertain extent.Katharine Bramson: I think it’s aboutaccessibility. We can’t lie – the majorityof business gets done in London, butthe government is trying to push theregional agenda, definitely. However,there are challenges with this; a lot ofcommunities don’t want to expand. Ithink what we need to do is look atDerby as an access point to London,and heighten its profile this way. Everypolitician I speak wants to see thishappen, it’s just a matter of getting theright businesses there and attracting thebig investors.Does the panel support thedevolving of powers to the regions?Would it help the economy in Derbyand the wider East Midlands?Drew:I think it’s early days in thisrespect. The LEP is still relatively young,and covers two large and wide counties.From our point of view, we never reallyfeel in competiton with the other citiesin the East Midlands – they each havevery clear strengths, and there needs tobe further working together.Dixon: The issue for any business iscertainty. Will devolving power to theEast Midlands give more or lesscertainty to them? We’ve had change atthe City Council recently in Derby, butwe’re fortunate that the Council is pro-business.Sharman: I have issues with some ofthe LEP’s agenda. Is it right to throwmoney at businesses just to get them tomove onto an Enterprise Zone, forexample, when that move might not beright for them in the long term?Richardson: I think it comes back toleadership and the clarity. I found it veryheartening to hear Jimmy saying thatMarketing Derby is looking to workclosely with other East Midlandscounterparts.What should Derby’s message be tothose looking businesses looking tomake the move to the regions?Richardson: Derby has to be veryclear about its message, and I’m pleasedto see that it’s said: ‘This is what we’regoing to focus on – we know what wereally want.’Sharman: Derby has a clear rail andaerospace advantage, and it worksbecause it’s not trying to be all things toall people. I think businesses do need tohave a single point of contact, however– they want to know who to talk to.Dixon: We have to make it clear whatDerby is all about. We need to attractthe right businesses to fit into thestrategy we have in the city, and if thatmeans advising businesses that theyshould look elsewhere, then I thinkthat’s a good thing too.Bramson: Derby is a great technologyand engineering hub, and it’s all aboutcapitalising on that momentum. Beingall things to all people doesn’t helpgrowth. Derby should market itself as ahub, and once these areas areestablished then other sectors will growalongside them.Sharman: Collaboration is key. Weneed to work with LEPs from around thecountry to understand what businessesin the rest of the UK want, and whetherthey would be more at home in Derby.Drew: We need a clear and constantnarrative – this will lead to futureopportunities for the city. We’re nottrying to reinvent ourselves, and we cancut through the confusion. We introducethe right people at the right time, andput ourselves the shoes of investors. Wemake people feel like they’re wantedhere; in many ways Derby is a redcarpet city.BUSINESS PLANNINGEast Midlands Business Link www.eastmidlandsbusinesslink.co.uk24BUSINESS PLANNINGwww.eastmidlandsbusinesslink.co.uk East Midlands Business Link 25Of Fetlocks,Fergusons & felinesBy John Harlow, director, Harlow InsolvencyI was driving back into my village in the Vale of Belvoirthis week and approached it from the canal end, whichentails going over a hump back bridge. It’s quite a steepbridge and sod’s law dictates that if you hit it too fast,there is bound to be something on the other side, such asa horse’s backside, an on-coming tractor or a delinquenttom cat! I’ve learned over the years to expect this as thenorm and thus I now approach thebridge with caution and my footcovering the brake pedal.I thought no more about thisuntil I was discussing with acolleague the topical subjects ofpaucity of insolvency work,increases in rates of interest (whenand by how much) andovertrading in companiesfollowing an upturn in theeconomy.Most people will by now haveheard that, strange as it mayseem, insolvency work hasactually gone down during therecession. No more tears havebeen shed for the poor hard done by InsolvencyPractitioner than they have for the poor accountant or thepoor solicitor, yet it is a fact that the recession has hit theprofessional services industry as hard as anywhere. Hankies away now, for us it’s a case of physician healyourself. We’re supposed to be aware of the pitfalls ofbusiness and capable of anticipating events and takingappropriate action; but what of the small businessman,hanging on by his fingernails and waiting for evidence ofthe upturn that’s been heralded in the