Jim Culverwell

There’s nothing quite like the excitement you feel when your business takes off and you experience a period of growth, for example a large increase in enquiries, new business and/or turnover. We all like to know the blood, sweat and tears we pour into our work, ultimately pays off and to actually see results. Your approach to risk will dictate if this trend means it’s the right time to make some big investments, or you could take the cautious approach and assume it’s just a blip. 

However, before you pop the bottle of bubbles and toast your success, or potentially miss out on a big opportunity, it’s important to do your research and discern whether it is indeed a temporary blip or a sustainable trend. In this blog, I’ll talk through some simple steps to understand what’s really driving your business growth so you can make the right choice for you and the future of your business.

Check Your Numbers

Take a look at your data – revenue, costs, profit etc – and compare your current performance spike to past periods (e.g., last month, last quarter, last year). If you don’t know already, this might help you understand the source of your growth. For example, is it a specific marketing campaign, a new product launch, seasonal factors, process improvements, or a change in the market? Looking at the facts will help you establish what type of growth this is i.e. a small, short-lived increase or sustained growth.

Look For Consistency

If you’re reasonably sure from your data that your business growth is a trend, the next question to ask is how sustainable it is. How long has the growth lasted so far? Is the growth pattern repeating? And most importantly, can the factors driving this growth be maintained over time without depleting your existing resources? If the growth is dependent on a one-time event or unsustainable practices, you have a different/bigger problem to solve.

Consider Your Risk Profile

What are the risks inherent in making plans for the future of your business, based on this period of growth? Even if you have ascertained it’s a trend, rather than a blip, and you can see some consistency, what other risks affect your business in the future? Additional investment, more resources, increased overhead? How comfortable are you taking these risks and how well can you mitigate any downside risks you can foresee?

Have The Right Conversations

When momentum is building in your business, this is an ideal time to talk to your customers. Ask them whether they are happy with your products or services. Are they likely to continue doing business with you in the short- and long-term? Do your research into industry trends and competitor activities, to help you understand if your growth is in line with the overall market. It may also be worth consulting with mentors, advisors, or industry experts to get their perspectives on your business growth. If your growth means you’re outgrowing existing premises, then you will be thinking about taking on more or moving to bigger business premises, for example, this is when my network would tell you to #TalkToJim!

Are you ready for the pressure?

If you need more space to meet the demands of your rapidly growing customer base, you may be considering whether new premises are the answer. Many clients come to me at this point and my question is always the same: what does the business need? 

It’s important to consider what the additional premises (and commensurate overhead) would deliver to your bottom line to ensure it makes financial sense. Alongside that, are you ready for the increased pressure of larger premises and potentially a larger team?

Don’t forget, I offer a free mentoring call if you’re in need of a sounding board to consider questions like this – and look at what options you have available to you to make the right decisions for you and your business.

Click here to check my availability and book your call: https://calendly.com/talk-to-jim/30min

How transparent are you in your work?

A conversation with a fellow business owner prompted this question recently. As an independent consultant who works for and on behalf of the tenant, rather than the landlord, in a commercial lease negotiation, I’ve always prided myself on my transparency with prospects and clients. Sometimes, that has meant ‘losing out’ on potential business. But is it really a loss if the prospect’s problem was solved? Not to me!

Too often I see business owners enter into the world of commercial property with little or no knowledge of which premises are right for their business, or how the lease negotiation process works. As a result, they are likely to miss things and can sometimes be taken advantage of, or worse, they end up relying on the landlord or their agent for guidance. If you are considering taking on or moving business premises in the next 12 months, I’m sharing this blog to give you an overview of the main stages of the premises search and lease negotiation process, with a brief explanation of what you may need to consider for each.

