Business - Knowledge

Since her appointment as CEO of FASTSIGNS International, Catherine Monson has been on a mission to advance the brand from that of a sign and banner provider to a visual ideas company for all kinds of businesses.  As part of this journey, she agreed to appear on CBS’ hit series Undercover Boss which was screened in the USA/Canada on 4th May 2012.  Large Format Review spoke to Catherine to find out more about her appearance in the series and also in her role as CEO of this successful franchise business.

FASTSIGNS International, headquartered in Carrollton, Texas, has over 530 franchise business locations across the globe offering the full gamut of visual communications solutions from banners, building signs, labels, decals, interior décor, trade show exhibits and vehicle graphics through to signage for windows, walls, doors or floors.  The business caters for all aspects of the signage process, from planning and design, through to the installation of the completed solutions.

In the UK, FASTSIGNS has 18 franchise locations.  There are plans to expand the FASTSIGNS business operations throughout Europe as well as other key regions worldwide.

Catherine Monson was appointed as FASTSIGNS chief executive officer in January 2009.  At that time, one of the biggest challenges the company was facing was a lack of communication between the corporate office and its franchise partners, as well as sales declines due to the recession.  For the past three years, Catherine has been working hard to improve and grow this 25 year old business and address these issues.

Catherine puts her success in a very male-dominated business down to the fact she is very goal-directed and always goes the extra mile.  She says, “A sense of urgency is also a key factor in achieving success.  You can always make one more sales call; there’s always one more thing you can do.”

She also works hard – up to 80 hours a week – but does not see this as a negative thing.  “My mantra has always been to work harder and smarter in order to achieve more.  I love what I do and gain huge self-esteem and personal gratification from working at FASTSIGNS.

She continues, “I always want to ensure that I do the very best I can.  I’m not a perfectionist.  I just have a real desire for excellence.”  Interestingly for someone so successful, Catherine concedes that her biggest motivator is the ‘fear of failure.’

In order to successfully operate at the highest level, Catherine spends a lot of time ensuring that she is fully up-to-date with the printing industry.  She visits all the key signage shows and events, regularly talks to vendors and keeps abreast of the latest technology.  Her desire to be kept fully informed was at the heart of her decision to go undercover in the Undercover Boss series.

“Our franchise partners and their employees are trained to take a consultative approach to providing comprehensive visual solutions to meet their clients’ communication needs.  We’re not just selling a commodity; we’re helping businesses solve their visual communication challenges.  I specifically went undercover to learn what additional training and tools our employees need to fulfil our brand promise,” comments Catherine.

She continues, “When you are the CEO of a business, people often tell you only what they think you want to hear or present things based on their personal agenda.  Going undercover allowed me to see the business from a different angle; to step into the shoes of our employees and franchise partners to better learn the ins and outs of what makes our company successful, as well as where there is room for improvement.”

As a result of her appearance on the TV show, Catherine says she learnt three key things; two business-related and one relating to her personal life.  She explains, “From my Undercover Boss experience, I became aware that in some cases, franchise partners were not feeding the latest marketing collateral and information down to the relevant people within their businesses.  I now ensure that all marketing and communication updates are sent to both the franchisee and the central email address of each FASTSIGNS location.  This communication through multiple channels increases the likelihood that the whole business has access to the materials they need.

“Secondly, from meeting with the guys on the ground, I realised that there were gaps in our training and – in particular - that we had not created a formal training programme for large signage installations.  This has now been rectified and we have developed better training resources.

“Thirdly, from a personal standpoint, I realised that I did not devote enough time to my passion for horseback riding which I find incredibly relaxing.  I have now rectified this and am in the process of finding a horse.”

Catherine says since the screening of the Undercover Boss programme in the USA, she has already been approached by two other business leaders who have been asked to go undercover for the CBS hit show.  “It was really fun and I would absolutely recommend that they do it.  You get to see your business from another angle.