media?For him the prospect of an upturn in the economy isexciting and he may already be experiencing an increasein his order book. This however, is where he actuallyneeds to start exercising care; coming out of recession isa bit like approaching the top of the hump back bridgeand businessmen need to proceed with caution.History has shown that increase in trading activityfollowing a recession can lead to over-trading and IPs arewell aware that work invariably picks-up as a result.Staffing-up or purchasing stock to fulfil a burgeoningorder book can rapidly cause a cash flow hiatus. Cash isking, so they say and if a business is inadequately fundedor ill-prepared, then it may quickly find that it is unable topay its debts as they fall due.Many SMEs experiencing some financial distress havesurvived the recession purely as aresult of lenient creditors(especially the Crowndepartments) and low interestrates. These so-called Zombiebusinesses have been kept goingthrough this lack of creditorpressure but are likely to be thefirst ones to suffer as we crawl outof recession.Returning to my originalanalogy, the seemingly imminentprospect of a rise in the rate ofinterest is an additional dangerlurking on the other side of thebridge. Much has been reported,on an almost daily basis about thisrise, possibly to happen in a couple of weeks, maybe notuntil next year. A general election looms, which againmay influence decisions on these matters. Suchuncertainty is hardly good for confidence in the businessworld and the spectre of increase is something whichcompany directors and individuals alike will ignore at theirperil. The housing market is experiencing something of aresurgence, but before committing themselves to amortgage based on the maximum they can borrow,buyers should consider the impact of an increase in theinterest rate, which could quickly have an adverse affecton their ability to service the loan.Good financial planning must therefore provide forpossible interest rate increases; these should beanticipated and not come as a nasty surprise. Spendingmust be kept within funding limits and adequate provisionshould be made for Fetlocks, Fergusons and Felines.No more tears have been shed forthe poor hard done by InsolvencyPractitioner than they have for thepoor accountant or the poorsolicitor, yet it is a fact that therecession has hit the professionalservices industry as hard asanywhereKNOWLEDGE TRANSFER PARTNERSHIPEast Midlands Business Link www.eastmidlandsbusinesslink.co.uk26Knowledgeis powerThis November (3rd -7th), the first ever National KTP Week will takeplace across the UK with over 100 universities and businessesparticipating in one of the largest collaborations between thebusiness world and universities in the UK. The Knowledge Transfer Partnerships(KTP) programme, delivered by Innovate UK,the UK’s innovation agency, is a three-wayproject incorporating private businesses,universities and graduates. Supporting businesses across the EastMidlands, Loughborough University, theUniversities of Leicester and Derby along withthe University of Nottingham and NottinghamTrent University will be hosting eventsthroughout the week, which will includepresentations from local businesses that havetaken part in the scheme. One company that is benefiting from aKTP with The University of Nottingham isfamily owned business, Attenborough DentalLaboratories Limited. Based in Nottinghamcity centre, Attenborough is a state-of-the-artcompany offering the latest 3D medical imagescanning and manufacturing techniques forcustom made dental implants and devices.The Company’s strategic ambition is to widentheir offering and expand the business intothe orthopaedic sector. A KTP grant of over £100,000 has beenawarded to enable Attenborough to work inpartnership with the EPSRC Centre forInnovative Manufacturing in Medical Devicesat the University and the Centre for SpinalStudies and Surgery at the NottinghamUniversity Hospitals NHS Trust. The KTP willsupport the company in developing a newcapability in computational design andproduct safety validation procedures tocommercialise the new spinal implants. Edward Attenborough, chief executive ofAttenborough Dental Laboratories Ltd said:“The KTP provides us with access to a world-class spinal engineer and a world-leadingspinal surgeon, and presents an excellentopportunity for Attenborough to cross overour expertise to new markets. The KTP programme seems to be a well-kept secret with not many businesses beingaware of the benefits that can be derived fromworking with their local university. I wouldencourage other businesses to see how theymight also benefit from a KTP.” Again, building on academic expertise ininnovation and design