How to get the most out of life? Sir Richard Branson sums it up in a single word

March 2nd, 2010

I will always remember my first night on Necker Island home to Sir Richard Branson. We were just settling in and being made to feel very welcome. We have the entire island to the 4 of us and it is the most idyllic setting for a family holiday.

Stood in the Great House on the hill looking at a photo of Sam Branson and his friends, I turned around and Richard walked up to me arm outstretch and with a warm smile he bowed his head gently and welcomed me to his home. It is the greatest thing for me to meet such a distinguished businessman. I have many friends who have become incredibly successful. Most of them though are particularly hard with their staff and rule their businesses with an iron rod. Richard is someone who clearly breaks this mold and it is refreshing to see that he is a million miles away from the ludicrous business ethics they portray on The Apprentice.

It didn’t take him long to suss me out and pretty soon we were discussing sport. He is currently in training for the Virgin sponsored London Marathon. He had already heard I was a keen exerciser and immediately asked if I’d like to run with him. A couple of Richard’s guests arrived for drinks, they were staying on the nearby island. They owned and developed Vale and Beaver Creek in the US. (An amazing Ski Resort) During the conversation with Janet and Paul from Beaver Creek, one thing stuck out and it made an indelible mark in my brain that I think will be there forever.

Richard said, “well, if you say Yes! to everything, you are going to have a far more interesting life.”

In my 41 years on this planet nobody has ever give me such great advice or such a great directive. And it makes perfect sense. How many of us just potter through life and procrastinate. I have only been on the island less than a week, but I am 100% sure you will never see Sir Richard Branson procrastinating. He is a decisive character, who doesn’t stop for breath.

Before leaving for bed, I asked what time we should meet. He said “pop around to the house at 6.45am and just shout me if I am not up.”

I didn’t sleep a wink that night, excited at the prospect of continuing a great conversation with a fantastic philanthropist and entrepreneur.

We have since run for a number of hours together and I have had some solid business advice during my time following in his great footsteps. Advice that once you have heard it appears like complete common sense. However you could read a 100 books and find 50 different ways from a variety of experts which all contradict each other. So to hear it from someone you respect, immediately fills me with confidence. And actually now we have discussed it, I totally understand and I cannot wait to get back to UKFast and start implementing some of these great ideas.

Yesterday I ran with him a little later than before, and I reminded him of what he had said to me and what an impact it had.

I explained that you could have written an essay, yet in one short sentence he summed up just how simple you need to make it.

“If you say Yes! to everything, you are going to have a far more interesting life.”

What a great piece of advice and for anyone setting out as a young entrepreneur, in business, in school, wherever and whatever you are wanting to do, this is good advice. It is a simple strategy that I can promise you Branson lives by. He is a man with a large appetite for life and it grows bigger by the day, and I am sure his positive attitude towards just doing things straightaway, off the cuff without procrastinating has to have something to do with his enormous success.

I am very interested in how he portrays his feelings on this subject, as he decided to use the line as subject matter for a column he is doing for the New York Times. It is definately something to look out for.

Lawrence Jones UKFast

Dedicated Server Hosting, Manchester

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My Journey To Necker

February 25th, 2010

It would be a great deal easier just to explain that I hopped on a plane and flew there, after all I am currently flying on the smallest plane I have ever been in that we have chartered to take us from Barbados to Beef Island.

But in real terms the journey started way before. And if Richard Branson has taught me anything, the brand experience is truly transferrable between Virgin businesses.

My first encounter of Virgin was Culture Cub. A great band in the 80’s. They wrote a song called Victims, which has truly the best piano introduction of any pop song.

I went on to approach Virgin Records years later with a demo after recording a song called “Whenever the Leaves Fall” on a load of old recording equipment once owned by John Lennon. It was in a tiny recording studio, not much bigger than this cockpit.

I spent months trying to talk myself into an appointment at the old Virgin headquarters on Ladbrook Grove and Harrow road, London.

