They will not be pleased, however, to be reminded that recovery can pose a whole new set of problems for managers.

In this week’s SME Focus a former joiner who runs a substantial business of his own explains how he learned the importance of delegating key functions to an effective management team after hitting problems during a period when business had seemed to be booming.

Name:

Jim McGill

Age:

42

What is your business called?

The UPVC Company

Where is it based?

The main manufacturing facility and head office is in Wishaw, but we also have showrooms across the country.

What does it produce, what services does it offer?

The firm manufactures UPVC doors, windows and conservatories, as well as undertaking garage conversions and extensions to private homes.

To whom does it sell?

We sell only to the general public. We do not, nor will we ever, do work for other companies in this sector.

What is its turnover?

We are reaching up to having sales of £10m this year. This is quite a leap from where we were since we added the windows business last year which will increase sales by about £3m in the current year while we expect to have annual sales of just over £1m from our conservatory business.

How many employees?

150

When was it formed?

1996

Why did you take the plunge?

I trained as a joiner and I was working very hard for a local company crafting expensive hardwood doors. I knew that I was making a lot of money for them. I asked them for what I thought was a well-deserved pay rise and they refused. I think it was then that the first inkling was born in me that I could do every bit as well – and perhaps considerably better – working for myself in my own business.

What were you doing before you took the plunge?

I was an apprentice joiner with an ex-girlfriend’s father’s company. We were fitting out all the really upmarket bars and restaurants which sprang up in the eighties. Then I worked for Glasgow Corporation and a variety of other jobbing joinery firms until the hardwood door company I mentioned. Every job taught me something new and different.

How did you raise the start-up funding?

I was able to secure a grant of £1000 from the Prince’s Scottish Youth Business Trust and I supplemented it with a loan of £5000 from the bank. That enabled me to buy the machinery I needed to begin manufacturing UPVC doors.

What was your biggest break?

I never really got one big, crucial break. It has been more of a steady progression so far. I suppose I was lucky to realise early enough that people were moving away rapidly from wooden doors to UPVC. I went on a course in Derby to find out about how to make them and I was amazed to discover that I could learn all I needed to know in one day. It took me years to learn even the rudiments of my trade as a joiner.

What was your worst moment?

About five years ago I became too big too quickly and, to be perfectly honest, I came very close to going under. The business became uncontrollable.

At the root of the problem was the fact that I did not have the right people round about me. We were getting unacceptable levels of complaints. The problem was simply bad management. I was advertising doors for pennies – ludicrously low prices – so of course volumes were huge. But I didn’t have the right after-sales managers, installations managers or a clerk of works.

I learned the hard way that I couldn’t do it all on my own.

What do you most enjoy about running the business?

I like being responsible for my own destiny and standing or falling by the decisions I make. I also get a buzz from being involved in building a business from scratch to one that is successful.

What do you least enjoy?

I’m not one for routine paperwork and hate having to deal with it. I’m best at making decisions, partly based on analysis and partly on instinct. I get very frustrated when suppliers or people in our business fail to live up to their responsibilities, especially when it is quite clear to them and to me what those responsibilities entail. I don’t particularly like having to tell people they need to raise their game or we will have to part company, but it’s sometimes necessary and I accept it comes with the territory. I realise the disciplinary side of things will only grow as UPVC gets bigger and that means I will probably need to delegate more.

What are your ambitions for the firm?

I want to grow it into the most successful company of its kind in the country. I see no reason why we cannot if we keep focused on what we have been doing for the past few years and maintain a close watch on margins and overheads.

What are your top priorities?

To see the business continue to grow and by managing it closely, make it essentially recession-proof; to ensure my employees are looked after and that there is a good working environment

with a minimum of office or workshop politics; to build the reputation of the business as a respected name in Scotland, to have satisfied customers and to enjoy my life.

What single thing would most help?

The reduction in VAT to 15% has helped and it would be nice to see further reductions in personal and company taxation, but I don’t hold out any great hope of that happening.

What could the Westminster and/or Scottish governments do that would help?

I am in favour of many of the measures that central government has already taken such as establishing and steadily increasing the minimum wage. I know that many people in business complain about health and safety and environmental regulation, but my view is that many of these laws are sensible and improve the working environment. They are not imposed for arbitrary reasons. They have a purpose.

What was the most valuable lesson that you learned?

When we had that difficult patch a few years ago I realised I couldn’t run the business by the seat of my pants. I saw there was a need to re-educate myself and to introduce new senior managers and new systems which formalised and ensured quality control. I also invested heavily in professional help in legal, accountancy and marketing.

As a result of formalising the way the company was managed we got through the bad patch, and I am certain it turned us into a significantly better company. If I hadn’t learned the lesson the chances are we would have been out of business by now. You know the saying, if something doesn’t kill you, it makes you stronger.

How do you relax?

I used to really enjoy five-a-side football. We had a works team and we won the league year after year. But I’m in my forties now and I’m getting a bit old for it. So I’ve taken up golf at Bothwell and I’ve driven my handicap down to seven in the past two years. I like to keep fit and active.