Oct 2023 - Catching the Wave
“If you talk to a man in a language he understands, that goes to his head. If you talk to him in his language, that goes to his heart." – Nelson Mandela
A HORIZON SCAN – WHERE RISK AND OPPORTUNITIES RESIDE
ESSEX BUSINESS ACCELERATOR #7
We are delighted to deliver another version of our unique business accelerator. Commissioned by Colbea and funded by ECC, this eight-week programme works with a? cohort of regional entrepreneurs and inspires them to go beyond their current thinking. They will experience the opportunity to test out and develop a new narrative for their business, explore new avenues and appreciate how to use some of the most up-to-date thinking. They will practice pitching and go through a process that engages with business development systemically, looking to the externalities as key drivers of opportunity.
WEBINARS TO BECOME A MONTHLY COMMUNITY FEATURE.
We are delivering a webinar on referrals as a driver of business growth. It will take place on the 19th of October at 4 PM, so if you are interested in learning more about the referral process, why you need a strategy for growing word-of-mouth and, equally importantly, a referral network that advocates for you.?
In the "Conquer Referral Marketing -? A Strategy to Boost Business Growth Through Meaningful Connections" webinar, we will cover:
LinkedIn Mastery – learn how to maximise the platform’s potential for your business
The Weave Most Trusted Chrome Extension – our top-rated Chrome Extension is a tool that enables you to build a list of your trusted connections and use exclusive introductions
Relationship Building – gain insights into building meaningful connections that last
Does your business have creativity at its heart? Applications for Create South East Cohort 3 are now open!
Create South East is designed to help creative businesses operating in Kent, Essex, or Sussex secure investment and grow. The programme will support you through mentoring, peer-to-peer cohorts, workshops and networking. It is tailored to the needs of different creative disciplines, their respective markets, governance and distribution models. You can apply for the programme anytime by submitting an Expression of Interest form on the Create South East website . If you are eligible, you will be invited to meet a Create South East team member to learn more about the programme and how it can help you grow your business.
"Our region is full of incredible creative talent. Create South East is here to bring our collective expertise and experience, so whether you work in architecture, design, fashion, films, games, performance or TV, let's take your ambitions a step closer to being a business reality."
Angels@Essex , Creative UK, Screen South, Wired Sussex
TRENDS
A monthly horizon scan as we look around at what’s being talked about Nationally and Globally. We identify potential threats and opportunities that should appear on all our radars.?
Headline of the Month
“A jobs bonanza stirs fears the American economy is overheating.’
How can a US economy be overheating despite the interest hikes that it has endured? That is a question that many are asking after a robust set of job data. 336,000 jobs were created in the US last month, the most since January and nearly double the expectations. Pressure is mounting in the system as bond yields have shifted significantly higher across the time horizon. The US leads the way, and the UK and Europe follow; as yields rise, so do the costs associated with refinancing existing debt and acquiring new. Investors have more to consider, not least the returns from a rising ‘risk-free’ rate vs possible earnings from the untested economy.? The Fed’s narrative of a system cooling due to their diligence and work has been somewhat scuppered, but it was not all bad news for them, as inflationary pressures remained subdued.?
What is interesting about the rise in global yields is where this is taking place. Long-term interest rates – which is truly uncomfortable for the policy makers. Government is paying?
In the UK, Metro Bank may have avoided bankruptcy, but at the cost of writing down existing debt valuations by 40%, this is a significant cost pressure in a banking system that has yet to feel the cold winds from China.? They may have survived the collapse but could have sustained damage below the waterline that only a significant restructuring and slimming down will cure. That could be painful for many as high street branches start to be closed.?
In this environment, there are two things we need to focus on - existing working capital and the ability to access new capital not just to keep the wheels turning but also to eliminate operational inefficiencies.?
How can you maximise working capital?
Focus one - is the current business model producing more than one revenue stream? If your business is operating one channel for revenues, and that channel is via invoicing and delayed payments, you need to explore alternative avenues and develop these. This could be as simple as productising an aspect of your service or delivery; if you sell to businesses, is there a consumer element that could work? Could you look at upfront payments for extended delivery or add a service contract that adds value to the end user, but only if they change their buying habits? Rolls Royce did this with service agreements, changing the terms to be paid for hours flown, shortening the service time for planes, creating a win-win for both.?