It was there I learnt the art of instant relationship building and the importance of getting to know the gate keeper. I’d ring back in different accents, and the receptionist would say, “is that you again Lawrence?”

I never gave in and one day after hearing the receptionist ask a colleague “is Danny in?” after I asked to speak with the head of A&R, after getting knocked back again, I rang back 10 minutes later and confidently said, “hi there, is Danny in yet?”

I was promptly put through. This technique and confidence has stood me in great stead for many years since.  On this occasion I was quickly brought down to earth with a bump after a lady answered the phone.

I said, “hi is Danny there?” “Danny speaking” the lady replied. I was taken aback as I was expecting a man!

In true Virgin style she was lovely and said on the basis that I had got this far, she agreed to see me.
I remember the meeting well, and she liked the track. The disadvantage I had was that I did not have a readily formed band. She was in the process of signing The Railway Children, ironically my next door neighbours in Salford! What is the likelihood of that?

In my opinion they signed the wrong act, and the Railway Children never left the platform. They spent their advance on MGB roadsters and were dropped after never cutting it.

I went on to get an offer from a chap called Brian St.James Carr, a well known solicitor involved with The Sex Pistols, PIL (Public Image Limited) and Andrew Lloyd Webber. He heard my songs and got me involved with a chap called Lawrence Roman an incredibly gifted classical musician who did all of Lloyd Webbers musical arrangements.

He did the clever stuff in my opinion and made Webber look amazing, however I was young and I thought I’d get loads of opportunities like this and I turned it down.

I then made a decision to make it on my own in business first and pursue my music later. I knew I would either be incredibly poor or incredibly rich but it was highly unlikely to be the latter on the basis of how the industry works.

I had also developed some friends who worked in the arts, and I quickly learned that I was not someone who coveted the limelight. I’d have thrived off a publishing deal, but being a star was not a motivator for me.

To be successful in anything you have to devote yourself to it fully. 20 years later, I am still devoted to the cause and although hugely successful in certain elements of our business I am only on the first few rungs of a very long ladder.

And the music? Well one day! That is if I ever calm down my love for developing people. When I met Gail, I sold my recording studio and focussed on developing UKFast.

Not a bad gamble as it turns out. Especially when you consider the odds that were against us.

If you use the Jim Collins 3 circles principal to identify should we have set up UKFast as a hosting business, I’d have quickly identified that this was a daft venture to embark on. However it does demonstrate that passion and determination can on occasions replace common sense and logic.

  1. can we be the best at it?
    Well truly honestly at the time, no way. We were competing with multimillion pound corporations. That being said, we have won 6 years out of 10 the ISPA’s Best Hosting Provider accolade, so it is funny how things turn out
  2. are we passionate about it?
    Absolutely. After trying to host our own domain name thegallery.com we had appalling trouble with a business called Newnet. Peter Coates (who recently sold his business for £3m) and his son Gary had huge potential, however they were techy people and appallingly arrogant. My wife just reading this laughed and asked if that was tetchy or techy? They were so bad that when we moved, we simply left our equipment with them as we couldn’t face dealing with them further.
  3. is it financially viable?
    Well, if I’d known the difficulties ahead, I would not have ventured down this road. We were self-funded, which is a posh way of saying we had no money; so everything had to work immediately. We had to work so hard around the clock, if we made one error, we were dead in the water. That was the simple truth of the matter. Not something you want over your shoulder, yet that being said, you wont get a bigger driver! If I didn’t sell, we didn’t eat.

Times are very different now. I have 2 wonderful kids and a wife, who is still my business partner, with the added responsibility of a working mum. We have been very lucky. We still have no debt (which is a posh way of saying, now we have money in the business) and we have had numerous offers from competitors to buy UKFast including one for in excess of £50m.