management, apartnership at the University of Leicester withdesign agency Bulb Studios collaborated todevelop a market research app that allowsparticipants to take part in fun and intuitivesurveys vastly improving thequality of data.The KTP with the University of LeicesterSchool of Management played a key role inthe businesses growth and the developmentof the Crowdlab™ software and ultimatelyhelped the Bulb design team betterunderstand user-centred design to ensure thatnew software applications are intuitive andengaging.Indeed, the KTP was so successful thatBulb Studios created a spinout company,CrowdLabLtd, to specifically exploit the newtechnology created during theproject.CrowdLab Ltd employs 11 staff andrecently opened a satellite office in NewYorkwith a view to expanding into the US market.Jim Willis, Managing Director of BulbStudios and co-founder of CrowdLab Ltd,said:“Since the beginning of the KnowledgeTransfer Partnership, our relationship with theUniversity of Leicester has gone from strengthto strength and we continue to take advantageof the specialist knowledge, R&D andoperational practices to inform the work weare doing.”Throughout the week there will be over200 separate events staged in UK cities byuniversities and colleges, showcasing theincreasing influence of the KTP Programme onBritish business. Paul Yeomans, KTP manager at Universityof Nottingham commented: “The KTPscheme is open to business of all sizes andacross all disciplines. KTP applications areassessed against criteria that ensure allpartners in the programme have equallyweighted benefits. The business must beable to demonstrate their proposed projecthas a real need for knowledge transfer, andthat it is of clear strategic relevance to thebusiness. University support is available to helpwith applications and ensure your businessgets the most out of the scheme. A KTPAdvisor is also assigned, who mentorsthegrant application, the ongoingdevelopment of the partnership, and overallproject plan.”The KTP programme was launched in1975, and is one of the UK’s longest standinggovernment supported alliances betweencommerce and academia. It aims to helpbusinesses improve their competitiveness,productivity and performance by accessingthe knowledge, technology and skillsavailable within UK universities and colleges. Specifically, the programme facilitates theKNOWLEDGE TRANSFER PARTNERSHIPwww.eastmidlandsbusinesslink.co.uk East Midlands Business Link 27employment of a recent graduate by theirUniversity, known as a KTP Associate, towork full time in the participating business.The Associate works on a strategicallyimportant project, which enhances the long-term capability of the business. The project isalso given consistent, hands-on support froma team of academic specialists from theUniversity, and both the Associate and thebusiness can access University facilitiesthroughout the duration of the project.National KTP Week will highlight andpromote on a national scale the huge benefitsthat KTP programmes offer to businesses,graduates and academics alike, with theoverarching aim of growing UK business,driving innovation, boosting graduateemployment and forging even greaterworking relationships between universitiesand private business.Iain Gray, CEO of Innovate UKcommented: “KTP Week is a greatopportunity to demonstrate the success andvalue of a Knowledge Transfer Partnership(KTP); for business, for universities and to theassociates employed to achieve theknowledge transfer. As Innovate UK’s ChiefExecutive, I am proud to be associated withKTP and everything it stands for. I am happyto stand with all those who say “I love KTP”.”The longevity and robust nature of theKTP programme, having stood the test oftime and weathered successive governments,can be attributed to the steady delivery ofresults at every level. On average, businesses that have takenpart in KTP have reported an anticipatedincrease in profit before tax of £261,000 perannum after project completion*. An SMEtaking part in a KTP typically receivesbetween £80,000 and £120,000 in funding. Inaddition businesses of all sizes can benefitfrom the additional resources, access tospecialist academic expertise, strengthenedlinks withtheir University and improvedaccess to future funding.For graduates, becoming a KTP Associateenhances employment prospects, withapproximately seventy-five percent ofAssociates being offered a job by the hostorganization at the end of the project. KTPalso allows the graduate from the start oftheir career to take ownership of their ownproject, and apply their specialist subjectknowledge. The programme also offers fullyfunded training, the opportunity to develop acontact network and increased potential to goontofurther studies such as a PhD or Mastersdegree. For the university, there is the opportunityto develop new strategic businessrelationships. KTP also helps individualdepartments raise their own profile, identifycommercially viable research projects, anddevelop new Intellectual Property withcommercial potential.L-R: Nicola Moules, University ofNottingham, Jensen Aw, KTPAssociate, Edward Attenborough,CEO Attenborough DentalLaboratories.COMMERCIAL PROPERTYcommercial property industry? Sure, the Coalition has pushed forwardEnterprise Zones, but progress is painfully slow,and is it really the best thing for a business tomove to an Enterprise Zone, just to takeadvantage of reduced business rates and fastinternet? I’d welcome a fund that would matchinvestment from private developers - ofwhatever size - to bring forward schemes thathave been mothballed for years.There is a real danger that Nottingham couldmiss out on the big inward investmentdecisions being made because of its lack ofnew Grade A space. What better way for thegovernment to show that it cares about theareas outside of London than to launch aRegional Property Fund? Whilst these three measures might not getme elected to Parliament in May 2015 theymight go some way to stimulate new propertydevelopment in Nottingham - and beyond.2. Breaking the vicious circle ofblameA developer will find it hard to access financefrom a bank. The bank will say that the valuer isbeing too cautious. The valuer is wary of thebank using them (and their ProfessionalIndemnity Insurance) to de-risk any lending.This vicious cycle is stifling any speculativedevelopment, and leaving the developer notknowing where to turn to access the funds s/hedesperately needs to bring forward their latestscheme.This vicious circle has seen many valuers gettheir fingers burned. Industry body, RICS, hasrecognised that the valuation process isextremely difficult when there is a greatlyreduced volume of stock on the market - andtherefore reliable sales evidence. RICS hasadvised its members not to include caveats orqualifications in reports which would cause theclient or auditor to question the validity of thevaluation, or to qualify a valuation report.Valuers have been encouraged to engageinto a dialogue with clients whoneed extra advice and alternativevaluations. Each property isdifferent, and both lender andvaluer should recognise this.3. Show them the moneyWhen the governmentabolished the regionaldevelopment agencies and set upthe Regional Growth Fund itplugged a huge funding gap forgrowing businesses. Thegovernment is also to beapplauded for the way it hasconcentrated on manufacturingand export. However, where hasbeen the support for theAnyone in the commercial property industrywho thought that an upturn in the economywould herald a golden new era of speculativedevelopment is probably feeling prettydisillusioned right now.Whilst the investment market powers on andhousebuilders run out of bricks, those propertyprofessionals looking towards new officedevelopments in the city centre are playing thewaiting game.So, with the economy picking up, andbusiness optimism improving, what couldstimulate the brave property developer to stickhis or her spade in the ground? Here are thethree things I think the government should bedoing to bring forward those brand newdevelopments we all crave.1. Abolish empty property ratesThis prohibitive tax was brought in in 2007,at the worst possible time for the propertyindustry. Designed to maintain tax revenue, thismove meant full Business Rates are nowpayable on all empty commercial and industrialproperties. Prior to 2007, empty industrialproperties were exempt from Business Ratesand empty commercial properties were subjectto extensive reliefs and reductions. The government has relented slightly on this.Last year, the Coalition announced thatunoccupied new build properties which enterthe rating list between 1st October 2013 and30th September 2016 will be exempt frombusiness rates for up to 18 months. Sadly, thisis too little, too late - and a move that will dolittle to encourage speculative development.Commercial property development is all todo with confidence, and although we have seenthe first signs of this returning to the market, acontinuing lack of finance and lending meansthis will continue to remain stifled. Three stepsto speculativedevelopmentSunny Landa, director, NG Chartered SurveyorsSo, with the economy picking up, andbusiness optimism improving, whatcould stimulate the brave propertydeveloper to stick his or her spade inthe ground? Here are the three things Ithink the government should be doingto bring forward those brand newdevelopments we all crave.www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 29Next >