Welcome back to your weekly dose of everything you need to know in the world of business, entrepreneurship and all things Matt Haycox!

Welcome to your Friday morning dose of everything that matters in the world of business, finance, entrepreneurship and my life! If you want ‘agenda free’ news, top tips, tried and tested strategies and a bit of my banter, then you’re in the right place!

This week you’ll find:

• 🤔 INSIDER INSIGHTS: hiring and firing: how to dealing with bad eggs!

• 📸  BIG PICTURE: don’t let macro noise influence your investing

• 📈 IN THE NEWS: Company results and market updates

• 🔟 LISTICLE: 10 ways to create a value retail proposition

• 😱 SCARY STAT: Business leaders and entrepreneurs beware!

• 📑SPOTLIGHT: How to buy a football club? Your ultimate Guide

• ✂️  QUICK SNIPPETS: What the business world is reading this week

• 🌊DEEP DIVE: MiCA - changing EU’s Crypto landscape

🤔 INSIDER INSIGHTS: HIRING & FIRING - DEALING WITH BAD EGGS!

I’ve been back in the UK over the last 10 days, splitting my time between Leeds and London. I have been hosting at Berry’s Tennis, showing off baby Nele to everyone who hasn’t seen her yet (including big sister Harlie), and getting stuck into some meetings and issues in our various businesses and offices.

Prior to arriving on this trip, I had only spent four days in the UK this year. From a personal and lifestyle perspective it has been great not being in the UK - the positivity, opportunity, and weather to name but a few things, is great for the bigger picture.

My personal role will always be the same regardless of where I am located - originating deals, building investor relationships, creating marketing strategies and being the general face of the different businesses. So being in the UK, and more specifically being in the UK office, doesn’t change that role or create me any extra time to be able to do extra things - but it does allow me to see the little things that go on when I am not present.

Little things that invariably I don’t like or agree with, and which inevitability build in to big things that are more problematic and a headache to fix or reverse.

So my mind is very clearly made up - I am going to be spending a lot more time in the UK. Aside from the material improvements in productivity I will be able to affect, I forgot how much I missed missed being in the cut and thrust of things.

Anyone that knows me knows that I am always working 24/7, and they may wonder how I could possibly do more if I was relocated for part of my time. But it isn’t about me doing more, it is about me getting more out of other people and different situations.

I am no maths wizard (I should maybe get Harlie on this with her further maths A level!) but a 5% - 10% increase in output and efficiency per person multiplied by dozens of members of staff adds up to a massive monetary amount. And being physically present to nip problems in the bud or realign priorities that better fit our overall business plan will make savings that compound massively over time.

If you read last week’s newsletter you will remember me talking about addition bias, and how we naturally gravitate towards trying to add things to solve a problem when maybe the best solution is to actually subtract something. Nowhere is this more visible than in the area of manpower.

We have all heard the expression of ‘a single bad apple spoiling the barrel’ and I can tell you first hand how frighteningly true that is in corporate life.

For reasons too boring, and at times confidential, to go in to here I will skip the gory detail. But what I can tell you is that over the past few years at various times I have carried / supported / prolonged (pick your choice of word) various individuals at certain points who have been very wrong for the business. They have either been incapable of doing the job they were hired for or they were just bad eggs in general.

And keeping them on not only drains me of their wages but ultimately decreases the productivity of the rest of the team and demotivates all around.

Even though I have had my reasons for keeping them on, I totally get other people anger, frustration and demotivation. How can you expect someone to perform at their best or go the extra mile when they see other people in the business, invariably more senior to them or earning more than them, slacking, fucking up and generally being a bad example.

It is demotivating and people naturally think that kind of behaviour is acceptable in the organisation because we have allowed it to continue. I can’t expect them to know the background and nor, most of the time, can I even tell them the reasons.

Over 25 years in business I have hired every conceivable problem employee you can imagine! Idiots, lazy, liars, incompetent, thieves, moaners, egos, primadonnas….. (I’ve run out of adjectives for the people i have suffered!)

