:00:08. > :00:18.in Libya. Now it is time to check in with
:00:18. > :00:28.
:00:28. > :00:32.This is Show Me The Money, your weekly guide to who is making the
:00:32. > :00:35.money, how they are doing it and what it means for the way we work.
:00:35. > :00:39.With us tonight: It is his job to help find you a
:00:39. > :00:42.job. Tim Watts is Chairman of recruitment firm Pertemps. Someone
:00:42. > :00:46.who would probably like you to get on your bike to find a job. Will
:00:46. > :00:49.Butler-Adams makes those fold up Brompton Bikes. And with the
:00:49. > :00:56.eagle's eye view of the economy and business, Maggie Pagano, business
:00:56. > :01:01.editor of the Independent on Sunday. Britain's bosses just got gloomier
:01:01. > :01:04.about the state of the economy. Seven out of 10 business leaders
:01:04. > :01:10.and think that things are better than they were last year and three
:01:10. > :01:17.out of 10 are looking for ways to cut jobs. You when a recruitment
:01:17. > :01:22.job -- from and you know everything inside and out. It is -- is it as
:01:22. > :01:26.gloomy as they think? I do not think so. I believe there are
:01:26. > :01:31.problems out there. The euro is having an impact on the word
:01:31. > :01:37.confidence. Business is very sensitive to confidence. It comes
:01:38. > :01:41.and goes. The Bank of England, be CBI itself, they are still
:01:41. > :01:45.predicting a small and modest growth for next year, which means
:01:46. > :01:51.we will do the same as we did not - - this year and a little bit more.
:01:51. > :01:55.Is that enough to stop unemployment rising? We need people to do the
:01:55. > :02:02.same thing and a little bit more. Unemployment is a most peculiar
:02:02. > :02:07.thing. One of the things they did not count and look out is the huge
:02:07. > :02:12.rise in the self employed. -- look at is the huge rise in the self
:02:12. > :02:17.employed. It is becoming structurally very advantageous,
:02:17. > :02:20.particularly in the contract industry, for people to become
:02:20. > :02:26.self-employed contractors. You were saying that there are jobs out
:02:26. > :02:36.there? Most certainly. There are 5,000 just out at Jobcentre Plus
:02:36. > :02:42.today. 500,000? 500,000 unfilled jobs tomorrow morning at a
:02:42. > :02:48.JobCentre plus. At a time when 2.5 million people are unemployed?
:02:48. > :02:55.There are more than that, but yes. A lot of people do not want to work.
:02:55. > :03:00.Picking up this theme about confidence, Maggie, the reason that
:03:00. > :03:05.confidence affects the job market is that if companies do not feel
:03:05. > :03:09.confident they do not want to spend money. The will not invest in the
:03:09. > :03:12.new plant or even the new machine that they would hope to. It is the
:03:12. > :03:19.small companies that need to employ more people because they are the
:03:19. > :03:25.ones that generate in the economy. It is about �75 billion sitting on
:03:25. > :03:29.Britain's Corporate Board sheets at the moment and all you need is just
:03:29. > :03:35.a little bit of confidence going and people will start spending.
:03:35. > :03:42.companies have access? Yes, but they are not spending. They are
:03:42. > :03:49.just not spending. We would get them spending? -- what gets them
:03:49. > :03:55.spending? It is this magic thing. People are paralysed and do not
:03:55. > :04:00.know which way to go. We just need the politicians, the CBI is being
:04:00. > :04:05.too gloomy, but we have just got to get up and start investing. Are you
:04:05. > :04:10.confident? Are you creating jobs? We are growing and we are pretty
:04:10. > :04:15.confident but at the same time 30 % of our markets are in Europe and
:04:16. > :04:19.Europe is heading for something that nobody can predict. In the
:04:19. > :04:23.last three or four years we have been stuffing money into the bank.
:04:23. > :04:29.We are a little business and we are looking at the long term and the
:04:29. > :04:32.banks want to lend us tons of money at the moment but if we had half a
:04:32. > :04:39.million overdraft and our orders fall off of a cliff the banks would
:04:39. > :04:44.disappear. So it is a safety-first approach are you part? Absolutely.
