IN this week's SME Focus we hear from a music-loving entrepreneur who reckons the lessons he learned as a recording artist have helped him in the training business.

Name:

Kenny Hannah.

Age:

39.

What is your business called?

SQMC Ltd.

Where is it based?

Dunfermline.

What services does it offer?

We are a training centre specialising in quality and related management systems. We also provide support to clients on a consultancy basis to help them implement a management system to the standards required by third party, government-approved certification bodies.

When properly mapped against an International Standard (usually ISO 9001), quality management systems can be independently verified by a government approved certification body. Organisations might seek certification in order to qualify for certain tender opportunities because their clients will seek it as a guarantee they are committed and able to deliver a quality product or service on time and fulfil their contractual requirements.

Who does it sell to?

Our clients range from multinational giants to SMEs and private students. In the past year, we've worked with companies such as Babcock, Caterpillar, Diageo, FMC Technologies, Halliburton, Mercedes and Wolfson Microelectronics.

What is its turnover?

Our unaudited figures suggest a turnover of approximately £340,000 for 2014.

How many employees?

We have a team of 19, comprising a mix of full- and part-timers, most of whom are sub-contractors.

When was it formed?

SQMC became a private limited company in 1998.

My father, Ian Hannah, had been Director of Programmes at the University of Stirling's Scottish Quality Management Centre. This was set up to provide commercially available short courses in Quality Systems auditing. When the University made the decision in the late 90s not to fund the project any longer, he obtained permission to transfer the accreditation he had gained for SQMC into a separate, private company.

Why did you take the plunge?

I joined SQMC six months after my dad set the firm up as an independent business in 1998, initially to provide back room support and learn a 'new trade'. My initial role was in admin. producing training packs, couriering materials to venue. I even took classes to learn basic web design in order to give the company its first online presence and then a module at college on marketing in general. I'm still a bit of a dogsbody today, which suits me fine as I like the variety!

What were you doing before you took the plunge?

By day, I was a storeman for Dixons; by night, a freelance musician, DJ and audio engineer. I had a band called Mass Energy, which enjoyed relative success for its underground techno genre in the mid-90s, and our vinyls were in record shops all around the world, with one track licensed to Sony in Germany and another by a Belgian label. Despite that, the earnings were sporadic and would barely cover the cost of the gear used to make the music! We benefitted from the tremendous rave scene, which Scotland could boast at that time, and, as that quietened down towards the end of the 90s, the door opened for me at SQMC. The timing was perfect, and I felt I'd accomplished a bit of a personal dream with the music. I still love anything to do with music, but very informally - as a personal hobby.

Aside from Mass Energy, I took on some assignments as a freelance producer. I got the opportunity to work at the legendary REL Studios in Edinburgh on a project lead by Gordon Campbell, who pioneered the UK's first Music Business course in the 80s at West Lothian College. I learned a lot about music and artistic commerce from hanging out with him. It enabled me to look at my own creations more subjectively, quantifying my investment in terms of man hours, studio time or assets such as equipment, and then establishing how many units I would need to sell in order to recoup that investment after other parties - such as pressing, sleeve manufacturing, distribution, marketing, etc - had been paid. I soon realised how tough it is to make a living as a full time recording artist! But, these are the fundamental elements for most businesses, and I've no doubt that the mindset I gained from that time has helped me in my role at SQMC.

How did you raise the start-up funding?

The start-up funding was a loan but as SQMC was already an established name we didn't need the cash immediately. The money was used as 'bufferstock' in our bank account, and - thanks in part to my dad's sharp business model and know-how - we have never needed an overdraft or bank loan again.

What was your biggest break?

The transfer of our accredited status with the International Register of Certificated Auditors (IRCA). The IRCA is the world's oldest auditor registrar and is recognised internationally.

What was your worst moment?

Wintertime, in early 2005. The one and only time we could not present one of our training courses, due to a snowstorm. This brought Scotland to a standstill in the morning rush hour. I was stuck in traffic for three hours, and our trainer was stuck on the south side of the Forth Road Bridge. We had delegates from far afield who had stayed overnight, so they were at the venue bright and early. We had to cancel the event because so much time had been lost. It was an awful feeling to have let down our clients, and it cost us a fair bit to make it up to them all. But thankfully, we did, and they are still repeat customers to this day.

We immediately tightened up our risk assessment and logistics procedures, to ensure we're not caught out in this way again!

What do you most enjoy about running the business?

I prefer creative and logical tasks, so designing various features of our website, problem solving, or shooting corporate videos are the kind of things I get a big kick out of.

What do you least enjoy?

Preparing tenders. Nowadays, most of our invitations to tender come from local authorities, due to tightening of budgets and increased accountability protocols. However, it feels the rigidity of their purchasing systems restricts suppliers' abilities to properly advise them, having to simply agree to provide precisely what they request (even when an alternative solution may be more cost-effective or future proof).

What are your top priorities?

I am keen to increase our network of consultants in the north east of Scotland and in England and to headhunt the next generation of trainers.

What could the Westminster and/or Scottish Governments do that would help?

I believe that the courses we provide should be VAT-exempt, just as certain other business courses are. To add a burdensome 20% VAT on top of a person's training fee makes it unaffordable to many individuals. In a lot of cases they require that particular qualification in order to apply for certain jobs.

What was the most valuable lesson that you learned?

In business, be thankful for every single order and ensure each customer realises that they are valued.

In life in general, if our job over-encroaches its boundary to the detriment of our family, health, or spiritual well-being, then what is the point? The cart is before the horse! We work to live, not live to work.

How do you relax?

I don't - in my spare time I transform into an exercise device for an energetic toddler.