August 2008 Archives

There’s so much bile on the web debating the value of MBA qualifications to creating a successful business that I’m reticent to add to it.

You probably know how it goes. MBA grads extol how the qualification broadened their business vision, while those running multi-million pound empires without so much as a GCSE sneer and dismiss MBAs as ‘for managers not real entrepreneurs’.

The reason the subject’s been debated so comprehensively without satisfactory conclusion is, of course, that there’s no evidence either way. How can there be?

Rank the UK’s most successful entrepreneurs and out of the top 100, possibly two or three will have a business qualification. Out of the latest Forbes 400 rich list, four had MBAs. In turn, statistically MBA grads see significant increases in earnings, whether running their own businesses or not. And besides, knowledge is power, right?

So... they can be worthwhile but certainly aren’t compulsory. Wow, hardly enlightening analysis and evidence only that I’ve succeeding in doing what I set out not to.

Anyway, by way of explanation: Applications for full-time MBA programmes are up 77%, the Graduate Management Admission Council revealed today. Uptake of flexible part-time MBAs has also increased.

Make of that what you will...

Image: Flickr

“KATIE PRICE TOPS ENTREPRENEURS POLL”

Perhaps pre-empting both non-recognition of who Katie Price was and state of sheer disbelief (no, not at the missing apostrophe), it continued:

“Jordan is a model businesswoman says BT Tradespace survey”

It really wasn’t necessary, but further impact was then provided:

“Katie Price has pipped easyJet founder, Stelios Haji-Ioannou, Oprah Winfrey, the late Dame Anita Roddick and Simon Cowell in a business poll of most admired entrepreneurs. The glamour model tied in fourth place with Sir Alan Sugar in the bttradespace.com survey.”

Next we had BT’s Jennifer Mowat, crowing about how Jordan has made a ‘transition from pin-up’ to ‘go-getting businesswoman’ due to a ‘keen business sense’ and ‘unique approach’ that has made her ‘an inspiration to many’.

Stone the crows, where to start? First, let’s get this clear: I’m not judging Jordan for making her name by taking her clothes off. Why shouldn't she and she’s exploited her talents no more than, say, David Beckham.

And credit where it’s due. She has certainly made the most of what for many page three girls is a short and not particularly lucrative flirtation with fame. She’s a best-selling author, has had her own TV series and released her own range of lingerie and haircare products. She’s sculpted a brand that irrespective of snobbery is highly successful.

I admit it, she’s entrepreneurial. The ultimate business model, though? Perhaps the voters misunderstood the question...

Actually I find it quite hard to stomach that entrepreneurs could rate pretty much anyone a better business model than the brilliant late Dame Anita Roddick, let alone Katie Price. I don’t think I need to explain that one. Perhaps if Dame Anita had spend three weeks at the Playboy mansion and illegally sacked her nanny on TV she’d have featured higher.

Ah but I’m overacting it’s only a silly survey and BT is just looking to get as much (cheap) publicity as possible for Tradespace with a shock headline. After all, as the press releases finally deems it appropriate to clear up, Kate Price didn’t actually ‘top the poll’. Sir Richard Branson did, followed by Bill Gates and Peter Jones.

Phew, it was just a nightmare.

Know your rogan josh from your dupiaza? More of a CTM (chicken tikka masala) fan?

How about a balti GPS? That’s what will soon be on the menu at Mohammed Ali’s innovative Maliks Indian restaurant in Chesterton, Staffordshire.

Using webcams and GPS navigation technology, customers will be able to watch their food being created then track its delivery to their door.

“I believe we are the first in the world to do this,” Mohammed told local paper The Sentinel. "This is a traditional Indian takeaway. We are proud of our facilities and our hygiene, so we are happy to invite customers to see the kitchen on camera, and watch the food being prepared.

“Then the GPS tracking system will allow people to follow their food over the internet, so they know exactly when it is due to arrive."

What better way than to reassure new customers, especially following the BBC's recent Rogue Restaurants programme exposing into the UK's dirtiest kitchens?