:04:44. > :04:48.We would you rather spend that money creating jobs? We are looking
:04:48. > :04:53.after our own destiny. We are old school manufacturing. We always
:04:53. > :05:01.want that level of security but it is more than we normally operate
:05:01. > :05:06.with. The environment at the moment is so unsure and variable. There
:05:06. > :05:12.are some types of unemployment -- employment easier to get than
:05:12. > :05:22.others? What we are doing is world class at engineering is expanding
:05:22. > :05:25.and doing world -- relate well. I am afraid that when it comes to
:05:25. > :05:33.metal-bashing and mass production of small items, we are not going to
:05:33. > :05:36.be able to compete with the Asian growing tiger economies.
:05:36. > :05:42.Restructure, restructure, restructure. There is nothing that
:05:42. > :05:46.has changed in my 40 year career. Managing change, it is the same
:05:46. > :05:56.today as it was then. Let's go through some of the stories that
:05:56. > :06:00.
:06:00. > :06:06.you wish you had missed last week. Local councils are using cattle in
:06:06. > :06:13.some areas to help keep the grass down.
:06:13. > :06:23.The G7 people squeezed into a pair of Y-fronts. -- 57 people. It was a
:06:23. > :06:27.
:06:27. > :06:32.record Brogan on Guinness World Records Day. -- broking. One woman
:06:32. > :06:41.was named as the most flexible woman in the world.
:06:41. > :06:44.A Stilton made with real goldleaf and old liqueur costs �60 a slice
:06:45. > :06:50.and it is thought to be the most expensive cheese made in the UK.
:06:50. > :06:57.Crackers anyone? You talk about the Romans of
:06:57. > :07:01.mechanised and biological form. -- the lawn mowers. Cutting costs is
:07:01. > :07:06.something you have had to do in your business. It is not so much
:07:07. > :07:14.about cutting costs, it is about being good at what you do. The
:07:14. > :07:19.funny thing is that in business, certainly at some levels, the stuff
:07:19. > :07:27.you need to do is so basic. We introduced new systems onto our
:07:27. > :07:34.logistics. We make all sorts of odds and sods and that is how we
:07:34. > :07:39.make our bike. Not running out of bits is key. We had a clever system
:07:39. > :07:44.which was to compacts and commission see-through boxes. The
:07:44. > :07:47.boxes are red or blue and you can see through them. You have a fancy
:07:48. > :07:52.system and when it breaks the system says it is full and you do
:07:52. > :07:59.not know but now we have see- through boxes and you can see.
:07:59. > :08:04.that one simple change? Yes. have also been a been monitor.
:08:04. > :08:09.had a problem in the past where people were busy making bikes and
:08:09. > :08:15.someone would drop something on the floor and someone would sweep into
:08:15. > :08:18.the bin. That is 27p. In the first few years that I was and the
:08:18. > :08:24.company I was a fanatic about finding the bits and putting them
:08:24. > :08:27.in my pocket and then I would ask people if they would want a
:08:27. > :08:32.sandwich and I would buy it and people would put their hand up and
:08:32. > :08:37.I would say that these bits and bobs were �2 and I would explain to
:08:38. > :08:42.them that it that was money just wandering around every day. A day
:08:42. > :08:47.must have loved you for that. made a point. -- they must have
:08:47. > :08:52.loved you. It was like a stuck record and they stopped doing it.
:08:53. > :09:02.If you want to be a world record breaker, how do you become the
:09:02. > :09:05.world record holder and keep your business at the forefront? By doing
:09:05. > :09:11.the best you can. Be true to yourself and always challenge
:09:11. > :09:16.yourself and everything around you. A you have never tried to take part
:09:16. > :09:20.in any record breaking activities? I once wanted to go to Antarctica
:09:20. > :09:27.on a sponsored walk but other events got them the way. They did
:09:27. > :09:32.not happen. That is one thing I always wanted to do. Have you tried
:09:32. > :09:39.squeezing into a pair of pants with a to six other people? We do try
:09:39. > :09:44.it? It depends on who does 56 people are. You have to reinvest
:09:44. > :09:49.all the time. You take your profits and you reinvest. That is the only
:09:49. > :09:52.way to do it. You mention the CBI and they are a big business club of
:09:53. > :10:00.big businesses and I believe they are not the ones to read as out of
:10:00. > :10:05.this problem. There are about 3 million small any fractures in this
:10:05. > :10:15.country and if one person could solve this problem ever night the
:10:15. > :10:15.
