Upload
hoangminh
View
216
Download
4
Embed Size (px)
Citation preview
HOW I MADE ITJoe BlackmanFounder ofCo l lec t ion 26
A YOUNG Joe Blackman spent summerweekends serving fruit juice at a story-telling festival on theWelsh coast.“I was roped into it,” said Blackman,
whose mother was an event manager forthe festival.Eachyear, sheconvincedhimto come along as a helper. Today, he toomakeshis livingas aneventsmanager.At the age of 19, Blackman helped at
top music festivals such as Party in thePark in Cardiff and the Brecon Jazz Fes-tival. In 2007, still inhis early twenties, hedecided to strike out alone — and targetbiggerwallets.Hiscompany,Collection26,noworgan-
ises corporate and private events,including weddings, for clients such asthe AbuDhabi royal family and Americanmusic stars including 50 Cent and theKillers. Blackman has 14 staff, based inNottingHill,west London.He typically charges 20% of each
event’s budget, which is usually from£250,000to£1m-plus. Lastyear thecom-pany had sales of just over £3m andprofits of £1m. In December, it expects toreport salesof£4mfor thisyear.“I like to keep it small andmake lots of
money,” said Blackman, 29, who owns100% of the business. “Turnover isvanity,profit is sanity.”Hiskey to success?Whathecalls “stra-
tegic networking” at the festivals wherehe lent a hand. “I made friends with thebands’ management and helped to pro-duce after-parties for visiting artists.Eventuallyyournamegets around.”Blackmangrewup in LlantwitMajor in
the Vale of Glamorgan, overlooking theBristol Channel. He and his youngerbrother and sister were brought up bytheir mother, an events manager at theSt Donats Arts Centre. She helped toorganise Beyond the Border, the annualstorytelling festival at St Donats Castle,whereher sonwas roped in tohelp.By the timehe left LlantwitMajor com-
prehensive school after A-levels, he hadprogressed to an event manager, helpingtoentertain the festival’s 10,000visitors.After startingadegree in stagemanage-
ment at the Royal Welsh College of Music& Drama in Cardiff, he freelanced forother festivals. He got a taste of entrepre-neurship after becoming vice-presidentof the students’ union in his second year.“I used students’ union funds to buy backand run the bar franchise, which hadbeenoutsourced. Itwasagoodmove.”Blackman did not return for his third
year. A friend of a friend had dropped outof an events role at the 2006 Asian Gamesin Qatar, and he filled the spot. “For sixmonths I stayed on a cruise ship becausethey had run out of accommodation.”On
his return to Britain he decided never towork for anyone else again. “I don’t thinkI was a very good employee. I had toomanyofmyown ideas.”He taught himself about web design
and advertising before applying to theWelsh Assembly for funding to set up abusiness.Hewas turneddown, but he didsecure funding to do an MBA, despite nothaving completed an undergraduatedegree. “I had to have special dispensa-tion from the University of South Walesbased on my experience, having runvariousbusinesses fromayoungage.”While setting up Collection 26 a year
later, he also found the time tobecome theyoungestmagistrateon theCardiff bench.Blackmanmoved his office fromCardiff
to Notting Hill in 2010 to be closer tovenues and his clientele. Initially, though,it costhimsomestaff. “Itwasa fairly spon-
taneous decision. In my fairy-tale way Ithought everybody would come with mebut theydidn’t,whichwashard.”He is planning to open an office in New
York. “It’ll be difficult to start over therebut itwillhappen. It’s apriority.”Collection 26 has grown by reputation
since Blackman won his first client, theAfrica Oyé festival in Liverpool, in 2007.“Anyone can book things for an event;the key is how you orchestrate thoseelements into a journey. It can be a verycreative process with the small detailsmakingamassivedifference.”Planning weddings for billionaires and
footballers — including for the Arsenalplayer TheoWalcott in Italy last June— isparticularly challenging. “If you screwup, you have the best solicitors in theworldcrawlingall overyou.”When preparing a £250,000 private
event in Newcastle, he had to handle thebreakdown of a generator powering akitchen and lighting for a 70ft marquee.His cool response: “We told the client itwas an emergency lighting test while thetechniciansrewired thewhole event.”Blackman, who is single and lives in
Richmond, southwest London, has thisadvice for entrepreneurs: “You don’talways need investment to start a busi-ness — be innovative with your ideas,work hard and show passion, drive anddetermination inanythingyoudo.”
