echo business - 22nd june 2011

8
★★★★ BUSINESS Survive Start Thrive ECHO Taking care to run great homes Spraying new life into our kitchens PAGES 2&3 PAGES 4&5 LJMU ENCOURAGES SMALL FIRM SKILLS LIVERPOOL John Moores University has developed a degree course aimed at creating the next generation of small business owners. Its Liverpool Business School has offered a business and management degree for several years, but principal lecturer in small business and enterprise, Séamus O’Brien, has updated it to focus on small business and entrepreneurship, management and financial perspectives. What is believed to be the first degree of its kind has now been validated and commended by the Institute of Leadership and Management and courses will commence in September. A final year module in researching and developing a business plan for a small firm has replaced dissertations and guest lecturers will include speakers from banks, the chambers of commerce and former students who have set up their own businesses. Mr O’Brien said: “We have spoken to local and national businesses who have fully endorsed the scheme which is looking at Prime Minister David Cameron’s call to instil entrepreneurship.” Over the next couple of years he hopes to extend the course to day and evening sessions to help small business owners in areas like accounts and finding finance. The university has already received interest in the course from institutions in Malaysia and Northern Ireland and Mr O’Brien is planning to introduce a Masters in entrepreneurship. He added: “Our applications have gone through the roof. We used to take 80 students in the first year and that has gone up to 140. “We have had students transferring from other courses in their second and third year because they like the idea.” He said he wanted a unique course to distinguish JMU when university fees rise next year: “I wanted it to be sexy and wanted it to be applicable. Companies have told us they want students who can write a business plan and bring everything together in terms of marketing, finance, management, HR and e-commerce. We wanted something different for when the fees kick in.” Degree targets next generation of SME owners Crosby in link with Elixir CROSBY Construction enhanced its corporate social responsibility credentials by taking part in Groundwork Merseyside’s free Enworks environmental support and advice programme. The Crosby-based firm is now working with housing companies such as One Vision Housing, One Vision Property Services and Liverpool Mutual Homes on recycling PVC-U window frames and doors that would normally be sent to land-fill. Its recycling work is in tandem with Bootle- based social enterprise Elixir Foundation which offers opportunities to the long-term unemployed and socially excluded groups, such as recovering drug and alcohol addicts. WINDOW ON THE WORLD: Elixir founder Ben Donnelly, left, and Crosby Construction managing director Tony Dolan A FREE seminar highlighting the opportunities for Liverpool businesses in Hong Kong and the Chinese mainland is being staged at Liverpool FC’s Anfield stadium next Tuesday, June 28. The Hong Kong Trade Development Council event starts at 1pm and features speakers from DLA Piper, Invest HK and Liverpool FC. To register contact karen. [email protected] or phone 0207-616 9503. HM REVENUE and Customs said it is targeting VAT defaulters private tutors and e-marketplaces in a new campaign using cutting- edge tools like web robot software to search the internet and find targeted information about specific people and companies who have failed to pay the right tax. The web robot also helps find people who are trading without telling HMRC. JUST days remain for three north west businesses to drum up votes to reach the final of the Barclays Take One Small Step awards which offer a share of £450,000 for winners. BSpoke Fundraising Solutions is based in Liverpool; health food firm SaladBowl is in Hoylake; and Green Street Media is a Chester advertising service. To vote go to www.takeonesmallstep. co.uk before 9am next Monday, June 27. HALEWOOD transmissions maker Getrag Ford has won the Cultural Improvement Award for its commitment to improving production efficiency at the recent Yorkshire Productivity Awards in Leeds. The awards recognise outstanding productivity improvements among manufacturing companies and individual employees. FASHION boutique Each To Their Own has adopted Knowsley- based Cybertill’s electronic tills system across its business. EXCLUSIVE By NEIL HODGSON Industry Reporter

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Page 1: Echo Business - 22nd June 2011

★★★★

BUSINESS SurviveStart

ThriveECH

O

Takingcaretorungreathomes

SprayingnewlifeintoourkitchensPAGES2&3 PAGES4&5

LJMUENCOURAGESSMALLFIRMSKILLSLIVERPOOL John Moores Universityhas developed a degree course aimed atcreating the next generation of smallbusiness owners.

Its Liverpool Business School hasoffered a business and managementdegree for several years, but principallecturer in small business andenterprise, Séamus O’Brien, hasupdated it to focus on small businessand entrepreneurship, managementand financial perspectives.

What is believed to be the first degree

of its kind has now been validated andcommended by the Institute ofLeadership and Management andcourses will commence in September.