Needs analysis 

Ask yourself what your premises needs to deliver, and whether it has the correct features, technology, and specifications. How will your premises make a meaningful difference to your bottom line? Does it motivate/stimulate your team? How will you measure the value it delivers? This is the time to be transparent and honest with yourself about what your business needs to grow and thrive. You can think of it like writing a job specification as you would for a new employee – essentially it’s not very different. Your premises should deliver to your bottom line in much the same way.

Search/assess

Once you have your requirements list or ‘job spec’ together, it will be easier to assess your current premises, prioritise your needs as a business and truly understand whether you need to move, and what to look for if you do. If you decide to stay in your current premises, you can still move to the next step (negotiate), but you will be renegotiating your current lease rather than entering a new one. If you do decide to move, your next step is to find the closest match in the market, using your ‘job spec’ to search for the right premises. Consider what compromises you are prepared to make vs what elements of your ideal premises are non-negotiable. COnsider how transparent the people in the process (estate agent, landlord) are being with you vs what they may want to hide. Do not assume anyone is acting in your interest! View as many premises as you are able to, in order to form an accurate view of what is available in the market.

Negotiate 

Negotiation time. It’s important to remember: signing on the dotted line of your Heads of Terms isn’t the first thing you need to do – it’s the last! This is not a one-and-done event – it is a negotiation. As a prospective tenant or even existing tenant, you are in a position to give your Landlord a proposal for lease terms that work for you (and that you suspect they might view favourably). In fact, being transparent and laying out your ideal lease terms up front will give you more power when it comes to negotiating. Ensure you agree all the details of the deal before the matter is passed to solicitors. After that, making major changes becomes difficult!

Review business plan

Once you are happily settled into your new premises, try not to assume that ‘premises’ is ticked off your to-do list. A regular review is essential to ensure your premises continues to provide your business with what it needs. Come back to your job specification as many times as you need to assess how your premises is ‘performing’ – just as you would with an employee appraisal process – and continue to be transparent and honest with yourself about what is working – and what isn’t.

Need some help?

My mission is and always has been to empower the business owner with the right information to make the right choice for them and their business. If I can tell them everything they need to know during a chat at a networking event or one of my free mentoring calls, then so be it.

If you are looking for guidance on taking on or moving commercial premises, book a free mentoring call with me, and let’s see if we can solve your issue in 30 minutes or fewer!

Across networking events, my LinkedIn presence, and my day-to-day work with my clients, I often reflect on what I’m seeing in the small-medium business community. At present, the sentiment is very mixed. Whilst some businesses are clearly thriving, others are struggling and many smaller businesses are taking the difficult decision to close. I have recently been wondering if many of us are still expecting things to go back to the way they were.  I’ve seen this play out in a hesitancy to make decisions and many businesses adopting a ‘wait and see’ approach. Of course, this is understandable. The past 5 years have seen many large global and national events such as the pandemic, war in Ukraine, and now a change of government, each of which has had a huge impact on the economy and on business. This mixed sentiment is also reflected in recent reports from industry bodies. For example, whilst a recent report from the UK Chamber of Commerce “shows the majority of firms (75%) are still struggling to boost investment”, data from the FSB Index in May 2024 showed a more positive view: “The headline confidence reading jumped up over 20 points to reach +5.5 points in the first three months of 2024, up from -15.0 points in the final quarter of last year – the first confidence reading above zero since 2018”

 

Having survived two recessions and many, many changes in the way we do business over the past few decades, my take on the current situation is this: we have to accept where we are, rather than waiting for things to change. Human beings have a tendency to use rose tinted glasses when thinking back to the ‘way things were’. The truth is: it was probably never as good as you thought it was! The converse is also true: armed with the right facts, things are probably not as bad as they seem, right now. The main issue when we hesitate to make decisions and put things off until ‘things get better’ is that we run out of time to make the right decision. If you want to grow your business, regardless of the state of the economy – and the world – you need to accept the current state of affairs and remember that you never truly know what the outcome of any decision will be. In this blog I’m sharing a few tips on decision-making in business to help you get out of the ‘wait and see’ rut and get moving again.

