IN Partnership's top six business tips

IN Partnership chief executive Kevin McDonagh shares his six top tips for business success at the group's 2010 Investment Conference.

1. Regulatory and corporate discipline, above and beyond capital adequacy requirements

The keystone to a sound business is to ensure the corporate structure is solid and encompasses a group of directors who are experts in their particular field. Also board decisions should be reached by healthy open debate and implemented in a structured manner.

For example, we ensure every board director submits a board paper prior to meetings which creates a perfect audit trail for the business on decisions made. In addition, we maintain healthy cash balances over and above the regulatory requirements which allows for expansion without putting pressure on financial resources.

2. Do not make business decisions on the hoof

In a very strict regulatory regime, it is important that detailed records of decisions are subject to a process and to be able to demonstrate how those decisions were arrived at.

3. Invest in your staff

Remaining profitable meant we could increase staffing levels to take advantage of the upturn. 75% of our costs are staff but we increased staff during the downturn The benefits of this course are now starting to show in our increasing turnover for compared to last year.

4. Remain independent

IN Partnership does not have external investors pressurising the company to move in a particular direction. Decisions are therefore made for the benefit of the members.

5. Stay transparent

Keep a healthy dialogue with your stakeholders and ensure they have to you when they need you.

6. Remain profitable even when turnover is down

We have not been immune from the recession, and have experienced a decline in turnover due to the reduction in the mortgage market.

However, we have remained profitable throughout the recession by increasing the number of investment advisers. Our cash balances have also increased over this period.