What is ‘quiet hiring?’ – Organizations that invest in reskilling and upskilling can fortify their workforces for the coming seismic changes wrought by technology, globalization, and markets.

Not long ago, Bosch announced a staggering plan to invest €2bn in retraining a portion of its 400,000 employees. As Europe’s largest car parts supplier, Bosch aimed to mitigate further job losses as the automotive industry transitions from traditional combustion engines to electric vehicles. The issue extends far beyond car-making.

McKinsey & Company forecasts that by 2030, one in 16 workers – totaling over 100 million across eight economies – may need to change occupations. This underscores the pressing need for reskilling and upskilling initiatives, driven primarily by rapid technological advancements automating jobs and generating demand for new skills.

Additionally, globalization and shifting market dynamics necessitate workers to adjust to new industries and roles. This interconnectedness has boosted trade, communication, and mobility across borders, often resulting in the outsourcing of jobs to countries with lower labor costs, displacing or rendering jobs in traditional sectors obsolete.

This process is also driven by shifts that occur within markets over time, due to changes in consumer preferences or regulatory overhauls. Tasks within industries tend to become more complex as new procedures, tools, and regulations emerge.

In the financial services industry, the proliferation of complex financial products like collateralized debt obligations (CDOs) and credit default swaps (CDS) has heightened the complexity of risk management. Assessing credit, market, and liquidity risk for these instruments poses unique challenges, demanding specialized knowledge and skills from risk managers. Continuous learning and skill development are essential for these professionals to remain relevant in their field, a necessity that extends beyond banking.

McKinsey predicts that by 2030, over 100 million workers across eight economies may need to change occupations due to technological advancements

GenAI: Understanding the evolution of skills in the modern workforce

Anticipation is rising for generative artificial intelligence (GenAI), a groundbreaking technology capable of mimicking human output in text, images, and code. Its potential to automate routine tasks and cut costs is attracting interest across various industries, though it may also lead to task displacement.

One study found that around 80% of the US workforce may have at least 10% of their work tasks affected by large language models (LLMs) such as ChatGPT. In sectors where language plays a prominent role, such as law, advertising, and finance, approximately 19% of workers could see at least 50% of their tasks impacted.

While GenAI is proficient at automating tasks that are routine and repetitive, it cannot emulate certain human qualities such as creativity, critical thinking, and emotional intelligence. Consequently, human skills that emphasize these unique attributes will become more valuable as GenAI becomes more prevalent across the economy.

Human-centric skills like problem-solving, adaptability, and innovation will always be in high demand. Problem-solving involves analyzing complex situations and finding effective solutions, a task GenAI may struggle with independently. Adaptability requires adjusting to new circumstances and learning from experiences, qualities difficult to program into GenAI systems. Innovation demands creative thinking and connecting diverse concepts, areas where GenAI may lack proficiency without human input.

Therefore, AI-human collaboration will be crucial, requiring people to acquire new skills such as AI literacy – knowledge about how AI systems work, their capabilities and limitations, as well as their potential impact on society.

What is more, new AI-specific roles are emerging, underscoring the need for organizations to recognize and value new skills like data labeling (annotating or tagging data to make it understandable and usable for machine learning algorithms) and prompt engineering (the process of designing and refining queries to effectively elicit desired responses from LLMs). Organizations will also need to provide opportunities for employees to develop these capabilities.

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Bosch’s €2 billion gamble: Investing in employee retraining amid the AI revolution 

The explosion of entrepreneurship across the UK has been phenomenal and it seems everyone wants to become their own boss and start a business. Entrepreneurship has spread like a contagion and there are more and more people thinking of new, innovative and creative ideas they hope will shake up the market and make them successful.

Entrepreneurs develop in lots of different environments and more recently, I’ve seen this a lot in the workplace. So, should business owners be encouraging entrepreneurial behaviour from their staff? Many people (including me) think absolutely yes we should be giving our people the space to be creative, take initiative and think of new ways to solve tasks. This is what we call intrapreneurship – employees displaying entrepreneurial characteristics to improve business culture and strategy.

A relatively new concept, the aspect of the intrapreneur has gained a lot of traction in the last few years and one by one, businesses are beginning to realise the benefits that come from taking advantage of innovative thinking. The rise of the intrapreneur presents us with the question; is entrepreneurship really contagious?

An ‘entrepreneur’ – according to the Oxford dictionary – is ‘someone who sets up a business or businesses, taking on financial risks in the hope of profit’. More than this, people I’ve asked define an entrepreneur as someone who is ambitious, passionate and business-minded; a risk-taker who has enough courage to follow their dreams and start something without the added privilege of certainty. When you’re in close proximity with these kinds of people, it’s hard not to be inspired. Whenever I meet a really engaging, passionate entrepreneur – whether during my time on Dragons Den or as former chairman of Start Up Loans – I come out of the meeting with a desire to start up all over again. A desire to take something, make it better and start my entrepreneurial journey from scratch.

I think we all like the idea of being our own boss and when you realise that you can do it and it is an attainable concept, the idea can be very tempting. Not everybody is a risk-taker but when you see entrepreneurs who started with nothing building great businesses and doing well, you start running out of reasons why you couldn’t do the same thing.

As business owners, it is imperative that we support and motivate staff at all times. Its people who breathe life into business and without them, your business will not scale successfully. Throughout my 30 years in business I’ve found that encouraging an innovative approach when resolving issues or thinking strategically has always triggered the best results for me because the resolution tends to be outside the box and imaginative, something people wouldn’t expect to see.