:10:15. > :10:21.country would be picked up by the small companies and not the big
:10:21. > :10:29.ones. If a little businesses have a lot of potential to be more
:10:29. > :10:32.aversions, the big businesses are so perfect, but the small
:10:32. > :10:39.businesses need to the scope to employ another person. What about
:10:39. > :10:47.the need to have a premium product. Does every business need that?
:10:47. > :10:52.think the gold would be tasteless. Everything should be premium.
:10:52. > :10:59.product is bizarre in the UK. It is you totalitarian and people use
:10:59. > :11:03.them and you see people bash regret our product is -- for our product
:11:03. > :11:07.has lots of different uses an people bash them and ride them all
:11:08. > :11:13.around London and for us, premium or not, we want to make a product
:11:13. > :11:17.that stands up for what it is. about you? If it was the gold
:11:18. > :11:23.Stilton, I am probably a little bit more excited by it. I do not think
:11:23. > :11:26.I would want it. It is certainly popular. But if it comes from a
:11:26. > :11:31.small cheese manufacturer who creates a new product and a new
:11:31. > :11:39.design and a new application and people buy it, you are quite bright,
:11:39. > :11:42.Maggie, it is completely tasteless. -- you are quite bright. It is used
:11:42. > :11:47.in what can and in catering but that little manufacturer might have
:11:47. > :11:52.a new product. You have given it exposure tonight. The manufacturer
:11:52. > :11:58.might have been demand for it and he might employ one more person.
:11:58. > :12:06.ven though we mocked it mercilessly -- even though we mocked it
:12:06. > :12:11.The spirit is indomitable and it is that kind of marketing, that kind
:12:11. > :12:16.of thinking that will bring us out of our problems. Would I want it?
:12:16. > :12:19.No, I would not. I would rather have a 60-year-old pudding. How do
:12:19. > :12:23.you get a message of optimism across at a time when the
:12:23. > :12:26.Chancellor says we are in a dangerous phase of the economy and
:12:27. > :12:33.the Governor of the Bank of England says it is the worse since the
:12:33. > :12:38.death of the dinosaurs? When big figures like that say they are
:12:38. > :12:42.considering us to be in a crisis situation, everyone else has got to
:12:42. > :12:47.think that they know what they are talking about. We can tuck
:12:47. > :12:53.ourselves into these positions and we have done so in my career on
:12:53. > :12:57.more than one occasion. I am sorry to repeat myself but it gets you
:12:57. > :13:02.out of positions. There is a problem out there and we will solve
:13:02. > :13:06.it. I am only repeating it again. We will manage change and we need
:13:07. > :13:13.to change. If you go backwards in the economy you can see how much
:13:13. > :13:17.has changed. 40 years ago, I looked recently, there is only about eight
:13:17. > :13:25.of the top FTSE companies that were around when I started 40 years ago.
:13:25. > :13:28.But you cannot reverse unemployment on a tide of goodwill and optimism.
:13:28. > :13:33.But if one person does something that person will come to read and
:13:33. > :13:35.it goes around and around. It is the lack of circulation of money
:13:35. > :13:41.that the banks are hoarding the quantitative easing which they were
:13:41. > :13:51.not supposed to do. I think Mr Mervyn King is quite sore with them
:13:51. > :13:53.
:13:53. > :14:01.I believe that the next element of quantitative isn't, which we may
:14:01. > :14:06.well Mika, must bypass the bangs and go straight into circulation.
:14:06. > :14:11.And go where? I think that probably social housing would come top of my
:14:11. > :14:18.list at the moment. There is a huge need for it, probably half a
:14:18. > :14:22.million homes needed instantaneously. They themselves
:14:22. > :14:27.spawn plumbers, bricklayers, carpenters and they go into the
:14:27. > :14:31.economy and the money will go round. So it would make sure it gets into
:14:31. > :14:36.the economy. Not to build the balance sheets of the banks.
:14:36. > :14:40.would be a bigger project and the �400 million or so the Government
:14:40. > :14:46.is likely to put it tomorrow to increase -- improve housing
:14:46. > :14:50.developments, a story we will be covering on this channel tomorrow.
