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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Graduating to business person

July 4th, 2009

We ran one of our graduate recruiting days last week at UKFast and we started off by asking all the graduates to stand up, introduce themselves and tell us, who their most iconic person is and also tell us about something they have achieved which they consider momentous in their life.

It is a good ice breaker and for those of us assessing the candidates, it starts to give you a snap shot of what is to come.

A young lady stood up, and I don’t have her name to hand and she described her momentous achievement as creating a small shop on ebay and selling a variety of things.

When she sat down, I immediately asked, “so why are you here?” At first I think she might of felt that I was criticising her at least I hope she realises that I was singling her out because she was clearly different.

Out of the 40 to 50 soon to be leaving education, she truly had done something momentous. She has taken a small amount of cash, purchased something, found a route to market, built a shop however rudimentary and started marketing a business. This woman, because in my eyes, she is no longer a young lady she is a business woman.

Now that I write this blog, I realise that I need to follow up  her progress and make sure she is given encouragement. So often entrepreneurs are discouraged from school, university throughout careers. Usually by people who wanted to do things themselves yet, they never followed through.

If you fall in to any of these categories, it is never too late. My parents left their jobs in their 40′s and bought a run down hotel. Some in the family described it as a midlife crisis. Even I, the eternal optimist questioned their sanity of selling a beautiful family home and giving up great careers to become owners of a semi-dilapidated hotel.

20 years on, how wrong was I and what a hotel. They now have the hotels on either side and it sleeps 100 people. It has an awesome reputation and a massive returning customer base.

Ironically the kick that triggered my father was doing my first years accounts. After tax, it transpired I had earned more than my mother who had been teaching for 20 years.

Last year a young lady came to be interviewed for the job of PA. As soon as I read her psychometric test results, I knew that she would make an excellent personal assistant. However I also realised that  she had the perfect profile of a fledgling business person.

Her test also identified that she would benefit from traveling and it sensed that she was in a bit of a dilemma. I confronted her on this matter and sure enough she was torn between “going travelling” with her boyfriend and starting a job.

I suggested that she should be decisive and as her profile suggested a job working for someone else may just drive her bananas.She just needed a little motivation.

Last week I got a telephone call asking for an appointment to meet with her and her now fiancee. They were back from their holiday, and they had formed a solid business idea and they were putting a plan together. They wanted my advice. I was honoured to meet with her and excited to be a small part in giving her the confidence for her to choose the correct direction of her life.

After a a couple of hours, it turned out, she and her fiancee are about to become UKFast clients and it is looking likely that we will designing and hosting their software to run their new business idea.
If you have a dream, dont lie in bed and procrastinate, or talk about your venture to your pals for years and years. Get a pen and paper and start writing lists, start goal setting. Start organising what you need for your new future. And OK, if it fails, guess what, you pick yourself up, brush yourself down, remember the lessons of the failure and start again. You keep doing this until you get it right.

If a baby is struggling to learn how to walk, do we give up on the baby? Does the baby give up? Never! They keep standing up and falling down until they perfect the art.

Yet as adults this is drummed out of us. We become fearful of what our peers think. A great entrepreneur is born out of simply not caring what those around them think. This in my opinion is why so many dysfunctional kids succeed where clever folk fail. A dysfunctional child is reminded all through their life how much of a failure they are. So it becomes easier to go it alone than be reminded of this throughout a professional career.

My fathers favourite line which stuck with me was “son, you will not even be able to hold down a bin mans job” it was said so much I believed him. So when the time came I did not dare attempt to get a job. Instead I became self employed by default.

All the big entrepreneurs that I know tell a similar story.

Ignore teachers, parents and your peers. Get out and have a go! What is the worst that can happen. Especially whilst you are young and in a recession. In a climate like today’s there isn’t a more perfect time to cut your teeth.

Good luck!

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UKFast & Sale Sharks sponsorship deal

May 18th, 2009

Well it’s out! For a few months we have been sitting on the news that UKFast are officially the main sponsors of Sale Sharks Premier rugby club.

