BioBusiness and Beyond…. Roger Vaughan talking to Ian Shott CBE

paraphrased by me during the question and answer phase

Ian Shott CBE went from working at the international level for big chemical companies to taking over a spinout which he built up and sold.  He took companies tiptoeing on the edge of disaster and worked with them to strengthen governance, identify what is going well and do more of it.  These companies were returned to profitability and better, this was done without jobs being lost.  He currently advises the government and works on the board of the TSB and is a fellow of the Royal Academy of Engineering.  He is also involved with a double handful of companies in the fields of industrial biotech, pharmaceuticals/medtech, chemicals/materials, companies who came to him to assist them, to accelerate them into strong growth.  There is a one year old start-up, there are companies in the 10 year old sweet spot and there are companies in the more mature phase of their lives and they are in the.

When a company is on the brink of collapse nobody argues about whether change is needed.  Everyone is on board for change.

Of the 450 venture capitalists out there in the UK only 50 really venture anything.

We are moving toward a more balanced economy in the UK with more making and manufacturing going on, and government recognition or encouragement of this.

Entrepreneurs need to express character

Judgement – which is developed through using it.

Thoughtfulness –think about what you do and insert processes that support this

Be structured – governance is essential

START-UPS

Knowhow – to be successful one should have a handle on every part of the business.  Use your practical skills.

Understand the supply chain.

Plan the path to market.

When path to market is understood you can develop a business plan, as the latter is useless without the former.

Get to know people working in the field that you are interested in because it is who you know but also who knows you.

Make a list of problems as they come up and regularly choose which ones to solve.  Three is good but no more than 10.

ON-GOING

10 years after start-up is when technological businesses hit a sweet spot and can start to make real money.  It can also be a danger time when everyone is so tired that the enterprise collapses or is sold off.  If one can accelerate through, this is when the rewards for the hard work will be realised.

Dashboard:  On a one page dashboard one has an indicator for cash flow, profitability, and assessment of risk of new products or any new initiative. All the indicators – the life signs – of the business. Review this often.

Big meeting every three months that generate 3 things that must be done. Just three things.  Do them.

Make simple the complex.

Have a business description and identify the action areas.  What comes into the yellow box? This is what gets attention.

Refresh the business plan every year.  Along with the dashboard and the action areas.

There must be rigour.  Know where all the money goes, where it comes from and what everything costs.  Money is possible to know 100%.  Governance must support this.

Know where all the money goes, where it comes from and what everything costs.  Money is possible to know.

All other variables: accept that you will know 80% don’t hold out for 99% accuracy of information because that takes too long.  However, be very alert to failure from not knowing everything so that if things go in the wrong direction, you can stop!  Stop what is being done wrong and make changes, adjustments.

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