Intrapreneurs, just like entrepreneurs, thrive off independence and freedom to ponder new ideas. Granting your people autonomy of their role not only increases productivity, it maintains motivation, lowers retention rates and improves company culture.

Many business owners worry that encouraging entrepreneurial behaviour is damaging because it means one day, they will have a great idea and leave. The reality is, people are more likely to leave if they feel like there’s no potential for career development and they’re stifled. Supporting creative thinking and allowing staff to bring forward and capitalize on new ideas can be hugely beneficial for business – take Google for example, who do you think came up with different divisions such as Google Ads and Google News? This is a perfect example of intrapreneurial product innovation. Smart businesses will advocate intrapreneurship because they know it fuels business growth and gives them a competitive advantage in their industry. People starting out in the business world rarely forget those who supported them from the offset. And if you’re backing your own staff in this way you can be part of their future plans. Who knows, you could be nurturing the next Mark Zuckerberg.

Whenever a member of my team has pitched me an idea I have always taken a keen interest because I have witnessed first-hand the potential success that could follow. When I was building my first recruitment business, Alexander Mann, a member of my team consistently pitched me to let her start a new, separate division of the business. At the time, Rosaleen Blair didn’t have much experience in the industry and any other businessman probably wouldn’t have taken the risk and backed her. Because I’m a sucker for a good pitch, I did just that. Rosaleen was passionate and determined to make it work and so I gave her 6 months to prove me wrong. Sure enough, 6 months later Alexander Mann Solutions was growing at an incredible rate and is now worth millions. It took one idea and one passionate intrapreneur to make that happen.

More recently I backed Amy Golding, an employee of mine who suggested we branch out and begin backing start-up recruitment businesses. Amy had the vision and dedication to turn her idea into Recruitment Entrepreneur, a recruitment start-up propeller that has already backed 10 businesses within two years. Looking back, I knew she would make it work and turn the business into a successful incubator. If I hadn’t backed her, I’m sure someone else would have.

Think about it, should you really be sitting back and letting these sorts of people slip through your fingers or should you be encouraging them like I did and then have the pleasure of watching them grow and develop into successful entrepreneurs? I think you’ll agree the latter sounds much more rewarding.

At the end of the day, if you suppress the creativity of people, they will leave and find someone or somewhere who is willing to support them. The bug will spread – 2015 is the year of the entrepreneur, don’t get left behind.

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James Caan on intrapreneurship

It may sound obvious but knowing your numbers is essential for business growth.

Understanding how much your product costs to make and deliver, how much you expect to take out for yourself and what your running costs will be i.e employing staff, marketing costs, office space, equipment, bills, maintenance etc are all part of essential business planning.

During my time on Dragons’ Den I was surprised by how many entrepreneurs came to pitch ideas that certainly had legs – ideas that could potentially make a splash in the market – but when it came down to answering basic financial logistics such as how much are you going to retail the product? What is your estimated profit? Will you need to employ staff? Lack of research was obvious and what we’d get is a bunch of random figures conjured up on the spot. Why would a dragon invest in a business that didn’t have a clear sales forecast? After all, we need to be fairly confident of a return and if you can’t answer simple financial questions, we’re not interested.

I completely understand how tedious finance management can be and how tempting it is to leave everything to last minute but eventually you’ll have to tackle the task and delaying it will only make it more difficult and leave you feeling even more perplexed.

When I was starting my first business, I had all of my invoices, statements and receipts in unlabelled and unorganised shoe boxes! I was not (and never will be) an accountant – that’s why today, I surround myself with the best finance people in the business.

The emergence of new technologies has impacted business immensely, especially in terms of every day admin management. This increasing amount of helpful tools will help our next generation of entrepreneurs start and grow their businesses successfully. Why do you need shoeboxes full of receipts like I had when you can download an app which organises everything for you in click of a button?

A recent study commissioned by online accounting company Xero, who were recently ranked #1 by Forbes in its list of the World’s 100 Most Innovative Growth Companies, has found that 95 per cent of entrepreneurs think software and technology are key to running a happy, efficient business. Despite this, almost half admit they don’t have the right tools or technologies to do so.

There’s no denying the importance of tech in business; the figures speak for themselves, as do the thousands of tech startups evolving every day.

According to the research from Xero, slacking on financials can cost the average UK business £35,000 in their first year, equating to a potential £175 billion loss in revenue. Fear of failure is always present in our entrepreneurial community and there will be a few hurdles to cross during your start-up journey but with so much support available out there, finance management doesn’t need to be one of them. Entrepreneurs must make good use of the new applications and technology driven tools available to them because staying on top of your numbers allows you to make informed decisions about the future growth of your business.

As a dedicated entrepreneur, I am delighted to see that technology is encouraging more and more would-be entrepreneurs to take the plunge and start-up because they know technology is on hand to take the headache out of running a business. Now they are able focus on what differentiates them from the competition, build their brand and invest in people.

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Know your numbers for growth

You have to be willing to make sacrifices, take risks, ask for help and above all believe in yourself because believe me when I say business isn’t a walk in the park. Nobody will be offering success on a plate and you’ll probably feel like giving up at some point. Not everyone is strong enough to push through the bad to eventually reach the good which is why not everybody can be an entrepreneur.

Over-promotion isn’t a widely discussed concept and most people wouldn’t think it was possible to over-promote yourself. I thought that too, until I did it and had to learn from my mistakes.

The thrill of watching your business grow and develop into a successful and profitable venture is incomparable. After 30 years, I’m still hooked and I can’t imagine ever doing anything else.

