The Think Tank: Start-ups in focus

CHALLENGES facing entrepreneurs in the early stages of their business journey was the theme for the first session of EY’s Think Tank agenda.

The Think Tank – comprising of regional entrepreneurs – is a new initiative between EY and TheBusinessDesk, exploring the different issues and challenges business leaders face during the progress of their enterprise from start-up to maturity.

Issues facing early-stage, start-ups were explored in the first meeting, which was attended by Matthew Hirst, chief executive of Chorley software company Utiligroup, Vince Ferguson, chairman of Inciner8 a green technology company based in Southport and Victoria Price, director at EY.

There was general agreement that while business confidence is improving, considerably more could and should be done to help small firms during their early stages.

Vince Ferguson said that along with tenacity, product and market knowledge, entrepreneurs need to be flexible and able to change track quickly.

“During the planning stage, you have to pull your business plan apart – you have to always think ‘what if’ . Cash flow is such a massive thing for early-stage enterprises.”

Matt Hirst agreed, stating: “You absolutely have to evolve as things happen and listen to what customers want.”

Hirst, 37, who led an MBO from a listed company backed by private equity investor NorthEdge Capital last year, said that for him, the issue of mentoring and support was key.

“I have been very fortunate – but being a business owner can be very lonely – so you need some support.”

Ferguson concurred: “Yes, it can be a rocky road and I think we all need sometimes to speak to, someone you has been there and has a few grey hairs.”

The availability in the region of a pool of mentors/non-executive directors with the time and the talent to advice entrepreneurs was said to be “patchy” – with there being a distinct lack in some sectors, particularly digital and technology.

Victoria Price said EY was trying to step into this void by creating a forum of more than 150 entrepreneurs in the region, which have gone through the firm’s Entrepreneur of the Year programme.

Alongside the need for impartial business advice, the availability of talent and funding are fundamental requirements for start-ups to thrive.

While there was consensus that in the broadest sense the North West is a good location to build and grow a business, the panellists expressed concern over several sub-regional disparities for business support. For example, Greater Manchester has a dedicated Business Growth Hub,  Liverpool and Lancashire don’t.

Vince Ferguson said: “There doesn’t seem to be that independent, one-stop portal for advice any longer, it depends where you are in the region.”

Hirst added: “While our local council (Chorley is helpful) – I do think there is a void that has not been filled since the NWDA (North West Development Agency) closed. I always found it pretty good to deal with.”

He said, while the principle behind the Government’s Northern Powerhouse agenda was good, he was concerned about where “the smaller towns” fit in to the vision.

“The focus does seem to be Liverpool, Manchester and Leeds, and it’s clear to see that Manchester in particular is booming – but smaller towns are struggling.

“Transport links generally are appalling – but that’s a massive issue for all businesses, not just start-ups.”

Ferguson said he too was positive over the devolution of decision making from Whitehall to the regions, but as a business based on Merseyside, he believes Liverpool is “something of the poor cousin to Manchester.”