Focus number two – your cash conversion cycle (CCC). Not everything can be changed through business model innovation; sometimes, knowing where cash leaks from the system a good enough place is to start. The CCC shows you the speed at which cash flows out and into your business. Being aware of this is easier now we have the likes of Xero or QuickBooks, as all the data is available. Knowing is one thing; having a strategy to shorten the process is another.?
Focus number three – raise your prices. So many of us are fearful that a 5 or 10% price increase will damage existing clients and inhibit the taking on of new ones. What matters is NOT the price but the value – constantly seeking to add value – and the price resistance will dissipate. Change the pricing structure to a proactive model that rewards those who choose the offer, creating the most profit for you. If we raise prices whilst restructuring costs, we can see an added advantage of increasing contribution and therefore reach breakeven sooner or with fewer clients.?
Focus number four – external sources of capital. Many see this as lining up investors, but investors are only one source. Look to your suppliers – if you have a good relationship with suppliers, talk to them and explain the benefits of a more accommodating relationship for them, but also for you. Suppliers, especially if they are significantly larger than you, can often have more flexibility in payment terms than you first imagine. Other external sources are lines of credit, including prearranged overdrafts for rainy-day situations. Do you only have one banking relationship? If so, cultivate another, especially if they are divergent. We have a Triodos account and a Tide account – we use them both to manage where funds go because both entities offer different terms and opportunities. It is imprudent of us these days to believe loyalty is rewarded in the banking world.?
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SOCIAL TREND – Is isolation and loneliness killing us??
Humans are social animals, when we live and work alone, we can become self-absorbed, wrapped up in our own thinking. If we feel connected in a community or working as a team, our energy levels rise if we disconnect, we experience the latter. Post-redundancy, the best thing I ever did was start to build a community; it gave me purpose and brought new meaning to my life. Isolation can negatively impact mental and physical health. In a 2015 study, pre-pandemic, there was evidence that isolation and loneliness shortened life expectancy in over 25% of cases. One such study equated this risk as being the same as smoking 15 cigarettes a day. It is an issue that needs our attention – that is why we need to take notice of those businesses that embed a real community into their value offerings.?
I found the following blog post from Shona Wright, who writes news articles and features for TechSpark . In the blog, she looks at the UK scene and showcases five businesses looking to overcome the isolation that many in society may feel. It also inspired me to ask more questions about The Weave and how we can position our community as a force for good.
领英推荐
Of the five, I wanted to bring some focus on two of them -?
This award-winning Cornish Fintech startup wants to take the complexity out of personal financial management for young people. By personalising the journey using technology, they can help them “attain their goals and make adulting a little less daunting.” Fronted by a collective of data scientists, developers and humans, they are dedicated to removing anxiety and breaking barriers. As someone who has always battled financial literacy and imposter syndrome, a platform like this has many advantages.?
How could your business appeal to an excluded sector of society and change the conversation?
The second business I wanted to focus on is:
This startup is a health technology focused on matching people to the most appropriate support whilst using technology, reducing time and avoiding wasted searching. It works with organisations and community-based groups – and one I came across to see how we might work with it to support entrepreneurs as they struggle with mental health and building resilience.?
The Weave?
We believe that connecting the generations in a shared learning environment is a value proposition that supports the next generation of entrepreneurs and brings meaning to those towards the tail-end of their careers. So many skills languish – and we know after a long career, taking up the pressure of a new one may not be something to relish. The difference here is using your acquired knowledge and skills to enhance the next generation, which provides remuneration and creates a valuable exchange of knowledge.?
If you are interested in mentoring, please get in touch with [email protected] and place Mentoring in the email's subject or join the community and reach out from within.?
OKRs – What are they, and how can they help you achieve 40% more?
The Weave is launching its accountability programme – it is not free, but it will boost your productivity and give you that additional focus. We will host this in the community as a course and notify you when it goes live. In the meantime, you can explore some of the resources we have here https://wearetheweave.co.uk/okr ?
Objectives and Key Results (OKR) came to my attention after reading John Doerr’s excellent book Measure What Matters. We all may have rather vague aspirations about success, happiness and wealth. Equally, we may say we want to grow sales by 15%, but what does that all mean, and can they be interpreted as actions focused on outcomes? When we use the OKR model, things take a more empowering shape. We are encouraged to see our objectives as results that can be measured and how we empower growth through sharing. Teams and all stakeholders see where we are heading and can align themselves with you for the journey. So, how do they differ from SMART goal setting??
The primary differences are:
Flexibility: SMART goals tend to be more rigid, with specific criteria and deadlines. OKRs allow for more flexibility, encouraging teams to set ambitious objectives even if they may not be entirely achievable.