Some would say I am too lose to hire and its my own fault. I believe that you never know what someone is like until the day they start work, so all the repeat interviews in the world won’t help, and references in today’s world are pointless as no previous employer will give one, and if they do it is probably not even true.

That said, one area I believe is beneficial in hiring is to check out prospective employees social media.

Taking one look at the social media accounts of most of the people I have had to fire over the years would have usually prevented me from hiring them in the first place!

Whilst I am not unhappy with my hiring decisions what I have been very unhappy with is my firing decisions. More specifically not firing people quick enough. And that is something I am making a conscious effort to get much better at. A new girl we took on 2 weeks ago lasted 48 hours before being subjected to the axe - and to be honest that was probably 24 hours too long!

Whilst it is not unusual for people to start a role behaving great and slipping over time, what is almost totally unheard of is someone starting a role with a bad attitude or some other issues and then improving to a model employee over time. So if they are shit in the early days (even the early hours) and the information you now know would have changed your decision about hiring them in the first place - then act fast and fire them immediately.

Despite my grumbling and mistakes of the past, I truly believe that we are in a good place to build on now and the key problem people are no longer in the group. The bad habits, inefficiencies or problems they have caused still exist though - they won’t go over night and they won’t go without a clear message and direction from the top. But I believe with the right desire and attitude across the board we can fix in weeks what has plagued me for years.

And to be clear, like all problems, I take the full blame here. Because it’s only when you blame yourself that you can find the solutions. I hired the bad eggs, I allowed them to stay - so everything that came off the back of that rests with me too.

And unfortunately I don’t have the answers yet so I can’t tell you! But rest assured anything along the way I learn I will share with you.

In the meantime I know for sure though that it definitely begins with cutting out the rot and building up again from there.

I hope you enjoy this week’s newsletter. The quantity of content on Matt Haycox Daily is growing and the range and quality is getting deeper and deeper. And that’s all flowing through to this newsletter. But as always, if you have any comments, requests or ideas then please drop us a line.

READ MORE ON MATT HAYCOX DAILY>

 📸 BIG PICTURE: DON’T LET MACRO NOISE INFLUENCE YOUR INVESTING!

A picture that is worth more than 1000 words! This image shows dozens of macro events that have occurred over the previous 70 years that all sounded, at the time, like intelligent reasons to sell stocks and other investments. But, as time passed, selling didn’t look like such a good idea after all.

Whatever line of business you are in, you will always be surrounded by opinions and noise - be very careful what you listen to and act on.

📈 IN THE NEWS: PRIMARK DELIVERS STRONG Q3 SALES AS ‘VALUE’ TAKES CENTRE STAGE

Value fashion retailer Primark posted robust results for its quarter 3 figures this week, with total sales rising 13% to just shy of £2bn for the 12 weeks to 27 May, with its ‘value’ positioning standing strong in tougher market conditions.

Like-for-like sales grew 7%, which it said was down to “higher average selling prices.” And as shoppers return to physical shops, Primark said its flagship city-centre stores have “continued to be good.”

Primark’s owner, FTSE 100 firm Associated British Foods, ABF, revealed a better-than-expected quarterly performance for Primark, which accounts for 42% of total revenues. Within its grocery division, the group also manufactures branded and private label grocery products such as Ryvita, Kingsmill and Twinings.

Primark also stated that sales of health & beauty products were “particularly strong”, highlighting that its value proposition appeals beyond clothing categories as consumers continue to feel the pinch of inflation," Deglise-Favre adds.

She said the retailer performed similarly in the UK and Europe, with like-for-like sales rising 6% and 7% respectively, due to its strong seasonal ranges resonating well with consumers in preparation for summer. Primark’s ranges have catered to all major fashion trends expected this summer, and its upcoming collaboration with Mattel for the release of the Barbie movie is expected to be a success given the social media buzz surrounding the signature pink aesthetic of the film.

