Business support services – partnership over perseverance!

I didn’t really know where to begin when it came to looking for a Solicitor or an Accountant and I certainly didn’t understand Commercial Insurance. There seemed to be hundreds of possible premises options (but how much should I pay?) and I thought the bank would be the easy bit!

When I started out I’d also spoken to my then employer about using their name and resources on either a licensed or partnership basis to give me credibility and to allow me to hit the ground running. When they said no, failing to believe that I would leave, I reverted to ‘plan B’ which was to become Spire Telecom. I served three months’ notice in accordance with my contract and quickly realised that I’d not left much time to properly set up my own enterprise. It was to be a very busy three months and, in addition to my best ever sales quarter (for which I never got properly paid!), there was a lot of work needed to get cracking with Spire.

Making good use of my evenings and weekends I decided to start by finding an Accountant. I got lucky and through a recommendation I met with John Lord at Brookwood Accountancy. John was practical, pragmatic and realistic in the guidance he gave me and within a couple of hours I was a Sole Trader, we had completed a VAT registration, my forecasts had been ‘corrected’ and I understood Sales Ledger and Purchase Ledger. I was even going to keep my business receipts in a shoe box!

More importantly I knew I’d found someone I could call upon if I needed advice, guidance or as a sounding board for ideas. Often I would find myself sat in John’s office, usually on a Saturday, and we quickly reached a point where it made sense for Spire to outsource the Finance Department to Brookwood so that we could concentrate on sales, installations and customer support. This sort of outsource is commonplace today but at the time it was radical and served us well through the first three years of Spire.

Top tip - Look for an Accountant who isn’t afraid to question your ideas, but who can also relate to your business and is based locally so that they are accessible.

Not really knowing where to start with Solicitors I ended up speaking to three firms, quickly dismissing one because they were far too expensive and another because the guy was disinterested. We elected to use David Hodson in Abingdon and, like John at Brookwood, David quickly became an integral part of our business offering guidance, support and advice whenever we needed it. They understood our business and they were keen to build the relationship.

Top tip - find a Solicitor who can help with everything from contract terms & conditions through employment law and intellectual property to debt collection and who doesn’t ‘start the meter’ every time you call them!

Choosing business premises was quite straightforward in the end and, having decided that working from our small terraced house in Florence Park wasn’t an option, we decided to base ourselves in Oxford Centre for Innovation on Mill Street because it seemed like a really good deal (which it was). OCFI was perfect for me and the combination of like minded people coupled with the support services such as telephone answering allowed me to focus on the important business of selling. I would recommend a business centre environment to anyone starting out – although we were soon trying to squeeze four or five cars into the single space we’d been allocated!

Top tip – take time to look at all the premises options and be sure to negotiate a good deal in a location that is conveniently placed for your business activity.

Commercial insurance was a bit of a minefield, but after an hour with another local firm we had worked out that we needed Fleet Insurance (for one car initially!) and Public Liability - Employers Liability was to follow shortly afterwards and Buildings cover when we moved to our own premises. Again, in Steve Hodgkins we found someone who was keen to work with us and as a result he retained our business until his retirement earlier this year.

Top tip – recurring theme, but find someone you relate to and who you can work with. It always pays to get a couple of quotes but be prepared to pay a little more for personal service.

Finally the banks, although in practice this discussion needs to come first! It didn’t occur to me to approach other banks and once we’d got past the, ‘but why would you give up a well paid job to work for yourself’, stage with my personal bank I found myself with a business account but no meaningful facilities. I ended up using three grand of savings and a credit card to get started – not ideal but it certainly focuses the mind! Some would say that not much has changed – especially in the current climate!

Top tip – shop around the business banks and remember, you will almost certainly need some working capital and make sure you prioritise cash collection from the off.

There’s a clear message this week and that is to make sure you find business support services and people you can work with. I seem to spend a lot of time talking to business people who have fallen out with their Accountant or in one case trying to sue their Lawyer. Invest some time in getting these things right and the relationship will be mutually beneficial in the long term.

Phew! Longest CrossTalk yet!!

All the best, Brendon