Mohammed has whetted Smarta's appetite and no doubt a whole army of curry-craving punters after the media gobbled up this story. Worth the £25,000 investment alone, surely?

Image: Flickr

Entrepreneurs: Good losers? Great at handling rejection? Don’t take this the wrong way, but no.

Rewind four months to Apprentice fever and Sir Alan’s helper Karren Brady, MD of Birmingham City FC, was singing the praises of finalist Clare Young.

‘If you don’t employ her, I will,’ said Karren joining in the drama and perhaps not quite expecting Sir Alan to ignore her advice and hand the job to eventual winner Lee McQueen.

Good to her word Karren duly offered loser Clare a sales role at Birmingham for a salary reportedly in excess of the £100,000 a year she missed out on.

After initially expressing her delight at the role, it seems Clare has now made a u-turn and decided to start-up on her own.

Judging by her column in Saturday’s Sun, I think it’s fair to say Karren isn’t best pleased:

“CLARE YOUNG, of The Apprentice fame and wannabe WAG, is not a Bluenose. She has decided to start her own business and not take a job at my club. I send an e-mail to all staff to let them know the heart-rending news. Later I hear the sales team have all gone to the pub for an all-day celebration but I never did find out whose birthday it was?”

Ouch... I guess only time will tell if Clare's made the right decision to go it alone or has foolishly bitten the hand that was willing to feed her.

We all know that value doesn’t necessarily equate to price and, in business, there are many different ways (other than price) to provide value and secure sales.

That said, there’s nothing more fascinating to watch than a start-up significantly undercutting the competition with a product that holds mass appeal. Budget airlines are the best example and Jamie Murray Wells’ Glasses Direct the most recent.

I fancy John Treharne’s budget health club operation The Gym Group (TGG) to be the next.

TGG’s first gym opened in Hounslow in June offering a flat membership rate of £14.99 per month with no contracts. Having secured £1m backing from Bridges Community Ventures, today it announced plans to open three more gyms this year and another 10 in 2009.

Treharne, who previously launched and floated Dragons Health Clubs, is clear TGG is a ‘no frills’ offering. While the 160-station gym provides high quality exercise facilities you’d expect elsewhere, there’s no sauna, steam, spa or pool.

The thinking is to “offer quality fitness facilities to a wider selection of the local community than can currently afford it”, says Treharne. Sounds like a plan in the current climate.

Two thirds of people are miserable at work and half think about quitting their jobs on a daily basis, according to Caterer.com.

That’s fairly depressing, no matter how you look it. Have a glance around you; is half your workforce wishing they were elsewhere?

I’m not so sure everyone is that miserable (even on the first back after a bank holiday). What’s definitely true, however, is that we now live in a culture geared to achieving fulfilment – even if that’s left many feeling, well, unfulfilled.

No longer is a job simply a means to an end; it’s an opportunity to push yourself, contribute to something meaningful, build positive relationships, learn new skills etc. Even when we’re not working we’re increasingly seeking ‘experiences’ and enhanced life satisfaction.

A whole industry exists telling people they don’t have to settle for their lot. And why not? After all, people rarely start businesses simply to get rich quick, but more often for a better standard of living.

Coffee Republic founder Sahar Hashemi insists what she valued most about running her own business was the purpose she felt for the day ahead when waking up. Everyday could be different; a new challenge. It’s also what she missed most when she sold, in her own words, ‘too early’.

It’s no coincidence for me that entrepreneurs are morning people. Or that unmotivated staff struggle to get to work on time. If you want to know which of your employees are down in the dumps, take a look at who consistently turns up late. Then ask yourself why.

‘You show me yours and I’ll show you mine’ is the principle behind Glassdoor, the US site where employees anonymously share salary details and review the companies they work for.

It’s been lapped up across the pond by staff frantic to find if they’re paid enough and dish the dirt on their bosses. In two months, 50,000 employees have revealed all on 110,000 companies in 80 different companies.

Glassdoor officially launches in the UK next week – and we’re not sure whether to revel in its entrepreneurial web 2.0 brilliance or act all responsible and damn it for prompting a salaries debate at the worst possible time.

