Secret millionaire Kevin Green has amassed an empire of over 400 properties. He tells New Business how he went from dairy farmer to property magnate and what all firms can do to grow their businesses.
Business grounding
Brought up on his parents' dairy farm in South Wales, it was always expected he would go into the family business. Green learned some valuable lessons from his time on the farm that has stood him in good stead in his future career.
"Even though it was set up as a partnership, my Dad was a bit crafty at the beginning because it wasn't an equity partnership but a business partnership," he says. "That was a big learning curve for me because all I had signed to initially was my party to the debt and the overdrafts for that farm. I quickly realised that was the case and put down some new rules."
Under his stewardship the farm expanded from 40 cows to 400 - thus increasing the revenue potential of the business 100%. Green learned valuable business lessons that would stand him in good stead for the future - most notably about cash flow.
"As it is a self employed business the finances are fairly tight and you are looking at high turnover on figures but low margins. It is capital intensive so I learned to run on very tight expense schedules and increase profit this way," Green says. "We obviously had to achieve a higher price on the milk than it cost to produce so I was increasing output and turnover and at the same time reducing costs. That was my biggest lesson and it has set me up very well for other business."
Green is - and was - extremely ambitious and knew he wanted more than farming. He managed to secure a placement on the highly sought after Nuffield Scholarship where he studied the mindset of successful entrepreneurs and secured interview time with Bill Gates and Richard Branson. The relationship with Branson is something that has endured to this day.
"The great thing with Richard was that it didn't end there. He said ‘you phone me periodically and let me know how you are getting on' because he ended up asking me questions about why I was doing what I was doing. I told him that I was going to be a millionaire and then a multi-millionaire and he said ‘yes very good' - it was that straightforward as far as he was concerned," explains Green.
"I let Richard know how I am getting on and it is so nice to have that contact. He is a sounding board but the thing with Richard is that he won't give you the answer: he'll send you away with a few thoughts and feelings."
Building a business
Green established his own property business and now has over 400 properties in the UK in his own name and employs approximately 70 members of staff. So what does he think is the key to running a successful business?
"People management," he answers without a moment's hesitation. "You don't have to know every technical skill yourself but if people don't want to work with you then it is going to be pretty difficult. This has been the biggest learning curve for me."
Not far behind in importance in Green's opinion is having a business plan. "This is absolutely vital. It's like building a house with no foundations. How can you put a business structure together without a plan?" he asks rhetorically. "The plan must have exit strategies in it and it is not just a one-off process: it is ongoing. I am always thinking about what we need to do to tweak the business plan as you have to know where your business is going, otherwise how can your team be expected to know?"
Managing his company so that employees are fulfilled is aligned with rigorous attention to detail and structures: these are the two main pillars holding up the Green business empire.
Every week Green receives cashflow reports on all 27 areas of his company. These are broken down into equity and cash flow so it is possible to pick up on any shortfall in the business immediately and, thanks to modern technology, Green can view these wherever he is in the world.
"You might call it pedantic but my grandfather always taught me if you look after the pennies the pounds look after themselves," he says unapologetically. "Any little area that we can make a saving we will because it can make a difference between having good profits and outstanding profits."
For more information please visit http://www.kevingreenwealth.co.uk/ [1]