Not for nothing was Horsham-based Global 4 Communications crowned NEC's Best Reseller in EMEA for 2015. Here, Managing Director Nigel Barnett reveals the firm's winning growth strategy.
It didn't take long for Barnett to get his foot in the door and feel comfortably at home in the comms industry having secured a number of early estate agency contracts. The first deal snowballed and proved to be a turning point for Global 4, which was established in 1998. "We secured an order for five telephone systems at an estate agent in Kent," explained Barnett. "The agent was then purchased by a large group with 150 offices. The group wanted to repeat the model we had rolled out so we supplied it with systems. Within 12 months it bought another group of companies with 350 sites. Within six months of that acquisition we had rolled out NEC telephony to the entire group including lines and calls."
Global 4's influence on the High Street has grown significantly. "We have many High Street chains as customers, with roughly eight locations in every High Street taking our services," stated Barnett. "As well as reviewing their monthly expenditure we offer IP services using our recently launched NEC 3C solution. IP is an interesting subject, but what a steep learning curve. The investment is now showing a terrific return. We are also 'playing' in the mobile arena and this will be driven forward in 2016."
Fishing for tiddlers has never floated Barnett's boat, but landing an order from the Unipart Group for 268 telephone systems while sitting at home negotiating the contract is right up his street, and showed that his business ethics were paying dividends in the early days. Now 62, Barnett started selling when he was 18. "I had several different businesses, predominantly selling photocopiers like many of us in those days," he recalled. "I was fortunate and able to secure the sale of two businesses that allowed me to take a few years off."
He wanted to move away from previous business models that relied on many sales people and telesales selling on savings. So after a period of careful consideration he established Global 4 with Rob Whyte-Venables (Service Director) and Jenny Fright (Administration Director) now retired. "Our philosophy was based on selling one system to a company that had many other opportunities," he stated. "Setting our sights on tough targets and high quality customers meant we weren't able to hit the ground running. Lots of the bigger customers don't really want to deal with people who work out of their bedroom, even if it was rather large.
"Now, with a payroll of around 100 people, systems and procedures are a never ending daily challenge. We have always outsourced our billing but as we evolve we have new requirements in reporting and discipline that now involve internal developers and marketing people. This brings a whole new cast to the stage."
Growth in the telecoms market has always been difficult, particularly as the cost of calls keeps dropping. Yet despite the challenges Global 4 continues to grow year-on-year. Three years ago the company branched out of B2B and entered the residential market for broadband and calls with Home Telecom. "Our turnover for 2015/16 will be around £16 million and we are looking for substantial growth next year," added Barnett.
"We have around 1,300 customers and more than 10,000 sites which all have telephony installed. Over the last three years we have complemented our range by adding data and MPLS circuits. These have countered the reduction in call costs and helped increase the business steadily with more than 2,000 circuits in place. We wanted a client base with future opportunities, so the choice was: Do we have 350 individual customers ringing us, or one person responsible for 350 branches? With the second option it's all about service and when someone rings, sort it."
That is exactly what Global 4 did when it threw a lifeline to a prominent estate agency group after its telephony supplier went out of business, terminating their contract with just six weeks notice and little support. Global 4 installed 100 lines, 400 extensions and broadband to seven brands in 45 locations, with three days to spare. "This shows what can be done with design, planning and implementation from a great team of people," said Barnett.
Global 4 also set up the latest NEC 3C IP solution in two exclusive London data centres with support from Gamma and Voiceflex. Meanwhile, the introduction of IP gives the firm circa 80,000 extensions to upgrade. Barnett is currently rolling out projects for 10,000 IP extensions with over 2,000 already installed and a completion of the balance planned for the end of 2016. "Up to a couple of years ago Global 4 was a lifestyle business and I am fortunate to have brought up five children, four of them work for the company," added Barnett. "It would be any father's dream to see their family on a daily basis, but when they can actually sell and create business opportunities you sit back and say, 'we haven't done that bad'."•