“Overall, this was an eye opening experience that not only impacted my professional life, but my personal life as well,” concludes Monson. “I have realised that I need to take more time for myself and get back to the things that I really love in order to become a better leader and CEO.”

About Undercover Boss: Each week, "Undercover Boss" follows a different top executive as they leave the comfort of their corner office for an undercover mission to examine the inner workings of their companies. While working alongside their employees, they see the effects their decisions have on others, where the problems lie within their organisations and get an up-close look at both the good and the bad while discovering and rewarding the unsung heroes who make their companies run.

Our latest ‘Spotlight on...’ feature focuses on the large format laminator manufacturer Kala.  Since its establishment in 2003 by Laurent Bouchard, Sylvie Baudouin and Patrick Marillier, the company has gone from strength to strength.  The business is ramping up activity globally and has recently made a number of announcements relating to the UK marketplace including the launch of the ‘Starter’ laminator and the appointment of Colourgen as the exclusive UK distributor.

Kala was founded in 2003 when Laurent Bouchard, Sylvie Baudouin and Patrick Marillier joined forces with Dubai-based Graphic International to acquire the wide format lamination business division of Fellowes Lamirel.  The company has 15 employees, primarily based near Rennes, France.  The business sells its range of finishing solutions in 50 different countries through a network of distribution partners.  In 2010, Kala had a turnover of over €4m with 30% of its business in France and 70% of its business exported to other countries.

The company’s portfolio of finishing solutions comprises hot and cold wide format laminators - made by Kala in its French factory – and a supporting array of third-party cutting devices, laminating films and banner stands.  Targeting its solutions at print service providers within the large format sector, Kala works closely with its partners to ensure that the solutions they market alongside the Kala laminators work together seamlessly.

On the philosophy of developing a full range of large format finishing products, Laurent Bouchard, co-founder of Kala, explains, “We wanted to bring together a range of great quality, well-designed finishing solutions that offered a high performance to price ratio.  Our mission has always been to offer easy-to-use and reliable products - for both short and mass production runs - which can be used by anyone, regardless of their technical expertise.”

“Finishing can sometimes be perceived as a painful, time-consuming task.  Most of the time, print businesses don’t see finishing as a means to increase income and differentiate from the competition.  However, at Kala, we see things differently.  Quality finishing can be a very simple way of adding value to a print shop’s output and – when using the right equipment – reduces wastage of printed material caused by handling errors,” adds Laurent.

In the large format lamination sector, Kala’s product line includes the Mistral, Baltic, Sirocco and Atlantic models.   In September 2011, the company also announced the introduction of its new ‘Starter’ model which is already proving highly successful.   This new ‘Starter’ model provides simultaneous single sided lamination and adhesive mounting onto substrates up to 50mm thick.  It is available in 108cm, 140cm and 160cm widths and all models are capable of handling rolls up to 100m in length.  Feedback to date - from customers across the globe - has been very positive. 

On its introduction, Laurent Bouchard comments, “The Starter has a very appropriate name. Not only is it an entry level machine, but it is also the “start” of what Kala hopes is a new trend: a competitively priced quality machine fully designed and manufactured in Europe.  The key selling point is the price to quality ratio.  To date, we’ve sold over 400 Starter laminators and have not had a single one returned.  The build quality speaks for itself.”

All of Kala’s competitively priced, quality machines are designed and manufactured in Europe and meet all the latest health & safety and electrical regulations.  They are available across the globe via the company’s worldwide network of distributors. 

When musing why the company has been so successful to date, Laurent Bouchard comments, “Unlike some of our competitors, who have diversified into heavier equipment and office stocks, we are fully focused on the wide format sector.  We continually listen to our customers in the sector and develop the cost-effective, high performance solutions that they truly need.  Crucially, our lean management structure ensures that we can move nimbly in response to market developments, and decisions relating to future plans can be made fast.”  

