Posts for September 2009

How we chose our business name

This is our first blog post for Start Up Donut and for this post we wanted to explore something that was close to our hearts, and also something that every small business has to go through – coming up with a business name.

This article is a combination of thoughts and actions we took from our branding exercise, where we explored our rationale for using the name Resonata Consulting.

Everybody who has gone through a similar exercise will agree it is incredibly hard to be original. Not only do you want the name to reflect your business activity, but it should also have a familiar ring to it – making it easy for people to find our company and remember you. At first we explored the straight-forward options such as for example MI-Consulting or IM Consulting. But not only were the names already registered, we felt both options reflected poor creativity and didn’t explain our services or how we wish to be perceived.

To build a strong brand we would have to find a name that would:

• Stand out / be unique
• Explain our services or express how we wish to work with our clients
• Be internationally recognisable
• Have a Consultancy feel to it

How our name stands out:

Resonata stands out from the crowd because although it has a familiar feel to it (resonate or resonating) it also incorporates data and when you see that resonate is brought together with data it immediately gives you a connection of resonating with data, therefore it stands out, speaks softly yet firmly and is ultimately memorable to others

How our name explains our services:

We came to the name Resonata Consulting, which reflects the essence of what we do and how we do it.

Resonata is a unique word, though it has a familiar feel to it making it memorable to clients and partners alike. Depending on your interpretation of the word Resonata, it is made up from the words resonate, research and data.

Therefore, it gives you an immediate impression of how our company interprets best practice: we resonate client’s data needs and actively research on data – a process driven exercise with the client at heart.

Many branding experts, consultants and our advisers consistently told us that our brand/company name had to incorporate the term data or even data acquisition – because that is what our service is all about.

We struggled at first to incorporate it, but by merging the word data with resonate and research we did not only manage to satisfy the most critical of branding specialists but we also found a way to express exactly how we bounce ideas of clients, actively help them and research around their data needs – this is partly to do with our philosophy of not making our client’s briefs fit to the prospect data available but making the data fit to our client’s brief – hence the research that we do on data, trends and insights to gain best the best possible prospect data for our clients.

How and why Resonata could be recognised internationally:

Because both directors have travelled extensively (Asia, Europe, North America, Central America, and South America), speak a number of different languages (English, Dutch, Spanish, French and German) and have both lived and worked abroad in various parts of the world (Europe, North-America and Asia), we knew that our services would have an international appeal. Because the word ‘Resonata’ was created by us it would have no negative cultural barriers concerning its interpretation.

Why our business name had to have a consultancy feel to it:

Resonata Consulting had to have consulting or consultancy within the company name to emphasise that we want to engage with our clients in the process and we are essentially Research on Data Consultants.

Coming from an international sales and business development consultancy background ourselves, this is the kind of company philosophy we want to be part of and are confident our clients will buy into as well.

What does Resonata Consulting mean to us:

We listen to our clients' needs and act as an extension of their organisation; building on existing internal knowledge and processes, and resonating clients’ needs by understanding the clients' goals and helping them to achieve the highest quality data in the most timely and financially efficient manner.

What have clients' reactions been?

In the main clients feel positive towards our company name and are often curious as to where it came from and how we came up with it. Although sometimes if it is a bad phone line we have to spell it – something I did not expect!

All in all the naming of our consultancy was an interesting and involving exercise that in the main has had incredibly positive results!

You can see more about us on our website: http://www.resonata.co.uk where you are able to see more about our brand and how that has translated into a logo and overall feel of a Fresh Player to the Market.

Matthew Baker is the Co-founder and Director of Resonata Consulting.

Taking a holiday

In a recent FT article, there was a discussion about how some business owners have taken a holiday this summer for the first time in years.

Are they mad?

I understand the compulsive nature of many entrepreneurs, but I do not understand why they don’t take breaks – like I’ve said in previous posts, yes business owners are super-busy but breaks are essential to recharge the batteries and to keep the mind fresh.

That said, I am not suggesting that you shut up shop and head off to a remote beach for two weeks. That would be too much for the average business owner to bear (even though the business will probably survive better without you that you would like to admit to).

