Presentation Lessons from the economic crisis 29 th November 2010 Jeremy Filmer-Bennett Chief Executive Devon & Cornwall Business Council

Devon and Cornwall Business Council What the Council is Private sector led, sub regional economic partnership 80+ constituent national, regional and local organisations includes Chambers of Commerce,C.B.I. F.S.B.,I.O.D. Sector based representative groups. Representing some 40,000 businesses Funded by key private sector companies in the region

What the Council does Regional economic development Transport infrastructure Industry troubleshooting Venture capital (finance Cornwall/Devon) ICT Infrastructure (ACT now/Broadband 4Devon) Supporting sustainable investment Central contact and communication point for businesses

Five Strategic Issues Arterial Transport Entrepreneurship and Aspirational culture Regional Spatial Planning Promoting Sustainable Investment Skills Productivity and Education

1. Arterial transport The Council will provide informed consultation and lobbying, it will aim to be a primary consultee and provide an information dissemination system to colleagues. 2. Entrepreneurship and aspirational culture. The council will work with organisations involved in this area and itself promote and hold opportune events. 3. Regional spatial planning. The Council is to be one of the essential voices of business in the regional spatial planning debate, to include such interest areas such as housing and development land. 4. Promoting sustainable investment. The Council will where appropriate, work with, in partnership appropriate organisations in promoting sustainable development. In addition the already successful trouble shooting role, carried out by the council will continue and be enhanced where practicable. 5. Skills, productivity and education. The Council will work and lobby for appropriate skills development, further education relating to work, productivity and business growth in the region.

Future Economy Modern economies will rely on knowledge and innovation Businesses need to continually develop products and services to survive Need to keep up to date with rapidly changing markets, technologies and competitors Culture of innovation Improved access to knowledge

Small Business Stats Small Business are 63.8% of UK Private sector employment 59.2 % of Turnover 97% employ less than 12 persons But provide 60% of G.D..P. 500,000 start up every year

Biggest worries Financial stability 48% Finding customers 24% Being consumed by work 12% Rising costs 70% Finance tax and Vat 42% Legislation and Red Tape 41%

Effects of Downturn Increased costs 57% Loss of Customers51% Increased Debt 19% Reduced investment 14% Reduced number of Suppliers 10% Increased customer base 62% Working more closely with customers 43% Growth 9%

Costs Co-operation Sales Cash Flow, payments, Income, collection Talk Terms Electronic Banking Energy, Utilities and Telecoms Staff Replacement an opportunity Business rates Best Banking

Costs Co-operation and Sales Delivery, Distribution and Transport Ask your Staff for cost saving,new customers, sales and products Avoid laying off Skilled people Talk to your Bank/lenders as soon as possible

Costs Co-operation and Sales Take an hour ( twice a month) to review business plan One day a quarter send a thank you Send a promotional postcard to current/former clients Prospect, network and trade on contacts Referral campaign, competitive pricing Test your outwards,telephone response, website logos etc.

The opportunity of CSR Creation of co-ops, mutual and Management Buy outs Supply of services to education Renewable Energy Procurement of everything from pencils to Pommel horses Recruit skills from the public sector,planning, bid writing administration technical, H and S. etc.

QUESTIONS?