With regards to the future, Kala has many plans afoot.  Laurent concludes, “We’ve recently been attending a number of major wide format industry shows across Europe –including Fespa, Sign UK and the InterTraffic event in Amsterdam – and we’re busy building partnerships with key industry players.  We are also about to announce the inclusion of an innovative tool-free canvas framing system within our product portfolio.  In a nutshell, when it comes to Kala’s future plans, watch this space!”

For more information on Kala, please visit http://www.kala.fr/en/

In the first of our regular LFR on the Money features, our Business & Finance Editorial Consultant, Pankaj Patel, takes a looks at Banks and Small Businesses. We have also included a downloadable summary of the 2012 Spring Budget in which Pankaj has carefully summarised the most relevant points for a UK business.

Banks and the small businesses

Over the recent months, we have come across ever increasing pressure being levied by lending institutions i.e. banks, upon small and medium sized businesses (‘SME’s).  There is certainly a very noticeable drive to reduce exposure to small businesses including those with sound cashflows and business forecasts.  I am beginning to wonder, is there any SME that the banks will be agreeable to lend to, and the only scenarios I can envisage are where there is tremendous security in terms of bricks and mortar, personal guarantees and in all likelihood a sound business which actually does not require the loans!

These institutions are also very quick to seize upon the slightest of breaches in LTV or debt servicing covenants.  The immediate reaction is for the banks to issue letters warning of the breach and to then invoke the clauses in the loan agreements without so much as having constructive meetings to assist the SME out of the predicament.  The breaches, in our experience, are cynically being used to call in loans where the banks want to reduce their exposure or to raise margins as a means of profiteering from businesses that actually require guidance and assistance in trading through some of the most difficult times in living memory.

In a recent development, one lending institution, having written to the client for being in a temporary breach of the covenants, (which was since rectified by the client so that the LTV covenants were restored) then went so far as to inform the client that they would be taking a more entrepreneurial approach to safeguarding the loan security.  They have proposed to the client that in order to retain the loan (and that also at a higher margin), the bank would share in the profits of the underlying freehold property held as security when this asset was eventually sold.

Quite how this would safeguard the banks current debt exposure is mystifying.  Further, I am dumbfounded that the banks would even consider taking a commercial interest in the businesses to which they lend to.

My recent experience of dealing with banks I have to say is one of covering their own exposure to the fullest extent possible whilst forsaking the opportunity to assist the owners and managers of the SME which form the backbone of this country’s economic strength.

Budget 2012

The recent budget introduced several measures that will affect the SME.  These changes should be taken into account when planning for your businesses over the next two years.  I highlight some of these below.

Capital Allowances

The Annual Investment Allowance (‘AIA’) was an important incentive for SME’s to reinvest profits within their businesses.  The tax break was significant such that for each £1 invested in qualifying expenditure up to £100,000, a deduction of £1 was achieved against profits; a great way to increase investment in the economy whilst at the same time being able to manage the tax liability of the company.

From 6th April 2012, the AIA investment limit has been reduced to £25,000.  Unfortunately the Chancellor has removed the incentive for SME’s to reinvest in their businesses in a tax efficient manner and many will now search for alternatives to reduce the tax burden.

SME’s should consider leasing as opposed to purchasing assets for investment in order to secure a more advantageous tax treatment.

In my opinion, this was a generous incentive for reinvestment in the economy and it is a great shame that the tax break has been reduced so drastically.

Capping of income tax reliefs

The Chancellor is proposing to introduce a cap on the total amount of income tax relief that an individual can claim commencing as of 6th April 2013.

Further details are yet to emerge but it seems that an entrepreneur with one successful business generating high levels of profits, who invests in another business that generates a loss above the proposed limits will not be able to obtain tax relief.  The proposal is to cap the relief at 25% of income on all uncapped income tax reliefs for anyone looking to claim more than £50,000 of such reliefs.

For an investing entrepreneur, part of the incentive in investing in a new business will also include the tax reliefs available to potentially mitigate any investment loss from a failed start-up.  By reducing and capping such available reliefs, the Chancellor is stifling investment into the economy.  Again, such a shame at a time when the economy requires a further stimulus of money to create jobs and opportunity.

National Loan Guarantee Scheme (‘NLGS’)

The Chancellor introduced the NLGS to assist SME’s in obtaining finance, an initiative to be welcomed with open arms given the great difficulty in obtaining funding at present times.

The threshold for businesses qualifying includes those groups of companies with turnovers up to £50million.  In my opinion, this limit would be better served at lower levels of turnover of around £25million.  This would ensure more of the funding would be targeted at SME’s who are in dire need of it.

Corporation Tax

The Chancellor continues to reduce the main rate of corporation tax which, for the financial year commencing 1st April 2012 will be 24% and then reduces to 23% and 22% for the subsequent years.

Whilst this is to be welcomed for inward investment into the UK for larger companies, there is no benefit for those SME’s whose profits are below the small companies threshold of £300,000.

I feel it would have helped the burden on SME’s to allow for some of the benefit in the reduction in corporation tax to be rolled into the small profits rate of 20%.  Any reduction on this would have eased cashflows and helped these businesses to lessen the burden of the withdrawal of the AIA discussed above.

You can also download a full summary of the 2012 Spring Budget by clicking here.

Pankaj Patel is proprietor of PR Patel & Co, a firm of Chartered Accountants and Registered Auditors in North West London.  The firm has always considered service to be one of their key strengths.  At the core of the firm is an ethos of building long term client relationships, and to provide all the accountancy, audit and tax services that clients require.  They work closely with their clients and offer a tailored service based on their experience and knowledge.
Pankaj Patel trained and qualified at one of the top four accounting firms.  He started PR Patel & Co seventeen years ago, and has gained a wealth of knowledge in the SME market.  The practice has grown and developed purely through referrals from satisfied clients, a number of whom are actively involved in the sign and wide format digital print market.  Pankaj is happy to provide a free 1 hour consultation for a review of your business.  For further details please contact Pankaj at pankaj@prpatel.co.uk

West Midlands graphic solutions company Hollywood Monster says it is enjoying an epic year and creating new jobs in a period of significant growth following major investment in new technology.

In a time of economic turmoil, the ambitious company has been winning new business and has increased its workforce by 40 per cent to cope with demand.   Creating 19 new jobs, including apprenticeships for young people, in a time of rapidly rising unemployment is one of the achievements that gives managing director Tim Andrews huge satisfaction as the company goes from strength to strength.

The Birmingham-based company is set for another successful 12 months after already securing several major new contracts in 2012. By increasing its workforce to 80 the company has put itself in a strong position to meet the anticipated increase in demand for its services.

Annual turnover is expected to increase by around £1 million to £6.5 million this year. A business improvement project designed to provide clients with a better service but also make the company more efficient is paying major dividends. It is also working towards the Quality Assurance standard ISO 9001.

Tim, himself a former apprentice, comments, “While many businesses are unfortunately folding or making a some of their workforce redundant, we have been in the fortunate position to create 19 jobs.  Some of these vacancies have been offered to apprentices as we want to recruit fresh new talent and allow them to train on the job. Many of the people we employ started this way. This approach will allow us to grow a strong, experienced workforce to help secure the business’s future.”

Besides offering apprenticeships, Hollywood Monster is also committed to working with young, creative students from local schools, colleges and academies, providing work experience placements and support with supplies for art projects.

Tim says, “It’s a tough world out there for young people trying to get a foothold in their chosen career so we are delighted to be in a position where we can offer students work experience opportunities.”

The company has invested £2 million in the latest technology and state-of-the-art equipment to enable it to widen its services to customers – a key ingredient in its current growth.  As well as working with renowned retail names such as Westfield and Next, Hollywood Monster also has clients in the housing sector, including Lovell Homes, Redrow, Bovis Homes and, more recently, Barratt Developments. Barratt Developments, which includes Barratt Homes, David Wilson Homes and Ward Homes, has signed a two-year agreement with the company, one of three preferred suppliers, to produce sales and marketing signage across the whole of the UK for one of the nation’s largest housebuilders.