The biggest piece of advice I can offer to any entrepreneur is embrace failure. Don’t be afraid of stumbling and surround yourself with people who will help pick you up. We’ve all been there and it’s nothing to be ashamed of. The way I see it is, if you don’t make mistakes then how do you learn? How do you make things better if you have nothing to compare with? I can almost guarantee that every successful entrepreneur you can think of has failed at some stage in their career. They just learnt how to use the experience to their advantage.

I invest in people, that’s what I love to do. During my time in the Den, I invested in some very random businesses, most of which the other Dragon’s laughed at me for. I was always asked why and the truth is, people are my kryptonite. I’m a sucker for a really passionate, driven entrepreneur. I was always interested in hearing the story behind the product and believed that if they had self-belief, had carried out effective research that identified a need in the market (and the idea wasn’t completely ridiculous) chances are it could work.

It was this that once encouraged me to invest in a sandwich shop called Benjy’s. If I could turn back time I would tell my young self, James think about this – you know nothing about the food industry, you have no contacts or experience, you haven’t done your research – take your time! When I bought the business, it had huge debts and although at first I thought I could tackle them, I ended up losing a lot of money and sold again within six months. I was really disappointed because I realised I could have avoided the mistake if I’d remembered my principles – putting money into things you don’t understand is never a good idea.

Whenever I’ve made mistakes it’s because I’ve not understood enough to make a considered decision. I didn’t take into consideration the implications and risks of investing in an industry I knew nothing about. I just assumed that because I’d built a successful business before, I could do it again. In essence – I over-promoted myself too early.

I see entrepreneurs doing this all the time; saying yes to anything and everything and underestimating the scale of a project. You may think you can’t turn down business but if you can’t work to agreed deliverables, you’ll end up disappointing clients and damaging your brand.

It’s natural that the more successful you become, the more work you end up taking on but before you commit to making it happen, learn from my mistake and think about the repercussions.

Over-promotion is a slippery slope. Just because I was successful in recruitment, that didn’t mean I could run a sandwich shop. Don’t let your over-promotion get the better of you. Failure is part of the journey, but that doesn’t mean you have to actively seek it.

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Over-promoting yourself as an entrepreneur

If you are not feeling 100% committed to the business, you’re not doing it any good. Some people are great at starting a business but struggle managing it and others vice versa. I’ve been building businesses for 30 years and I’ve learnt that each entrepreneur has their own story to tell, personal indicators that impact decisions and this is especially true when you go through a sale.

It’s always assumed that being an entrepreneur and owning your own business means you have money. In reality, your cash is all tied up in the business and anything you make goes straight back into building it. The truth is, the first time I actually had wealth was when I sold my first recruitment business, Alexander Mann.

I always remember when I was thinking of selling, everyone said me ‘why James!? It’s one of the biggest recruitment companies in the world – it’s your livelihood!’ and they were right.

Alexander Mann was my baby and I had put everything I had into making it a success. My personal indicator was a feeling of exasperation – I didn’t have any more to give and I knew that if I carried on, the rest of my working life would be predictable.

When I went to get the business valued, I was sure I’d get a great return. I’d built an amazing business that was soaring above the competition. Boy was I wrong! The broker told me there’s no way my business was ready for sale – It had no real structure or long term strategy. The whole business was built around me. I didn’t have a strong management team and I had no infrastructure – my bookkeeper was my mate! I learnt my lesson that day and it took me 5 years to build the business into a viable, saleable business.

When I sold, the business had achieved £130 million in revenue. Upon reflection, I could’ve stayed and the business would probably be hitting £600 million in profits but instead of financial success, I chose the idea of freedom.

Selling a business is a difficult process but there are a few key thing you should be thinking about.

• You need a strong management team. Your business needs to have real infrastructure. You need to show great governance with an effective board, clear strategy, reliable finance and administrative operations and a route to market. I meet many entrepreneurs whose business would fall apart without them because they are the business. When you’re looking to sell, this can’t be the case. If this sounds like you, I’d say you’re running a lifestyle business – a boutique, not a business. Think of it like a game of Jenga – nobody is going to buy something that will fall apart without the strongest block in place.
• A buyer needs to know your brand. Brand identity is essential in the selling process and if you haven’t prioritised it’s development, be prepared to be disappointed with the amount of buyer interest. Your brand is the most openly accessible analysis of the business and potential buyers will want something strong and recognisable enough to carry itself through a business restructure.
• Define your scalability. Ask yourself, is the business scaleable? This is the most important component in the sale. The buyer wants to make money and if your future growth is limited then, of course, this makes the business very difficult to sell. Show your potential buyer just how scaleable the business could be by sharing any future predictions that will excite them.

If you’re contemplating selling your business, think carefully about these aspects. Sell when you are ready to sell and don’t just accept any old offer. Starting a business is one of the most rewarding adventures imaginable, end that adventure on a high and exit with the confidence that you’ve made the right decision.

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How to sell your business

As a fellow entrepreneur, this really excites me. Times have certainly changed since I first began my entrepreneurial journey and I am so happy to see so many people identifying entrepreneurship as a respectable, rewarding career choice.

So, what can corporate businesses learn from startups? A question I’ve been asked hundreds of times and one I never tire of answering. I like to think that my businesses adapt characteristics of both as professional, dynamic and flexible organisations.

Firstly, the most important start-up characteristic to think about (and my favourite) is valuing the individual. Often, great people go missing in corporate industries, their particular expertise is not always recognised or taken advantage of and sometimes this can be demotivating as they do not feel valued in their role. I am passionate about people – they are the drivers of a business and attracting the right talent should always be a main objective. One of the best things about startup businesses is they often give their staff the freedom to develop and mould their roles which results in a shared passion for success because they are not limited or constrained by their job title. They’re also not afraid of putting in long hours because in a startup business, everyone has the opportunity to be a hero and upskill quickly because of the ‘everyone muck in’ mentality.

