Welcome to the November edition of Network News. 

Virtually all commentators on the economy would accept that, at best, the next 18 months will be the harshest phase in both the recent international downturn and indeed the recession as now virtually confirmed in the UK. At worst, the current economic conditions will continue well beyond March 2010. This then (and as typified in the Bank of England Liquidity Index below) is the environment within which we must all operate today.

Liquidity is just one example of the unprecedented environment in which we all find ourselves, and ominously, despite the many billions of taxpayers money going in to shore up the country’s financial system, the governor of the Bank of England says we are still not through what is the most serious banking crisis since the outbreak of the First World War.

In addition, statistics of business survival rates indicate that the majority of small firms are less than 10 years old, so for many the economic downturn we are currently experiencing represents uncharted territory. In short, this kind of change has never been experienced by most of the region’s businesses.

And yes, today’s trading environment is tough, but at Service Network and Entrust we work with many hundreds of entrepreneurs and businesses each year and it is our experience that it is a myth to think that SMEs are resistant to change, indeed SMEs are in constant change mode.

The very fact that most of us are small means that we do get thrown around in a quickly changing economic and business environment. But macro-economic change over which businesses have little control is not what they resist. What all of us in business resist is change that we do not own or understand. If we can “own” the change we are experiencing, then it is a great accelerator because we can take action to get through the “pain barrier” more quickly.

We could not have known in early spring when we decided on the theme for our Annual conference in October, that “Survival” really would be the order of the day. We had a great turnout with over 100 delegates picking up insights – and we hope a lot of motivation – from our speakers. We have captured our “top hints and tips” for tackling current uncertainties and taking ownership of some of the changes we may need to make (see below).

We have also tried to ensure that our calendar of events is responding directly to the changing marketplace.

The public sector remains, at present, more recession proof than virtually all other sectors (see graph below), and government’s Pre-Budget Report at the end of November is expected to enhance public spending – all the more reason then to know how to access these opportunities.

The “Growth Programme”, which helps members make the most of the wealth of public tenders available on Marketplace, is already over-subscribed, but we are negotiating for more places so that members are not disappointed. Please call us to discuss how we can help.

Many members have also commented to me that “the banks are shut”, unwilling to lend new money or even extend terms on current borrowings. But the work One NorthEast has done in the recent years means that this region is better served than many in terms of the availability and flexibility of funds to support our businesses. Our event on 12 November was addressed by 4 businesses who have successfully accessed public funds and grown. Entrust manages some of these loan and investment funds. Please talk to us – if we cannot match your needs exactly, we probably “know a man who can”.

All that remains for me to say is that the current economic conditions and the potential effects of the credit crunch are hard to ignore – but that is exactly what I would like to invite you to do for a couple of hours! And hopefully also be inspired about how to keep both yourself and you staff motivated and productive in challenging times. Our Christmas gathering this year on 10 December at the Sage Gateshead will aim to teach us all “The Secret of Happiness”. The author, economist and journalist, Richard Reeves, will engage, encourage, and amuse, and hopefully leave all of us questioning the way we think about, and deal with, family, colleagues and work, and all of this in the quest for … “The Secret of Happiness” – probably not a bad thing right now!

I hope we can look forward to seeing you then.

Yours sincerely,

David Bowles OBE

Delegates at our “Survival” Conference on 16 October 2008 heard some great “been there, done that” experiences and our speakers were generous in sharing their trials and tribulations. But just what will make the difference between the businesses that survive so much uncertainty and those that do not? We asked some Service Network members at the event to give us their best advice for getting through today’s challenges. Here is a selection of their responses:

1. Don't put off the inevitable hard decision - sometimes you need to make people redundant earlier rather than later, or you may not have a business at all.
2. Creative staffing options - if you're struggling to pay staff, look at different approaches - perhaps you can arrange a pension holiday; some staff might welcome the option of a week’s unpaid leave; annualised hours are already the norm in areas of the service sector – this could be worth a try.
3. Know the numbers – know exactly why you borrow what you do; reduce debt and only invest in necessities.
4. Credit where credit’s due - try to negotiate longer credit terms with your suppliers but set shorter terms for your customers; consider how early settlement or volume discounts could benefit your business.
5. Know your customers – just like you, people will be buying what they need and cutting back on the rest.
6. Ask the experts – get external advice from an independent source such as an accountant, lawyer or business adviser. But choose carefully – it is imperative that you select someone who appreciates your needs and understands your plan for the business. Taking counsel from “an outsider” can often be challenging, even unpalatable, but it may also prevent any rash decisions.
7. Honesty is the best policy – be realistic. If things are not working out how you thought they would, address the reasons why this is happening and find a new approach.
8. Roll with the punches – every business, at some stage or another, will experience a certain level of difficulty. Be decisive by tackling any problems head on and dealing with them promptly.
9. Don't “go it alone” and hide away - network!  Alongside offering the potential for new opportunities, use the expertise and experience of your network for advice and support – and to wield influence as a group.
10. Adapt – most successful business people are highly adaptable – but when did you last do a SWOT – know your strengths, read the environment and react.

