Nine Months In: The Honest Scoreboard for Q4 - Ep 86

Your accountant tells you it's your most positive year in a while. Every headline tells you the country is going under. Which one do you believe?

One of us just doubled his floor space after six flat months. The other is about to move into a warehouse five times bigger than the one he's bursting out of, and his best metric is about to drop through the floor. Episode 91 opens with the wins. Charlie has the keys to the unit next door, completed at 5pm on a Friday and moved in on the Monday, with three months rent free and 87 days for the new space to start paying its way. Matt's business made page three of the Manchester Evening News on the day the Holland's Country Clothing store opened, and one reader drove straight over because he used to do the milk round with Matt's grandfather. Then the number that frames the whole episode. Matt's warehouse turns over £5,429.60 per square foot. Move into the new building with the same revenue and it falls to £1,085.92. Charlie runs the sum on his own unit and doesn't love the answer. The British Business Fact of the Week is James Dyson's 5,127 prototypes, and there's a proper look at leasing versus buying, why agents say nobody is buying commercial property right now, and the question Charlie's accountant asked before he signed. Claude's Question of the Week asks how you make peace with signing for the person you intend to become. Matt has made a bet like this before and it didn't go to plan. Charlie explains the reason he won't settle for staying small, and it isn't the one you'd expect. 📊 Revenue per square foot shows how hard your space is working, and a move resets it overnight 🧠 More space isn't a reward for doing well, it's a statement of what you intend to build 🎯 Give new space a deadline to pay for itself, Charlie's is 87 days 💷 Buying ties up cash that could be fuelling growth, leasing keeps it working for you 🚩 Know your worst case before you sign, the size of the gamble is relative to the size of the business

The same loan that cost fifteen thousand a year in interest in 2009 costs forty thousand today. Nothing about the business changed. The fact of the week is deliberately disconnected from the topic this week, and it is worth it. On 30 April 1993, Sir Tim Berners-Lee had the World Wide Web released into the public domain, royalty free forever. No patent, no licensing fee, not a penny ever. He later told Forbes he could have been a billionaire and that he was happy he was not. That opens up when enough is actually enough, Felix Dennis, James Martin saying he wants to be doing a commercial property deal in his nineties, and Charlie admitting he has never had an original idea in his life. Then the main topic. Matt spent time this week with a founder six years in who has put the best part of a quarter of a million of his own money into his company, and is being strangled by the interest rather than the idea. So Matt ran the numbers. A 750,000 pound business mortgage cost around 15,000 a year in interest in 2009. The same loan today is about 40,000. What that does to behaviour is the real subject. Personal guarantees that quietly undo the entire point of a limited company. Asset finance at eleven percent. Why Matt has carried no debt for three years, and how the business went from seven million to heading for fourteen with no new capital at all, by changing the stock model instead of borrowing. He is also candid about going bust once already, and what borrowing too much too quickly actually costs you. Wins of the week cover a wax jacket, family dinners, and Charlie moving faster on something than he would have a year ago. Then the question of the week: cheap money and easy growth, or expensive money that forces you to build something genuinely profitable? After an hour arguing that money should be cheaper, Matt's answer is not the one you would expect. Takeaways: 📊 The same 750,000 pound business mortgage cost about 15,000 a year in interest in 2009 and around 40,000 today 🧠 Berners-Lee gave the web away royalty free, and that may be exactly why it worked 💷 Personal guarantees, and what they do to the whole point of a limited company 🚩 Why Matt has carried no debt for three years and grew anyway 🎯 Cheap money and easy growth, or expensive money that forces you to be profitable? Chapters: Chapters: (00:00) Merch for Alex's hunting trip (03:19) "I thought episode 88 was shit" (04:34) British Business Fact of the Week (06:56) Giving the World Wide Web away for nothing (08:13) Would it have scaled if it had cost money? (11:10) When is enough actually enough? (12:30) "None of my ideas have been original" (15:28) James Martin on why he will not stop (18:01) Will anything that big ever be given away again? (23:02) Episode 90: the death of cheap money (24:13) The founder who put a quarter of a million in (25:17) The numbers, 2009 versus today (28:47) Unsecured lending and the high risk end (30:46) Charlie on financing machinery (32:14) Should the government back creative ideas? (34:03) Revenue per square foot, bursting at the seams (37:05) Personal guarantees and limited liability (40:00) Funding growth from profit instead of debt (41:15) "I have gone bust, look on Companies House" (43:56) Growing without capital, 7 million to 14 (46:14) Win of the Week: the Lockwood Arthur wax jacket (48:21) Sitting down for dinner as a family (51:09) Charlie: acting fast on last week's conversation (54:30) Claude's Question of the Week (57:40) Why interest improves decision making