Startups possess the passion to keep moving forward rather than clock watching, there’s not one entrepreneur who made their fortune strictly working 8 hours a day, counting down the minutes until 5:30pm. Now I know there are lots of people working in corporate businesses who love their job but there is certainly something special about being part of a startup business. Being an entrepreneur is not a 9-5 job, it’s an all day, every day kind of job. There’s not one person at Hamilton Bradshaw who actively seeks to leave dead on time because they’re here to make a difference and they know that they’re appreciated, they have been specifically selected and are here for a reason. By adopting this strategy, and setting your employees clear objectives for mutual success, you’re adding value to your business; it’s all about sharing passion for your industry with other like-minded individuals.

As well as this, startups have the ability to recognise the impact they can make on someone’s life. Typically, corporate businesses are fixated with how they’re going to bill their first million. This is fundamental in business but what they can often forget is how to go about making that happen, how understanding the importance of people and making an impact internally will be beneficial in the long run, both financially and culturally.

The Swiss Army knife approach is a metaphor I like to use when describing a startups approach to projects – their willingness to be everything at once means they are competent, motivated and happy to accept constructive criticism through mentorship. By offering this to your staff, you are simultaneously bettering your business and their skill set and automatically making yourself more admirable to potential new talent.

The common themes with each of these aspects are pride and humility and I think these are two concepts corporate businesses can often take for granted or leave behind. By incorporating these into your business you are considering the importance of people and will create a work culture that is attractive, effective and ultimately, remunerative.

Image: Startup via Shutterstock

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Corporate vs. Startup

‘New year, new career’ has made its usual appearance across media channels this month and the encouragement of annual reflections often makes employees wonder if the grass is greener on the other side?

Reflecting on 2014 reminds us all to think about our career focused New Year resolutions and ensure we have done everything we promised we would do the year before.

More importantly though, it prompts us to focus on projections for 2015.

Annual reviews always seem to be met with negativity and dread but really, they should be welcomed as the perfect opportunity to map out your year and discuss mutual progress trackers.

As an employer, it is important that you communicate clearly to your staff what you’re expecting from them and what success looks like to you. Setting these goals will not only aid their productivity, it will also improve your working relationship and reputation as a good manager.

As well as a time for nostalgia, January is the time to set goals for 2015 and drive ambition throughout your business. Re-engage with your team; are you confident they are happy? Ask them these questions and reiterate why they are so valuable to you and this is especially true when it comes to annual reviews.

As a manager or business owner, you have a real vision of where your business is going, you know exactly what your plans are for the next 3, 6, 12 months but do your team? Make sure you are consistently sharing your vision with them.

Employees who feel irrelevant in their roles are ripe for headhunting. If you do not make each individual member of your team part of the business’ future progress, recruiting new staff is a consequence you may have to face.

Sometimes staff can feel like they’re efforts aren’t being recognised, so make sure you demonstrate their value and contribution during the planning process. Every employee from the apprentice up to Director should be clear on their role in achieving your business goals for the year ahead.

As an employee, working towards a shared goal is one of the best ways to analyse your own performance too. Once you have worked with your manager to establish what success looks like, you will always have an indicator to help keep you on track.

Remember, a review is for you as much as it is for your manager, so when it’s time, make sure you have a list of things you want to cover.

Have a think about the process of goal setting; what are the steps you need to take to reach the next level?

Are there any obstacles preventing you from getting there? Identity the contacts and information needed to achieve the goal and finally review and assess.

As a leader, understandably your business is your passion, you put in every hour of your day to ensuring its success and of course your team will possess a similar kind of dedication.

However, you need to realise that, that same level of drive and passion will not always be equally shared by your employees, so it’s important to maintain motivation and provide career progression.

It’s your job to drive your staff because your people ultimately drive your business.

As an employee, understanding what success looks like for 2015 means you‘re in a better position to explain why you deserve that bonus, pay rise, new responsibility etc.

As an employer, setting clear goals and giving good feedback on last year’s progress will ensure your team stay motivated, and on course to help your business grow.

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James Caan on growing your business in 2015

It may seem too easy but you’d be surprised by the amount of business I’ve gained through successful networking and this is why it is such key component to a business’ success, particularly in the early days.

Typically, entrepreneurs are used to going at it alone so often miss the opportunity (or even avoid the opportunity) to network and build relationships with key figures in the industry.

Making an effort to network can open doors and aid the development of your reputation in the industry and although it’s sometimes a daunting experience, the potential benefits make it all worthwhile. It is natural to feel nervous when networking, when I was first starting out I would freeze speaking to a large group of strangers but, in time, I gained confidence and it wasn’t so scary anymore. I find the best way to tackle nerves is to stop thinking of it as purely a business opportunity and have some fun! It is a social event at the end of the day, relax and people will be more likely to warm to you.

Remember, It’s not just about you so don’t spend the whole time constantly trying to sell your services – networking is a two way process and to do it effectively you need to listen, observe and contribute to the conversation. It may be tedious but it is critical, if you’re not talking about your business, who is?

We’re all guilty of underestimating the power of networking, myself included. As entrepreneurs we are reluctant to take time away from working hard to network without realising networking is actually one of the most import and remunerative marketing strategies out there!

