- June Glasgow Masterclass
June 20, 2018
3:30 pm - 5:30 pm
**MEMBERS ONLY EVENT **
This is the second Masterclass in our 2018 series following the cycle of a business and is focusing on maximising business growth.
Barry Park is the Founder of OEM Group, an award winning and leading provider of diesel engine servicing and spare parts. In the 8 year history of the WeDO Awards, he is the only person to have won our Young Entrepreneur of the Year Award (2016) and then go on to win our High Growth Company of the Year Award the following year in November 2017.
OEM was established in 2012 and over this time, has grown employee numbers to 82 with turnover of £8 million and profit of £ 1 million with projected turnover forecast on track to grow to £12 million in 2018.
Initially, OEM started off trading in spare parts only, working on low margins between 5 & 15% and they have since developed the business to also incorporate the manpower element. The margin on manpower was 65% which Barry recognised would enable OEM to achieve considerable growth by gaining a larger share of the market and open up the business to more customers and regions.
By identifying regions where the engine services they offered were limited, mainly to offshore capability and also taking in to account current market conditions, OEM moved in to the Australian market. Through assisting customers with technical support, spare parts, stock management and supplying skilled service engineers, OEM took a hold of the marine market and developed OEM Australia.
Using the similar business model and approach they have now premises in Sharjah, Dubai and Abu Dhabi in the UAE. They have increased their profit margin through manufacturing systems in-house for the Oil and Gas market which results in a higher return in gross profit.
Recently, OEM Group has diversified and acquired Uniconn Group which consists of three business sectings, Machine Shop, Drilling tools and a state of the art Torque facility.
One of the challenging aspects of the business has been growing it through a downturn, as well as having to deal with customers increased payment terms, both of which have been challenges in terms of managing cashflow.
“The single most important thing we as a business have learnt from when we formed the company in 2012 is “cash is key” you can’t operate without cash in the system.
We started the business with a £40,000 investment and there have been challenging times due to the limited amount of cash available to fund new projects and growth. However, we have managed to overcome this with lessons learnt now being a big factor when looking at growth and creation of new divisions. I look forward to sharing these with fellow WeDO members.”
At this Masterclass, Barry will share his experiences of growing a business, both good and challenging, in the UK and internationally. A key element of OEM’s success & growth has been attracting and retaining the right talent with specialist industry experience. They have made considerable investment in ongoing personal development through training courses and qualifications for staff at all levels resulting in high staff retention and stability in all of their global operations.
WHAT WILL BE COVERED
- Leadership: building culture in line with your business plan.
- Engagement: what it takes to engage your teams to help deliver your growth plans.
- Decision-making: the art of making good decisions around people, processes and systems.
- Organic growth: reinvesting profits back into your business, identifying new markets – domestically & internationally and introducing new products & services to grow sales channels.
- Route to market strategy: focusing on the right markets, aligning with the behaviours and needs of the customers in those markets. Choosing the correct sales channels, products and value propositions
- Managing cashflow: funding sources, overcoming short-term deficits, building cash in your business.
- Acquisition: identifying your strategy to acquire target businesses.
With thanks to our Masterclass sponsors: