High growth companies actively pursue “customer lock in” strategies

21/04/2015

Ambitious high growth entrepreneurs should spend at least 3 days of their official working week living in the customer’s world. Viewing the market place from the desk is extremely dangerous, being immersed within your industry and the needs of your customers provides real-time market intelligence. This helps to tailor propositions specifically to the wants and needs of your market place; it also supports new product and service development. Gazelle companies create a massive gap between them and their competitors because they deploy innovation and imagination to problems, this inspires and very often leads to development and evolution of propositions that the customer didn’t even know they wanted! They occupy uncontested space. Others will soon start to copy and replicate – your job is to stay one step ahead of the game.

High growth businesses we have studied stay close to their key stakeholders. More specifically, they spend time:

  • Looking at the factors that impact their customer’s performance – this provides opportunities to provide new solutions
  • Understanding their customers strategy – this facilitates a partnership working model
  • Looking at how they can help improve efficiencies, reduce costs and enhance performance.

Getting close to the market helps to drive what I term “customer lock in” – that phase of the supplier/customer relationship were there is a true partnership, mutual respect and a genuine win-win. Moving to lock in can absorb an enormous amount of time effort and energy, however the rewards can be big. It also makes it very difficult for competitors to move in and occupy your space. Being embedded means any new entrant would have to untangle lots of relationships, systems and processes to get a foothold.

A word of caution – never take relationships for granted and be aware of performance vs. KPIs. Customer complacency represents a real danger zone for businesses. Lock in delivers true competitive advantage.

 


A decade of supporting high growth businesses

11/03/2015

This year marks Winning Pitch’s tenth anniversary of being in business. The very reason I founded our organisation was to provide the tools to create, build and support individuals get the most from themselves and their companies. To achieve our mission it was imperative that Winning Pitch demonstrated an authenticity that could never be challenged, in other words we practiced what we preach. Ten years on, I am very proud to announce that we have worked with some 6,000 companies. Those we have supported over the past two years have grown 4 times the rate of GDP, the average change achieved in net worth, following Winning Pitch help is 335.5%, their balance sheet value has also increased by more than £181.96m. Impact on local economies is so satisfying to observe, Winning Pitch assistance has delivered approximately 5,000 new jobs. As a business we have reached revenues in excess of £10M and over 100 full time employees across the North and rest of UK. These impacts are testament to our core beliefs of authenticity, trusted adviser and an ability to deliver.

There is no finishing line in business and complacency is a danger zone that every entrepreneur should avoid entering into. After a decade of passionately supporting the entrepreneurial business, we ourselves have moved up a gear in terms of our growth plans and ambitions. Helped by a £2.5M investment last year, I am delighted to announce a new look Winning Pitch – one that’s aims to deepen even further our profile and brand in the SME growth space. Growth SMEs are going to be even more important to local, regional and national economies over the next decade; they are the job generators, the source of innovation, graduate jobs and foreign earnings. I want Winning Pitch to be at the heart of making these businesses succeed – with clarity of vision, superior propositions, strong leadership and teams, an ability to live in the customers world as well good housekeeping and financial strategy and control, everything is possible.

I want to carry on supporting individuals to grow and helping the next generation of stars to accelerate their performance and win. More specifically, we want to give more attention to those companies that can scale their operation. These are the businesses with global potential, they become bedrocks of local economies by delivering jobs, this in turn helps communities to prosper and thrive. We will be placing increased emphasis on this unique set of companies, whose business support needs are more sophisticated and complex to deliver.

I look forward to another ten years of innovation and obsessive focus on unlocking entrepreneurial ambition. We will continue to build and expand the Winning Pitch entrepreneurial community by giving courageous individuals the trusted guidance they need to achieve both profitable growth and a business they can be proud of.


Entrepreneurship in the public sector

19/07/2012

This morning I experienced a great example of public sector entrepreneurship. We recently moved to Salford Quays next to Media City (new location of the BBC) – one of the key attractions was to be close to the digital expertise located in the area and indeed the Media department of Salford University. Why? can any business overlook the benefits this new digital age will bring?

All well and good, however business growth only takes place when conversations and personal relationships gather momentum, trust is built and mutual respect results. Critical non essentials such as courtesy, humility and just caring are so often overlooked in the teaching in business schools and the books they encourage us to read.

Back to the point, having been in our new office for only 1 week a call came into us from Salford City Council – Matthew Lynn, one of the Economic Development Officers. Can I come in and talk to you about how we can help? Firstly, I was astounded that they knew we were coming and secondly, today a meeting with Matthew clearly demonstrated:

– Customer focus

– An interest in what we do

– An explanation of what services the Council can offer

– The introductions they can make to partners

– Details of networking opportunities

– Opportunities to work together (win-win)

I was left with an overwhelming sense of entrepreneurial flair and what I call living in the “Customers World”. Top stuff, I was inspired to see that both an individual and the Council had a genuine interest in us. The start of a great relationship (I hope) – who said the public sector is not entrepreneurial!

 

 


Collaboration is key to competitive advantage

13/07/2012

How times have changed in the past ten years. Companies I would have viewed as major competitors at the turn of 2000 have now become close allies – we are sharing knowledge, IP, business ideas and revenue streams. It strikes me that collaboration is very much embedded within the mindset of the forward thinking organisations I meet on a day-to-day basis. Those that hold their cards too close to their chest will almost certainly miss out on new business and product opportunities. Collaboration can present itself in many formats:

  • Businesses with complementary skills coming together to bid for large contracts – one where the mix of expertise and geographical coverage offers massive benefits to a customer. This can be achieved as a consortium or through what is commonly referred to as a special purpose vehicle (SPV)
  • Companies fusing complimentary products and services to create a new offering – WP did this several years ago, we took creative expertise of a University and combined it with coaching techniques to create the highly successful Winning Pitch TV (WPtv) – a great example of HE working with a SME
  • Euro Garages one of the North’s most successful companies brought together petrol stations with Starbucks and Subway franchises to build a new experience in filling the tank.
  • We see it everyday on the motorways with Starbucks, M & S and other high street chains teaming up with service operators to create a new service station break – this used to be a joke in terms of food quality, now, very different
  • Large pharma companies engaging with smaller niche R & D operators. A much nimbler and cost effective route for multi nationals to build their innovation pipeline

Fundamental to collaboration is a win- win attitude, there has to be a common goal, a shared vision, a sense of trust and purpose, fair commercial gain for both parties. Working as I do everyday with high growth companies, its very clear that those entrepreneurs who think partnership are opening themselves up to so many new possibilities.  Stay awake, think about who you can collaborate with, the only warning is, be sure why you are doing it and what’s in it for both of you!


Entrepreneurial Learning

29/06/2012

I spoke at the Institute for Small Business and Entrepreneurship conference earlier this week. The theme was entrepreneurial learning in organisations. It was an extremely thought provoking session, that brought together fantastic academic minds on the theme of entrepreneurship.

As a keen observer of entrepreneurial learning and improvement, my view is that the UK economy will grow faster if more effective leaders are created and nurtured. Enterprise policy makers must recognise the importance of bigger thinking and greater ambition – a key component of leadership. Academic enterprise research needs to investigate in greater depth the emotional needs of entrepreneurs – the spirit and mindset. Setting up and growing a business can be extremely demanding. For entrepreneurial leaders balancing personal and commercial risk can be a debilitating experience – we must look at developing practical coping strategies to help leaders overcome the fear often associated with the stages of growth.

From my discussions with participants I was encouraged to hear that softer issues do appear to be attracting more academic interest. Topics such as developing an entrepreneurial mindset, coping, resilience, mental toughness, personal branding and faith must get on the agenda. These are all essential ingredients for leadership success. Practical tools to help entrepreneurs address these areas would be well received within the community – when the going gets tough, the tough get going. Entrepreneurs are courageous individuals who cope well with the lonely rollercoaster existence, helping them to live with high pressure moments would be a well-received antidote for those wanting to make a difference. I am extremely excited about the work ISBE is undertaking.


Faith is important for entrepreneurs

26/06/2012

The life of an entrepreneur is full of ups and downs. The high’s are fantastic and the feeling of jubilation when you move closer to your intentions provides a clear sense of accomplishment – it delivers the impetus to keep pushing on. It’s a great place to be because motivation and energy helps to build an important ingredient for success – momentum.

However, we all know, building a business can likened to a roller coaster ride, the journey very rarely proceeds along a smooth path. Obstacles are just part of the game, these force us to create diversions and look for alternative ways of getting to our destination.

Constantly being forced to deal with the need to explore alternative roads to the end point can have a wearing effect on  mindset. The danger is when it stimulates negative self talk – what’s the point in doing this? Is it really worth it?  Many entrepreneurs will have at some point internally deliberated these issues. Only you can answer these questions, only you can decide whether to keep going or not.

The power of autosuggestion brought to us many years ago is a vital antidote. Autosuggestion is a psychological technique  developed by  Emile Coue in the late 19th century. It’s an important tool in conditioning our mind to achieve our goals. It can be as destructive and constructive. At the heart of autosuggestion lies conditioning ourselves, through our senses to achieve what we want.

Through observational research, I have come up with other practical tools to help at critical points where emotional support is vital for the entrepreneur. The reality is, it can be easier to give up than to carry on – winners in all walks of life dig deep, maintain focus and continue with their mission, they accept setbacks are just part of the game.  The old adage when the going gets tough the tough get going is one you should reflect on when these feelings kick in.

Mental toughness differentiates winners from losers, your sense of purpose ebbs away when you listen to negative self talk, phrases such as why am I doing this? are symptomatic of the condition, in turn it weakens the endurance of the mind thereby resulting in I give up. Successful people have an insatiable desire and internalised motivation to succeed – you have really got to want it!

Having faith in what your are trying to achieve is a vital ingredient for success. If you dont believe then dont expect others to. It’s important to condition your mind to becoming resilient. Without faith and mental toughness the reality is, winning becomes more difficult. When things are not going your way, embrace the principles of R.A.F

Rewind – and go back to your vision, picture success and hold this image in your mind. Quiet contemplation is vital to aiding this process. This activity will move you out of the negative state and refresh your mind then get you back “on purpose”

Accept – that things will not always go your way. Avoid long drawn out dissections of why things turned out the way they did. Coming runner up is sometimes a wake up call for us. Accept the position and move on otherwise negative self talk will hinder progression.

Have Faith in yourself and your ability to achieve what you want out of your business. When you develop faith, bouncing back when things go wrong is far easier. By having faith you convince your mind that anything is possible

Practice, practice and practice this philosophy and see your success improve dramatically.

 


There are good things happening!

15/06/2012

The constant doom and gloom we hear through the media really is not very helpful to the entrepreneur out there trying to build a life from him/herself and family. The reality is for many of us, the Euro crisis and all that other stuff going on does not have a direct impact on the success of our company. You can’t change what going on in world markets, so don’t get drawn into it, focus on the things you can effect.

Live in your own “micro climate” – staff, market, customers, new products, think differently, experiment with new ideas, discover new partnerships, think collaborate!

There are good things going on and despite what the media says there is help for SME’s, the new BIS service – GrowthAccelerator (www.growthaccelerator.com) is a great example of a fantastic service that will help entrepreneurs to build a better future – help for planning and strategy, innovation and getting yourself ready for investment…….

There are good things going on and smart people are doing great things – please can we celebrate a bit more!


The hunt is on for high growth businesses

12/06/2012

In the last year 480,000 new companies have been formed. There are now 4.5 million people classed as self-employed – to varying degrees these are entrepreneurs who are laying the foundations for the recovery and the creation of jobs and wealth.

All over the country, in city centres, business parks and market towns a quiet revolution is underway. A new economy is being built on the explosion of growth from fast growing businesses.

The hunt is on for the high growth businesses who have the capacity and the ability to know they are doing well – they’ve grown through the tough period we’re living in – but they want more. GrowthAccelerator is here to help them.

These businesses know they are good at what they do – this new business support service will help them do even better and get bigger, faster.

It isn’t for everyone, GrowthAccelerator’s aim is to help these businesses double within three years, by helping a business to remove the barriers to growth and throw off the shackles of caution.

By placing an expert business coach with the right skillset, the relevant sector understanding or the right keys to unlock funding, GrowthAccelerator can truly boost business performance.

GrowthAccelerator is on the hunt for small and medium sized businesses in England with real potential for growth to help them achieve their ambitions. On business parks and in city centres high growth businesses with the energy and ambition to grow need help to accelerate that growth.

These businesses can be in any sector – can be in any city, but must share the ambition to grow – the impetus for growth could be a revolutionary new scientific discovery, propelling a major new invention from one of a major university, but equally it could be a fresh new retail concept or a traditional manufacturing operation with the vision to expand into the growth markets of Brazil, Russia, India or China.

What they need is a service that identifies the barriers to growth and helps install the mechanisms to overcome them. This is GrowthAccelerator.

The hunt is on for the businesses that need this level of support. They will improve cities, they will bring more business to their supply chains. This is GrowthAccelerator.

They will create jobs and wealth – do you know one? Are you one?


Entrepreneurial leaders – Create space for practical learning

06/06/2012

It is the leaders role to create and communicate a compelling vision and strategy to staff and stakeholders. When this is done with passion and authenticity, strong foundations are built for innovation and creativity; it sets the scene for personal progression and engages teams to fire on all cylinders. But how does the leader gain the inspiration, insight and knowledge to build such an environment. Well the answer may lie in the cliché – leaders are readers. Having worked with over 3,000 small businesses over the past 6 years, many of which would be termed gazelles (high growth innovative firms), the one ingredient that differentiates outstanding performance from mediocre is a leaders approach to learning. Winning Pitch’s work in this field indicates that organisations led by individuals who create space to acquire and apply knowledge go on to derive benefits of faster and sustained levels of growth.

The inability or lack of motivation to allow time for learning often results in leaders pursuing business as usual strategies. In the worst case this leads to disconnection from the market place and the needs of customers. The resultant impact is lack of competitive advantage and a spiral decline in margins, market share and revenue. Innovative high growth business leaders practice the philosophy of 20% thinking and learning along with 80% doing and reviewing. This mental framework facilitates an iterative approach to entrepreneurship, project implementation, idea generation and learning. It is a process commonly associated with scientific discovery. Iteration provides an effective route to positive progression and getting new ideas and projects off the ground more rapidly. It drives momentum, a characteristic commonly displayed by successful entrepreneurs.

Maintaining the healthy 20:80 split is extremely important as a slip in either direction can lead to either inertia, particularly if too much learning prevails or chaos if too much doing dominates the agenda. The latter gives rise to another popular cliché – not being able to see the wood for the trees. So what is the secret sauce to achieving an optimum return for the 20%? It is appropriate to point out that entrepreneurial leaders embrace different learning preferences and styles, however our experiences are summed up wonderfully in the Chinese Proverb:

I hear and I forget

I see and I remember

I do and I understand

The power of learning by seeing and doing charaterises many of the ambitious entrepreneurial leaders Winning Pitch has worked with. Several learning formats that have emerged from this school of thought, the most popular being peer to peer networking – informal environments where entrepreneurs’ get together to discuss and debate issues and challenges they face. This becomes an extremely powerful option to fast tracked learning, the reason being many problems associated with growth are common – very often they revolve around building teams, finance, access to markets and regulations.

An environment where entrepreneurs debate how they solved specific growth challenges can save others facing similar difficulties an enormous amount of time. Such edited highlights are proving to be an increasingly popular way of consuming new learning. This approach has given rise to numerous entrepreneurial networking organisations such as Entrepreneurs Circle, Supper Club, Tie and Winning Pitch’s High Growth Foundation. Entrepreneurs often make reference to living a lonely life and exposure to their peer group can deliver a whole range of learning benefits, firstly, they can help to alleviate and cope with those feelings of isolation and secondly, they can steer them to solutions only obvious to an external viewer.

Experience sharing is a valuable tool for entrepreneurial businesses and their leaders; more specifically it produces accelerated learning within organisations where training budgets are limited. Simple yet highly effective routes to achieving this can be done by:

Viewing what great looks like – strategy, raising finance, sales & marketing approaches implemented by non-competing organisations. This helps entrepreneurs to acquire knowledge of trusted advisers and expertise. All too often entrepreneurs end up on the receiving end of bad advice. By speaking to those deemed as exemplar this can fast track to effective support networks.

Speaking to other entrepreneurs – what went right what went wrong. There are excellent learning opportunities distilled from bad experiences and more often than not entrepreneurs are only too willing to help others avoid the mistakes they made themselves.

Studying biographies of success – we live in an age where the digital environment provides a content rich source of inspirational stories of the tactics and tools successful people have implemented to achieve great results. Many high performing entrepreneurs featured as part of Winning Pitch’s network regularly refer to the insights gained from studying these biographies as being – stimulus for change, acquiring new knowledge and delivering enhanced performance.

In early 2012, Winning Pitch via its High Growth Foundation accompanied 18 entrepreneurial leaders on a learning journey to Silicon Valley. Common to these UK entrepreneurs was their desire to build globally focused organisations. Through Winning Pitch’s contacts on the West Coast ambitious individuals were exposed to some of the largest brands on the planet including Google and LinkedIn. On return participants stated that the learning journey had acted as catalyst for both personal and company progression.  Participating entrepreneurs listened to the stories and methods used by global company leaders – how they go about their business, innovate, manage staff, build culture, access finance – not only what they do but more importantly how they think. The UK delegation were united in one key learning outcome – The mindset and the scale of thinking within Silicon Valley entrepreneurs is a quantum level greater than that seen in the UK. Entrepreneurial leaders – Create space for practical learning (See www.highgrowthfoundation.co.uk for more information)

 

The UK boasts internationally competitive and highly recognised educational institutions, ones equipped to teach strategy, management tools and techniques and associated frameworks and philosophies at the highest level. However, is there a missing link in the provision of assistance? Could more be done to help entrepreneurs embrace a mindset which raises the bar of performance in a big way? The UK economy needs more high growth businesses and new starts to deliver employment opportunities – NESTA’s Vital 6 per cent report clearly showed that a small minority of high-growth businesses hold the key to job creation and wider prosperity. This means we need UK entrepreneurs to learn how to think bigger, no better way of doing that than seeing it in action.


Non Executive Directors – Try before you buy!

10/05/2012

It seems very much the rage at the moment for companies to hire Non Executive Directors (NED). I am a big fan of these “outsiders looking inside“. They provide wisdom, guidance, help to raise the bar and introduce more robust systems and processes, help leaders make decisions and support change. In many instances an NED can help to open up new doors to finance and potential customers – help in the transition of growing up. If you are pursuing VC funding or PE finance then having a NED is often part of the deal.

One observation would be that many young companies appoint NEDs too early on in their cycle. They view them as the saving grace and the magic wand with all the answers. The reality is young fast growing companies should initially seek out a mentor or experienced person and trial the relationship before Companies House papers are signed. There are many individuals out there searching for NED trophies, it almost becomes their barometer for success – food for the ego!

My message to young growing companies who are seeking their new best friend, the NED, is be sure they can add value, be clear on where they can take you and most of all dont GIVE AWAY equity, people either buy or earn a stake in your company.