A purely retail task on The Apprentice, a Welsh village taking a stand and a message to the multinationals

At last there's been a purely retail task on the current series of The Apprentice. It will strike a chord with my readers that are independent retailers themselves.

http://www.bbc.co.uk/iplayer/episode/b06q7jtl/the-apprentice-series-11-7-discount-store

The task was to operate as a discount retailer by selling and reinvesting the proceeds in the items that have actually sold well. Which is independent retail in a nutshell.

There's the obvious and repeated issue with The Apprentice of many pieces of expenditure being totally ignored when it comes to calculations of profit and loss at the end of the task. I looked at it in a previous blog here - http://mytimeinretail.blogspot.com/2015/10/see-lessons-to-be-learnt-from-this.html

This week the ignored items included-

• Rent
• Staffing costs
• Tax
• Licence on the stall

I know it's the land of television and normal rules don't apply, but it's just not a level playing field.

Which brings me to my second story this week. It's about a village in Wales that is trying to level the playing field when it comes to competing with Starbucks and Amazon.

http://www.independent.co.uk/news/uk/crickhowell-welsh-town-moves-offshore-to-avoid-tax-on-local-business-a6728971.html

The tax structures of local business and multinational business are so different that it allows the biggest companies to move their money across divisions and borders to minimise their tax burden.

I personally think it's time for the government of the day (whichever party they may be) to stand up. The message needs to be-

If you want to do business in this country then you'll have to accept lower profits.

The message is stark but necessary. Reduced profits for these companies mean several things-

• Higher wages for the lower paid in society
• Smaller tax credit burden on the government and tax payers
• Large multinational corporations paying their fair share in tax

I'm sure that everyone would agree that these are positive things that we can all get behind.

The Apprentice, Mannys Sauces and your business - see how they all connect

As a retailer, sometimes a part of your job is to launch a new product or bring a great product to people's attention. It's not always an easy task, as the competitors on this year’s The Apprentice have found out on two tasks so far this year-

There was an early episode where the two teams had a go at launching a new shampoo made with the cactus flower-

http://www.bbc.co.uk/iplayer/episode/b06jlg57/the-apprentice-series-11-2-advertising-cactus-shampoo

And a more recent episode featured the two teams (and those within the teams) going head to head against each other in designing and selling their own children's book-

http://www.bbc.co.uk/iplayer/episode/b06nw576/the-apprentice-series-11-5-childrens-book

It is not easy to launch your own brand or product but one man that has launched his own brand is Manny. Here's his story-

“As any other person in the world, I had a huge dream - to open the first Piri-Piri Chicken Restaurant in the world, and then spread this dream to every corner of the planet. It wouldn’t be easy to achieve, but neither was it impossible. I had the will, the courage, the faith and family support to make it come true. Early in 1985, I sold my home to open the first piri-piri chicken restaurant outside of Mozambique. CHICKENLAND was the chosen name and Johannesburg, South Africa was the birth place of my dream! After a short while, I was making, bottling and selling a range of 5 different Piri-Piri Sauces and Marinades. After a slow start, the business was a stunning success! The name quickly spread across the city and everyone was talking about this new food place that was taking the food industry by storm.

The business success was proven! The next step was expansion to other parts of the city, country and abroad, and many people tried to get financially involved. Expansion included a need for capital and people, and so in 1987, I sold some of my business shares to two young men: one of Portuguese origin and the other, a South African of Jewish origin. Shortly after they joined, the business name was changed to NANDOS. Chickenland was a nice name, but according to marketing experts at the time, it was felt that the business should be backed by a personal name before the expansion took place. Between MANNYS and NANDOS, I was out-voted two to one, and the latter name was chosen. Despite a few initial problems, the expansion started taking off and now more than ever, the success was tremendous!

A few years later, the rug was pulled out from under my feet and I was forced to leave my business. I lost my dream; one of the best things in my life after my family. After this happened, I opened a few other restaurants including Chickenland in Portugal, but these weren’t my dream. It was a way to make a living, but it wasn’t my passion. It took me a long time to recover from what happened, but I was determined and pushed through until another dream emerged; to make the best sauces and speciality food products in the world! MANNYS SAUCES is now my new dream! Once again I can see this new dream taking shape and growing strong all the way to the TOP! The passion is back and I again have the will, the faith, the support of my family, and the support of so many loyal customers that know and appreciate the high quality products that we make. I am forever grateful to my family and my customers for their support and the divine forces for showing me the way.