A final year module in researchingand developing a business plan for asmall firm has replaced dissertations

and guest lecturers will includespeakers from banks, the chambers ofcommerce and former students whohave set up their own businesses.

Mr O’Brien said: “We have spoken tolocal and national businesses who havefully endorsed the scheme which islooking at Prime Minister DavidCameron’s call to instilentrepreneurship.”

Over the next couple of years hehopes to extend the course to day andevening sessions to help small businessowners in areas like accounts andfinding finance.

The university has already receivedinterest in the course from institutionsin Malaysia and Northern Ireland andMr O’Brien is planning to introduce a

Masters in entrepreneurship.He added: “Our applications have

gone through the roof. We used to take80 students in the first year and that hasgone up to 140.

“We have had students transferringfrom other courses in their second andthird year because they like the idea.”

He said he wanted a unique course todistinguish JMU when university feesrise next year: “I wanted it to be sexyand wanted it to be applicable.Companies have told us they wantstudents who can write a business planand bring everything together in termsof marketing, finance, management,HR and e-commerce. We wantedsomething different for when the feeskick in.”

Degree targetsnext generationof SMEowners

Crosby inlinkwithElixirCROSBY Constructionenhanced its corporatesocial responsibilitycredentials by takingpart in GroundworkMerseyside’s freeEnworks environmentalsupport and adviceprogramme.

The Crosby-based firmis now working withhousing companies suchas One Vision Housing,One Vision PropertyServices and LiverpoolMutual Homes onrecycling PVC-U windowframes and doors thatwould normally be sentto land-fill.

Its recycling work is intandem with Bootle-based social enterpriseElixir Foundation whichoffers opportunities tothe long-termunemployed and sociallyexcluded groups, such asrecovering drug andalcohol addicts. WINDOW ON THE WORLD: Elixir founder Ben Donnelly, left, and Crosby Construction managing director Tony Dolan

● A FREE seminarhighlighting the

opportunities forLiverpool businesses inHong Kong and theChinese mainland isbeing staged at LiverpoolFC’s Anfield stadiumnext Tuesday, June 28.The Hong Kong TradeDevelopment Councilevent starts at 1pm andfeatures speakers fromDLA Piper, Invest HKand Liverpool FC. Toregister contact [email protected] orphone 0207-616 9503.

● HM REVENUE andCustoms said it is

targeting VAT defaultersprivate tutors ande-marketplaces in a newcampaign using cutting-edge tools like web robotsoftware to search theinternet and findtargeted informationabout specific people andcompanies who havefailed to pay the righttax. The web robot alsohelps find people whoare trading withouttelling HMRC.

● JUST days remainfor three north west

businesses to drum upvotes to reach the final ofthe Barclays Take OneSmall Step awards whichoffer a share of £450,000for winners. BSpokeFundraising Solutions isbased in Liverpool;health food firmSaladBowl is in Hoylake;and Green Street Mediais a Chester advertisingservice. To vote go towww.takeonesmallstep.co.uk before 9am nextMonday, June 27.

● HALEWOODtransmissions

maker Getrag Ford haswon the CulturalImprovement Award forits commitment toimproving productionefficiency at the recentYorkshire ProductivityAwards in Leeds. Theawards recogniseoutstanding productivityimprovements amongmanufacturingcompanies and individualemployees.

● FASHION boutiqueEach To Their Own

has adopted Knowsley-based Cybertill’selectronic tills systemacross its business.

EXCLUSIVEByNEIL HODGSONIndustry Reporter

Page 2: Echo Business - 22nd June 2011

NEWS Wednesday, June 22, 20112 ★★★★

That’sthespraytodoit–bringingnewlifetooldkitchens

BUSINESSSMALL

of the Week

Neil Hodgson talks to acouple who can transforma kitchen with a lick of paint

SPEKE BODYIN BURSARYOFFER FORCOURSESA SPEKE-based socialenterprise can helptowards the funding ofuniversity-accreditedtraining courses.

UniqueImprovementsspecialises incommissioningtraining andengagement trainingcourses.

It has launched UniBursaries, which arefunding packages tosupport groups of staffwho would notnormally attracttraining funding orwhere there is alimited trainingbudget.

The bursaries areavailable to health andsocial care staff,primary care practicestaff and lay peopleand are offered on thebasis of one free placefor every bought placeon one of fiveuniversity-accreditedcourses coveringengagement andinvolvement, andcommissioning.

Managing directorLinda Henry said:“This is a uniqueopportunity to sharethe benefits of socialenterprise working atgrass roots level andto bring all the strandsof our trainingpackages together tohelp those whonormally don’t gethelp to go onuniversity-accreditedcourses.”