Tim adds, “More and more customers are recognising and appreciating the quality of our work and Hollywood Monster has gained a great reputation for delivering projects on budget and on time. As the business grows, so will our people and that – particularly in this tough economic climate - is one of the most satisfying aspects of the success we are currently enjoying.”

For more information on Hollywood Monster, please visit www.hollywoodmonster.co.uk

In the first ‘Your View’ feature of 2012, Peter French, Projects Manager, at SignTec Ltd Signmakers in Chelmsford, Essex, questions the Olympics’ promise to regenerate local businesses in London and the South East.

Peter says:

“As we get ever closer to the opening of the London Games, I'm surprised that I haven't had people beating a path to my door for signs and advertising.   Didn't someone say that these games would be good for London and the South East?

Well, I'm in the South East and I've not even seen a glimmer of even the smallest bit of Olympic signage work.

Has anyone in the South East managed to secure any business from the Olympics?  I know that one company in Southend managed to pick up some work on the Mountain Bike course, but where is the rest of it?

Didn't I hear that half the world’s population would be descending on this country and how tourism, the arts, sport and the hot food vendors would benefit?  Surely this would have generated plenty of work for all the local sign and display businesses?

For anyone that tried to register with the Olympic organisers, you have my sympathy.  The process was so complicated and protracted; I must admit that I lost interest before the end of the questionnaire.

What these people don't realise is that a small signmaker like us doesn't have spare resources who can sit at a desk all day filling out forms, working through accreditations, talking to lawyers and accountants.  We're SIGNMAKERS!  We make signs.  That is how we earn a living. We're not big corporations with teams of administrators. In fact, gone are the days when you could afford to employ someone for holiday cover, let alone spend the day filling out numerous (pointless?) forms.

To my mind, the only winner in this game is the franchise business.  This is where the franchise holders can really benefit.  They will have the franchisor working on their behalf to secure work relating to the Olympics and then share out the work to local businesses.  They will get their share in the commissions, so it’s a win-win situation.

But the little signmaker doesn't really stand a chance.  Yes, we've spoken to people; Yes, we've put our name around; Yes, we’ve given away products in the right areas to be noticed, but sadly, still no Olympic work.

Business rates are about to go up and the price of diesel will be the highest ever in a day or so.  Our landlord is about to increase rent from April and the price of materials seems to keep going up every time we order. We were going to upgrade our Anapurna, but the proposed £25K trade in last year is only £10K this year. Our overdue accounts book is growing and even the price of a bacon sandwich at the local snack bar has increased by 7p, so there’s no solace there either.

I don't mean to sound down-hearted, but what on earth is going on?   Shouldn't every small business at least get a crack at some Olympic funding?  It’s our taxes that pay for it, so isn't it right to get something back?

It also begs the question: where exactly is the Olympic signage work actually going then, if not to the local businesses?  My guess is that whilst the local sign trade businesses have been overlooked, the majority of the work has gone up North - where the rates and rent are a fraction of what they are in the South East, and consequently, the price of products is significantly less...

Anyway, that’s enough ranting from me.  I must press on if I am to get home before 8 tonight.”

About Peter French: Peter has been working in the sign industry for 9 years having spent a lifetime in IT. Specialising in kick-starting businesses, Peter worked in many diverse business sectors.  For most of the time at Signtec he has been at the forefront of large format printing with both solvent and UV technologies.

Large Format Review’s latest Spotlight feature focuses on one of the newest entrants to the UK’s large format digital printing industry – Sihl Direct.  Although Sihl Direct is a new company, its holding company – Sihl, owned by the Diatec Group of Italy – has a 110 year history and a product range that is already familiar with most people in the industry. Sihl Direct began trading at the start of 2012 and we talked to the man responsible for getting the business up and running in the UK to discover a little more about him, the company and its ambitions…

Background Information

Sihl is already well-known in the inkjet printing market as a leading provider of coated media through OEM, distribution and reseller channels.  The company has a reputation for quality, consistency and reliability but for some time, the holding company, Diatec, has been fully aware that most of its end users wouldn’t even know they are using a Sihl product and as a result, it identified the long term strategic need to strengthen the position of its product and corporate brands to a broader audience. 