And particular thanks to the member who summarised for us, “And remember - downturns always eventually go up so now is a great opportunity!”

The search is now on to find the stars of learning and skills for the Celebration of Learning and Skills (CoLaS) Awards 2009.

The awards, which are organised by the Learning and Skills Council (LSC) North East, highlight the often overlooked achievements of individuals and employers who are committed to learning or developing the skills of others.

Skills development is more important now than ever due to the challenging economic times ahead as Chris Roberts, Regional Director of LSC North East explains; “In a time of recession, it is crucial that employers develop the skills of their workforce. Investing in skills development brings many benefits, including increased productivity and competitiveness and our award winners always demonstrate this.

“We are looking for individuals and employers who have gone that extra mile to achieve, whether that be overcoming barriers to achieve personal success or achieving business success through developing their staff.”

The employer award categories are:

• Small Employer of the Year – sponsored by Stockton Riverside College
• Medium Employer of the Year – available for sponsorship at the time of writing
• Large Employer of the Year – sponsored by Assessment North East
• Pioneering Recruitment – sponsored by Premium People Recruitment
• Workforce Commitment Award – sponsored by One NorthEast
• Outstanding Employer of the Year – sponsored by Meridian Marketing

The individual award categories are:

• Young Learner of the Year – sponsored by Tyne Metropolitan College
• Adult Learner of the Year – sponsored by Middlesbrough College
• Skills for Work Award – sponsored by North East NHS
• Apprentice of the Year – sponsored by Sembcorp, NEPIC, and National Skills Academy
• Personal Achiever – sponsored by South Tyneside College
• Lifetime Achiever – sponsored by Bishop Auckland College, Derwentside College, East Durham College and New College Durham
• Outstanding Achiever of the Year – sponsored by learndirect

The winners will be announced at a spectacular Oscar style awards ceremony at the Sage Gateshead on 3 April 2009.

For more information and to submit a nomination, visit www.lsc.gov.uk/colas09. The closing date for nominations is 13 January 2009.

Service Network member Calm Asylum has been making changes to their organisation to ensure that they survive the current economic storm. Calm is not a word you usually see in the same sentence as the credit crunch but here at Service Network we know that staying calm and thinking differently might just be the best way forward.  Here’s ten things you didn’t know about them.

1. Calm Asylum is a company offering brand innovation, customer experience, design, marketing, strategy and customer insight.

2. Originally formed in December 1999 by Simon Brown, MD, the company rebranded to Calm Asylum in December 2003.

3. Calm Asylum is an adaptable company which should stand them in good stead in the current climate. Simon has recently made several changes to roles and work practices within the company to make it more effective and has developed online digital tools to help set it apart from competitors.

4. Calm has 11 employees and has recently welcomed Bianca Robinson, Creative Manager; Andrew McCarron, Digital Project Manager and Steph Every, Reception and Admin to strengthen the team.

5. Calm believes that Service Network is a great way to get closer to companies that have previously been competitors and explore working collaboratively for mutual business benefits. This is crucial if businesses like ours are to stand a chance in the global economy.

6. Calm knows the importance of relationship working closer clients and has a fantastic client list including Northgate Plc, NHS, Darlington College, Redcar and Cleveland College and Wolf Systems.

7. Calm Asylum was runner up in the NE Business Awards, Business and the Community category. This recognised its offer to charities that need effective brands and communications without an unrealistic investment.

8. MD, Simon Brown is on the board for charity The Main Project which supports families of and children with Autism. The company also works with Teesside Hospice.

9. To beat the housing slump, Simon and his wife Vicki are raffling their 6 bedroom, £650,000 home in Ingleby Barwick – tickets are £25 each see www.winfellowshall.com

10. Calm was once approached by a client aiming to revolutionise music lessons, claiming to be able to teach an instrument in just three steps. Not surprisingly, this opportunity was explored but the client was never seen again…

Do you want to grow your business by increasing your work with the public sector? Let Service Network and the Marketplace of opportunities help you. We’re offering you an exclusive preview of a series of events which will offer support and advice to make your bids more effective and successful.

The Marketplace “Growth” initiative was launched in July with an audience of almost 90 members and non-members joining us at the Hilton to hear about the size of the market, who is buying, what they are buying, and how they go about it.