The five courses areaccredited by Unique’sacademic partnerTeesside University.

For moreinformation phone0151-486 6737 or visithttp://uniqueimprovements.co.uk/

HELPLINE FORLANDLORDSA FREE bank holidayand weekendemergency advice linehas been set up forMerseyside residentiallandlords.

The MerseysideLandlord PropertySupport Group, basedin Wirral, has set upthe line to helplandlords with issuessuch as problemtenants.

Landlords can calleither 0151 639 6253or 07761 813260,between 10amand 9pm on bankholidays andweekends.

BUSINESS

MUMS are a constant sourceof inspiration, and LauraWalton’s provided thespark she and her partnerNeil Elias needed to strike

out and start their own businessventure together.

Laura, 26, explained that the familyhad just moved to a new house in StHelens and found the kitchen “a bitdark”.

Her mum made inquiries to severalmanufacturers and was staggered byquotes of around £7,000 for a newkitchen.

So, resorting to good old ingenuity,she asked whether car sprayer Neil,29, could brighten things up bypainting her existing kitchen.

He set to work, carefully treating allthe surfaces with a couple of coats ofwood primer before using car paint togive a gleaming, gloss finish, and theresult was spectacular.

Laura’s mum got a “new kitchen”for just over £100 for the cost ofmaterials, and must be one of a veryfew houseproud housewives whopolishes her units with car wax, saidLaura.

But the exercise got Laura and Neilto thinking that there could be thegem of a business idea there.

So late last year they startedworking up a business plan and thisJanuary launched kitchenrefurbishment company The PaintHouse aimed at reinvigorating oldkitchens with a coat of matt or glosspaint.

At first they prepared and paintedkitchen units in an Anfield base, butNeil said: “We had a leak and drips ofwater were ruining my painting, so Ihad to strip them back and put primeron again.”

Laura added: “Our first premisesweren’t brilliant. We had so manysleepless nights starting thisbusiness.”

But a move to a new site on NelsonBusiness Park, off Long Lane,provided the ideal base for Laura togenerate business and Neil to prepareand paint the units.

She said: “This is more for me. I hadworked in offices, which is why Iwanted to start my own business.”

Multi-talented Laura was alsoself-employed as a singer and has justbeen signed to Red Admiral records, inKent, as a songwriter.

But her focus is firmly on The PaintHouse and building up enoughbusiness for Neil to eventually quit hisjob as a car sprayer and go full time.He explained: “At the moment I workand come here of a night and paint.”

The two have already worked as ateam when Neil previously ran hisown car repair business and Laurawould look after the admin work.

At the moment word of mouth is

generating enough work for the coupleand Neil had started to train Laurahow to paint, but now she is expectingshe may have to stop and concentrateon office duties. But they said if theworkload increases they can easilydraft in another painter.

Laura said: “The work doesn’t takethat long, we can get a full kitchendone and sprayed in two to three days,it’s the preparation that takes thetime.”

The couple can also work theirmagic with smaller items, likefurniture, tables, mirrors, and evenmusical instruments.

“Because of my musical connectionswe have done guitars and also pianos,”said Laura.

A recent client asked Neil to sprayan old upright piano to give it a blacklacquered look to match his homedecor, which has generated similarbusiness after family and friends sawthe result.

They get the same reaction fromtheir kitchen refurbishments, saidLaura: “We have customers who arehappy for other customers to go intotheir houses to see our work.”

She said they were wary andcautious about setting up in the wake

of a recession, but in some ways thecurrent conditions could be a driver,with many householders unable toafford a brand new kitchen.

Ironically, Laura revealed, the morewell off customers can be the mosttesting: “People who haven’t got thatmuch money are great, but peoplewith huge houses and massivekitchens try and knock us down onprice.

“We’re definitely in the market ofpeople who can’t afford to buy a hugekitchen – we are the alternativekitchen.”

Neil added: “We’re a good option tohave instead of a brand new kitchen.”

Apart from a £1,000 start-up loanfrom St Helens Chamber of Commerce,the pair financed their ventureentirely from their own savings, butLaura said the support the chambergave them was probably more valuablethan the funding.

“The chamber advised us on ourbusiness plan, and without their help Iwould not have set up the business.”

FPBwarnscookies could leavenastytastefor firmsSMALL firms have beenwarned that their websitescould fall foul of new EU rulesgoverning the use of cookies.