Manny x”

And one of retail’s challenges is to get in touch with your customers in different ways. It’s by being what large companies and analysts call multi-channel that gives you the best access to customers. Follow Manny’s lead, where you can-

Try the online store at http://www.mcssl.com/store/mannyssauces for the Chickita - Mann’s famous cured and smoked chicken sausage and the rest of the range of cured meats.

Follow on Facebook at www.facebook.com/Mannyssauces where you can read about the wonderful MannyNaise. With this, you can substitute your boring, regular mayonnaise for the spectacular taste of MannyNaise and transform dishes from the ordinary to the wonderful.

Catch up with them on Twitter at www.Twitter.com/Mannyssauces to hear about the Tomato Fusion – a sauce that’s destined to become the ketchup of choice for the 21^st Century. It’s the next level in tomato ketchup.

Their YouTube site at www.youtube.com/channel/UCPvHPFfaz5yJRTtlv_ViDPQ gives you great recipe ideas and shows you how to use the sauces, such as the original, classic Piri-Piri sauce. This is the genuine, original and unique Southern African Piri-Piri sauce. This is the perfect mix of the heat of chilli and the depth of flaviour that perfectly captures what Mannys Sauces is all about.

Don’t forget the selection of cured meats. Paio is a great selection and is made of pork fillet with a maximum of 5% fat.

And you can just go straight ahead and check out their website at www.mannyssauces.com to see details of what they are all about, more details on Manny’s story, find stockists and much more.

Think about your retail business and how you can make your offering truly multi-channel – it will bring out the best in your products!

See the lessons to be learnt from this week's The Apprentice

I've started watching this series of The Apprentice (against my better judgement) this week. The tasks are interesting, helped by the editing, and the characters are as comical as they have been for the past few series. I applied for the last series of the programme and got through to the audition process - the final few hundred from twenty-something thousand applicants I was told. The opportunity at the end of the process has far more value than the process itself.

The first task was a buying and selling task - go to the market and buy fish, turn it into products and then sell it in the city of London. One team made a profit of £1.87. And this is where the whole process falls down. If this were real business then there would be much more expense to take away from their paltry £1.87 profit-

Wages for eight team members

Production costs

They were given use of a facility to turn their raw fish into saleable products, and this also took energy for the machinery, cookers and lights.

A trading licence to sell food on the street

Purchase or hire if the stall

Hire or purchase of the cooking equipment

All in all, these tasks in isolation mean very little. I'd prefer to see a programme where the team develops a business over the course of the series. Given an amount of money st the start, they have to buy and sell cleverly to increase their money for the following week's task. Lord Sugar can still fire someone every week, but the team can work their way through.

So what's this got to do with me an independent retailer?

Well control of costs underpins every single business. And it's by looking at your costs and the effectiveness of every penny you spend that will allow you to succeed. And for every pound you save, you have three choices - pocket and extra pound of profit, reinvest another pound into area you know succeed or cut your customers prices by another pound.

Looking at all of your expenditure to ensure that it works as hard as you do is a fundamental part of running a business. I'd suggest three ways of ensuring you get this as right as you can.

Regular reviews of your costs

I'd suggest that you look at your expenditure and conduct a full review on a regular basis. Annually at least, every 6 months is better and in some instances quarterly. This ensures that things never get away from you. Having your finger on the cost pulse means that you never get to the point where you look back and think "where has all that money gone?" To be able to look at all the outgoings and see if savings can be made will work out for you in the long run. Going hand-in-hand with this is the expenditure on marketing.

Analysing the success of your marketing spend

If you take nothing else from reading this blog, then take this one piece of information with you. You need to account for what you spend. By this I mean that when you set out a marketing campaign, you need to have an idea of what business that campaign brings. To do this you have to speak to your customer at the first point of contact. It's from there that you will understand how they arrived with you.

For example, you spend £200 per month on advertising on a particular website and £100 per month on newspaper advertising. If the website brings you £2,000 in sales per month then it earns 10 times the spend. If the newspaper brings you £500 per month in sales then it earns 5 times the spend.

You will see that the website is twice as profitable in terms of marketing spend than the newspaper.

Speaking to people when the opportunity arises

I know that it's impossible to respond to every marketing call or email but there will be areas in which it's profitable to listen to people. The areas in which you want to talk to people will be dictated in part by the areas above. If you have identified an area in your cost review then this will prompt you talking to someone who contacts you. If you have an area of marketing success, then you'll want to be able to repeat this success. And in some areas you will just see an idea that you like and decide to investigate.

Avoid being an overspender like the contestants on The Apprentice and have control over your costs.