On November 5, we held a follow up event. We heard presentations from Andrew Wilson, Business 2 Business, who discussed success stories from outside the region providing an insight into best practice for business in the North East. Alongside Malcolm Gallagher, expert and coach who will gave tips on how to submit tenders/bids. 

In the New Year, we will also be presenting a vital procurement workshop to provide practical assistance and help companies prepare effectively for the Business Link North East ‘Meet the Buyer’ sessions in February.

WHAT DO I NEED TO DO NEXT: In the New Year (22/01/09), it's self-assessment time - a workshop will be held to help members understand where they are in the "learner" / "experienced" continuum of winning new business and define an action plan for what they need to do next.

PRACTICE: The Business Link 'North East Regional Business Fair' sessions on 25th and 26th February 2009 will take place at Newcastle Racecourse where you can meet and sell to over 150 buyers from across the UK. 

FUTURE: There are vast Public Sector opportunities: In November, Government will commit to continued major capital expenditure to shake off recession; Olympics in 2012; Commonwealth Games in 2014...

We look forward to seeing you at the next event!

Access new business opportunities by clicking on the links below...

Marketing
Advertising campaign services
NHS South of Tyne and Wear are looking for a company to provide an Alcohol Media Campaign. 

Information Technology
Information Technology services
Hartlepool Borough Council are seeking an ICT Managed Service provider to develop and deliver the ICT transformation which forms the basis of HM Governments Building Schools for the Future (´BSF´) project being undertaken

Built Environment
Architectural, engineering and surveying services
Cestria, Community Housing Association is looking to appoint an experienced surveying company to survey the remaining stock of around 2,900 homes. All surveys will be undertaken with tenants in residence and the surveyor will be responsible for making access arrangements.

Eton Manor Sports Complex design and build contract (external from Marketplace)
The Olympic Delivery Authority (ODA) has issued a contract notice for the design and construction of the Eton Manor Sports Complex for the London 2012 Olympic and Paralympic Games.

While many companies in the current economic climate are taking the ‘wait and see’ approach to business development, Curved Vision, are joining up with Aware Uk to form Aware Plus to provide a more integrated service to the region.

7Presentaions is proving language is no barrier when it comes to winning presentations.

Creative Partnerships - Arts Council England's successful creativity programme for schools - is set to become an independent organisation

Current economic conditions and the potential effects of the credit crunch are hard to ignore – but that is exactly what we are going to invite you to do for a couple of hours. And hopefully you will also be inspired about how to keep both yourself and your staff motivated and productive in challenging times.

Our Christmas gathering this year will aim to teach us all “The Secret of Happiness.”

The accomplished author, economist and journalist, Richard Reeves, will offer a thought-provoking and insightful take on current and future business trends. We are convinced he will engage, encourage, amuse, and leave you questioning the way you think about, and deal with, family, colleagues and work, and all of this in the quest for … “The Secret of Happiness”! 

Richard Reeves was appointed Director of the think-tank Demos in August 2008. He is also a strategy consultant, business speaker and writer. His career spans business, the media, academia, central government and the non-profit sector. Described by The Guardian as “Britain's leading expert on workplace trends”, Richard is the co-founder of Intelligence Agency, an ideas consultancy, and has worked with many organisations big and small on staff motivation and organisational change. He is also author of “Happy Mondays - putting the pleasure back into work”, nominated as a Sunday Times business book of the week.

Recommend a Friend
For a chance to win one of our fantastic prizes, including VIP Newcastle Eagles basketball tickets and treatments at Seaham Hall’s Serenity Spa, Service Network members can invite a friend* to come and join us and Richard Reeves at the Sage for festive networking and some light-hearted cheer over a glass of wine. Simply, provide details of your friend(s) when registering your attendance.


* Service Network members must register non-members as ‘guests’ and due to the issues of input vat we are obliged to charge ‘guests’ to attend – this will cost £1 and our piggy bank will be available on the day!

To avoid a cancellation fee of £30 + vat please inform the Service Network team in writing 48 hours before the event.

On 22nd January 2009, it's self-assessment time – this event will be held to help members understand where they are in the "learner" / "experienced" continuum of winning public sector business and define an action plan for what they need to do next.

Public sector contracts are rewarding and good for your business but challenging to win if you don’t have the right approach. This event uniquely gives you the answers you need whether you are new to the process or experienced at tendering.

Presented by UK leading procurement coach, Malcolm Gallagher, this is the challenging event you need if you are to be amongst the contract winners. You’ll gain invaluable top tips and insights into how to understand and meet the demanding challenge of the procurement process.