Currently many websitesuse cookies to allow users tonavigate their pagesefficiently, performing tasks

such as remembering log-indetails, browsing history andordering information.

Cookies work by installing asmall piece of code on to a siteuser’s computer that allowsthe site to remember andrecognise visitors.

However, recent updates tothe EU’s Privacy andElectronic CommunicationsRegulations mean that it isnow technically illegal for UKwebsites to do this withoutfirst seeking the user’sconsent.

Companies which are foundto have fallen foul of the newlaw, introduced on May 26,face a fine of up to £500,000.

The body policing theregulations – the InformationCommissioners’ Office – saidthat if it receives a complaint

it will give the site’s owner ‘upto 12 months’ to makealterations before prosecuting.

But lobby group the Forumof Private Business (FPB) hascalled on firms to make anynecessary changes as soon aspossible to avoid fines.

Page 3: Echo Business - 22nd June 2011

Wednesday, June 22, 2011 NEWS 3★★★★

DEFRA MOVEWILL BOOSTRECYCLINGA SMALL businesslobby group haswelcomed plans byDefra (Departmentfor Environment, Foodand Rural Affairs) todisband the LandfillAllowance TradingScheme and allowlocal authorities toopen up householdwaste and recyclingcentres to smallbusinesses.

Currently, smallfirms have to pay forthe removal of evensmall amounts ofwaste.

Neil Dutton,regional manager forThe Federation ofSmall Businesses(FSB), said: “This is avery positive stepforward and wewelcome Defrarecognising that onesize does not fit all.

“Small businesses,many of whomgenerate no morewaste than theaverage family home,have been penalisedfor many years by theprevious legislation.”

He added: “Defra’sreview of waste policywill help smallbusinesses to recyclemore.”

SPRAY FAN: Neil Elias, of thePaint House in Walton, spraypaints kitchen units

Picture: Gavin Trafford

Most of their cash wenttowards buyingequipment like spray gunsand compressors, includinga portable compressor whichallows them to work in someone’shome.

Neil said: “We have worked as far asChorley and have had people fromEssex and Glasgow and NorthernIreland making enquiries.”

They said the business fluctuatessome months: “Sometimes it is not oncourse according to the business plan,so we don’t take the wages we wouldnormally,” said Laura.

“We want to make a wage for each ofus, and 33% profit for the first year.

“We are not taking as much wagesas we would like, but we are keepingour heads above water and haven’tmade any loss since day one. But weare still unknown and hopefully nextyear it will get better.”

They believe they have found aniche. Laura said: “We think there’ssomeone in London doing somethingsimilar, but they’re just putting vinylcovers on, not spray painting like us.”

As the business model develops Neilhopes to offer more bespoke services,such as stencilled work, like footballclub crests.

Laura said: “I have noqualifications, but I know I can run abusiness. I know I have the commonsense and Neil has the skills.”

And she is determined to give herall: “I will carry on getting jobs in –probably even when I am givingbirth.”

Do you wantto be our Business

of the Week?Contact Neil

Hodgson 0151 4722451 or emailneil.hodgson

@liverpool.com

NEW LOOK: The Paint House founder Laura Walton tested out thecompany’s services at her mother’s house in St Helens (above)

City of Liverpool

OLD HALL STRIPL3

City of Liverpool

OLD HALL STRIPL3

for his crimes against journalism

byIlanSheady

Page 4: Echo Business - 22nd June 2011

NEWS Wednesday, June 22, 20114 ★★★★

BUSINESS

CARE HOMES are alwaysunder scrutiny because ofthe emotional nature of thesector – the care of elderlyor disabled people.

That has increased in recentmonths with the financial crisis atSouthern Cross, which has 31,000residents in the UK, while there hasbeen the care crisis highlighted by adocumentary on BBC’s Panoramaprogramme which alleged crueltyat a Bristol home.

The nature of the sector meansthat it is the bad examples thatmake the headlines rather than theday-to-day good work that is doneby tens of thousands of carers forhundreds of thousands of residents.

Stocks Hall Care Homes wasfounded in 1987 and today operatesfive homes in the North West.

Managing director Sue Lace said:“It’s because there’s so much badpublicity about the care sector,nobody wants to hear the goodthings going on.

“We don’t want bad organisationsoperating because it lowers people’sperceptions of the rest of us.”

Stocks Hall employs 480 people,which means it is a daily task toensure staff remain both motivatedand monitored – so the residentsreceive the highest quality care.

Sue said: “We very much believethat our staff are the tools of ourtrade, a continual development isthe only thing that keeps thequality of care up to scratch.”

That includes an initiative calledthe Butterfly Project which hasbeen underway for more than ayear, with Stocks Hall working withcare consultancy Dementia CareMatters to achieve a level threekitemark for its care of patientsaffected by dementia.

Ms Lace said: “The ButterflyProject goes against task-orientedcare. It’s spending time with theperson to understand the emotionof that person. Although thecognitive skills aren’t there, theystill have the emotions.

“It’s understanding how to react –if they see a simple thing like ‘Iwant my mum’, ‘I want to go home’,it’s understanding it’s the comfortthat those things bring, and givingthem comfort.

“It has been a culture change fora lot of people, but it’s aboutnurturing. We have to nurtureourselves and our staff for them tobe able to connect with the peoplethat live here. There’s a lot ofsupport that goes on.

“It’s very draining. You are fillingthose people with love and comfortand the staff can feel ‘who is thereto do that with me?’.”

Although a lot of that work is, byits nature, ad hoc and informal, thecompany has also completed formalprocesses to ensure it maintains

high standards.“We have had Investors in People

since 1995 and we are now one ofthe homes in the country with agold standard award,” she said.

“I started the business because Iwas passionate about providing thehighest standard of care available tothose that needed it.

“We believe that quality care canonly be achieved through wellmotivated staff that are committedto our core philosophy and values.

“Achieving the gold standard has

made me so proud of our staff, whoare a dedicated team ofprofessionals.

“It confirmed to me we hadmanaged to make that transitionfrom one to five homes.”

The company’s first home inOrmskirk was a step into theunknown.

“It was a bit scary,” recalled Sue,who had worked as a secretarybefore studying for a businessqualification in readiness for theresidential home’s opening.

Very quickly Sue and Stocks Hallgot into their stride, increasingcapacity from 27 to 45 residentswithin a year, before opening asecond home, in Burscough, in 1990.

Sue said: “It was a massivelearning curve, driven by a desire togive the best quality of care. It’s aconstant learning curve really.”

A third home was opened in 1993,with its Skelmersdale sitespecialising in caring for peoplewith dementia.

It has since added homes inNelson, in 2002, and most recentlySt Helens in 2008.

Changes to funding have broughta renewed focus on the ongoingchallenge of providing thebest-possible care while ensuring

the business is sustainable for thelong term.

“There’s always the financialbalance,” said Sue. “It’s verydifficult – with most services andcommodities, you just put a marginon what it costs to make it.

“We are dictated to by socialservices and primary care trustsand what they are prepared to pay.There are other costs that are out ofour control.

“This balancing act is becomingmore and more difficult. The lastthing we want to do is damage thestandard of care we provide, wedon’t want to stop training out staffor keeping the homes looking nice.

“My concern is that the betterquality homes are more vulnerable

Takingstockandtakingcareatcrucialtimeforthesector

INTERVIEWBIGAlex Turner talksto the managingdirector of StocksHall Care Homes,Sue Lace

‘Youarefillingthesepeoplewithloveandcomfort’

Page 5: Echo Business - 22nd June 2011

Wednesday, June 22, 2011 NEWS 5★★★★

than the homes that aren’tproviding this.

“We are concerned how fundingis going, although we arefinancially sound.”

Getting the balance right atStocks Hall comes down to workingwith each of the homes’ managersto ensure they understand theposition.

“We work together with ourmanagers to understand thefinancial restraints, said Sue.

“Our approach has been it has tobe right for the people we arelooking after. But we have to befinancially viable to achieve that forthe staff and for the people that livehere.”

Sue is confident the company is

in a healthy position and plans aremoving forward for more growth.

It has acquired a second site inOrmskirk which is currently goingthrough the planning process, whileplans are well-progressed to convertan old hotel in Mawdesley, WestLancashire, into a home with aswimming pool and a gym thatwould act as a place for residents ofother homes to go to for short stays.

Sue said: “We have grown at acontrolled rate. We have ploughedan awful lot of money back in andwe are not heavily geared.

“Where we are now – to developthose two will be sufficient. We willneed to look at the transition up toseven and consolidate that beforewe look at anything else.”

ALWAYS UPBEAT: Sue Lacesays there is plenty of goodnews in the care sector

Pictures: ANDREW TEEBAY

SPECIALIST CARE: Stocks Hall Care Home in Dentons Green, St Helens

OUTDOOR ACTIVITIES: Care assistant Shaun Jones, left, with residentRonald Smith at the Gardening Club

ID SECURITYCOMPANY’SNEW DEVICEHI-TECH securitysystems firm HumanRecognition Systems(HRS) will unveil itslatest development ata national securityconference in Londonnext month.

The WavertreeTechnology Park-based business hascreated a multi-modal transportabledevice to checkidentity details usingeither finger, face, irisand DNA recognition.

Its MForce device isdesigned fororganisations thatoperate in remote,difficult or temporarylocations and need tomanage identities andgather intelligence.

Lee Hannis, HRSbusiness developmentmanager, said July 5’sNational Security 2011at the QueenElizabeth IIConference Centre isthe perfect platformto launch MForce to atarget audience thathas security andpositive identificationat the heart of whatthey need to achieve.

“MForce isintegrated with thelatest portable andhandheld components,which support clientswhether they're onpatrol, in a temporarycamp or forwardoperating position,”said Lee.

HRS has developedsecurity systems forthe military and otheragencies.

HIGH COST OFPOOR HEALTHUNHEALTHY staffcost employers, theNHS and themselves£17.7bn a year, saysnew research byhealth insurer Bupa.

Liverpool-basedHealth@Work, whichworks to raiseawareness ofworkplace health withemployers, saysbusinesses could save£3bn a year by 2025 byaddressing the issue.

Frances Molloy,chief executive ofHealth@Work, said:“These figures areshocking. It clearlyshows the importanceof the messages weare trying tocommunicate tofirms. If they invest inthe wellbeing of theiremployees, then thecompany will benefitas staff will behealthier, happier andmore productive.”

Page 6: Echo Business - 22nd June 2011

NEWS Wednesday, June 22, 20116 ★★★★

BUSINESS

GOVERNMENT andbusiness are eager to findthe magical measures tokick-start the economy.Pumping in cash via the

Bank of England and a range ofsmall business-friendly initiativesin Chancellor George Osborne’sBudget have helped stabiliseconditions.

But among a range of remedies tonurse the nation back to strength isone that has been neglected over thepast few tumultuous years as thecredit crunch took its toll.

Venture capital to supportmanagement buyouts (MBOs) andbuyins (MBIs) dwindled to almostnothing, and the small businesssector has suffered accordingly.

Information from the BritishVenture Capital Association revealsthe extent of the problem.

The most recently publishedfigures for the north west show thenumber of MBOs/MBIs in 2009 fellby 82% from the previous year, with£140m being invested in 2008compared with just £31m in 2009.

Across the country the trend wasthe same, with UK figures showingMBOs/MBIs down by 60% in 2009.

Anecdotal evidence suggests 2010is unlikely to see a significantimprovement.

Yet, there is clear evidence thatbusinesses that go through a MBOare likely to prosper.

A study by the European PrivateEquity & Venture CapitalAssociation gathered data fromcompanies across Europe whichhad undergone a venturecapital-backed buyout.

It showed that 84% ofrespondents said that without thebuyout they would either haveceased to exist or have grown lessstrongly.

They also generally held the viewthat the contribution of the venturecapitalist in both financial andnon-financial aspects had beencrucial to the post-buyout success.

The report went on to state thatthe economic and social impact of abuyout on investee companies couldbe seen in virtually every one of awide variety of indicators,including increased sales andprofits, higher levels of employmentand employee earnings, a largerpercentage of exports, bettermarketing and improved customerservice.

Many MBOs take place tofacilitate the exit of business

founders, generally in retirement,and allow the next generation totake the business further on.

An MBO is seen as the bestoption to aid the smoothcontinuation of a business becausethe management team already has agood understanding of the companyand its potential, and have existingrelationships with clients,suppliers, financial partners and,importantly, staff.

In their new roles as owner-managers they are driven to makethe company succeed which,combined with their in-depthknowledge and experience, meansthat success is more often than notthe reality.

There is a perception that manypotential MBOs have failed tohappen over the past three yearsbecause of a lack of availablefinance.

But Liverpool-based smallbusiness support agencyMerseyside Special InvestmentFund (MSIF) is keen to promotemore MBOs to stimulate the localeconomy, and has established aspecific fund, the Merseyside Loan

& Equity Fund, to provide financialbacking for such deals up to a totalinvestment of £2m.

It can also provide investment fordevelopment capital, expansion andacquisitions.

Its team can take prospectivebuyers through the process and, ifnecessary, introduce additionalmembers to the management teamfrom their wide network of contactsif new skills are needed to helpdrive the new venture forward.

MSIF’s chief operating officerLisa Greenhalgh said: “We wantbusinesses to know that MSIF hasfunding available to supportbuyouts and also want to encourageadvisors to come and speak to us ifthey have clients that are looking atsuccession options.