 

1. Plan the end first, then you can go looking for it. What is the ideal outcome of this decision? What is your ultimate goal? Why does that matter? What is the risk of not achieving this goal?
2. Build a flexible plan that allows for different routes to reach your goal. A flexible plan is the best way to deal with uncertainty because you can be adaptable to change. Although a rigid plan might seem more appealing, if there’s no room for flexibility it might get you into trouble.
3. Do your research and gather the facts, but remember that 70 – 80% of the data is probably enough to make a decision. Of course, making decisions without all the facts is uncomfortable, but ultimately you won’t be able to avoid all the risks, no matter how much information you have.  Understanding those risks and how they may play out, takes you a long way.
4. Ask for help! If you can’t reach 70 – 80% of the information, ask for help to fill in the gaps of what you don’t know you don’t know. Imagine a puzzle – you need just enough pieces to get the idea of the overall picture, even if the small details are missing. Speaking to an expert will help you identify when you’ve reached that stage.
5. Remember making a decision is better than not making it! The enemy of decision-making is time, so put the control into your hands and make a choice sooner rather than later.

 

Are you currently trying to make the right decision about your commercial lease or premises move?

All my clients start with a certain amount of knowledge, but what they usually know “a bit about” is residential property, which is a very different ballgame from the world of commercial property. That’s why my courses, my bespoke tutorials, and my document reviews, always work to build on what my clients already know. The reality of relying solely on what you know “a bit about” is that it puts you at a substantial disadvantage because you can’t necessarily spot the gaps in your knowledge and also, won’t be able to conceal them.  

This can be extra problematic when the people you’re dealing with (the landlord or their agent and solicitor) know significantly more than you do.  They will quickly spot those gaps and they are unlikely to tell you. That’s why my suite of online courses and 121 services aim to get my clients to a level that is at least equal to the agent and/or landlord. No gaps.

If you or someone you know, would like to be on a level playing field when they come to the next engagement with their landlord, book an informal chat and let’s talk about how you can ensure you’re making the best decisions for you and your business.

Book a call here: https://calendly.com/talk-to-jim/30min

Like it or not, business has changed a great deal in the past 10 years. Post-covid we are under immense amounts of financial pressure on one side, yet experimenting with the 4-day week and working flexibly on the other. The world of work is rapidly being reimagined! Having been in business for over 3 decades I have seen huge changes in what is possible, in terms of business. 

 

In this blog we take a look at conventions in business to answer the question: are outdated conventions holding your business back? Here are some examples of how things are changing.

• Strict dress codes: Smart casual dress codes are becoming the norm in most workplaces, even in traditional industries. I always wore a suit, collar, and tie to work throughout most of my career in London (twelve years). Even when the weather was hot, there were no other options. Perhaps on a Friday afternoon, we might loosen our ties and get away with it! These days, while a suit and tie may still be required for client meetings or presentations in more formal settings, a more relaxed dress code is generally accepted (or expected) elsewhere, particularly in the self-employed world. How we dress is not seen as a reflection of our performance at work as it once was.  Personal choice and comfort seem to be taking priority.

• Traditional hierarchies: Many companies are now moving towards a flatter organisational structure, with more emphasis on collaboration between management and their team members. There are a host of benefits to this approach, such as faster decision-making and improved communication, but might also be seen as less appealing to prospective employees as there are fewer progression opportunities.

• In-person meetings: With the rise of video platforms such as Zoom, there is less need for in-person meetings, especially where distance is a factor. Meeting online can save time and money on travel, but may not always be the best option for relationship building. Personally, although phone calls and Zoom are useful for catching up with clients and/or meeting people where travel could be prohibitive, there’s something more going on in a face-to-face meeting, for building trust and creating the foundations for a solid working relationship. 