Making a real effort to network will open your eyes to business opportunities you didn’t even know existed – and vice versa. Only recently I was at a property conference and just by chance I was speaking with somebody who said “James, I understand you do real estate I’ve got a great building you may be interested in” and like that I find out he has a property opposite my office for a great price.

You never know what is around the corner and networking is a great way to seek opportunities and make a lasting impression on potential clients and competitors. It will help establish your branding and enable the scale of your business through word of mouth. The only way a business can survive is by gaining customers and a good customer acquisition strategy requires a lot of effort and relationship building but the availability of networking makes it the easiest way to penetrate the market and progress.

Image: Success via Shutterstock

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James Caan: The Key to business progression

In the modern world, entrepreneurship is more popular than ever. But ironically, that same world makes it more and more difficult for entrepreneurs to be what I call ruthlessly focused.

One of the toughest jobs any business owner has is getting enough value from their time. There are so many distractions and the pace of life is so quick that things can end up being a blur. As well as being unhealthy for you as an individual, it is also unhealthy for your business.

I am a firm believer that every entrepreneur should work towards fixed goals. Never make the mistake of playing things by ear and seeing how it goes. Have a specific and measurable outcome, which means vague goals such as ‘wanting to grow’ won’t work. Do you want to grow sales or profit margins, and by how much? Or perhaps you want to grow your brand awareness – again, how will you measure this?

I would also advise making your business a specialist in some way, shape or form. Don’t try and be everything to everyone – find your area of expertise and stick to it. Every client or customer I’ve ever spoken to wants to have a conversation with somebody who knows exactly what they are talking about. Being a jack of all trades but master of none will help nobody, and this is particularly important for any businesses about to expand. Whatever you do, ensure you don’t lose your core strength or USP – it is exactly the thing that has got you this far.

The difference between those entrepreneurs that stay focused and those that don’t often comes down to how they are affected by ‘noise’. This is the day to day aspect of the business which often takes up so much time that you are unable to focus on the actual strategy of the business. Being able to step away from this ‘noise’ and give yourself time to think is the only way your business will actually grow.

I am in the office every Saturday from 10am to midday, and have been doing this for 30 years. This for me is the perfect time to actually sit down and review what has happened in the business over the last week and whether we are on course to meet our targets. The actual format, location or timing isn’t important, but you must give yourself the opportunity to think strategically.

The other thing you need to master is delegation. There are plenty of nice to have activities which you as an owner don’t always need to do. It can be emails, it can be admin, or even having to mediate between two workers in a conflict. I am not saying these are unimportant – but in the grand scheme of things, you as a business owner should delegate and concentrate on other areas where you add the most value.

Image: Focus via Shutterstock

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Being Ruthlessly Focused: The Key To Entrepreneurship

After all, if you have spent years nurturing the business, you want to ensure it is sold to the right buyer and that you get the best value.

The exit process itself can be complex and emotional, but it needs to be detailed. This is not something you should do in the space of a few months – to get the best results you need to have actually prepared it for exit.

When I wanted to sell my first business, I was stunned when the experts valued it a lot lower than I expected. We were one of the most successful recruitment businesses around; however the experts weren’t just looking at that. They were concerned with the fact that the business was built heavily around me. Quite simply, nobody wants to buy a business that will crumble if the founder is no longer there.

So I spent the next few years ensuring the business was less reliant on me. I added additional layers of management, I brought in an Executive Chairman and I implemented more processes. I looked at any inefficiencies, for example our technological systems which needed updating. Although it was almost 5 years before I finally sold it, the returns I got were substantially more.

Think of this process like selling a house. Would you really start bringing potential buyers around for viewings before the walls were painted and the large cracks had been covered?

A buyer will want to ensure that the team can support the business going forward, so you need to ensure you have a strong senior management structure. Offering them shares can be a great driver here – remember the whole point is that things continues to run like clockwork after you have left the business.

Remember that the value of a business is achieved in a number of ways. There are many tangible factors – for example profitability, the strength of the order book, the number of long-term customers you have and the value of all property and assets. However there are also things such as the strength of the brand which may not be as easy to quantify, but can have a huge effect on the way you are viewed.
This leads me onto something that I call the ‘opportunity map’. Essentially this is the story of your company. I don’t just mean your journey so far, but what you will achieve in the future. Think about growth opportunities and expansion plans – the more detailed and successful these are, the better the value of the business.
Finally, think about the buyers. Do you want to sell to a competitor, someone overseas or perhaps some sort of investment fund or private equity firm? Every buyer will have different intentions so you need to think very carefully about this. If many of your employees are still remaining with the business, think of how each buyer’s motives could affect them. Essentially, just as they will conduct due diligence on your business – you should be doing the same to them.

Image: concept of exit strategy via Shutterstock

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James Caan: Getting your exit strategy right

Amongst all the tools entrepreneurs have, there is no doubt in my mind that the most significant is their experience and knowledge.

This is something which, often can’t be quantified in the same way as profits or net worth figures, but makes a huge difference to a business’s employees, as well as others who want to start a business.

I am a passionate believer in the concept of mentoring. I have never been one of those business owners who want to leave everything as it is – it’s important that the people who work for me develop on a personal level as well. From a business perspective this is also a big help, because you want your employees to become well-rounded and multi-skilled individuals. There is nothing better than taking somebody on at a relatively junior level, and then seeing them progress through the ranks to become one of the senior people within the business.

Of course when an organisation grows then it is not possible for the owner to be a mentor to everybody. But this is where a culture of mentorship – if you have implemented one – pays off. You may mentor some of the senior people underneath you, and they may do the same with people in their departments. What you end up with is a situation where everybody in the company has someone who can guide them not just in terms of the work they do, but what they will do in the future. In particular, many junior employees need help in terms of defining a career path and it’s important these aren’t neglected.