“MSIF has a good track record insupporting successful buyouts and,as well as finance, provideadditional support to the companieswe invest in.

“We understand that mostmanagement teams don’t haveexperience of the process, and whilethe thought of becoming anowner-manager is attractive, it can

all be a bit daunting.“Our aim is to ensure that the

management team feels supportedboth through the transactionprocess and after the deal is done.”

Marion Savill, equity investmentdirector for the Merseyside Loan &Equity Fund, added: “We are ahands-on investor without beingoverbearing.

“The balance must be right – themanagement should be left to dowhat they do well, but we canstrengthen the existing team to helpthe business grow.

“Many of the non-executives weintroduce to investee companiesstay much longer than initiallyexpected because we try to ensurethat we match the needs of thebusiness and the individuals weintroduce very well.”

Malcolm Jones, mezzanineinvestment director with the fund,said: “The beauty of this fund isthat the different types ofinvestment – loan, mezzanine andequity – can be mixed together toprovide a cocktail of finance whichis tailored to suit the individualneeds of the business.”

BUYOUTSBACKFOCUS. . . on buyouts

Neil Hodgsonon the case forMBOs to revitalisesmall businesses

FUNDING IS AVAILABLE: MSIF’schief operating officer Lisa Greenhalgh

ONE client the MSIF’sMalcolm Jones worked withwas personal injury andresidential conveyancing firmForster Dean, which hasoffices across the north westincluding Liverpool, Runcorn,Widnes, St Helens andWarrington.

It was formed in 1992 andwas the subject of a MBO in2007 by managing partnerGregory Shields who led aseven-strong team in whatwas believed to be the firstdeal of its kind for a law firmin the north west, if not thecountry.

Since the MBO thebusiness has seen impressivegrowth and is now a Legal200 ranked law firm with a

Dealmadedreamreal

Page 7: Echo Business - 22nd June 2011

Wednesday, June 22, 2011 NEWS 7★★★★

INBUSINESS

INVESTOR: Marion Savill of the MerseysideLoan & Equity Fund

IT’S often claimed that thesolution to society’s ills hasbeen discovered – theempowerment of theindividual.

By giving people skills andknowledge, they cantransform their lives for thebetter.

As a recovered drug addictand alcoholic, Ben Donnelly,founder and CEO ofMerseyside-based ElixirGroup, knows better thanmost the struggle that isinvolved in escaping povertyand deprivation and thedifference empowerment canmake.

It was this struggle thatmotivated Ben, and hisbusiness partner JenniferKelly, to establish ElixirGroup, a hugely successfulsocial enterprise which haswon local and nationalrecognition for its work tohelp people of allbackgrounds turn their livesaround.

In a little over three years,Ben, Jennifer and the rest ofthe team at Elixir have madea tremendous contribution

towards the Merseysideeconomy. Ben is keen todemonstrate the potential forsocial enterprise as a meansof boosting the economicrecovery: “Already we haveinjected £1.5m into the localeconomy, created over 800jobs for the long-termunemployed, delivered 3,500training courses andprovided ongoing coachingand mentoring for 600people.”

Not only is Elixir creating

a hugely positive social andeconomic impact, but by thevery nature of the business,is also creating a positiveenvironmental impact. Benis keen to emphasise theefforts that Elixir makestowards environmentalsustainability.

“The environmentalsituation for this world isserious and by recyclingPVCu , glass, metals, andother plastics Elixir has notonly provided importantemployment opportunitiesfor local people, but alsodiverted over 5,000 tonnes ofwaste from landfill and savedover 12,000 tons of CO2emissions,” he said.

But at the end of the day,the main, motivating factorfor Elixir (and the same canbe said for many other socialenterprises) is theempowerment of people. I’llleave the last word withJennifer: “I absolutely lovewhat I do. There is no betterfeeling for me than to seesomeone turn their lifearound, and making it asuccess.”

SOCIAL

turnover of £7m and 24offices employing 120 staff,including more than 50lawyers.

Gregory Shields said:“Undertaking the MBO wasa fantastic experience. MSIFhelped us realise our dream.

“I had a clear vision for thefuture of the business and theteam at MSIF understoodand believed in that visionfrom day one.”

He added: “Because thebusiness had a strong cashflow we obtained finance

from MSIF withoutrelinquishing equity, which iscrucial for many would-beowners.”

“I do not believe that thisdeal would have happenedwithout the support fromMSIF.”