:14:50. > :14:55.Explain to me how you can have 2.5 million people unemployed and a
:14:55. > :15:01.half a million unfilled vacancies. They are just a mismatch. Skills
:15:01. > :15:04.are the prime problem. I do not believe that there were 2.5 million
:15:04. > :15:11.unemployed people. I believe that there are 5.5 million people
:15:11. > :15:14.unemployed. We seem to forget the count -- to count people on a long-
:15:14. > :15:21.term structural sickness. There are probably may be less than one
:15:21. > :15:25.million which have been there for a long time. It has jumped from
:15:25. > :15:30.700,000 to 2.7 million in the last 12 years and I doubt very much
:15:30. > :15:35.whether that is it was based. I believe it is probably a political
:15:35. > :15:39.ploy to have moved people 12 years ago off the unemployment count in
:15:40. > :15:44.register and it is just a straight swap. You cannot say all these
:15:44. > :15:48.people are malingering. I can say a fair proportion of them are and the
:15:48. > :15:51.Government believes that, I think. They are going to bring in the new
:15:51. > :15:57.sick note from a panel and bypass the Dodgers. They are going to call
:15:57. > :16:00.in these extra 2 million people who have suddenly arrived there. And
:16:00. > :16:04.suddenly make them be interviewed. Some of them have been there for
:16:04. > :16:13.four or five years and have never been assessed. Tim Watts from
:16:13. > :16:17.Pertemps, thank you very much. Remember this?
:16:17. > :16:23.British Gas shares. They come out in November. If you see Sid, tell
:16:23. > :16:29.him. What is up? You know these British Gas shares, they are really
:16:29. > :16:33.easy to do. Give them a ring. couldn't be easier.
:16:33. > :16:37.It is 25 years since we were encouraged to Tell Sid about the
:16:37. > :16:40.British Gas shares. Those were the days when a Conservative Government
:16:40. > :16:44.look that business owned by the state and said, let's sell shares
:16:44. > :16:49.directly to the public. Nowadays they look at state owned businesses
:16:49. > :16:53.and say, what will Richard Branson pay for it? The deal to sell
:16:53. > :16:58.Northern Rock to Richard Branson at about �400 million less than we put
:16:58. > :17:02.into it in the first place, is that a good deal already at deal? It is
:17:02. > :17:06.clearly controversial. That goes without saying. It was a deal on
:17:06. > :17:12.the table. There is money up front and there is another �250 million
:17:12. > :17:17.that will follow if the there is to bronze, Barnes and if he floats it.
:17:17. > :17:20.So the round figure should be 1 billion. But the choice is do we
:17:20. > :17:24.want a struggling Northern Rock perhaps then wasting away and
:17:24. > :17:27.waiting for some huge privatisation, or do we want a dynamic
:17:27. > :17:31.entrepreneur like Richard Branson who has transformed most of the
:17:31. > :17:36.things he has touch. People were cheering in the headquarters on
:17:36. > :17:40.Thursday. He has already promised lots of new products. News small
:17:40. > :17:46.businesses and so forth. I think this could be on the high street. I
:17:46. > :17:50.know it is only 5% of the total and the other for an 80% but you could
:17:50. > :17:55.see the platforms. So I think it was a great joys, actually.
:17:55. > :18:00.there is all more competition in banking, does that help business?
:18:00. > :18:03.think we needed. I note from in the 1980s when our founder try to get
:18:03. > :18:08.the business going, he could never get the blending he needed. There
:18:08. > :18:14.seems to be a lot of money around. We never stopped being offered
:18:14. > :18:18.money to borrow up that way you needed are the small businesses. It
:18:18. > :18:20.is never to be seen. If we don't get somewhere -- someone in their
:18:20. > :18:25.who is competitive and prepared to offer a service others are not,
:18:25. > :18:30.great. You look at the size of Northern Rock, it is not really
:18:30. > :18:37.going to be able to go toe-to-toe up with the likes of... Now, but it
:18:37. > :18:40.is a stop. You are not going to build a business overnight. The 4
:18:40. > :18:44.million customers are quite a good platform to build on. Would we
:18:44. > :18:49.rather have a small competitor who micro or none at all? And Richard
:18:49. > :18:52.Branson had another idea, just going back to unemployment. He is
:18:52. > :18:57.going to write to George Osborne this week suggesting that they set
:18:57. > :19:02.up a body -- body rather like the Student Loans Company and allowed
:19:02. > :19:07.youngsters access to capital, so it small loans of �3,000 to �5,000,
:19:07. > :19:12.underwritten by the Government or high-street banks. Going back to
:19:12. > :19:17.what we can do to help unemployment, that is a good idea. A sort of
:19:17. > :19:25.enterprise fund? Yes but really tiny because it is finance -- often
:19:25. > :19:29.starts a small business. If the Government was only able to get 747,
:19:29. > :19:34.what a lovely number for selling a bang to a man who runs an airline,
:19:34. > :19:39.if they could only get �747 million, why not wait until the economy
:19:39. > :19:46.improves? How long would you rate? Until taxpayers can get their money
:19:46. > :19:51.back. It could be five or ten years. Isn't it worth the wait? No. Far
:19:51. > :19:55.better he has ensured jobs in Newcastle, 2,100 jobs, and 14
:19:55. > :19:59.billion mortgages and so forth. He can build a business. They are
:19:59. > :20:03.already talking about buying back America's credit card business. I
:20:03. > :20:10.see it as long-term thinking. They will probably get a billion for it
:20:10. > :20:20.anyway. Thank you very much. Now for a lovely film about how you can
:20:20. > :20:24.
:20:24. > :20:28.get advice to make your business Mika Sydney and Matt. They are a
:20:28. > :20:32.husband and wife team who owned a drum business in Stevenage.
:20:32. > :20:38.acquired is a year ago and it was under different ownership and a
:20:38. > :20:43.different name. This past 12 months, we have been working tirelessly,
:20:43. > :20:50.transforming it. The goal has been the last 12 months to improve
:20:50. > :20:57.customer service and communication with are the customers, building a
:20:57. > :21:03.website and focusing on growth. plan to expand by also launching a
:21:03. > :21:07.custom drum manufacturing company. We have actually come up with this
:21:07. > :21:12.process of manufacturing the drums that has never been done before and
:21:12. > :21:16.so that is quite a massive side of what we are actually going to be
:21:16. > :21:21.working on. But growing a small businesses have caused a huge
:21:21. > :21:25.challenge. Sir Sydney and Matt are off to a start-up fare to get some
:21:25. > :21:29.tips. Here at Earl's Court, entrepreneurs and small business
:21:29. > :21:33.owners can get the practical advice and help they need from the experts.
:21:33. > :21:36.There are stalls offering advice on marketing, social media and
:21:36. > :21:40.branding and even people giving advice on how to profit from a
:21:40. > :21:46.certain sporting event next year. So what are you trying to get out
:21:46. > :21:51.of today? We will be looking at various stands that will help us
:21:51. > :21:54.purchase overseas. There is an area we want to get into debt. We love
:21:54. > :21:58.purchasing from our own suppliers but we might want to develop our
:21:58. > :22:02.own brand and we need a little guidance in that area. And also, we
:22:02. > :22:06.need a heap of help in marketing and advertising and social media,
:22:06. > :22:10.and we know that I can be found here. Whilst they learn about how
:22:10. > :22:15.to import goods, others are learning about networking and had
:22:15. > :22:20.to make a business plan. The fact that it is so busy here is perhaps
:22:20. > :22:24.testament to the tough economic climate. With unemployment rising,
:22:24. > :22:30.people are maybe drink to make jobs for themselves rather than trying
:22:30. > :22:34.to find them. I asked for Top Tips. Mine would probably be to get your
:22:34. > :22:39.name out there and get brand recognition in and the key to doing
:22:39. > :22:43.that is marketing, especially on a line. Meeting people and talking
:22:43. > :22:47.about your business is my top tip. Get out there and start talking
:22:47. > :22:51.about it and get up and start digging. My top tips for starting a
:22:51. > :22:55.business would be to ensure your customer is fully aware of your
:22:55. > :23:00.terms and conditions of stale -- sale so that when payment becomes
:23:00. > :23:05.due they know exactly when the due date is and to follow up the
:23:05. > :23:09.payment in a timely manner. So how have Sydney and Matt got on?
:23:09. > :23:14.actually got a lot more out of this than I was expecting. Really
:23:14. > :23:18.positive. If we don't do it now we will not do it any time. I cannot
:23:18. > :23:22.imagine things getting worse than they are now. They can only get
:23:22. > :23:26.better. Of course, it is not as the people there who want their
:23:26. > :23:30.business is to grow. The Government is desperate for them to succeed so
:23:30. > :23:35.they can give a much-needed boost to British economy.
:23:35. > :23:39.Next week, small is beautiful but is big better? The small forms --
:23:39. > :23:42.firms that have banded together to take on the big boys and save some