As well as guiding those who work for you, I’m a big believer that entrepreneurs should give back to the business community. I still feel that, certainly here in the UK, there isn’t enough of a support network for entrepreneurs. It is of course improving – I am Chairman of the Start Up Loans Company, and the mentoring we offer to every loan recipient is just as valuable as the capital we give them. But I think we still have some way to go, because quite frankly, anything that can go wrong when running a business will go wrong. Whether it is customers not paying on time, suppliers raising their prices, employees leaving or a bigger competitor coming in and taking your market share – there are all manner of issues entrepreneurs have to contend with. How much easier would it be if they all had somebody experienced and objective that they could turn to?

I have over 40 businesses within my portfolio and I see myself as a mentor to every single CEO. Crucially though, I encourage all of the CEOs to create a network between themselves, because whatever issue one of them may be facing, you can guarantee that someone else in the portfolio has been through the same thing.

Even on a more general level, the Internet has provided another route for entrepreneurs to help each other. I hope that columns such as the ones I write for Business Matters can have some impact, whilst there are plenty of forums available specifically for entrepreneurs to ask each other for advice.

At the end of the day, running a business is one of the toughest yet most rewarding things anybody can do. By sharing our experiences with both our employees and the wider business community, we can all contribute to a thriving economy that gets more and more entrepreneurial by the day.

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The importance of mentoring

I wholeheartedly believe that there are opportunities for British businesses to make a name for themselves abroad, but not enough preparation goes into it.

Timing is everything. Whenever people ask me if they should expand overseas, the first thing I ask them is what percentage of their domestic market they have. There are so many things to take into account when going abroad – regulations, Government policies, customer trends, cultures, currency – the list goes on. If you don’t have a substantial share of your market in the UK – where you are familiar with all of the above challenges – then trying to expand internationally is a huge risk. In other words, there’s no point in going to California when you haven’t even cracked Camden.

If you are serious about expanding, give yourself plenty of time to go out there and conduct research, as well as build relationships. This second point in particular is crucial – having a partner who knows all the nuances of that country’s market will make life so much easier for you. The bigger the country, or the more countries you are planning to expand to, the more detailed your research will need to be. I once had a business that had offices in 30 different countries and the employment laws in a number of them were totally different to the UK. When you consider that this was a recruitment business, it was vital we got to grips with the laws in every single one of them.

Somewhere like America can be even more difficult because of varying national and local regulations. In addition the customer culture can vary as well. This is one of the reasons there have been many successful British businesses that have gone to the USA and really struggled. Even things such as symbols and colours have to be carefully considered, as they have different meanings in different countries.

Depending on the type of business you have, you will need to ensure your budget can afford all of the costs associated with going abroad. There are of course some businesses which merely need to demonstrate their global footprint but won’t actually be in all those locations all the time. If this is the case, you can consider virtual offices – a cost effective product which gives you access to a name, address, location and phone number abroad, without a physical office space.

Develop a close understanding of currency relationships and inflation. You may have conducted all your research and done everything right, but if you haven’t understood the currency then your profits may be less than you think I remember having a business in Turkey that lost a significant portion of its year-end profits due to unpredictable inflation and currency fluctuations.

Businesses that go overseas can really take themselves on to another level, and if you get it right you have the opportunity to become hugely successful. However if you get it wrong you can suffer great losses. Therefore the ability to prepare properly and read the market – skills every entrepreneur needs – takes on more importance than ever.

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Preparation is key when expanding your business abroad

I speak from experience here – when I started my first business Alexander Mann, it became successful but it took me a long time to scale it into something even bigger. I recognised that there were three stages to a business – starting from scratch and getting a million pound turnover, then going to a £10m turnover, and then taking it to £100m and beyond.

At the time, I felt I was quite good at the first two stages, but lacked some of the know-how to take it up a notch. Therefore I hired somebody that had built and grown recruitment companies before. He was probably my first big senior hire and made a tremendous difference. I had no hesitation in giving him large amounts of responsibility, and although initially it was a strange feeling to see him doing a lot of the things I used to do, it very quickly became apparent that he was going to take us to the next level and give me the skills to do so in the future.

This is actually something a lot of entrepreneurs struggle to do – delegate. It is often the case that somebody will start a business and naturally be very protective of it. There is also the traditional entrepreneur’s mentality of wanting to do everything yourself. But the fact remains that the growth of a business will always come down to the people within it.

As the owner-manager, there are two excellent reasons for delegating. Firstly, you need time to remove yourself from what I call the ‘noise’ so you can think strategically about how the company will move forward. In the case of Alexander Mann, having that senior figure allowed me to think about how I could expand the business into other sectors.

Secondly, you need people who are experts in all areas of a business. The chances of you being brilliant at everything, from marketing to finance to sales, are slim. Bringing people on board who are experts in specific departments will help your business be more efficient and enhance its ability to grow.

To this end, the recruitment process is all important. I have spoken in the past about the importance of your first hire, but in truth, every hire is critical, especially at the SME stage. If you are truly committed to growing your business, it is often a good idea to bring in people that are have been there and done it before.

You may feel you lack the capital to attract these experienced people, as they will generally command high salaries – in that case, consider sharing equity with them. I have done this many times and it is absolutely worth it, because if that person buys into your vision and is motivated by a slice of the profits, it becomes a win-win situation. Don’t feel as though you are losing control, because as I have always said – it is better to own a smaller slice of a business that has real value, than 100% of something worth very little.

What also helps is having a good vision of where you want your business to be. Some entrepreneurs think only about today – but I believe in thinking about tomorrow, the week after, and the following year as well. I’ve just relaunched my Recruitment Entrepreneur campaign, where I’m offering up to £500,000 and mentoring to somebody who wants to start their own recruitment business. The person I back has to be someone who thinks ahead and has the ambition to grow a business of real value. Of course there will always be twists and turns along the way and every entrepreneur needs to be flexible enough to react to these. But without long-term goals and a vision to work towards, your company simply won’t be scalable.

It is also important to be totally honest with where your business is currently.. There are things you may be getting away with right now, such as any inefficiency within your systems. But once you scale up, these can be more costly, so look to solve them first. You may also need to restructure the business to make it ‘leaner’ – this requires cost cutting, which isn’t the easiest process but can lead to greater staff engagement and involvement in the long-term. And as ever, it is the long-term which you need to have in mind.

Read more:
The Secrets To Scaling Your SME

James will be providing entrepreneurs with the funding to build a business of real scale, as well as support and mentorship around strategy, IT, infrastructure, branding, marketing, finance and legal – all designed to help passionate individuals or teams grow sustainable, profitable recruitment companies in any sector.

James said: “After 30 years in the industry, I am now in a position where I can share not only my financial capital, but also my intellectual capital and experience, with passionate people looking for the same opportunity I had – to build a multimillion pound recruitment business.”

So what’s he looking for?

“dynamic people in any sector who are passionate about recruitment and ready to take the next step in their career by starting their own business. The ideal person would have at least five years of successful recruitment experience, and be a natural leader who can attract and manage talented people.”

“Being a big biller and being a business leader are two very different things. All the people I have invested in have different strengths and levels of experience. The one thing they all share is a passion for recruitment, passion for their sector and the motivation to grow a business of true standing and scale in the market.”

As a result of the success of his last two Recruitment Entrepreneur campaigns, James has invested in three teams to date. The closing date is 8th June, for more information and to apply visit the website at http://recruitmententrepreneur.com/apply-now/.

Read more:
James Caan Announces the Launch of his Third Search for the Next Recruitment Entrepreneur

For me, seeing other people become their own boss is just as exciting as when I first did it thirty years ago.

Becoming an entrepreneur is now seen as something to aspire towards. Perhaps it is due to the uncertainty there was in the jobs market during the recession, but there are now more and more people who want to get out there and start their own businesses.

There is often a perception that business ideas can only be formed by entrepreneurs; those risk-taking mavericks who shun the corporate world. This may be true in a lot of cases. But there is another group of people who are just as capable of coming up with ideas and innovations which can help businesses grow to another level. These people are known as intrapreneurs.

They are the employees who can make a difference to a business simply because of the way they think. They may not have the typical entrepreneurial personality but their ability to read the market, think outside of the box and potentially transform a sector makes them a valuable asset to any company.

About 15 years ago when I was running my first business Alexander Mann, one of my employees, Rosaleen Blair, spotted an opportunity in the recruitment market and came to me wanting to start her own division. To a lot of people she may not have been an obvious candidate to back, but the idea she had, which was to offer outsourced recruitment solutions, was a bit of an industry game-changer. The more she spoke to me, the more her creativity and passion stood out. I decided to back her, and not only did she make a huge success out of it, she brought something completely new to the recruitment sector.

Another example is the creation of one of the most well-known products in the world – the PlayStation. The console was not the idea of a big R&D team with a huge budget; it was the creation of an employee working on his own initiative.

Ken Kutaragi was a Sony employee who realised the potential of the video game industry, something the company considered a waste of time. He went through various ups and downs, including having to work in secret with Nintendo and almost losing his job. Fortunately the CEO of Sony saw something in him and his idea. Eventually the PlayStation was released and it is now one of the best-selling gadgets of all time, having produced phenomenal results for Sony.

I believe every organisation has a Rosaleen or Ken within it; the key is for the senior management to spot their talent and give them the platform to put forward ideas.

I have spoken before about the need to create a good culture within your business. There shouldn’t be an environment where creativity is stifled. Everybody, no matter what their level of seniority, should be encouraged to contribute to the strategy of the company.

You may even want to set aside a time and place where people can get together and specifically discuss new ideas. It can be quite useful for them to have some time from the daily operations to get their creative juices flowing.

Business owners should always be aware of the talent and innovation that may be lurking within their own organisation. Intrapreneurs have this unique ability to work within the structure of an organisation, whilst also thinking outside of the box. If you are open to their ideas, then you may just find your business moving onto another level.

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Why entrepreneurs need to keep an eye out for intrapreneurs

Driven and motivated individuals are important in any organisation, but this is particularly important for those SMEs where every single person needs to be at their absolute maximum. In an environment like this, you as a manager can’t afford to have people falling below their required level, as there is less margin for error than there would be in a larger business. If this does happen, you need a proper plan in place to deal with it. This should incorporate regular updates and reviews, as well as honest discussions to see if there are any deeper issues which are affecting performance.

There are several ways you can ensure that your staff are well motivated, and this does not just mean financial incentives. Of course this is a key driver for most people, and I am a firm believer in linking bonuses to tangible results. By doing this your staff have an obvious reward for meeting or exceeding expectations – whether it’s a salesperson who has to bring in new business, a credit controller who has to save costs, or the receptionist that needs to provide exceptional service.

But I also believe in making sure the people who work for you have an emotional as well as a financial investment in the business. If you can get your staff dedicated to the company’s values, then you will increase loyalty. This in turn leads to stability, which is particularly important for an SME as the cost of replacing staff can be quite high. It also means they will be providing a genuine and high quality service to your customers or clients.

If you really want to create an innovative and entrepreneurial company, then you should look to have a blend of skills and characteristics on your team. People with different talents and characteristics will bring a variety of approaches to problems and can bounce ideas off each other. But this also means that the one-size-fits-all approach to motivation is not an option. Everybody is wired differently and a key part of a manager’s job is to understand what makes each member of staff tick.

Some people need encouragement and support from time to time, while others might be more self-motivated and independent. Of course as a company grows, it becomes more difficult for the person at the top to know the strengths and weaknesses of all their employees. This is where the hiring process becomes more important than ever – the people being brought in to manage different departments need to take on this responsibility.

Of course most employees also want to be in an environment where they can enjoy themselves. It is often said that you don’t have to like somebody to work with them, and this may be true. But to get the best results, particularly in a smaller business, you should aim to create a strong team spirit and camaraderie. Regular activities and social events are seen by some managers as a waste of money – but what price can you put on a well-motivated workforce?

What I’ve also found in all my businesses is that a culture where people can put forward ideas at will is a brilliant motivator. This is particularly the case for new and junior staff members. Remember these are generally the people at the coalface of the business; the ones who are dealing with customers on a regular basis. By allowing them to contribute ideas you are telling them how much you value their opinion, and for an employee there is no better feeling that this.

Read more:
How to get your team motivated

I have long said that the recruitment sector is a good indicator of where our economy is heading. It is one of the first to suffer in a recession, as businesses cut down on hiring – and one of the first to pick up in a recovery. It is now predicted to surpass its pre-recession peak in terms of turnover, which is a clear indicator of how the job market is picking up.

For those small and medium sized enterprises which are the heartbeat of the economy, this is now a crucial time. Last week, Business Matters spoke about how SMEs can best retain their talent, as employees may be tempted to move jobs now that there is less uncertainty. But just as important as talent retention is talent attraction. A successful business is built on the passion and quality of the people within it, and getting the right people on board is the best way to drive a company forward.

What I often do at Hamilton Bradshaw is look for people rather than a specific job. When I find somebody who I believe has the ability and personality I am looking for, I create a role specifically for them. I do this several times a year and have found this to be the best way of taking my business to the next level.

A lot of SMEs worry that they will not be able to compete with the large corporates when it comes to hiring, but one of the biggest things a small business has going for it is the culture – by nature they are generally more flexible and entrepreneurial. If you can communicate this properly then you will be just as appealing to work for.

Word of mouth plays a key role here. If your current staff enjoy the working environment – which is often less bureaucratic than you’d find elsewhere – then you will find that their industry peers will sit up and take notice. Consider offering rewards for employee referrals. Not only does it encourage your current staff to network, which is always good practice, but it means people who come into the business will have a clear picture of exactly what it’s like to work for you.

Remember the recruitment process is an opportunity for you to really sell the benefits you offer. Working in a small business allows employees to take on more responsibility and be a lot closer to the decision making process – by emphasising this you will appeal to the ambitious nature of many people. Be clear in your job advert – who will they be reporting to? If it’s directly to management, this means they have the opportunity to learn from the very top, which is often a great selling point.

Some of the most talented people are the ones who don’t want to be fixed into a rigid career path. For example someone may not be suited to running an entire department, but may wish to instead manage a small team. This isn’t always possible in those companies where there is a strict route but working for an SME means they can customise their development.

When you start to receive applications and you see someone you like, invite the candidate to interview to ensure you don’t miss out on any talent. Carefully plan who is going to run the interview, what you are going to ask, and how you will sell the opportunity. Consider showing them around the office as part of the process and introduce them to the key people.

Recruitment is a critical activity for any organisation. But by communicating the unique values you have as a small company and the opportunities you can offer, attracting the right person for your role should become easier.

Read more:
How to attract the best talent

While I do feel for the 4,500 staff at HMV, I am sure this situation has come as no surprise. The disappearance of a record shop on every high street and the phenomenal growth in online sales means the HMV business model simply couldn’t survive. A business has to be fast and flexible in meeting its customers’ needs, including how the customer chooses to interact with you.

A great example of a traditional company that has adapted to the times is Auto-trader, the car sales magazine that has moved online and has still retained its No.1 position in the market, demonstrating its ability to meet its customers’ demand for online search.

Businesses have to adapt to survive and have sustainable models that reflect current consumer demands. Britain needs to support entrepreneurs who can deliver innovative and new ways of working that address changing consumer demands. Start-Up Loans is one example of an initiative designed to encourage and support enterprise across the England.

The country’s positive sentiment towards a more enterprising economy was evident in a recent nationwide poll around the Government’s Start-Up Loans initiative which is aimed at stimulating enterprise amongst young people across England.

The Guardian poll asked ‘Will the changes made to the government’s Start Up loan scheme create a more entrepreneurial culture in the UK?’ was met with 85% agreement that the changes would help businesses start and grow.

The changes referred to in the poll include an increase in the age of those eligible for support from 18-24 to those up to and including 30 years of age. This also lead to an additional £30million funding announced by the Prime Minister earlier this year, increasing the amount of money available to be lent for new businesses.

The Prime Minister said at the time: “It is by backing our entrepreneurs and championing small business that we can drive forward and grow the economy, and equip this country for the highly competitive era we are in.”

“Start-Up Loans are a great way to help this next generation of entrepreneurs get the financial help – and the confidence – to turn that spark of an idea, into a growing, thriving business.”

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HMV failure paves way for newer more adaptable entrepreneurial UK businesses