• The traditional 9-5: With the increase in hybrid or fully remote roles and more flexible approaches to working hours, the traditional 9-to-5 workday is no longer the norm for many businesses. Although employees may be expected to be present for ‘core hours’, outside of this many companies are offering increased flexibility. For those of us that are self-employed, we have the option to reject the 9-5 workday completely if we are brave enough! For me, it went out the window years ago.  For example, sometimes I’ll work from my bed, the car, or a cafe if I’m meeting a client. Other times I’ll work from my home or garden office. I’ve even been known to send an email from a ski lift whilst on holiday! 

 

What about your business – how many of these conventions are you holding onto and why? How many have you let go? The key in every case is to consider first, how these conventions came about and then, who those conventions are serving. Does holding onto a more traditional approach serve you and your business, or are they holding you back? I meet many people who still hold onto views such as:

 

“I have to work X hours a week”

“I have to have an office”

“I have to have a London phone number”

 

However, given the trends we looked at above, it begs the question: In 2024, what do you really need to run a business? And what conventions, if any, do you actually need to follow, to be successful?

 

How many different places do you work? And where do you feel most productive? With a plethora of options available to the working population, how do you choose? Personally, I find different workspaces quite stimulating. For example, sometimes I’ll work from a car or coffee shop, particularly if I’m out and about meeting a client. Other times I’ll work from my home or garden office. I’ve even been known to send an email from a ski lift whilst on holiday! In this blog, we’ll take a look at the pros and cons of a few of the most common options.

 

The first question to ask, of course, is what you need. Do you need somewhere with few distractions, to aid focus? Perhaps somewhere quiet, so you can take calls? Or the opposite, somewhere with a background hum of activity to motivate you? Take some time to consider what environment helps you get into work mode and also whether your needs vary, for example, do you need different conditions for deep work vs more low-effort admin work?

 

Secondly, let’s take a look at what different work environment options can give you. You may find by doing this thought exercise that you need two or more of these options to meet all your requirements.

 

1. The Home Office:

•       Pros: If you live and work alone you can control the environment and keep things quiet, or play music, to your preference. If you can dedicate a room or space in your home, it can be personalised for comfort, decorated to your liking and of course, there is no commute!
•       Cons: If you live with others, particularly kids or pets, then you may have a lot of distraction to deal with, plus the lurking necessary of household chores. Many work-from-homers complain of the blur of work-life balance, so it’s important to consider how effectively you can compartmentalise. Obviously, this relies on working with your team remotely, if you have one, and meeting clients out and about at coffee shops or similar.

2. The Garden Office:

•       Pros: Provides a peaceful environment if you are reasonably sound-proofed, plus there is the added bonus of benefiting from connection with nature. You may also find a separate space reduces home-based distractions.
•       Cons: You are at the mercy of the weather, depending on how well-insulated your garden office is! Alongside this, you may not have all the amenities of a home office such as a bathroom or heating. Compared to taking over a room in your house, a garden office is also an additional expense to your business. Again, dependent on size you probably won’t have the space to accommodate a team or visitors.

3. Co-working Spaces:

•       Pros: There are likely to be many affordable, flexible workspace options in your local area. These tend to be good for networking and collaboration and often have a vibrant atmosphere, which can be motivating. Amenities such as a kitchen and bathroom will be included, sometimes even added extras such as networking events, showers or meeting rooms for hire, so you might be able to meet with your clients or your team.
•       Cons: If you’re the type of person who needs a lot of quiet, they can be noisy and distracting. You also lack privacy for confidential calls and depending on the sense of community, or lack thereof, can sometimes feel impersonal. You may also have restrictions on whether you can host meetings, depending on the facilities available.

4. Serviced Offices:

•       Pros: Serviced offices provide a professional environment and flexible agreements – although watch out for the small print! Amenities such as meeting rooms, a kitchen, and reception are usually included. flexible agreements and You are well set up to host client meetings and share a workspace with your team members. There is also the added bonus of networking with other business owners.
•       Cons: Much like co-working spaces, they can be noisy and are obviously less customisable than a leased space. There may also be limitations on after-hours access.