Ahh, what the heck. It’s a cool site that can’t fail. Founded by Benchmark Capital partner Rich Barton, and former Expedia executives Tim Besse and Robert Hohman, Glassdoor notably also lists TripAdvisor chief Stephen Kaufer on its board.

Most important, the site stands up to scrutiny as well. ‘How do you know people are telling the truth?’ is the obvious reaction to Glassdoor, and the truth is, like all review or user-generated sites, you don’t, but this one goes further than most to ensure validity.

All entries are checked for anomalies and unusual salaries are flagged. Users are required to give a verifiable e-mail address and malicious entries are challenged. Multiple entries from one computer are also barred and libelous statements are not allowed.

So how much does a Microsoft software development analyst earn? $92,641. A Deloite consulting manager? $125,969. Google software engineer? $96,146.

Watch this one grow and grow.

What to do? Who knows. It’s sure to be big firms that get hit first and hardest, but it’d be naive to think your staff won’t soon be showing it all to Glassdoor. How about pre-empting the whole situation by making all salaries transparent and bonuses performance-related?

Smarta founder Sháá Wasmund took part in a live web chat yesterday about why more women aren’t setting up their own businesses.

If women matched men's start-up levels an extra £32bn could be added to the economy, according to government stats.

Tessa Lyndon-Skeggs of Natwest and RBS’s pioneering Women In Business service joined Sháá to discuss the challenges facing women starting-up.

Succeeding in a male dominated environment, the need to delegate and sacrificing TV and sleep for quality time with loved ones were all on the agenda - but according to Sháá, if you get the balance right and you're passionate about what you're doing, it shouldn't feel like a sacrifice.

I could go on, but it’s probably better if I let Sháá do the talking:

Click here to watch the show.

The modern entrepreneur is a picture of tech wizardry. BlackBerry in one hand, laptop in other, company data is never more than a thumb scroll away.

Surely it’s only a matter of time before the office becomes obsolete and we’re working from Starbucks?

How about some geek chic to replace the pinstripe then?

This t-shirt by ThinkGeek detects and displays the strength of wi-fi signal in your vicinity. Perfect. Maybe...

Is eBay about to turn its back the small traders that made it?

Selling £30bn worth of goods globally and visited by two thirds of UK online shoppers every month, eBay justifies its billing as a heavyweight of the internet age.

I’d also argue its fostered UK entrepreneurship more effectively than any other single organisation, with 178,000 Brits earning a second living or running a business via its site.

But that could be about to change. A rocky year of legal action and complaints by sellers over its pricing structure has seen eBay announce a major revamp with changes that could signal a cultural shift in its positioning.

The key change sees increased prominence given to fixed priced listings, while up-front fees will be reduced and taken instead on sale with discounts for companies selling high volumes. For all the changes, visit: www.ebay.co.uk/buyitnow08

Critics suggest eBay is clearing the decks to attract more corporate sellers to compete with the likes of Amazon and Tesco. It insists both big and small seller can sit happily alongside one another.

Clare Gilmartin, Director of Marketplaces for eBay in the UK, says: “We now have a more tailored offering to fit every size of seller and business model, from a mum cashing in on some old baby clothes, to an ‘at-home entrepreneur’ building an SME business, to a retailer with a large and varied stock.”

eBay’s argument that 43% of all sales are already Buy It Now transactions is compelling, but it remains to be seen if it can keep the small man happy once it’s opened the door to large suppliers.
Let us know what you think.

Nostalgia is a funny old thing. People’s shock at the news Woolworths is in serious trouble is bizarre, but very British.

How on earth could 99-year-old high street national institution Woolworths be in trouble? How can this have been allowed to happen? Don’t kids buy pick ‘n’ mix anymore?

Without getting into the real financial mess behind Woolworths’ woes and its £100m pensions deficit, is it really a surprise a shop which has no real USP other than a tired brand is struggling?

Almost all its core audience know they can buy the same products for less at Tesco or online, or visit a specialist niche retailer offering wider choice, superior service and increasingly sexier shopping environment.

Like fellow dinosaur WH Smith, there’s no longer a compelling reason to shop at Woolworths where choice is limited, price is either high or representative of low quality. Both shops' only value are their prime locations making them convenient to visit for low cost urgent buys and of interest for a buy-out.

Aside from the redundancies and knock-on blow to suppliers (and that's a big aside), does it matter it if these dinosaurs become extinct?

It shouldn’t. Red phone boxes and routemaster buses, though, now that’s a scandal...

Alex Tew, founder of the MillionDollarHomepage.com, has released 1,000 limited prints of his masterpiece to mark its third anniversary.

The iconic site made then 21-year-old student Tew his fortune and captured global attention. A constant point of reference in the web's development, MillionDollarHomepage is also increasingly regarded as a work of art.

“I’ve had lots of requests for them,” said Alex speaking exclusively to Smarta. “I’ve been meaning to do them for ages so I thought it’d be neat to do it to mark the third anniversary.”

Alex is also looking to the future, however, and is busy working on a secret project. He wouldn’t tell us what (wouldn’t be a secret then, would it?), but has promised to as soon as he can.

In the meantime, snap up your signed MDH print here.

For social use, unless you’re a hardened stalker, you don’t go approaching or messaging people on Facebook who you don’t already know. It’s all about communicating with those you do. Or a frantic pursuit of collecting people you've had the vaguest connection to, anyway – could we win gold in this?

For business though I want to contact people I haven’t met or who won’t remember me. I want to introduce myself, tell them what I do and see if there’s a way we can work together. However, the only way to do this is to cold message and, well, it all feels a little intrusive.

I know Facebook isn't a business network but there's some damn useful people on there, some of whom happily use it for business. Some don't, though - so how do you tell?

Do you mind being messaged cold? Or should business talk be kept to business networking sites?

It’s arguably the biggest challenge of web 2.0 – how do you start charging for something you’ve so far given away for free?

The almost universal approach to date has been that you don’t; instead you find other revenue streams (usually advertising) that allow you to keep offering the core service without charging.

After all, for social networks and free entertainment sites constantly courting the attention of promiscuous web customers used to getting what they want for free, suddenly charging would be seen as the ultimate turn-off.

It’s a bit different for b-2-b though, where you inevitably expect to pay for any service with real value. That’s not to say, of course, that going from a free model to a paid-for one doesn’t hold its risks: you’re opening yourself up to a competitor offering what you do for free, for a start.

It was interest then that I received the following email when placing a job ad on a site I’d used gratis for several years:

“Matt, the position is now live on our site... It’s also worth letting you know that we have moved to a fee paying structure this year – due to increased traffic on the website and the time required to manage it. I’ve attached a rate card for you to see. Please note that we’re offering two free adverts before we start to charge, so do enjoy another free posting with us. On saying that, we continue to post all internship / work experience positions for free.”

So I’ve now got to pay for a service I got for free. But you know what? Providing I still get value, I don’t really mind.

The site, Gorkana, has earned my respect over the years by providing a great service for free. Its rates introduced also mean it's still more economical than competitors and, once compared to the cost of advertising in a national newspaper or with a recruitment agent, I’m still getting a good deal.

Plus they’re softening the blow by communicating clearly and staggering the process with two more free placements. I.e. they’re continuing to demonstrate the quality of their service before asking me to pay for it.

Time will tell if Gorkana’s got it right or wrong for charging, but for me it feels fair and surely that should the barometer for others to follow when it comes to pricing models?

Employees up and down the country are working harder than ever this week... putting the finishing touches to their fantasy football sides ahead of the start of the Premiership on Saturday. If you can’t beat them, join them, so here’s our Fantasy Entrepreneur XI:

Peter Jones
Club: Phones International, Dragons’ Den
Goalkeeper
Commanding 6ft 7in shotstopper whose sheer presence turns the opposition into nervous wrecks, often pitching their best efforts well wide of the goal. Bases his game on percentages but has been known to betray his teammates for a big money contract.

