As I write this chapter UK based Lloyds TSB Bank announced that business confidence has hit a 16-year low. A survey of almost 3,500 companies by Lloyds TSB also revealed that expectations for profits are the worst on record as the UK heads into an official full blown recession. The vast majority of businesses surveyed expect a drop in sales, orders and profits this year.
Firms suffering from harsh trading conditions in recent months are being forced to make tough decisions in order to survive in 2009, said the report. A growing number of firms have been hit by a ‘dramatic’ fall in orders and sales, which took an inevitable toll on profits, the report said.
It was in the midst of this corporate doom and gloom culture that I entered Valatech Ltd a small IT computer sales company based in the North West of England as a business growth specialist. 10 months after joining Valatech the company posted the following memo to its employees.
1. Valatech Ltd is currently vying for the number 2 slot in the Merseyside County top 100 league of growth businesses 2008-2009.
2. Valatech’s turnover is on track for a 200% increase on our previous year.
3. Profits have increased.
4. Valatech strategic business growth plan projects a further 300% increase in annual turnover during 2009-2010.
5. Valatech Ltd is the UK’s largest e-tailer of computer & IT related products with over 200,000 products for sale. Visit our web site at www.pconestopshop.com
6. By July 2009 Valatech Ltd will become the UK’s largest e-tailer of security related products with over 200,000 products for sale. Visit our web site at www.asecurityonestopshop.com
7. The number of Valatech employees has quadrupled during the last 10 months.
8. Merseyside job centre indicates Valatech Ltd are one of a very few companies hiring new staff in the current economic downturn.
What is it that determines a small company growing exponentially during a global credit crunch, when other long term well known UK businesses are failing? The answer is simple. I implemented The Art Of Business War into their business, and both director partners embraced the concept. While just about every other business battened down the hatches in an attempt to weather the credit crunch storm, we adopted a very proactive and aggressive growth strategy.
General Patton once stated, "When in doubt, attack." I like a plan based on simplicity and absolute clarity, so we attacked the market. One of the first things I noticed was there were very few competitors attacking the market with us, which was fantastic for Valatech Ltd.
I conducted research and gathered business intelligence which highlighted gaps and weaknesses in the market. I introduced diversification, and identified new income generation revenue streams. I then approached Sysco to help us match fund the management and employee training. This training was key to take a small business, which had reached the financial tipping point into a very aggressive long term sustainable business expansion plan.
Both Valatech partner directors, Paul Fury and David Hayward fully embraced the training funded by Sysco and very quickly realised the benefits of mission specific training and business diversification for helping to grow a small company into a medium size enterprise.
In my initial discussions with Sysco I outlined some of the new revenue generation streams that I knew would accelerate Valatech’s growth and expansion. Hilary Pickering and her team at Sysco were absolutely fabulous and fortunately shared our vision for long term sustainable business growth.
In my experience it is rare for funding agencies to step up to the plate when a business is looking to diversify into e-commerce and other new technology opportunities. Sysco definitely stepped up to the plate with Valatech Ltd.
I can confidently state for the record that none of this would have been possible without the outstanding support from Sysco, and I strongly recommend any Merseyside businesses seeking growth in these uncertain times to contact Sysco.
Valatech is proud of its progress and as the largest supplier of computer, information technology and security products and services online in the UK; they would like to offer your business fantastic prices backed up by an excellent customer service. Valatech Ltd is now large enough to make a difference, but small enough to still care. Visit their web sites or call them on 0151 343 0000.
Valatech Ltd is now approaching the end of its first year, of its 3 year strategic growth plan and the future looks promising. With 2 director partners who understand the importance of seeking external support, the next 2 years promise to be very exciting. It hasn’t been an easy 12 months, but then again if it was easy everyone would be doing it.
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