But it is not the money that motivates us, it is the journey that we are on, and I simply love every day and I live for the challenge.
So why Necker? Well, when I was turned down by Danny Van Endon at Virgin, I set a goal. Right, I thought, I will get there myself. One day I will do business with Branson and Virgin in some capacity. I will become successful on my own.

A few years later, I hired a Grand Piano to the Virgin company for a new artist at a place called the Boardwalk in Manchester. I remember the Fax Header, with all of Richard Branson’s businesses and locations. It was incredibly inspiring. It had Necker as one of the destination boxes to tick. It was then that I decided, “I’d like to go there and one day meet the man behind the company.”

Last year whilst staying at The Lodge another property owned by Virgin, I said to Gail, we need to find out who hosts this business and get them as a client. It transpired they are already a customer, and have been a happy one for a number of years. We also host UKTV which is owned by NTL part of the Virgin Group.

And 15 years on from that Fax and that initial goal, here I find myself, mid air on the way to paradise.

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view from the main house, Necker Island.

Lawrence Jones

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Why businesses struggle to grow into multi-million pound organisations?

November 1st, 2009

After a focus group with fellow entrepreneurs in the design, creative and PR sector recently, I left analysing why so many businesses were owner operated and they relied on the owner for everything.

Bank managers, strategic advisors accountants, business consultants have all said to me at some point, all small businesses are about the “owner-operator” and take them away and they fail.

I have always hated this attitude and could never understand it. Until today and after sitting with fellow business people and for a change I was the MD of the biggest business there, I could see how they arrived at their theory.

We were discussing training. A subject I am passionate about and one I do not feel I am an expert at as I have so much more I want to learn. Nevertheless I have helped shape a training department at UKFast which seems to be pretty unique.

The general consensus from these owner operators was that you should outsource your training, do it once or twice a year at the most and do it externally.

This pretty much summed up peoples unanimous opinion.

When I explained my position, people were horrified. I explained that I agree with taking people away, and I am such a fan of this we bought a hotel in Wales to conduct intense training and team building programmes.

I seemed to strike a nerve and a few of the woman attacked my philosophy one saying “I wouldn’t want to work for your organisation if it were the last in the world” and another stated “you cant make people go up a mountain.”

I was amazed as Tony Fogett of a very successful web design business said  “none of may staff would ever do team building” as though it were an alien exercise. He laughed saying “we just go to the pub!”

I explained that this was a team building exercise too, the only difference was his involved alcohol and ours involved fresh air and adrenalin.

Ironically one of my team members who was a massive fan of our Snowdon trips (long before we bought the Castell Cidwm estate and Llyn Cwellyn) went to work for Code, Tony’s business. She had discussed with me coming back to UKFast however sadly this is against our company policy, she cited the team spirit as one of the best things about UKFast and one of the things she missed 

But the regular sessions in the pub obviously work for Tony as his business in my opinion is incredibly successful especially for the creative market place.

I realised though the vast difference in outlooks around the table seemed to be in direct relationship with the success of peoples businesses. 

The other business owners dismissed my theory as “inappropriate” as UKFast has over 100 employees. Even though our businesses were similar ages and Gail and I started UKFast with just the 2 of us and no staff!

The difference is simple and businesses who adopt this principal grow, businesses who don’t run the risk of failure when they grow.

‘If you can’t measure it, you can’t manage it.” There is another great quotation from someone (I think Jim Collins of Stamford University) “people respect what you inpsect.”

Measuring training is imperative too. We test staff before and after their training sessions so we know how much they have learned, this enables us to measure the trainer’s performance.

We have a TV department, which films all our sessions. Each film is edited and placed in their personal dashboard where they can download them on to their company supplied ipods.

We include funny (not for public consumption) videos too of office parties, charity events and people tipping over in canoes at the training camp.

Two things are important to me. Alignment and engagement.

We start, believe it or not with engagement, hence the team building stuff where everyone gets to have fun, cry, break bread together and get what we call cyan coloured (UKFast) blood. The second is just as important and that is aligning everyone to the common message. Whatever department you are in at UKFast  you need to understand that excellence is the standard and nothing else is acceptable.