So, here are a few ideas for making the concept of a holiday work:

1. Focus the holiday around something you love doing (even if it is lying by the pool!). It will mean that you relax and therefore recover more quickly.
2. Research your destination well and make sure that the modern tools of the trade – phone reception/ wifi internet access/ printer etc – are available and work to the standard you require. If they are not and you know you’ll struggle, go somewhere else.
3. Think about the benefits of time difference. I have not long been back from Italy which is one hour ahead of the UK. This meant an extra hour in the morning before the UK gets going.
4. Let all the people that might be affected by you going away know well in advance – staff, contractors, customers, suppliers – so that they too have the chance to plan around you being away.
5. Make the most of being your own boss and travel on weekdays. Cheaper, less crowded, faster and less stressful...
6. Ration the times when you engage on business matters. I always try and take the first 3 days off completely and then schedule working into pre-planned parts of the day. Partners and families can plan activities around this too.
7. If you are that worried - just stay within easy reach.

In overview, use the internet/ mobile phone technology available to you. In the last 5-10 years, it has become immeasurably easier to get away and keep in touch with your business at the same time...to me it is a marvellous opportunity to enjoy life that little bit more!

In a muddle with your numbers? Pick up the phone

One of the first things you need to do when you set up your own business is to find yourself a good accountant. However simple or complicated your business’ finances are, you are going to get yourself in a muddle if you don’t know exactly what you need to record, how to fill in your tax returns or when to file your accounts.

Speaking to the Institute of Chartered Accountants in England and Wales (ICAEW)’s Clive Lewis the other day, I learned that many start-ups don’t use their accountant as much as they could or should.

You should be able to rely on your accountant to be there for you if you call up with a query about your book-keeping, however trivial it may seem, or if you have a sudden change of circumstances – for example if a client suddenly puts in a big order and your cashflow is thrown off-balance. They should also be reminding you of deadlines for self-assessment or, if you’re a limited company, when your accounts are due to be filed.

There is certain information your accountant will need from you in order for him or her to understand your business and do your accounts for you, too, but again, a good accountant will tell you what they need. According to Lewis, your relationship with your accountant should be a long-term one with regular contact.

Ask other business owners you know who they use, or visit one of the accountancy associations’ websites to do a search for your local accountants. Even if you have a good brain for maths, you still might need somebody to hold your hand while you work out how to use your new accountancy software. Ideally, you will choose an accountant who has previously worked with other businesses of your size and in your industry.

So, don’t be shy; pick up the phone and ask away. And if the person at the other end doesn’t want to help you out, take your fees elsewhere and find an accountant who will make life easier for you.

Motivating your team

The two most common complaints in business are that no one asked me and no one told me. While, in my experience, it’s impossible to ever fully eliminate these complaints, making a concerted effort at addressing them can lead to a big boost in team morale.

As a manager, I feel that if I don’t tell people what’s going on, I can’t complain if they fill in the gaps with negatives. And if they don’t feel that their input is taken seriously, they will become de-motivated and probably work less hard, as well as putting up with things that frankly, they should be screaming about.

In fact, listening is the key to continuous improvement. I do try to practice what I preach and I interview all staff, including those in junior roles, on a regular basis. It doesn’t take all that long, it’s amazing what you find out, and the very act of listening leads to a big improvement in morale.

Another angle that we have tried is to hold a series of workshop sessions with all staff whenever we review our strategy. These enable us to get useful input on the broad thrust of the strategy, and identify many of the potential pitfalls. It also means that we communicate and get buy in as we go along. By the time the strategy is completed, everybody is on board and starting to act on it. This is hugely better than a brilliant strategy done by outside consultants but that sits beautifully documented but largely untouched on the shelf. With that sort of strategy, you wonder a year later why the business isn’t really following it, and why it faces resistance at every turn. The lesson is that it’s important to explain where you are going to everybody even when you are a small company.

In most businesses, money is not a great motivator, but can certainly be a great de-motivator. So it’s important to try to be consistent in how you reward people, and also to explain pay policies so that there is a degree of buy in. Sometimes, it may be better to reward with bonuses rather than pay rises, as rises institutionalize pay differentials in ways that may become unfair over time, They can’t easily be unpicked and when discovered will destroy morale.

Motivation is a funny thing, and is pretty hard to achieve. I hope that some of the ideas here will stimulate your further thoughts.

Keep it in the family?

So that’s it then, Manchester Brit Pop icons Oasis have finally called it a day, following an alleged violent “altercation” back stage between singer Liam and guitarist Noel, only moments before they were due to play at a show in Paris recently.

Noel has said he can no longer work another day with Liam (AKA “our kid”) and as a result the rest of the band’s sell-out tour was cancelled, leaving fans with tickets for shows at V and elsewhere none too happy.

Whether Oasis will record or play together again is anyone’s guess, but the fracas between the brothers Gallagher (and their numerous, widely reported previous bust-ups) highlights the dangers of working with your “nearest and dearest”. This is an important consideration for many new and existing small businesses, of course, where enterprises are often jointly formed by married couples, siblings, parents and children, work colleagues or just good friends.