What about global markets, such as the US?

Deglise-Favre says: "While Primark failed to mention its performance in the US, the trend from H1 is likely to have continued, with growth driven almost entirely by store expansion rather than demand, with the retailer opening a store in New York state in Q3. The US is a highly competitive market, where online fast fashion retailer Shein has established itself as an additional competitor to well-established retailers like Target and Walmart, making it more difficult for new players to gain market share.

“Primark has rolled out its improved website format in Italy, Spain, the US, and France, allowing consumers to browse a wider variety of products and have a live view of stock levels by store. The websites remain non-transactional, and although this is outdated, it does not seem to be hindering Primark’s performance as consumers have flocked back to stores, eager to engage in the in store shopping experience," she adds.

Who is Primark's biggest competition?

Primark was one of the original value fashion retailers, but supermarket fashion in the UK has upped its game in recent years, with the likes of Sainbury’s, Tesco and Asda offering great styles at affordable prices.

And in the fast fashion space, online global giants such as Chinese ultra-fast fashion player Shein and fast fashion app Temu, which use AI algorithms to predict trends and churn out clothing at incredibly low prices, are clipping at the heals of ASOS, H&M and Primark.

🔟 LISTICLE: 10 WAYS TO CREATE A VALUE RETAIL PROPOSITION

With wider economic conditions tough, interest rates stubbornly high and the future uncertain, value for money is at the forefront of consumer’s minds when looking to part with their hard-earned cash.

And retailers needs to consider value in their offering, whatever level or sector of the market they're in. Businesses are being scrutinised not only by consumers, but the government too.

Supermarkets came under fire this week, with the likes or Sainsbury’s and Tesco appearing in front of MPs in parliament to discuss food price inflation and why prices are still rising when commodity and wholesale costs are dropping.

During recessionary times, retailers face many challenges, such as reduced consumer spending and increased price sensitivity, making a value proposition even more attractive. And its value positioning is one of the key reasons Primark posted a robust quarter 3 sales performance this week.

What are the different types of value proposition?

But businesses can still pivot to create value by employing certain strategies. We bring you 10 ways retailers can create value within their product proposition and offer…

1. Competitive Pricing

2. Bundling and Value Packs

3. Enhanced Customer Service

4. Exclusive Deals and Loyalty Programs

5. Product Differentiation

6. Flexible Payment Options

7. Online and Digital Presence

8. Focus on Essential Products

9. Collaboration and Partnerships

10. Clear Communication

CLICK TO READ ON HOW TO PUT THESE CORE STRATEGIES INTO PRACTISE>

😱SCARY STAT: BUSINESS LEADERS & ENTREPRENEURS BEWARE!

Former Audi boss Rupert Stadler was handed a suspended sentence of 1 year and 9 months by a Munich court this week for fraud by negligence in the 2015 diesel scandal. He was also fined €1.1 million.

Audi’s parent group Volkswagen (VOWG_p.DE) and Audi admitted in 2015 to having used illegal software to cheat on emissions tests. A reminder of how careful business leaders must be when dealing with regulations and the law…

READ MORE ABOUT THIS STORY>

📑SPOTLIGHT: HOW TO BUY A FOOTBALL CLUB? YOUR ULTIMATE GUIDE

7 Signposts to Success! There are many football dreams on the market right now. For a few billion pounds you can buy yourself a place in sports history.

It may be late in the day, but if you have more than $6 billion you could yet bid for Manchester United in the Premier League.

Undervalued assets?

Most Premier League clubs are seen as undervalued assets with Manchester United at the top of the net worth league followed by Liverpool valued at $4.71 billion and league champions Manchester City at $4.43 billion, according to Sportico (see image below)

“There is an awful lot of money around and actually buying a Premier League club, given the noise a football club can make, works out ridiculously cheap,” says Kieran Maguire, an expert in football business at Liverpool University.

If you don’t have that much money, you could consider Bournemouth at $145 million, at the bottom of the net worth table, or Nottingham Forest at $160 million or Brentford at $200 million.