HattieWilliams
TIPPING POINT ATWHICHABSENCE IS TOOHIGHRSwrites:Oneofmysenioremployeeshas sent in adoctor’snotesayingshe isn’t fit toworkbecauseofaknee injury. Shehasbeenoff alotover thepast 12monthsowingto stress that isn’t related towork.Atwhatpointdoes all this timeoffbecomeunacceptable?
Different companies set differenttriggers for addressingsicknessabsence,writesPeterDone,managingdirectorofPeninsulaBusinessServices. There isno legalpositiononwhat is “toomuch”absenceand therearemany factorsyoumaychoose toconsider.Robust absencemanagement
systemsare essential forkeepingontopof theefficiencyofyourworkforce.Agood systemwillincludeelements to recordand tracktheamountof leave takenbyeachemployee, and thenbe followedupbyamethodofmanaging thosewhoare takinganunacceptable amountof timeoff.Somecompaniesuse theBradford
Factor, amathematical formula fordetermining thepoint atwhichabsence is consideredaconcern. Itworksonamultiplication system,where thenumberof instancesofabsence ismultipliedby itself, andthenmultipliedby the totalnumberofdays takenoff.For example,someonewhohashad15daysofsickness, taken in3 instalments,wouldhaveaBradfordFactor scoreof 135 (3x3x 15).This systemtargetsthosewhoare repeat offendersofshort-termabsences, becausesomeonewho frequentlyhas shortabsenceswill attainahigher scorethansomeonewhohas takenonelongabsence.Frequent shortabsencesareconsideredmoredisruptive toa company.Youthenneed todeterminewhat
scorewill be the triggerpoint foraction.This level is atyourdiscretionand isnotprescribedby law.Alternatively, some firms justuse
thenumberof absencesas the trigger—all staffwhohavehad threeabsenceswithina rolling 12-monthperiodwill beaddressed, regardlessof the lengthof eachabsence.Whichever systemyouuse,you
shouldnot singleout this employee—it is important toadopt aconsistentapproachtoall staff absence. If youhavenever tackledher absence,youshould start theprocedure fromthebeginning.Donot leap inwithahigh-level sanction.
TWO TAX OPTIONS ONCOMMUTING PAYMENTSDRwrites: I runacompanyandmycommuting train ticket costs£750amonth. If I hadanannual seasonticket itwouldcost£8,250,which isaconsiderable saving. Idon’t take asalary, socanthe companypay formytravel instead?
If yourbusinessmakesadirectpayment to the rail companyonyourbehalf, youwill have toprocess itthroughyourcompany’spayrolland itwill be subject tonationalinsurancecontributions (Nics),writes JonDawson,partneratKingstonSmithLLP.Thecompanywill still have to report thebenefit inkindonaP11Dannualdeclaration foryou,whichmeansyouwillneed toinclude thecost as incomeonyourpersonal tax return.Asanalternative, if youmade the
paymentyourself and thecompanyreimbursedyou, theamountreimbursedwouldhave tobeprocessed throughthepayroll. In thiscase, itwouldbedeemed tobe salary,whichwouldbesubject to incometaxandNics.Youwouldpayanytax andNics immediatelyand thecompanywouldnotneed to report thebenefitinkind.Themaindifferencebetween
theseoptions is the timingof any taxpayments. If themoneygoes throughthepayroll, it is taxed in themonth itisprocessed. If themoney isdeclaredonyourpersonal tax return, the tax ispaid in January following theendofthe taxyear. If this is youronlysourceof income,notaxwill beduebecause theamount is belowthepersonal allowance.Manycompanies lendmoney to
employees so theycanbuyseasontickets—employees repay thismoneyduring theyear throughdeductions fromsalary. Inyourcase,thecompanywouldhave topayanotional salaryeachmonthanddeduct the season ticket repayments.