We were once described by a competitor who rang me up to complain about a member of my staff who had telephoned and emailed a customer of his, as a sales and marketing organisation. I think he meant it as a dig, however I was deeply complimented by this.

I have always felt we were weak in this area and therefore slow off the mark, however he and other competitors had begun to notice more activity in their sector from our team and from prospects talking about UKFast.

All this energy and passion came from training. The same training that enabled us to recruit 30 graduates in one day and have them up and running in less than 1 month.

I believe your best training is in house. You will already have champions in a variety of areas. Use the resources you have around you, have focus groups and share knowledge. You don’t have to spend huge sums of money with consultants. Often the best sessions are the simplest ones even impromptu.

A study from the writers of the book “the extra mile” cited training as the single biggest reason why people stay and leave organisations. Recognise this and act on it and I’ll see you out on the battlefield.

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When do you sell your business?

October 25th, 2009

That old question that I must have heard a thousand times, “so, what is your exit strategy?” always makes me smile. As if you’d tell someone you barely know.

I always say, “well I’ll be leaving work at about 7pm this evening.” I hear this question 3 times a week.

I think it is important to know where you are going. Businesses need direction. I am a great believer in goals and raised a laugh at the How-Do convention recently when I admitted my wife and I have a “50 year plan.”

But why not? I work on the principal that you need to know where you are going. What is wrong with mapping out your life to when you are in your 90’s. You are far more likely to get to a desired location or destination if you have thought about it prior to setting out. One thing is for sure, I know we will be together as we are both integral to it.

What happens when you go shopping without a clear understanding of what you want to come home with. My wife’s wardrobe was littered with rubbish when I first met her. Shopping was haphazard and directionless and she probably felt this was part of the fun. Ask her now how much more fun shopping is, especially when she brings me along.

So when do you sell your business? You have to have made something worth selling first of all. This needs a plan in its own right. When we set up UKFast we were tiny. The smallest company in the fastest growing business environment and for years no one knew we existed.

But we had a plan, and we were sticking to it. And when the internet bubble burst and businesses were dropping out of the sky affected by the calamity we just carried on regardless. And still no one really knew who we were.

And over the years we have readdressed the plan, yet we still continue to stick to it. Even during the recession we felt it was more important to keep firmly on track than to falter.

And as the business got bigger so do our goals. Our latest 5 year plan includes a target and MAP to hit £100m turnover. Now as this plan unfolds people are begging to take note of us.

The problem with our initial plans were they were too small, and therefore so was the outcome. You get what you focus on so in my opinion you are better aiming higher. If you miss you still are probably better off than you would have been if you’d been conservative.

But on the journey of growing your business, when do you sell? UKFast is already worth far more than we anticipated in the first plan we wrote. So surely I’d be happy to sell?

For me it is not about the money.  It is about the game. I love work. I love people and I love competition. If I didn’t work at UKFast what would I do? I’d be bored sitting on a beach for more than 22 minutes. I don’t drink and I am consumed by learning.

For me, you sell when you stop learning or when you cannot learn at the speed you need to, to continue driving your business in a controlled fashion.  I am fortunate to work alongside my wife. When we have problems we are able to tackle them together.

We are on a weekend business trip and I am writing this, she is tackling a “too heavy for me” book on Balanced scorecard management, whilst we fly from Rome to Amsterdam for our next meeting.

If you have a business partner that is this close you are able to take on much more than if you do it alone.

What is most fun about UKFast is that we are having to learn at such a pace it is incredibly exciting. We take it so seriously that each year we review our goals together in the Maldives and have the final week of a 3 week break where we then strategise and plan for the future.

We have literally hit every goal we have set, and the crazy ones which take time all have a MAP (massive action plan) and we monitor their progress.

