Building a legacy beyond profit.
When Karl launched SFL Mobile Radio with his father, like many entrepreneurs, their objective was to build a thriving company and reap the financial rewards. Since then, their continuous innovation has sparked major growth and the challenges faced have opened doors to new opportunities. Now backed by a 48-strong team, Karl shares how years of change have influenced new directions for the business.
The businesses’ core offering has always been radio communication systems, but thanks to investment in innovations, SFL now offers a comprehensive range of communications products that service sectors including construction, emergency services, retail and healthcare. Karl explains, “Over the past 25 years, we have been able to adopt new ideas, and these became separate entities to the core business. This also meant that these divisions were more focussed and specialised. Last year was our first year with the four separate entities to the business, this included design and manufacturing which involved supplying antennas and radio systems for blue light industries. We’ve recently invested in resources and systems to reduce the cost and improve productivity, which also led to the purchase and development of a precision engineering company and now that has a growth and positive trajectory within itself.”
Each new division has helped to boost revenues – five years ago, turnover was £1.5M, soaring to £5.4M in 2021 and projecting around £7M for the year ahead. A few years ago, father left the business, and now Karl is supported by a team of four directors including his brother Gavin Beach, the company’s Operational Director. Karl says: “We’ve worked together since around 2000, so it’s a natural situation to be in now. Trust is a big element of business, so it’s nice to have such a strong relationship and that’s the same with all the directors and Stuart, I’m able to rely on them all for honesty and advice.”
A reshuffle of external partnerships was also on the cards when Karl became Managing Director, and while searching for a new accountancy firm, his neighbour referred him to Haines Watts Wirral where Karl met with Director Stuart Penny. Now having worked together for five years as business leaders, Karl and Stuart have established a strong partnership that has helped drive forward SFL, as well as support Karl with strategic advice – whether that’s on a Teams call or over a pint after work.
Karl comments, “I was immediately impressed with how dynamic Stuart and the team at Haines Watts were, and both of our businesses were ahead of the curve in terms of the R&D journey. Haines Watts’ expertise helped us use our R&D efforts to accelerate the business’ growth. When we built out the new divisions, Stuart was involved in each element of the decision-making process, and he advised me on the potential impacts and solutions to challenges. The partnership also works because we are both customer-driven businesses and we listen to our customers to help provide them with the right solutions - I often say you’ve got two ears and one mouth for a reason."
“You’ve got to respect the advice that partners like these give you. I could offer an idea to Stuart and we have the kind of relationship where he can tell me honestly if it’s not a good idea because of taxes or anything else, but I’ve got no experience things like that so when it comes down to it I have to respect those comments. They advised us on the best way to maximise the use of R&D within the business and sharing a passion for innovation really helped drive the company forward.”
R&D tax benefits come hand in hand with innovation, offering a financial boost that can turn the tides in new project developments, but people are another driver in developing new ideas and this is where Karl’s speciality comes into play.
When bringing in new members of the team, Karl is skilled at spotting the potential in people – something which has stood out to Stuart in the time they have worked together. Karl explains, “You’ve always got to be aware of weaknesses, and if you do identify areas of weakness, you bring people in to fill those gaps and strengthen those areas. Not only do we have the directors, but we have a strong finance team, operational manager, and it’s important to understand and notice when both your staff and you, need the support."
With all the growth into new specialities comes adjustments to everyday working life. The nature of an innovative business means that it is constantly evolving and changing. Even within the last year or two, Karl has found that the way he had conducted everyday business had shifted significantly. He said, “I used to shake a hundred hands a week, now, most business is over the phone, email or video call. Last year we took on six apprentices, they’re the future of the business – they have new techniques, skills and knowledge. A few years ago, mobile phones were something you’d never see in the workplace whereas now it’s a communication tool, scanning barcodes, proof of delivery and more, so you need to keep up with these changing trends.”
“It’s important that everyone understands the ethos of the business and the culture – which in its simplest form is continuous improvement. That could be a new kitchen for staff welfare or electric vehicles for environmental improvement, we have a culture of continuous improvement and having the right people in to move forward. We are lucky enough to have that both internally and externally from the support of business partners like Haines Watts who offer a check.”
“Although it’s an amazing experience to watch a business grow and experience the happiness of hitting the milestone of your first million – it can also be a difficult and lonely process. That’s why it’s great to have support slightly outside the business, like Stuart, to run ideas by. I remember when growing the initial director’s team and management, it was great to have someone to voice your concerns and thoughts with.
“Another classic challenge is finding the right work-life balance. I have regularly been told off by my wife for taking calls on an evening or thinking about the business and planning for the Monday at a weekend. It’s a tough balancing act, and if you’re striving for success and growth, it can often be the case that sacrifices need to be made."
