What SMEs can learn from James Caan's tiny London office strategy: Rashmi Dubé

Often the real concern is whether the small business owner managers have the cashflow required to deliver their products on time.

An advantage for an SME can sometimes come from the ability to have a little smoke and mirrors approach to winning clients. I remember James Caan from Dragons’ Den once saying that he rented the tiniest office in the poshest London office building and invited his clients/prospects for a coffee.

Naturally, they would visit and think ‘Wow, his business must doing well’ and he would meet them in reception and say, ‘Do mind going out for coffee? I’ve been stuck indoors all day.’

Another way to help win clients has often been to bolster your resources and appearances by joining forces with a partner.

Essentially, the SME market requires confidence in order to help it grow. Current legalisation changes make hinder this process.

There are currently discussions around the changes to the annual account and the updates in legalisation around the profit and loss account requirements for small companies and micro-entities.

Accountants have already started compiling checklists on what will be required. If you think SMEs didn’t have time before – they definitely won’t have time now.

But critically, does transparency take away from being a James Caan and trying harder to make out that they are bigger than they are to win the work?

A local garage were specialists in luxury car repairs but their garage was a build shed. They never allowed their clients to drop off the vehicle; they collected and dropped off at no extra charge and the service was always on time and without fault.

In fact often the owners would state that they did a better job than the dealers. One day a customer drove up to unexpectedly drop of their car and said “If I had known this is where you operated from and that you were a small outfit I would never have trusted you with my car… but I am glad I didn’t know. Please drop off the car back home when you are done.”

That company grew to be one of the largest in the area.

Ethically, I am always about transparency but in the case above the company was transparent about their skills - they just did not voice their smallness at the time.

As someone who has founded and co-founded businesses, I have used the used the James Caan technique and quickly found offices in London and partnered with another to deliver the work. The client/customer and I shared a long business relationship.

I am just not sure how in some instances transparency actually helps the SME in an environment in which they are still growing and a little fencing around them may just help.

Tell us at the Yorkshire Post what are your thoughts on what support SMEs need.

Rashmi Dubé is a partner at gunnercooke