The Diatec Group has a massive manufacturing operation and develops a broad range of popular, high quality coated media products for delivering cost-effective solutions to the market.  In order to take more control over its own destiny, Sihl Direct was established by Diatec to service the large format printing market with Sihl manufactured and branded media, through both selected partners and directly to the end user.  Sihl Direct combines the backing of a known and trusted name with the full support of a multi-million pound international corporation.

Ian Turnbull’s appointment as Operations Director for Sihl Direct UK

The task of getting the UK business up and running was down to Ian Turnbull, who was recently appointed as the UK Operations Director.  Ian Turnbull has been in the large format printing industry for more than 15 years. For most of that time he was Regional Sales Manager in UK and Scandinavia for media manufacturer, Intelicoat. After some fairly turbulent times - which saw the company go through a number of management changes - Ian was very pleased to move to Sihl Direct to meet the challenges and opportunities the new role offered him.

On his appointment, Ian comments, “My experience is very much in sales and account management within the distribution and reseller channels. This new role is an exciting challenge for me personally and I am learning very rapidly.”

Ian has full support of Sihl’s parent company in Deuren, Germany and a visit to the Altrincham business unit reveals offices, a showroom and warehouse of the style and quality consistent with the high quality of the group and its products. The location of the 700 sqm warehouse allows Sihl Direct to reach approximately 80% of the UK population within a three hour drive thanks to the excellent motorway connections both North and South, and East and West.

Product range to date

Products already available from the newly established Sihl Direct operation include a broad range of specialist materials for most wide format inkjet printers and ink technologies, such as canvas, vinyls and films, as well as a comprehensive stable of photobase papers ideal for high quality photographic and fine art reproductions.

Ian says, “Sihl’s broad range of coated media for aqueous, solvent and UV-curable printers is of exceptional quality and this can make a huge difference to the overall viewing experience for printed output.  All Sihl media has been tested extensively with all major printers and under a variety of environmental conditions and I have full confidence in all of the Sihl products.”

New products

Sihl Direct also plans to expand its product ranges into new markets.  One particular area of current interest is that of canvas solutions.  The company has recently announced an inexpensive canvas for art reproduction – Clara Beneficial white 350 matt 3579.  Targeted at the volume and cost-sensitive marketplace, this value canvas is ideal for bespoke art reproduction for private homes and commercial areas such as hotels, conference rooms and restaurants.

“With the intensive cooperation of the manufacturer of the base material, we have developed a fabric that is not only inexpensive to manufacture, but also brings with it all the necessary qualities for framed art and photographic prints,” adds Ian. 

Future plans

Getting the name and brand out there is the key objective for this year and Sihl Direct UK is launching formally at two big exhibitions in March. First up is the Focus on Imaging show from 4th to 7th March, which gives the company the chance to show its credentials in the photography and fine art arena.  By the end of March, Sihl will be focusing on Sign & Digital UK where it will be showing its range of media for solvent-based inkjet printers, light boxes and other displays.  The company is also developing its range of wall covering products and media specific for Latex printers, which will be on display at the exhibitions.

In terms of the UK business, Ian plans to build the team to meet the expected demand and establish Sihl Direct as a leading brand for inkjet media. Ian Turnbull concludes, “Sihl Direct has the manufacturing capability to deliver very high quality materials and substrates with high service and support levels at cost-effective prices.  The role I have been given is a very exciting one and I very much look forward to growing the business in the UK.  At present, the UK has a small but dedicated local team - supported by several hundred people across Europe and the USA - and we are looking to expand as the Sihl Direct business develops.”

For more information on Sihl Direct, please visit www.sihl-direct.co.uk