Evans started the performance improvement company in 1980, borrowing against his house to fund the business. “Most people said I wouldn’t last 18 months,” he says. But last he did and these days, Grass Roots Group turns over £300m. Evans advises: “What you mustn’t do is cut back what will make you stronger when the recession goes away. We have conserved lots of assets – both cash and people. We go into a recession with zero gearing. We don’t borrow any money and we have loads of cash in the bank. That’s very unusual. We’re in a special space in that we can lend to the banks.” During the early nineties recession, however, Evans made some tough choices when reducing headcount. “I decided to kill chiefs, not Indians. I got rid of the more expensive people in the company and tried to keep the people that make you money – the people on the ground,” he says. “Sometimes you can build up a coterie of people in the middle and you have to question whether you need them. That’s a much more difficult job. It’s tough to fire a few people whose kids you know intimately.” He believes the exercise held Grass Roots Group in good stead. “When the recession went away, we were doing things more efficiently and effectively,” Evans says, “The younger people then are now directors of the business around the world. They’ve leant to regularly reassess what they’re doing. There’s nothing like a crisis to train you up.” Read David Evans’s views on being a budget entrepreneur in the February issue of Real Business. Related articlesHow do I lay off staff?How to train staff during a recessionTrutap cuts 80 per cent of staffPicture source
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.