Having worked for quite a few husband-and-wife management teams, I’ve seen both sides of the coin at close quarters. I’ve experienced how it can work perfectly well, where couples are able to successfully leave “domestic stuff” at home once the world of business has been entered. Being able to share responsibility and workload with someone close to you can be a good thing. It can certainly make running a business a less lonely pursuit.

Family businesses or those run by friends can and do succeed. According to the Federation of Small Businesses, about 65 per cent of the UK’s 4.6m small firms are family-run enterprises. They generate about 30 per cent of UK GDP and employ some 3m people. Interestingly, about 56 per cent of family businesses are sole traders with no employees.  By the way, on the Start Up Donut, you’ll find an excellent Q&A interview with a legal expert about drawing up contracts with family members who invest in your business.

However much of a challenge, if your family-run business is to succeed, you also must be adept at not taking “work stuff” home, of course. You’ve got to be able to separate the domestic and business spheres, while (in the case of spouses) perhaps accept that the distribution of power in the workplace might need to be wholly different to the home, where the other person might indeed “wear the trousers”.

Not everyone is up to the challenge and the dream of running a successful business with a spouse, relation or mate can quickly go wrong, however much you believed you could trust and rely on them. The pressure of work and money often brings out the worst in people.

I also recall being able to judge how “good” a night or weekend one young husband and wife management team had had at home by their relations in the workplace, which ranged from sickeningly lovey-dovey to barely concealed hostility – both of which often left others around them feeling very uncomfortable. If, as suspected, they’d had a spectacular row at home, then often the wife would be too “unwell” to come into work, but make a Lazarus-like recovery to full health the next day, presumably after they’d kissed and made up.

Often (well-founded) resentment can also be felt by employees, especially when a family member is given preferential treatment (eg extra time off) or responsibility way out of line with their skills, knowledge and ability.

Financial rewards and issues around commitment to the business can also quickly and permanently sour relations, which is why it’s wise to establish expectations (and document them, especially when it comes to financial investment) before starting a business with your spouse, family member or friend, then everyone at least knows where they stand and what’s expected.

Open and honest communication is a crucial, too. If one of the parties isn’t pulling their weight, for example, not feeling able to tell them will lead to severe problems sooner or later. It will probably even spell the end for the business and the relationship – something else I’ve witnessed close up and personal as an employee in family-run businesses.

As the old saying goes, better to build a friendship on business rather than a business on friendship. I’m sure Noel would agree.

The passion of creative start-ups

Bristol Media, the superb network for Bristol’s creative community, recently asked me to put my Marketing Donut hat on, and take part in a panel discussion about how to get your creative business started. I was called in to talk specifically about social media marketing.

The discussion was ‘a game of two halves’. First up, creative people who’d recently started their business were quizzed about their experiences. Then, be-suited business experts commented on what they had heard. Yes, I was in the second group (how times change!)

The roll-call of creative businesses included Glow Creative, The White Balance, Spirit PR, Mobile Pie and Wonky Films and – wow - they were impressive.

Mike Bennett, who hosted the session, kept the discussion moving and covered a lot of ground, including:

• Why did you decide to go into business for yourself?
• What obstacles did you need to overcome?
• Did you have a business plan?
• What would you do differently if you had your time again?

It was thrilling to hear the enthusiasm and pride this talented group generated as they recalled their first steps in business.

For us ‘experts’ it was rather strange experience as we listened to the disembodied voices of the first live discussion. I sat in a small studio in the company of some very venerable business experts from an accountancy firm, a law firm, Business Link, and SETsquared (hi-tech incubation specialist). And it was great to meet Mark Mason, a highly successful local businessman who has ‘been there and done it’. All of us were caught up in the excitement and drive the new businesses were describing in the studio next door.

The creative start-ups universally felt uncomfortable with the word ‘entrepreneur’, stressing rather that the impetus to set up in business was down to a desire to control who they worked with and what projects they took on.

Yet each and every one had the spark and drive crucial to surviving the first year in business.

What struck me was how the start-ups recognised that networking – in all its forms – was fundamental to their initial marketing. This struck a chord with me as all my recent marketing work has led back, one way or another, to networking. So, I was able to chip in with examples of how Twitter, Ecademy, LinkedIn, and blogs can have business outcomes.

The podcast is 40 minutes in total, and well worth a listen if you are interested in starting a business, or if you support business start-ups.