So when do you sell you business? In my opinion only when you are bored. But if you are bored, simply pick up a book and find another challenge. There is always something out there waiting to tax our hungry minds. After all isn’t that why we are in business in the first place?

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Jumping on the “banned” wagon

October 18th, 2009

I was asked at a How-Do discussion group recently where I was part of a panel of experts [if there is such a thing], do you diversify or is it better to specialise?

Great question, and there is no right or wrong answer.

I explained that I have tried and failed many different things. The important thing in my opinion as an entrepreneur is to dust yourself off and have another go. Great entrepreneurs are resilient, they don’t know how to give up, they are prepared to push the boundaries and if they fail they do not see this as a negative emotion. In fact failure to a receptive mind means you are learning.

If you are going to try something new I think it should compliment what you are doing in other areas. Venturing into completely unknown territory carries more risk and therefore should warrant more research.

I enjoy new challenges, however I don’t see myself as a big risk taker. I have never had the luxury of huge sums of money to invest in new projects so the downside to most of my ventures is never a particularly alarming one.

We are currently venturing into the data centre arena, and although this now does involve millions of pounds of investment, it is a “related area” and therefore compliments what I already do elsewhere in the dedicated hosting industry.

It actually not only allows us to improve the quality of the service we currently receive, it also saves us millions of pounds each year of money which for the past decade has been growing some very happy businesses in Manchester and London.

I am not sure my current suppliers of data centre space will share my excitement. UKFast makes a very attractive anchor tenant however this sort of diversification is one I wholeheartedly recommend.

If you can provide a service where you are already paying considerable sums to a supplier and in our case competitor to boot, this should help you in your decision of where to diversify.

We once diversified in to the mobile phone arena specialising in Orange phones. We were good at it and we got about 20,000 customers in our first year trading. However it was so far removed from our hosting product. We were selling Oranges network when we had our own UKFast.

We got out of this industry after Orange put pressure on us to stop bulk text messaging to win business. Companies like Carphone Warehouse and other high street retailers were complaining that we had an unfair advantage. Our route to market was incredibly effective and hit our customer right at their heart. A simple text message encouraging them to use UKFast was all it took.

It worked famously until one day I received a phone call from my distributer saying that we had just inadvertently sent messages to the board of directors of Orange themselves during a board meeting. The message said, “upgrade your mobile phone with the latest Nokia on the Orange network, call UKFast now to find out more.”

Orange were fuming, mainly because they hadn’t thought of this themselves. They switched us off.

I could have targeted them and switched hundreds of thousands of Orange customers to other networks who our distributer put us in touch with, however this wasn’t our style.

We had invested huge sums of money and a great deal of time. We weren’t just the fastest growing supplier of Orange phones back in those days, we were the best. Each customer of ours also received confirmation text messages with Royal Mail special delivery tracking codes so they could know where their parcel was. Royal Mail even printed UKFast on the special delivery bags next to their name as we were shipping so many. They even sent us our own van each day.

Quitting whilst you are ahead is not quitting. Ironically Orange came back to us weeks later and asked me personally if I’d redesign their systems and manage their call centre. Someone had produced a report comparing all the dealers, distributers and Orange themselves. UKFast came out above everyone for the best customer satisfaction and retention rate.

The mess Orange are now in is indicative of their poor management and decision-making ability.  A decade on they still are not using the technologies that we brought to that industry. Shortly after we left, Oftel banned the use of direct text messages as a form of introductory communication as too many businesses jumped on our “banned” wagon: A shame really as they were exciting days. We would send out 20,000 text messages in a morning and sell 250 phones. The inbound phones went wild. If you were a visitor, staff member of a different division of UKFast or a prospective supplier, and were in our building when we pressed send, you were given a pad and pencil and told to answer the phone. Some of my funniest memories of this time include 2 bank managers caught up in the frenzy for a couple of hours locked in my office taking orders.

This was one example of diversification that was too far from our comfort zone, however I wouldn’t change this chapter for the world. We learnt everything we know now from this era.

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