It’s not easy tryingto live off the state
Party people: Joe Blackman’s team delivered turnover of more than £3m last year
Party planner by appointmentto the Premier League stars
VICKI COUCHMAN
Charlie Davies has astring of regularcustomers for DotComms, the digitalmarketing and dev-elopment agency she
started a few months ago. But apublic sector contract would bebreadandbutter forher.“A contract like that would
be guaranteed income,” saidDavies, 25, who works from herhome near Clapham Common,southLondon.Yet she knows clinching such
a deal isn’t easy. “I wouldn’tknow how to find out what’savailable. I don’t even knowwhether I’m allowed to apply.”And, she added: “I’ve yet tomeet acompany thatworkswithor throughthegovernment.”For small companies, the
process of winning a contractwith the public sector is bothlengthyandcostly.Last year, £4.5bn of White-
hall’s procurement budget wenttosmall andmedium-sizedbusi-nesses. This amounted to only10.5% of the external contractsawarded. By the end of nextyear, it hopes to have increasedthat to25%.Although the target suggests
eagerness to open doors, morethandoublingthenumberofcon-tracts inayear is ambitious.“Small businesses can find
their efforts to win public sectorbusiness hampered by excessivebureaucracy and bidding costs,”said John Allan, chairman of theFederationofSmall Businesses.“The taxpayer misses out on
the innovation and flexibilitysmall businesses offer. Officialsshould look at breaking largercontracts into smaller lots, sim-plifying processes and engagingwith smaller companies at earlystagesonallmajorprojects.”Thebidding process canmean
days are sacrificed on a tender,time that could be spent onbusi-ness. Sometender-writingcom-panies charge thousands to pulltogether a bid, andmight want acutof thebusiness secured.Recently it was reported that
Buddi, Sara Murray’s mobilealarm and tagging supplier,
walked away from a contractwith theMinistryof Justice.The company accused the
ministry of changing the speci-fications of the contract anddemanding that Buddi handover its intellectualproperty.Buddi was selected as one of
four companies to tag and mon-itor offenders, after an extensivetendering process. The otherthree were Capita, Astrium andTelefonica. Murray, Buddi’sfounder and chief executive,called the process “unproduc-tiveand frustrating”.Debbie Pearson feels the
same. Bidding for a public sectorcontract has meant days out ofrunning Emergency ResponseTraining, her Doncaster com-pany that offers courses onfirst-aidandhealthandsafety.The business is registered
withfourportalsadvertisinggov-ernment contracts (The Chest,Yortender, DueNorth andNepo).
Last week, she received twotenders, one in the form ofa three-page document andanotherofmore than100pages.“Thereneeds tobeone frame-
work for all,” said Pearson, 41,whose father founded the busi-ness in 2002. She spent four daysonthe 100-page tender.“Companies approach me all
thetimeoffering tohelpwithwri-ting the pitch,” she said. “Thelast man asked for £1,000 and a5%cutof thebusiness Iwin.”Last year, local authority
tenders won through a portalamounted to only 2% of Pear-son’s£225,000turnover.Pearson is not the only one
with a gripe. In Hampshire,Richard Knight has spent weekstrying to contact a council abouta contract he wants to bid for.Focal Point, his firm with fivestaff, specialises in outdoor ad-vertising, including displays onbillboards,bus sheltersand taxis.
“There is a contract up soonthat Iwant tobid forbutmymes-sages and calls are not beingreturned,” said Knight, 56, whofounded the firm in 1987. “Idon’tdemand the right to get thebusiness; I justwant a fair shot atbidding.”He usually keeps out of bid-
dingwars forpublic sector deals.“I knowan agency that can havefour staff working on a tenderdocument for a month; I don’tknow a small business that hasthe timeormoneytodo that.”For those who have broken
into the public sector, successhas followed. One of them isAndy McLoughlin, 35, who runsHuddle, a software business thatallows users to work and storeinformation in the internet cloud.It was founded in 2006 and
now works with 80% of centralgovernment departments, andhas been approached by high-profile American institutions.
“Working with governmentprovides an instant stamp ofapproval,” saidMcLoughlin.But it wasn’t easy. From the
initial bid for the first state con-tract in 2008, it took threemonths to get a pilot of theservice intogovernmentoffices.“Traditionally, innovative
smaller companies have beenshutoutofgovernmentprocure-ment and this has been thedomain of technology goliaths,”saidMcLoughlin.He opened an office in San
Francisco in 2010 where heworks on contracts with theOffice of the Secretary ofDefense andNasa.Hehas 35 staffthereand100 inLondon.“Working with government
also requires dedication. Youmust ensure you meet certaincertifications and accredita-tions, and find the problems ingovernment that youcan solve,”saidMcLoughlin.
KingstonSmithLLP, the charteredaccountant, andPeninsula, theemployment law firm, canadviseowner-managers on their problems.Sendyourquestions toBusinessDoctor,TheSundayTimes,3ThomasMoreSquare,LondonE98 1ST.Advice isgivenwithout legal responsibility.
Business doctor
Charlie Davies of thestart-up Dot Comms:‘I don’t even know ifI’m allowed to apply’
VICKI COUCHMAN
Trying to win acontract withWhitehall can betime-consumingand costly, warnsKiki Loizou
SMALL BUS INESS 23 .03 . 14 / 13..........................................................................................................................................................................................................................................................................................................................................................................................................................................................