Someone once told me that as owner/MD my only responsibilities were to look after two things - people and cashflow. So what of the actual work we deliver?

In my first post about 10 years of FortyTwo, I talked about deciding what kind of leader you want to be and by definition the team you then work with. Someone once told me that as owner/MD my only responsibilities were to look after two things - people and cashflow. So what of the actual work we deliver?

Where does it come from? The sectors? The geography? The scope? When to say no and when to really go for it? Before I go any further, I want to be clear that this works for me and for FortyTwo but it is by no means the answer - it does not guarantee anything but I find it helps me consider opportunities in a clear and consistent manner whilst leaving a wee bread trail for future plans.

That caveat aside, here we go.

How you find projects (or projects find us), developing relationships and earning the right for referrals and recommendations to come knocking has to be central to any business owner. It’s a tough thing to crack, especially in the early days when you are building a reputation and trying to get involved in as many interesting things as you can.

However, as you grow and become more confident in your own skin, it’s vital to have some kind of formula that helps you make the right decisions for the right reasons. We are very fortunate to enjoy a substantial amount of referrals from contacts, clients and friends, however each new lead has to considered in same way. For us, we look to three main criteria before we decide whether to get involved or not.

The Monies - Can we make money from the project? Will it be commercial viable?

The Open Door - Is this an opportunity to work in a new sector with a new client that has potential to grow? Does it provide us with a chance to work in an interesting way? Is it aligned with our strategy?

The Connection - Will it be fun, fulfilling or interesting in other ways? Will the project make us feel part of something? Has it the potential to be a cracking project? Beyond the commercial considerations, will it be valuable to us in a professional capacity? Knowledge building. Brand building. Community Building.

Ideally, each project attracts 3 strong ticks but as long as 2 are met, we are eager to get going. This ‘matrix’ ensures that we can choose to work with clients and organisations who perhaps don’t a larger budget or have stretched resources but who would be great to work with e.g start-ups or community projects. Having this criteria front of mind also ensures that we remember we have bills to pay and that the commerciality of our work always has to be considered even if at times, we decide to take on a loss-leader.

A conscious, strategic choice each time.

Related to this but more of a larger business development overview is our commitment to never be overtly reliant on any one customer or market. A good spread across sectors is where a good nights sleep lies. With so much M&A activity alongside various economic and global challenges, it’s not a good time to have your flags tied to too few masts. Plus, the benefits of the additional shared knowledge and experience you glean working across a wider range of clients and markets can’t be underestimated.

We even have a KPI to help keep us in line - no client or sector can be more than 13% of our total revenue. If we are lucky enough to exceed this figure (after all, growth beyond 13% for any one client would suggest we must be doing something right for that client), then it’s an additional motivation to sharpen our BD pencils and grow elsewhere to keep that mix true.

All of the above sounds very straight-forward when I right it down like this but of course, it isn’t. We get it wrong at times and it is tough to stick to at times but the point is never to eradicate all the mistakes and wrong choices. We do this to better understand how and why we are making that choice in the first place - be conscious to the decision, learn from the past and then ensure we judge success accordingly.

How do you choose yours?

Part 3 coming soon.

— Mark

mark@fortytwo.studio.

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