So why a sport sponsorship deal?

It was not an easy decision spending millions of pounds of a hard earned marketing budget in one go, with the recession still firmly gripping society however I felt it important to take the opportunity and be decisive. Its a 3 year deal and when an opportunity as large as this comes up, in my opinion you grab it with both hands.

It is also important to look beyond the economic downturn. The credit crunch will not last forever and it is important to stand by what you believe in. For those fans who go to all the home games, you will know that UKFast gets a mention every time Charlie Hodgson scores. A few seasons back, he injured himself and although we were offered a replacement player, we stuck with Charlie. He came back, stronger, fitter and in my opinion is one of the greatest fly-halves in today’s tough game.

So when McAfee wavered, I made sure we had a window where we were able to negotiate without interruption.

I have had a few chats with Brian Kennedy, and he is grateful for the support and for the fact that there are others in the Manchester and Northwest business community who understand and believe in what the Sharks are doing.

It is the work the Sharks do team building in schools and with kids which sealed it for us. It is so easy to disengage and get transfixed on your financial goals and loose site of what is really important. Gail and I put as much emphasis on hitting personal goals as we do the financial ones, and this had been born from a discussion a decade ago, when First Software were on the shirts “one day, we’ll be main sponsors.”

10 years on, the Sharks, UKFast partnership is more than a logo on a shirt. It gives us an opportunity to say thank you to Manchester and the surrounding community. It is the fun part of being an entrepreneur which enables us to do something as exiting as this.

Just cant wait for the season to start now!

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“Wake” Up & Start Dreaming

April 18th, 2009

So here I am lying on my back looking at a blue sky, watching the clouds change shape. An airplane appears and disappears leaving nothing but a trace in it’s wake. And the question is “what do I do next?”

Mid recession, with no clear understanding of how long is the tunnel or how dark it might get, I am drawn back to the hypnotic clouds.

There are some things in life you can’t predict or influence, “weather” you want to or not. But do these unpredictable elements stop you from going about your normal business or day to day lives. Of course not. Only in extreme cases, but even these are “blips” and they cannot halt progress.

I am reminded of Earl Nightingale and his anology of the ship. He describes the damage caused by a ship in a harbor cut loose without a captain, crew, charts or destination. He then describes the same vessel, but this time with a captain, a crew a destination and therefore a purpose. The vessel will reach it’s destination every time. It will seldom be on the exact course, the currents and wind will do their best to divert them. However their collective purpose is stronger than the outside elements.

Just like the plane overhead. It’s destination firmly programmed in to the captain’s head and the onboard computers. The elements are constantly changing, but the clear path is set.

I set a path a few years ago, and every day I tread closer towards my goal. Some days slower than others I might add, but I carry on unperturbed. One of my intentions was to continue learning in order to keep myself interested and able to manage our rapidly growing responsibilities. And even though I am forced to change my location as the rain starts to spit, my vision is not spoiled by the change of scenes.

Far from it in this case. One of my goals is to surround myself with successful people so I can learn from them. I think my wife took this too literally and booked us into a place called The Lodge. Sir Richard Branson’s private Ski Chalet in Verbier Switzerland.

Although Richard isn’t here this week it is a real eye opener to meet some of his team and to see how real everything he has created is. And to realise  just how achievable it is to set and follow similar goals.

So we take a couple of hours a day on the slopes carving our future strategies in our heads before cataloguing, discussing, arguing, debating our future in these sumptuous surroundings.

I realise  that not everyone can afford to take time out in such lavish style. However you do need to take time out! However you do it, it can be in a garden shed as long as you get uninterrupted time to yourself. The important thing is you have the time to reflect and think about where you have come from, what you have learned, and where you want to get to and what you might encounter on the journey ahead.

Planning and knowing your outcome in the reverse order are the two most important factors that separate the Bransons from the Brainless.

“So where do I go and how do I do it?”

Personally I always head for the mountains. At home in Wales, we have been lucky enough to find ourselves a house and lake in the Snowdonia National Park. It is a place where mobile phones aren’t banned, they simply wont work!