Focus on Ambition: OKRs often emphasise setting ambitious and challenging objectives, encouraging teams to aim high. SMART goals may prioritise more realistic and attainable targets.
Continuous Evaluation: OKRs typically involve regular check-ins and evaluations, promoting continuous improvement and adaptation. SMART goals may have less frequent evaluation periods.
Alignment: OKRs emphasise the individual and team goals aligning with broader organisational objectives. SMART goals may not explicitly highlight this alignment.
Quantitative vs. Qualitative: While SMART goals often focus on quantitative measures, OKRs can include quantitative and qualitative key results, providing a more holistic view of success.
There is a place for both, but we believe in the world of the aspirational entrepreneur, OKRs have the edge.?
WIN THIS BOOK AND SIGN UP FOR THE COMMUNITY BOOK CLUB – READING ROOMS
We are doing this! No, believe me, we are! We are thinking this through. It is not just that we want to stimulate learning and engagement; we want you to experience an end-game moment. That is why Reading Rooms, our book club, will go the whole 9 yards and present you with a formidable opportunity. We learn from what we read; we appreciate what it takes to get a book into the ether, overcoming personal inertia to do it. What if The Weave could help? In our community ranks, we have an expert in the publishing field – a writing coach willing to help us make this breakthrough. We also have the means to help you write and publish the book! Yes, think of that moment when a box of crisply presented books arrives at your home with your name on them. Quite a moment – and The Weave can make this happen.? The course is coming, it won’t be free, but it will be immense. In the meantime, if you want to experience the joys of collective reading, then engage with us – this is our first book: ?‘Fall in Love with the Problem, Not the Solution: A Handbook for Entrepreneurs’ by Uri Levine , the Founder of Waze, a billion-dollar business that takes the stress out of driving.?
Launched this year, the book is packed with smarts and wisdom. I first encountered Uri as a mentor on the Power MBA (great program) and listened and learned intently from him. This is our chance to do the same.?
So, if you want to join the book club, which is limited to 15 places, join the community (it’s FREE) and send me a DM in the chat function. I will enter you into the prize draw to win a copy of this book. What have you got to lose? We will announce the opening of Reading Rooms, and those who register first will get in. So,? ‘Good luck – Bonne Chance - Buena suerte- Viel Glück - In bocca al lupo - Boa sorte - Lykke til – Powodzenia’ – more about our values of inclusivity.?
STILL TAKING THE TEMPERATURE AND THANK THOSE WHO HAVE TAKEN OUR SURVEY - WE ARE ON THE ROAD TO HELPING THE NHS CELEBRATE 75 YEARS
We have a passion to get it right – a belief that we can convert aspiration into economic gain for you, the region and the next generation. To help us shape what matters and learn more about every one of you, please take our survey .
PROJECTS, NEWS AND FUTURE DIRECTIONS?
Failed funding bids have littered this summer’s activity. Was it wasted work? Well we don’t think so – it has been painstaking and absorbed many hours of writing and research but we are also gaining a new focus and direction.?
The work we did to put together the Innovate UK application created some additional clarity around the work we want to do to cross that generational divide. Perhaps this video, which was the submission we used, might help clarify where we are heading on this one https://youtu.be/ZsoAcUICYmE ?
We continued to have some amazing conversations for the Interwoven podcast but also to broaden the networks and find out more in what’s happening. We want to thank Triston Hellard-Smith from Shout Cyber as we discussed cyber security and its importance. Scott Warren on the value of proactive and well-thought-through pricing,? and Nils Elmark , futurist and leadership exemplar from Incepcion, a great conversation that may entice him to join us in Essex for an event. Libby Jervis , a Director at Think Acquisition, talked to us about the ins and outs of property markets and how they help professionals exit their businesses. We also discussed all things crowdfunding with Stephanie Yeates at ISQ Crowdfunding – as The Weave looked at its options for a raise. One person who we felt truly inspired by was Amreet Notta , we discussed the challenges of immigrant entrepreneurship and the cloudy nature of visas. Finally, but not least, we reconnected with the marvellous Lyndee Oscar , who is venturing into the world of entrepreneurial education for schools.?
What’s next??
We hope you enjoyed this version of Catching The Wave – if you saw value in it, please share. If you want more value, join the Weave on MightyNetworks .?
This is FREE to use and engage with, and your chance to help grow the region’s entrepreneurial talent.?