ENTERPRISE with Jo McGrath,chair of the SocialEnterpriseNetwork

INSPIRATION: Ben Donnelly

LIVERPOOLFUELLED BYCOFFEELIVERPOOL hasmore coffee shops andpubs and bars on itshigh streets than thenational average.

However, it suffersfrom a shortage ofrestaurants, newresearch has shown.

A survey by businessinsurance providerSimply Business foundthat hospitalityoperations, like pubsand restaurants, nowoutnumber traditionalretailers, such asfashion stores.

The figures showedpub and bars had a13% presence on thehigh street inLiverpool comparedwith 11% nationally,8% in Birmingham, 6%in Manchester and 5%in London.

Coffee shopsaccount for 12% in thecity against 11%nationally, andhairdressers take up7% in Liverpool against5% overall.

However,restaurants only makeup 4%, compared with6% across the UK.

Simply Businesschief executive JasonStockwood said: “Thebusiness climate hasclearly been morefavourable for someretail businesses thanothers and this hasinfluenced themake-up of highstreets across theUK.”

BUYOUT TEAM: From left, Steve Stuart of Brabners Stuart, Malcolm Jonesof MSIF, Greg Shields of Forster Dean and Bill Doherty of RBS

Page 8: Echo Business - 22nd June 2011

NEWS Wednesday, June 22, 20118 ★★★★

BUSINESS

PLUSDANEWINS£1.5MCONTRACT

Pensionshake-up‘willhitSMEshardest’

HOME SWEET HOME: Plus Dane HomesHub customer Geoff Scotton, left, and his son Alex in theirNetherton property

LIVERPOOL housing group PlusDane Group has had its contract todeliver the government’s affordablehome ownership scheme extended to2013, in a deal which could be worthmore than £1.5m to the group.

The organisation, which isresponsible for more than 15,000homes in Merseyside and Cheshire,says the scheme is also likely to helpsafeguard jobs in the constructionindustry as the group presses aheadwith new housing developments.

Over the past two years more than1,300 people – the majority of who arenew to the housing market – havebeen helped to buy a new homethrough Plus Dane’s HomesHubwing.

HomesHub director Ben Clay said:“This is a big vote of confidence in thework we have been doing and it isexciting that we will be able tocontinue to help people fulfil theirhome-owning dreams.

“We are expecting an intense

period of activity this year, and Iknow the HomesHub team will rise tothe challenge once again.”

HomesHub, which acts as acustomer portal for allgovernment-assisted first time buyeroptions in Merseyside and Cheshire,is due now to begin work ondelivering FirstBuy, the latestgovernment initiative to stimulatethe housing market.

Using cash from the banking levy,FirstBuy will help about 10,000people nationally to purchase a newproperty.

FirstBuy is a shared equityarrangement where the governmentand the housing developer provide aloan – interest free for five years – tocover a proportion of the value of theproperty.

Under the FirstBuy scheme thisproportion is 20% of the purchaseprice.

The buyer will be expected tocontribute a minimum cash depositof just 5% themselves.

The final details of the new schemeand the number of houses that it willhelp fund in Merseyside andCheshire will be announced thissummer, following the conclusion ofnegotiations between HomesHub andthe government’s Homes andCommunities Agency whichawarded the contract.

Geoff Scotton, 40, is one of PlusDane’s rent-to-HomeBuy customers.

After a divorce and its financialfallout he was able to find a home inNetherton that he thought wasbeyond his reach.

He has the option of paying rent, ataround 20% less than the going rate,for five years while he decideswhether buying is the right option forhim.

SMALL firms will behardest hit by theintroduction of auto-enrolment pensions nextyear, according to a surveyof Institute of Directors(IoD) members.

They claim the schemewill burden firms withsignificant costs relating toemployer contributionsand administration.

Feedback from IoDmembers shows that 95%

of firms that do not haveany pensionarrangements foremployees into which theemployer contributes areSMEs (small andmedium-sizedenterprises).

It is these firms thatwill have to implementand finance auto-enrolment.

The IoD says this isparticularly concerning

since these businesses lackthe specialist humanresource functions that bigfirms can afford and arestruggling to cope withtheir existing employmentlaw obligations already.

IoD director generalMiles Templeman said:“The governmentshouldn’t underestimatethe cost burden thatauto-enrolment is going toplace on small firms.

“Bigger businesses willmostly have pensionarrangements foremployees set up. Ofcourse we need toimprove retirementprovision in the UK, butyet again it’s the smallentrepreneur who is hit.”

The survey revealedthat 34% of bosses saidthey will have to dip intotheir profits in order tofund their 3% contribution.

byNEIL HODGSONIndustry Reporter

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