Expert advice on building firm foundations for business growth
Guests at TheBusinessDesk.com’s Finance Futures executive summit were encouraged to not be scared of uncertainty but also to not put off making difficult decisions.
The advice came from keynote speaker Sarah Ashby, chief financial officer at Huddersfield-headquartered nursery brand Mamas and Papas – a £200m turnover business.
Speaking during the Business Growth pillar of the Finance Futures event in Leeds and supported by Headstar and PIB Insurance Brokers, Ashby stressed: “The timing of making difficult decisions is key. Don’t wait until the bad times – take action early and course correct.
“And it’s important to build in contingency, don’t assume every star will align.”
Sarah Ashby
Outlining the nature of her own role, she said as CFO she must manage different expectations from the business’s private equity investor and its employees. “Our investor wants a good return and our employees are asking for more resources, so how do you juggle those demands? It’s about listening and knowing why you are making the decisions you make.”
She said while her own company may have some certainty of demand because people will always have babies, it still faces the same headwinds as other UK businesses, including rises to National Insurance, the minimum wage and business rates.
The firm also has most of its products manufactured in China – another matter of concern in a time of potential trade wars.
Ashby highlighted how businesses can enhance their value by focusing on operational efficiency, making sure their cost base is right-sized and their workforce optimised for the future.
Turning to customer loyalty, she added: “It’s hard to get people to spend money so it’s important to do the right thing by them.
“Think differently about what the customer might want in the future. You should always start with the customer.”
Ashby’s keynote speech was followed by a panel discussion on business growth featuring Preete Janda, CFO of DNA Payments, Brendan McManus, CEO of PIB Group, Linda Nguyenova, investor at BGF and Ben Priestley, CFO at Mansfield Pollard.
Priestley said businesses must always consider “Process, product and people”. Addressing product, he said: “We build kit that goes into data centres. We know this is an industry that we want to get more of a share of. As a business we’ve got to grasp hold of that.
“We need to spend a lot of money on R&D so we have to invest – cash is key.
“In terms of our people, we need a culture where people want to bring us ideas. We’re prioritising apprentices because we want to get people when they’re young, train them, treat them well and – if possible – hold onto them.”
McManus said: “The battle for talent is immense and I spend a lot of time on trying to get senior people into the business. We must invest in our people and retain them.”
He said integrating new people into the company each time it makes another acquisition involves continually promoting the business’s culture.
“We need to live and breathe it,” he said. “I always use the word ‘collaboration’ because that’s the behaviour we recognise and reward the most.”
Janda said her company had carried out a lot of acquisitions in 2022, with integrating new technologies into one seamless product proving a challenge.
Commenting on acquiring the best talent, she said: “You want to get people who are willing to get their hands dirty and muck in when times are tough.
“When you find them, you should hold onto these good people, treat them well and pay them well. Give them the market rate.”
Nguyenova spelled out what BGF is looking for in a firm it would normally invest in.
“We want a management team that is ready for growth and which will communicate with us openly and honestly,” she said.
“Is the business ambitious enough – but not too ambitious? It has to be the right balance.
“Also, is it the right time for that business to take on funding? Private equity isn’t right for every business at all times.”
TheBusinessDesk.com’s Rainmakers Conference returns next month, and there is still time to book your places and join more than 350 business owners, corporate finance professionals and advisers.
It will bring more opportunities to network, more amazing speakers, more candid debate, more inspiring entrepreneurs, but also a chance to discuss the challenges of value creation.
Our speakers include Applied Nutrition chief executive Thomas Ryder, Kids Planet chief executive Clare Roberts, Airswift Group founder Ian Langley, Contollo chief executive Ruth Percival and many more.
The conference is at The Point, Manchester, on Wednesday, 26 March. To see the full speaker line-up and to book your tickets, visit www.rainmakersconference.co.uk.