Before the Lakehouse , I’d put on a rucksack, pack it full of beer, squeeze in a tent and enough provisions and off I’d go. My first weekend away with Gail who is now my wife, was in a serious thunderstorm where we camped at the top lake on Snowdon.

It rained so hard that breakfast turned to soup and we had to pitch the tent on a steep slope to stop it from filling with water.

But I’d set myself a goal years earlier, I’d find the perfect partner when I was still poor and she would be resilient, determined and kind.

I got more than I bargained for. She indeed became my partner in every sense, wife and business. Yes she had all the traits, and my friends who know me would laugh saying, she needs to be resilient and determined to put up with me!

So what do I mean when I say I got more than I bargained for? Well, I’d set the goal to find Gail whilst I was still poor. A fundamental flaw in goal setting.

“You have to be careful what you wish for” my Gran always used to say. She must have been on a Tony Robbins course!

What I should have set was to simply find the perfect woman. As a result, I remained “poor” and unsuccessful until I met her.

This is not superstition. This is simple programming of your brain. Whatever you ask for you get, whatever you focus on you will feel. This is how seriously I take goal setting now.

To give you an example of a goal I set as a child, “one day I will have a house in the mountains by a lake.”  I also set a burning desire to have a home that was big enough for everyone in my family to enjoy.

Gail found the perfect place amazingly less than 2 miles from the summit of snowdon, with an estate that has a 250 acre lake and the properties combined are big enough to sleep 28 people.

Coincidence? No, I don’t think so. I remember not being able to afford the fee at the Snowdon car park, plus I have too many cases of other goals for this to be coincidence.

It is worth noting that every super successful entrepreneur that I know follows the same key principals. Be very descriptive about what it is you intend on achieving, be bold and don’t hold back.

So instead of trying to switch off from your business at the weekend, get in your car or on a plane. Get a note book and pen and take some time out to pat yourself on the back for all that you have achieved and focus on Stage II.

Your business journey consists of many rungs on a very tall ladder. You determine how high you go. You can get off at any time if you get vertigo like Nixon of MoneySuperMarket.com, or you can keep climbing new ladders. Or in Bransons case, when you run out of ladders to climb on this earth, go Galactic. All I can say in his wake, is “Go Branson!”

And to fellow aspiring entrepreneurs like myself, never stop learning, never stop pushing, and certainly never stop trying.

Nothing should distract you from the path you set and don’t be hypnotised by events surrounding the economy. Your purpose will outlive any economic downturn.

I blogged a few weeks back after Rob Williams from Dolphin Music  died on the mountains where we are now.It is humbling to be reminded that life is so short. So get up, stop procrastinating.

All you need is pen, paper and you have a purpose.

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The strength of internet business in the face of “recession”

November 14th, 2008

Internet business is strengthening. As MD at internet hosting provider, UKFast, I have the luxury of being able to observe the fortunes of thousands of businesses. Of the quarter of a million domain names on our network, not one is complaining about the recession.

On the high street decreases in spending are evident. You may well spot boarded up shops and buildings to let, which leads to concerns for the economic climate. However this is much more likely just to be due to the natural shift in consumer activity.

The offline to online shift has been taking place for a number of years. More people than ever before are shopping online – in 2007, e-shoppers spent £370m online in just 24 hours on the second Monday in December. And the total spend for the three months leading to Christmas was estimated a massive £17.6bn – up 82% on the same period for 2006.

Online spending is predicted to reach £162bn by 2020 and make up 40% of retail spending. This clearly shows a shift in consumer shopping habits.

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Lawrence on Twitter

  • What a great day! Mountain air and home made flapjacks.22:30 : 27th Jul 10
  • @PhilJones40 Congratulations Phil. You are doing a great job. Lawrence@ukfast22:18 : 27th Jul 10
  • You have to read this one! Fancy a job interview in the mountains?http://bit.ly/New_Career Get your walking boots on. UKFast are hiring!07:03 : 27th Jul 10

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