Tom Hunter
Club: West Coast Capital, Hunter Foundation
Right back
Honest full-back who learnt the game at grass roots before working his way up to become one of its top performers and earners. A selfless player who puts the team first and is always the first to help out when others need his support. A successful career as a scout spotting and nurturing future talent awaits.

Levi Roots
Club: Reggae Reggae Sauce
Left back
Plucked out of the obscurity of non-league, Levi’s rapid rise to fame has surprised many but he continues to impress with an albeit unorthodox style that has brought many admirers and a series of lucrative contracts.

Alan Sugar
Clubs: Amstrad, Viglin
Centre back (captain)
Experienced and uncompromising leader, who’s won plenty of honours in a glittering career. Holds the back line together and when he talks, the others listen. If they don’t, they can expect to be subbed.

Michael O’Leary
Club: Ryanair
Central back
Bruising back-to-basics centre back who relishes kicking big name opposition into touch. A value-for-money signing who won’t go missing when times are tough. Prone to disciplinary problems and dissent.

James Dyson
Clubs: Dyson
Centre midfield
Creative playmaker who spots the passes others don’t see. Dismissed as an expensive luxury earlier in his career, Dyson has emerged as one of the most respected exponents of the beautiful game. Doesn’t come cheap, but adds quality where others just work hard to little effect.

Stelios
Clubs: EasyGroup
Centre midfield
Hard-working all-round midfielder who burst onto the scene 10 years ago and, despite the odd loss of form, has remained a core fixture for the best part of a decade. A high impact performer who does the basics well and leads by example, Stelios’ role is to sit in the middle and keep the side focused on results.

Theo Phaphitis
Clubs: Rymans, La Senza, Dragons’ Den
Left wing
Cunning ex-Millwall winger who works the flank tirelessly turning around precarious situations before driving forwards exploiting gaps in the opposition’s defence. Can sniff risk at distance but possesses plenty of flair.

Richard Branson
Club: Virgin Group
Right wing
The original celebrity entrepreneur, Branson’s our Beckham. In demand and easily distracted a true globetrotter who remains irresistible at delivery. Adored by his teammates and the public alike.

Lee McQueen
Club: The Apprentice Winner 2008
Centre forward
Questionable track record and lacking experience make assertions McQueen is out of his depth in this side understandable, but our target man will do whatever it takes to emerge victorious, while that dinosaur-impersonating ‘that’s what I mean’ goal celebration could well earn him cult hero status among the masses.

Michael Birch
Club: Bebo
Centre forward
A relative unknown who burst onto the scene with a unique style of play that has captured the imagination of younger supporters. Hot property, this young striker has already played overseas and was the subject of a record-breaking transfer deal earlier this year.

I'll let you name the subs bench and perhaps a women's XI to take on the men?

Have you been mugged for your Oyster card? If you have, Transport for London (TfL) knows how you feel.

What exactly was TfL thinking about five years ago when it brokered the deal with Transys, the supplier consortium that manages its Oyster card system?

Let’s forget the software crashes, allegations of hacking, corrupted cards and security concerns. Transys paid for that this week when TfL cancelled its £100m contract.

Yet, bizarrely, it could be TfL that ends up ruing the split most. Guess who owns the Oyster brand TfL has spent five years marketing and covering the Capital’s transport network with? Yep, you guessed it, Transys.

So after giving out 17 million Oyster cards since 2003, TfL is now locked in talks with Transys over ‘how to ensure the continuation of the brand’. I’m sure a deal will be struck, mainly because it’s too palatable for one not to be, but it’s clear who holds all the, er, cards – and it isn’t TfL.

Perhaps TfL’s chiefs need to take a trip up the Victoria Line to Kings Cross, turn right upon exit and pay a visit to the British Library Business & IP Centre and read up on how to protect their intellectual property.

Needless to say, if you’re thinking of spending the next five years pushing a brand and banging out 17 million related products, make sure you own it!

Image: Flickr

What’s the first thing us Brits do in a crisis? Make a brew, of course.

That could be the explanation behind a healthy jump in profits at tea and coffee specialist Whittard of Chelsea, which appears to be making rich trade as a result of the economic downturn.

It seems caffeine addicts are saving their pennies by getting their fixes at home instead of the high street. Sales of coffee are up 15% on last year at Whittard, while coffee-making equipment is up 11%, cafetieres 7% and milk frothers 4%.

Whittard is just the latest credit crunch winner. Ryanair reported a 19% rise in passengers in July, while Travelodge and Haven have seen a jump in bookings from holiday seekers unable to afford foreign holidays this year.

Budget supermarkets Aldi and Lidl are booming, while DVD sales and pizza delivery are also on the up as 'nights in' become the new 'nights out'.

It seems the UK consumer is prepared to economise however they can – Superdrug has even reported a 15% rise in condom sales!

Image: Flickr

How come domestic energy suppliers have to publish their tariffs, but business suppliers don't? Why do domestic contracts allow people to switch every 28 days, businesses have to sign-up for inflexible long-term deals?

Two very valid questions posed by the British Chambers of Commerce, which is campaigning for new measures to help businesses deal with exploitative energy companies.

Well done to the BCC for flagging this. More than 32,000 businesses every year phone energy regulator Ofgem, seeking help and advice with their bills and providers.

David Frost, director general of the BCC, says: “With the economy slowing and energy bills on the rise it is totally unacceptable that hard-pressed businesses are left so open to exploitation.”

Here, here – let’s hope the BCC isn't wasting its energy and Ofgem and the government are listening.

Image: Flickr

Need a holiday? Hell yes! Feel like you’re able to take one? Hell no!

I hear entrepreneurs say this all the time. The ambitious highfliers running fast-growth companies haven’t got a gap in their diaries for a frapacuino in the sun let alone a whole week, while the sole traders and micro businesses are working on such limited resources they’ve often resigned themselves to a life without breaks.

Now we all know only life coaches believe in ‘escaping the rat race or 9-to-5’, but surely one of the chief motivations to start your business was to enjoy your life more than if you worked for someone else – at what point does this get lost?

In the middle of an economic downturn when the pressure is on, margins are squeezed and you’re livelihood is at stake, is the probably the very real answer.

However, there comes a point where not taking a break can be bad for your business. Mainly because it’s bad for you.

The Shaw Trust a charity which has launched a free online resource to help employers reduce mental illness in the workplace, says stress and mental health problems are on the increase as a result of increasingly pressured working conditions.

If anything, it’s worse for you lot at the top carrying the burden of the whole company’s survival and your employees’ welfare.

Swanning off to the Bahamas for a month while they worry about redundancies mightn't be too sensible, but taking a few days off to recharge your batteries, look at the bigger picture and come back refreshed with a host of new ideas to the take the company forward could help everyone.

Glasses Direct founder Jamie Murray Wells has ended his search for a CEO, appointing Advertising.com’s UK MD Kevin Cornils.

Back in March, Jamie announced that he intended to step away to the role of executive chairman and partner with a CEO to “help me lead the company as we continue to establish the brand as a global leader”.

Launched in 2004, the company’s budget online specs were an immediate hit with everyone but its high street competitors who tried in vain to shut it down and promptly saw its founder scoop a host of entrepreneur awards.

Despite raising £6m from VCs and driving turnover in the millions, the company has yet to hit profitability and has seen a number of copycat competitors launch in its space. This, the fact he’s still only 25, and a tabloid snapping Jamie out on the town with on-off girlfriend of Prince William, Kate Middleton, led to a few rumours the move confirmed today wasn’t all his own choice.

Blog Smarta’s no celebrity gossip column so doesn’t wish to comment. Instead, we’ll consider that perhaps Jamie’s simply realised inside four years what it takes many entrepreneurs a lot longer to fathom: he can’t do everything and is better off concentrating on his strengths.

If that’s the case, Cornils sounds a shrewd appointment. With a track record of web successes, he most recently joined Buy.at to work with the founding partners, taking it to the US and tripling it in size before selling to AOL’s Advertising.com.

With a site redesign, fresh branding (see above) and some cool new features including a virtual mirror that lets Glasses Direct customers upload photos and ‘try on’ different specs all imminent, the company now looks geared to embark on the next phase of its growth.

The new football season kicks-off this weekend, a boon period for sports retailers as supporters scramble to get kitted out in their club’s latest replica strip. Today you could barely get through the doors of Lillywhites in Piccadilly Circus (so much for the credit crunch) for the hoards of Manchester United and Liverpool (don’t get me started) kit-clutching shoppers.

The relative haven of the clearance corner, where last season’s strips are being knocked out for a fiver just 12 weeks since they commanded £35+ pricetags, tells you everything about the pace of retail change and the mark-up to be had on items of questionable quality and ethics.

That’s a different a story, though. I was more taken by the breakdown of the sale stock. Someone in Lillywhites’ buying department must have seriously overestimated the number of Birmingham City fans in London. Or, as I can safely vouch being one of what is a rare breed, the whole world. Around 80% of the sale stock were Birmingham shirts. I've seen fewer at away games.

While I can understand perfectly, having watched yet another season of dour relegation football, why the shirts hadn’t sold, I'm confused why so many were overed ordered. Did someone mistakenly slip a zero on end of the order? Two zeros?!

Product buying is a problem that blights many early retailers, yet it’s rarely spoken about as an essential skill for running a business. You hear plenty of advice about making sure your business has USPs, a target customer, markets itself correctly, drives sales etc, but rarely is the focus on buying, let alone margin.

Negative cashflow kills more new businesses than anything else. In retail it’s almost always caused by overstocking.

I was chatting about the problem recently to John Spooner, former MD of Monsoon and manager at Liberty. He's seen it all before. Start-ups commit all their money to three months of stock then can’t afford to replace what sells and end up trying to flog-off cheap the stuff that doesn’t.

The key, he says, is always keep money in reserve and try to have as many suppliers as possible who’ll do repeat orders instead of just bulk. Ideally, you shouldn't commit more than 50% of sales forward.

Spooner also says new businesses should keep product ranges simple. Don’t get carried away at trade sales and don’t feel obliged to offer a lot choice. Start with core products you know will sell then slowly test and introduce new lines.

Lillywhites, owned by giant Sports Direct? Now they should just know better!

Image: Flickr

It’s been said before that celebrity entrepreneurs are the new celebrity chefs. It was with interest then that I read comments in today’s CityA.M. from Herbert Berger, Michelin-starred head chef at London’s lauded One Lombard Street, condemning the fame hungry antics of his peers.

After labelling some of TV’s biggest stars ‘spoilt divas’, ‘petulant children’ and ‘attention seekers’ he asserts: “It is time for the profession to return to the kitchen and decide between food or fame. Let’s return some dignity to what is – for some of us at least – a civilised profession.”

I think we can safely say Gordon Ramsay won’t be losing too much sleep over Berger’s outburst; while the argument celebrity chefs have done anything other than strengthen the food industry is tenuous at best.

For entrepreneurs though, there might be a stronger case. Earlier this week I sat with two bosses of ambitious, expanding companies who’ve both done a bit of TV, as they concurred neither of them was in a rush to do anymore.

“It might give you profile but profile doesn’t run your business or generate profit,” was the consensus.
One was at the meeting having turned down a show due to hit ITV’s schedule in the autumn because it involved eight weeks away filming – what entrepreneur can happily take EIGHT weeks out of their business?!

Before you start throwing the now household names of Dragons’ Den or Alan Sugar at me, they don’t count. They’ve made their fortunes, they’ve nice big senior management teams taking care of the day-to-day. In turn, I'm sure it's not the Gordon Ramsays of the food world, Berger's vitrol is aimed at.

Mind you, I’d question if even Gordon or ‘Sir Alan’ would be comfortable with leaving their businesses for eight weeks.

Celebrity? You can keep it.