Break the rules

When I was young I instinctively believed I knew better and would always look for another way of doing anything that was asked of me.

As I've grown older I've learnt to conform and that very often the tried and tested way is the best.

The trouble is, if none of us ever challenge convention the world can't progress, innovation is the mother of invention and invention is the essence of enterprise. Dyson, Lego and innocent wouldn't exist if their founders hadn't been prepared to defy convention.

Entrepreneurs are rule breakers and if we conform too much we stifle the creativity that drives us. Age does bring wisdom but it can also take away the bravery that we need if we are to stand out from the masses and make a difference.

Fairtrade - Fad or Future?

Is Fairtrade a Phase or the Future?

In recent years, like most professionals with a young family, I’ve found myself becoming not so much a follower of fashion, as a follower of fairness. As a family we do our utmost to fill our shopping basket with fairly traded coffee and ethical chocolate, alongside all of the organic fruit and free range eggs.

As the recession bites it’s tempting to put the altruism to one side and refocus on price as many consumers around Europe are reportably doing. Does this spell the end for fashionable Fairtrade? Or do ethical brands have more to offer than a label that says ‘buy me and be a better person.’

The sudden rise in popularity of these obscure, premium priced products certainly hasn’t escaped the notice of the multi-nationals, many of whom have been keen to add a friendly faced brand to their balance sheet. First, those quirky American hippies Ben & Jerry sold out to Unilever, then Body Shop submitted itself to L’Oreal, later, in the UK, organic chocolate pioneers Green and Blacks were acquired by cocoa giant Cadbury and earlier this year the three college friends that founded smoothie pioneer innocent, were ‘guilty’ of inviting Coke to join their party.

The innocent team claim, that they chose Coke over other suitors, despite the businesses shaky human rights record because they liked the people they met and found them to be smart and honest. They also point out that the money came from Coke with no strings attached, while other potential investors wanted to take control or to limit innocent’s policy of donating 10% of profits to charity. Founder Richard Reed says
“We of course did a boat load of due diligence, it’s the single biggest decision we’ve had to make over the last ten years. We looked into all of the accusations, we spoke to a wide variety of different people and we got extremely comfortable ourselves, that it (Coca-Cola) is a decent business, that the people in it are decent folk and that the company, overall, is a decent company.”

So in this case at least it appears that the corporate giant behaved with integrity. I’d venture that Coca Cola’s motivation for investing in innocent was about far more that getting a return on the £30m invested, they also wanted to understand how ethics can be good business. By any measure innocent is a very successful enterprise, going from an idea and just £500 worth of fruit to a £100m FMCG business in just 7 years is a phenomenal achievement that even a mega brand like Coke could learn from. Especially, if that commercial success can be achieved with a conscience.

Like all listed businesses, The Coca-Cola Company is looking for ways to match it’s Corporate Social Responsibility statements with actions. Charitable donations and allowing staff to work in the community are a gesture at best that has little impact on the bottom line. Whereas doing business the ‘innocent way’ is perhaps, the very essence of entrepreneurship.

It’s possible that Coke have predicted that in future their great size may be a disadvantage. Post recession, consumers will tend towards smaller businesses they can trust, that wear their values on their sleeve, not carefully scripted into a policy statement. In a world in which a Google search often tells a different story than the official marketing, small is beautiful and big is risky. Maybe the meek will inherit the earth.

Who needs banks

One of the first meetings an entrepreneur sets up, is with his bank manager to discuss opening a business account.

Many still believe this partnership between enterprise and bank is a marriage that will guide and support the business throughout its life.

My own experience and that of most business people suggests this hasn't been the case for some time and its getting worse. Service levels have dropped drastically over the last ten years while charges have risen and in some cases become quite devious. For instance Barclays allegedly deduct daily debits first, potentially putting the account into overdraft before applying credits.

If you are about to start a business, before you commit your future to a high street bank take a look at what else is on offer;

• PayPal is becoming an ever more trusted way of paying online


• The Post Office will accept cash deposits without charging whereas banks penalise those depositing cash


• Online accounts that don't offer branch access are often free, Investec is worth a look


• Funding a new venture shouldn't be difficult in an era when savings interest is so low. You just have to let potential investors know you are looking for funding. Write a micro business plan and email to people who might either invest or recommend you to a friend.

I'd far rather invest some of my money in an exciting start up than leave it in the hands of the banks.

Starfish are the future

I've been reminded of this book by two seperate people in the past 24 hours, I predict that 'decentralisation' will be the next buzz word. Of course true decentralisation is not about big organisations letting go a little, its really about individuals taking control by going it alone.

The Starfish and the Spider by Ori Brafman and Rod A. Beckstrom

If you cut off a spider's leg, it's crippled; if you cut off it's head, it dies. But if you cut off a starfish's leg it grows a new one, and the old leg can grow into an entirely new starfish.

Some organisations are just as decentralised as starfish, with no control centre or grand strategy. Think of craigslist and the original Napster, run totally by their own customers. Or Alcoholics Anonymous, which has thrived for decades as a loose network of small groups. Or even al Qaeda, which is so hard to destroy because its cells function independently.

"The Starfish and the Spider", based on groundbreaking research into decentralised organisations, proves that this type of leadership is primed to change the world. Major companies like eBay, IBM, Sun, and GE are starting to decentralise, with great results. Decentralisation isn't easy for people who are used to the classic chain of command organisation. But as readers will learn through this book's fascinating stories - ranging from the music business to geopolitics - it can be a very dangerous trend to ignore.

Time to share

Perhaps its the recession or maybe there's an awakening that there could be more to life than serving a corporate god for the rest of our waking lives.

Over the past few weeks several friends and clients have asked to 'have a word' The 'words' have all been similar; change, new, different. The sentiment is always the same, they want to leave the 9 till 5 and start their own business.

Apparently most recessions breed a flurry of new businesses as people choose to set up on their own rather than search for a new job. This one looks to be no different. Unlike the early 90s when I made the leap some factors are easier now.

There's no need for premises or even a business phone line, simply get a decent Blackberry or iPhone and your office goes wherever you go. We all do our own typing anyway so you don't need to hire administrative support at the outset. Advertising is most effective online and its immediate, so there's no need to time your start up to coincide with the annual publication of the Yellow Pages.

Most importantly of all, size really doesn't matter! Most clients whether they be consumers or corporates now know that its the person that delivers service not the logo. If you can be trusted to deliver what you are selling you are well on your way.