5. Leased Commercial Premises:

•       Pros: This is the most professional setting for your business, providing a dedicated space for focus, team collaboration, and a platform to showcase your brand. You are fully in control of the experience of your team, clients and suppliers when they visit you. You are also able, subject to the conditions of your lease, to customise your space to suit your needs as a business by creating different areas within your space, to meet different requirements and ultimately to deliver greater value to your bottom line.
•       Cons: Of course, this is a much larger investment and long-term commitment, but that’s where I come in, as your independent commercial property adviser. If taking on commercial premises is on your radar, please do get in touch.

 

Ultimately, the best workspace to support you and your team to do your best work depends on your business needs, your individual preferences and the type of work you deliver. When making your choice, consider what kind of environments would support you and your team to concentrate, collaborate and connect best, and remember, it may be more than one type of working space.

 

If I had a pound for every time I’ve heard this phrase, I’d be a very wealthy man: “Paying rent is money down the drain – I want to buy a building to put my business in”. Many a business owner has crossed my path determined to purchase a commercial premises for their business rather than lease one. Whilst on paper this might seem like a better option longer term, of course, it isn’t quite as simple as that. For one, you may very well never actually ‘own’ the building.  There are several ways to structure this “purchase” and the differences are about tax efficiency and finance.  You may control the property but never be the legal owner.  Curious? This blog will raise some questions in your mind and help you answer them.

 

1 What do you really want? 

The first question to consider is why you really want to own your premises. Is it about the business or about you? It’s important here, to separate your own wants and needs (investment aspirations) from what your business needs. The reality is that whether you own or lease, there’s very likely to be no difference for your business – it will pay rent to a landlord. This might be the business owner’s pension fund or another entity. Notionally then, you become both the tenant and the landlord. Then, when things change (as they tend to) it gets complicated! You could end up with competing priorities i.e. the financial health of your pension vs the financial health of your business.

 

2 What happens if/when your business shrinks or outgrows the space?

If you decide that your business needs to move, how will you manage that process and find an alternative tenant? You could end up with competing priorities i.e. the financial health of your pension vs the financial health of your business. How will you decide which is a priority and make the right call?

 

3 How long will all this take?

Many business owners expect a commercial property transaction to take a similar amount of time to a residential one. In reality, it can take 3 – 5 years of financial planning and time to get everything set up, especially where a pension fund and bank borrowing is concerned. So be prepared for a lot of documentation and ensure you have all the good people you need, on your team beforehand!  Also, have a sound interim location for your business to trade from, so it isn’t being held back while you undertake this important structural change.

 

4 Are you prepared to still not ‘own’ your premises?

If you are using your business as a tax-efficient, personal investment, then the pension fund will own the building. Whilst this is very tax efficient, you don’t own the building – the pension trustees do. Your business still pays rent, but to the pension, with you as the beneficiary.

 

5 What happens when company directors retire?

If you own a building and you’re the director of your business, things are pretty straightforward. if the directors of the company are also the joint owners of the building, also, happy days.  

 

But what happens when a group of company directors, who each own a share of the building (possibly within their pension pot), retire? The directors of the original business and the directors who own the building, will eventually become two completely different sets of people with completely different expectations and motivations from when the whole scenario was set up. This is why taking a long-term view of ownership is key – don’t just think in terms of 10 years, but 25, or even 50! This happened to a client of mine – the directors of the holding company actually decided to sell the building and for complicated reasons the business has had to move out! If this has raised more questions for you to think about and you’d like a handrail through the whole process, I am here to help.  I’ve been that handrail on many occasions and although each time it is a unique set of circumstances, the principles remain the same.

 

As always, if you need support making the right commercial property decisions for your business, then let’s have a chat and discuss your options. Click here to book a call https://calendly.com/talk-to-jim/30min