Business Quiz: Industry experts answer your questions.

Q I RUN an expanding manufacturing business. We've recently taken on about 10 new staff from a firm that went under a few months back. Although I am delighted with the broad mix of skills we now have and the diversity of people, they simply aren't working well as a team. The people who have been with me a few years simply can't get along with the newcomers. Rows, gossip and a bad atmosphere is affecting productivity. My gut feel is that the situation can be resolved without getting rid of staff, but I really am worried about the situation. What should I do? PW, Bootle

A CONFLICT is common when change occurs. The reason most mergers or acquisitions don't deliver is because, while on paper the numbers made sense, they ignore the need to engage people and the impact of change on performance. There is no better remedy for conflict than creating an environment where a team of people can succeed together. High performing teams who deliver results have a number of things in common: a clear direction' goals which challenge' some guiding principles in the way things get done' people understanding their own strengths and weakness and the strengths and weaknesses of others' and they celebrate success and recognise each person's value.

Losing people is an easy option, but the wrong one. So involve the team and get them to articulate exactly where they could or should be getting to, get them to agree the guiding principles they want to have as a team. Get them to identify the challenges, strengths and weakness of each individual and agree exactly how they will celebrate once they have achieved their goals.

Gordon Stoddart, director of Innergy, www.innergy-uk.com

Q I RECENTLY ran a successful manufacturing company which I have now sold. I am now seeking to put something back into my local community and I have an idea for a "not for profit" organisation. How do I approach raising the funding for such a venture? HJB, Liverpool

A THE first aspect for you to address is the basis on which the organisation is to be established, as the term "not for profit" encompasses a wide range of business formats. I assume that you are considering a trust agreement and that you intend to become a working trustee for the organisation?

To this end you must initially refer your query to your accountant or solicitor to discuss the drawing up of the relevant trust deed. This will then outline the borrowing abilities of both the trustees and also the business and thereby ensure that you are able to attain the funding requirement outlined in your business plan.

With this information to hand, and assuming that the trustees will be introducing some funds themselves, you will be equipped to approach the appropriate funders. Initially I would recommend that you approach your existing bankers, since notwithstanding the nature of the project, they will be aware of your own managerial and commercial experience which should provide them with a great deal of comfort and enable them to provide some support.

Perhaps the key to your considerations will be the fact that while you highlight the project is not for profit, it will still need to generate sufficient funds to service any debt incurred, and also to remain viable for the future.

Rob Edwards, portfolio manager, Mersey-side Special Investment Fund (see www.msif.co.uk for more information)

These answers are of a general nature and you are strongly advised to seek professional help relating to specific i nquiries