Every business is carrying something it should have dealt with years ago. Most owners know exactly what theirs is. Charlie leads with fix it, fund it or flog it, and the question underneath it: what are you still carrying that you probably should not be? He puts his own on the table straight away. The stationery side of the business, the part his dad started in 1989, still running its own vans and doing daily local drops, and no longer standing on its own two feet. Three national wholesalers have become one. Matt refuses to let him flog it. His argument is that it is not a dying arm, it is an under-leveraged one. Every workwear customer should be buying stationery and the other way round, and the thing killing the margin is the van rather than the pens. Then he turns it on himself, with the service company he could be scaling and has chosen not to, and the decision he made years ago to kill off the markets that were seventy percent of turnover. The back half is stock. Charlie's eight bottles of pandemic hand sanitiser, three years on a shelf. Matt on the barn with hay in one end, stock going into skips, and the argument about mouldy jackets. The point that lands hardest is an accounting one: if it has not sold in six months it is worth what someone will pay today, not what you paid for it. Wins of the week are worth staying for. The first ever paid order through the new Workwear Innovation site, logo uploaded and embroidery paid for without a human touching it, and a stock bottleneck at the store fixed by someone in the warehouse asking an obvious question. Then the question of the week, in two parts, and Matt's answer to the second one is more honest than most owners would manage. Takeaways: 📊 What a proper product line analysis almost always finds sitting at the bottom 🧠 Fix it, fund it or flog it, and why most owners quietly choose none of the three 🚩 If it has not sold in six months it is worth what someone will pay today, not what you paid 🤝 Why the van, not the product, is often the thing killing the margin 🎯 Name the part of the business you have been avoiding the decision about Chapters: Chapters: (00:00) Shades, a teapot and low calorie breadsticks (02:02) Episode 89, and how trade is going (05:33) Doing a lot with not very much (07:56) Back from France, and the pull of old habits (09:50) Jacob Lockwood's new toy (11:10) Win of the Week: first paid order through the new site (12:41) Why Charlie has not promoted the site yet (17:24) It does not need to be perfect, it needs to be live (18:51) Matt: fixing the stock flow into the store (19:49) DPD twice a week versus running your own van (21:19) Fix it, fund it or flog it (22:07) Where Abacus Repro actually came from (23:20) The part of the business Charlie has been carrying (25:31) Three stationery wholesalers down to one (27:51) Matt: do not flog it, cross sell it (31:35) Why Charlie has clung on for five years (38:27) What Matt could be scaling and is choosing not to (42:12) Killing the markets that were 70 percent of turnover (44:30) Eight bottles of pandemic hand sanitiser (45:15) A barn with hay in one end, and stock in skips (48:24) Drawing sheets, nibs and a scanner nobody uses (51:50) Walking past problems, including people (53:05) Claude's Question of the Week (54:17) Net realisable value, and what your stock is really worth Follow Matt: 📸 Instagram - https://www.instagram.com/mrmattholland/ 👨‍💻 LinkedIn - https://www.linkedin.com/in/mrmattholland/ 📱 TikTok - https://www.tiktok.com/@mrmattholland ❌ X - https://x.com/mrmattholland1 Follow Charlie: 📸 Instagram - https://www.instagram.com/theworkwearexpert 👨‍💻 LinkedIn - https://www.linkedin.com/in/charlie-smith-1a55295b/

You can be surrounded by staff, co-directors and customers and still be the only one carrying it. Matt reckons most owners know exactly how that feels. Matt takes the lead on founder loneliness, and he is honest about his own. He runs the business with Rob and Sarah, but when something goes wrong it lands on him. The fact behind it is a December 2025 YouGov survey for the British Business Bank's Start Up Loans Company: 44 percent of UK smaller business owners have felt lonely or isolated running their business, rising to 56 percent for those with under ten staff. Only 38 percent do anything about it by connecting with other business leaders. Charlie admits organised networking leaves him cold and he gets far more from reaching out directly. Matt's counter is that it was never the organisation, it is the people you meet through it, and he tells the story of a lunch that was meant to be about one specific opportunity and turned into a relationship with a man who has built and sold three companies. They also get into why hearing other owners say the same things out loud was such a relief to both of them, and Matt's theory that the better you get at this, the weirder you are. The other half of the problem is delegation. The Sinclair rule on what your time is actually worth, a job passed down the chain twice in one morning, and Matt's view that his real bottleneck is not having enough people to hand things to. Then the question of the week: when did you last spend real time or money on growing yourself rather than your business. Matt's answer to what comes after it is the most exposed he has been on this show. Takeaways: 📊 44 percent of UK smaller business owners have felt lonely or isolated, rising to 56 percent under ten staff 🧠 It is never the networking organisation that helps, it is the people you meet through it 🤝 The Sinclair rule: if someone can do the job for less than your hourly rate, they should be doing it ⚖️ Why your business partner cannot be your only sounding board 🎯 When did you last spend real time or money on growing yourself and not your business? Holland's Country Clothing store opening, Lowes Farm, Friday 25th. All welcome, just drop Matt a message on Instagram if you are coming.