Takeover as financial salvation?

At the struggling end of the game, a takeover and new owner funding can be seen by the fans as a way out of cash-strapped mediocrity. A quick fix, but there are risks.

“I think the concern is among most of the Premier League clubs and I think all of the Championship clubs is that that they are losing money and the only way to recover those losses is either through asset sales – often players – which also has implications towards achievement and relegation and so on; and owner funding.

The owner funding is fine until it is not fine and the owner has a change in personal circumstances as we saw in the case of Chelsea and Everton. Or, they lose interest as we saw in the case of Derby County where the owner put in £200 million, decided he wasn’t getting value for money, and walked away putting the club into administration,“ says Maguire

Yet, you have to follow a rigorous process, to even make it to negotiations, and it is not all about money.

CLICK TO DISCOVER 7 SIGNPOSTS TO SUCCESS IN THE FOOTBALL TAKEOVER GAME>

✂️ QUICK SNIPPETS

• US banks stocks rise as lenders shrug off turmoil. Read here>

• Procrastination, everything you need to know about overcoming it. Read here>

• Why we will see more HSBC-style downsizing. Read here>

• Our guide to running a competitor analysis. Read here>

• Here’s how a merger between PGA Tour and LIV Golf could be structured. Read here>

  MATT HAYCOX DAILY: MUST-READS NEWS

• UK interest Rates News: Pain Peaks till ‘27. Read here>

• Covid cash - £30m given back. Read here>

• Musk v Zuckerberg? Who will win in a cage fight? Read here>

• Techies - why Canada wants you. Read here>

• What King Charles can’t stand the heat. Read here>

🌊 DEEP DIVE: MiCA REGULATION - CHANGING EU’S CRYPTO LANDSCAPE

In November 2022, FTX, one of the largest digital currency exchange platforms for buying, investing and selling cryptocurrencies crashed and burned. Some said it was the end of the road for crypto.

FTX blocked hundreds of thousands of customers from taking their money out of the platform, then went bankrupt owing $8 Billion. Competitors Binance, quickly bailed out of a buyout when reports of mishandled customer funds hit the media along with tales of FTX founders splashing out on luxury items, elaborate advertising campaigns and dubious political donations.

All new markets begin life a bit like the wild west. Look at the gold rush in California, or the oil fields of Texas before regulatory clarity pulled their balloon strings down and brought confidence to investors.

MiCA stands for Markets in Crypto-Assets regulation. It is an EU legislation that applies to a wide range of crypto-assets or ‘digital representations of a value or of a right which may be transferred and stored electronically, using distributed ledger technology or similar technology’.

Crypto, by its very nature, exists outside of the usual rules. So, what are the implications of this new set of laws – is it going to be good for us investors or is it going to bog everything down and leave crypto as confounding as other more traditional investments?

MiCA - CLICK TO READ THE GOOD & BAD NEWS AND HOW IT WILL IMPACT YOU>

TELL YOUR FRIENDS AND GET REWARDED

PLEASE NOTE I HAVE HAD A FEW TECHNICAL PROBLEMS HERE SO IF YOU HAVE STRUGGLED TO REFER PEOPLE OVER THE PAST FEW WEEKS, THEN PLEASE TRY AGAIN TODAY - BUT IF IT STILL DOESN’T WORK THEN EMAIL ME. :-)

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We are still finding our feet, and the full reward programme isn’t in place yet. But any referrals you do in the meantime will all count towards it when it is.

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GOODBYE FOR NOW

^{That’s all for this week. I hope you enjoyed reading! I always love to hear feedback so let me know what you liked and what you want to see more of. I’m all ears!}

And if you want to talk to me about borrowing, investing, growing your business, or anything else I am good at, then get in touch!

I’m an entrepreneur, investor, funding expert and mentor who has been building and growing businesses for both myself and my clients for more than 20 years. There’s nothing I don’t know about finance!: