How To Get Money Out of A Business: Practical Business Advice From The Independent Experts

Practical Business Advice from the Independent Experts Issue 25 August ‘09
How To Get Money Out Of A Business

1. Background So say you set your salary at £40,000
Do I pay myself salary or dividend or and decided to make a £10,000 pension
make a contribution to a personal contribution. You only need to actually
pension fund? I must caution the reader pay out £7,800 into the fund and the
that you must talk with a Financial government puts in the balance. So
Services Authority registered individual if instead of simply seeing your tax going
you want to take this further. into the government coffers it is set aside
for your old age…getting maximum value
However this article tries to demystify for your money. This must make sense.
some of the tax issues and opportunities
to get money out of a limited liability Secondly there is a pension
company contribution your company can make
on your behalf. Although the
2. The detail government doesn’t gross this up, it does
reduce your tax liability by the rate of
Lets start with the basic tax rules corporation tax you pay – somewhere
between 20% and 30%.
Salaries are subject to income tax and
Employers National Insurance 2.4 Dividends
Contribution. Without getting too fussy 2.3 Pension contribution The important thing about Dividends is
about it the rules are as follows: There are two ways of paying pension. that they don’t attract Employers National
The first is out of your salary, the second Insurance Contribution of 12.8%
2.1 For Income Tax is out of the company. Which you
In the year to March 2010 the first £6,475 choose really depends upon your One clever aspect, that is not
of income is tax free. This is called the situation, which I’ll explain in a second. immediately obvious, is that if you pay
personal allowance and it slowly creeps But the main thing to bear in mind is that yourself a £10k dividend it is already
up each year. The next £37,400 is taxed pension contributions reduce your tax bill. assumed that you have paid 10% tax on
at 22% with anything over £43,875 at When the time comes to draw down your that – so that there is no further tax to
40%. Simply you can pay yourself £500 pension you will probably have less pay – unless your total income goes
per month tax free. taxable income so you can get your above £43,400k.
money back with less tax attracting to it.
3. Summary
2.2 Employers national insurance Furthermore, the government wants to • Pay as much as you can afford into
This is levied on your salary as well. encourage you to put money on one side a pension fund by way of an
There is now the same tax free band up for later years so it makes it attractive for employers contribution. This
to £5,720. There are all sorts of you to do this. As I said there are two reduces your corporation tax bill.
wonderful twists and turns, but the main types of pension contribution: • First tranche of money: pay as
rate that is probably applicable to you is salary – around £6k, or £500 a
11%, on top of your income tax; reducing Firstly there is a pension contribution month.
to 1% over £43,888. out of your own salary. You can put in • Next tranche of money: pay as
up to 100% of your salary should you so dividend - around £37k or say £3k
So the basic rate of tax your salary will wish (up to £215k a year or £1.4m in your per month.
suffer is not 22% but 22%+11%, i.e. 33%. lifetime). Not only would this reduce your • Final tranche of money, do a
Higher rate tax will kick in at £37,400 plus tax bill to zero but the government will careful calculation depending on
your personal allowance of £5,720 - £43k also put in a further 22/78 into your what your personal circumstances
in round figures. pension i.e. a further 28%. Where else are. Dividends are slightly cheaper
could you get this rate of return on an but there’s not much in it.
investment?
Telephone: 0870 420 2756 Fax: 0709 280 8482 Email: info@ukba.co.uk Web: www.ukba.co.uk
© 2009 - UK Business Advisors Limited - No unauthorised use of any of the contents of this newsletter is permitted - All rights reserved
The Benefits Of Outsourcing Your Business Functions
Whether you own a small or large For example, if you'd like to make Many business owners hesitate to
business, chances are very good that you £200,000 this year, and you work 3 outsource some of their functions
can benefit from outsourcing some of productive hours each day, 5 days a because they want to have complete
your business functions to outside week, then your time is worth roughly control over their business, or they
vendors. £260 an hour. With this scenario, you believe that it will be too difficult to train
could benefit from outsourcing any someone to do what they need.
Ideally, you want to be in a position function that you can pay someone to do
where you are working on your business, for less than £260 an hour. If you fall into this category, you may
rather than in your business. want to try outsourcing some very
In order to outsource effectively, you simple, routine tasks to get started.
must understand your own business and
processes. Take some time to write down It will be well worth the effort!
job descriptions for different functions, as
well as the processes you use in your When choosing an outsourcing firm, or
business to accomplish certain tasks (like freelancer, make sure you set clear
how you enter your invoices and receipts, expectations up front.
how you generate new leads and clients,
etc.). Share your vision about how you see
that function growing your business,
As part of this exercise, include clear and offer incentives for work well done,
expectations of what you hope to or work done under budget, or before a
accomplish. A clear vision and business deadline.
plan is key to setting up clear
Running and operating a business expectations. In addition, take time to properly
positioned for growth requires many document how the work should be
different key functions. Once you have written down the job performed.
descriptions, you'll have a better idea of
For starters, you must handle accounting, what you would like to outsource first. This can be done easily with screen
administration, customer service, as well capture video software, and/or written
as sales and marketing. There's no hard and fast rule as to processes and procedures.
which job functions you should
Many new small business owners outsource first, but many business Taking the time to properly train and
attempt to tackle all of these functions on owners like to hand off the functions that motivate your outsourced personnel
their own, and find that they work long they enjoy the least. If you really dislike will benefit your business greatly.
hours and can begin to burn out quickly. customer service, you may want to find
a customer service rep first. By now, you will see that outsourcing
By outsourcing some of your routine some of your business functions will
tasks, you can leverage your time to You have many options when looking help free up your time to work on your
spend on the functions that you do best for companies or services that will business, rather than in your business.
in order to grow your business. handle your outsourcing needs. Check
with others in your industry to see who
When trying to determine whether they use to outsource their functions.
outsourcing will benefit your company,
you need to determine how much money Many outsourcing firms not only
your time is worth. specialise in certain functions (like
customer service), but also in certain
A simple way to figure this out is to industries (like finance).
estimate how much money you would like
to make in a year, and divide that into You can use freelancers, virtual
productive work hours. Most of us are assistants, or any number of
only productive about 2-3 hours a day. outsourcing firms.
For a free, no obligation finance review for your business, please call us now.
UK Business Advisors Limited

White House, 66 Altwood Road
Maidenhead, Berkshire, SL6 4PZ
Tel: 0870 420 2756 Fax: 0709 280 8482
Email: info@ukba.co.uk Web: www.ukba.co.uk
Next month: Why Provide Good Customer Service? :: 7 Tips To Achieve Peak Performance
Practical Business Advice from the Independent Experts Issue 24 July ‘09
How Do I Know My
Characteristics Of A Good Business Process Processes Are Working
Effectively?
The key aspects of a “Good” Process are All processes exist for a number of
as follows: reasons. The first reason is primarily to
deliver products and services to
• Process Ownership customers, whether they be internal or
“real” customers.
The Process is owned, with Process
Ownership responsibilities being clearly Secondly, people need to know their
defined. accountability, authority and
responsibilities for actions required to
• Process Requirements ensure the process works effectively.
The requirements of the process are Thirdly, people need to know What to do,
defined, such as; addressing the needs The process is also designed to be fail- How to do it, When to do it and Where to
of the Stakeholders, meeting Business safe and has quality built in. Technology do it. In particular, those who are in
desired states, identifying constraints supports the process. control of the process (typically team
(such as Policies, Customer leaders or managers) need to know how
Requirements etc.). • Organizational Structures things are progressing. For this there is a
need for measurement.
• People Consideration Follow the process.
Processes are designed (or often
People know and understand how they • Resources emerge) to meet some objectives
contribute to meeting the process (sometimes stated, but more often
objectives. The competencies needed by Such as Information, Tools, Materials and assumed) and to know whether these
people to perform the work are clearly Documentation are aligned to the objectives have been met, attributes of
identified. process flow, (available at the point of the process need to be measured.
need, with steps in the process being Typically these are associated with the
People are multi-skilled, with clear performed in a natural order. Work is following:
accountability, authority and responsibility performed where it makes the most
(Jobs are multi-dimensional, with several sense. Smart documentation reduces • Cost/Value (e.g. Materials,
jobs being combined into one. Hand-offs errors). Manufacturing, etc)
are minimized (Involves as few people as • Quality (e.g. Pass/Defect rates)
possible)). • Process Interfaces • Time (e.g. Cycle times)
• Quantity (e.g. No processed)
Teamworking is the order of the day. Interfaces to other processes are clearly
People are empowered to make defined. By careful use of measures (where, when
decisions. and how they are collected, analysed,
• Process Management reported and acted upon, process
• Process Flow capability can be determined and used to
Measurement is used to manage, review control how effective the process is.
Each step adds value to the previous and drive continuous improvement in
step (Checks and controls are Process, Product and Service. Changes Other methods include the following:
minimized). The process has clearly are managed. Processes are designed
defined inputs (interfaces to other to be flexible, to deal with central, • Internal and External Audits
processes, supplier interfaces, data, regional and local variation. • Self Assessments (e.g. EFQM)
materials) and has clearly defined • Customer & Supplier surveys
outputs (the deliverables, interfaces to
other processes, customer interfaces).
Principles And Steps Of Risk Management
What Is Business
The term Risk Management is not only Risk Management is not about
applicable to economics. It is also applied
to diverse disciplines such as
generating lots of paperwork. It is not
about reducing protection of people
Continuity?
psychology, social sciences, biology, from risks that cause real harm and Business Continuity is the discipline that
systems analysis, operations research, suffering. It is also not about scaring an organisation applies, in order to
decision theory, toxicology, engineering, people by exaggerating trivial risks. It ensure continuity in the face of
and statistics, among others. does not stop important recreational unforeseen or difficult circumstances.
and learning activities for individuals When applied to IT, this is often called
Risk Management is the process of where the risks are managed. Lastly, Disaster Recovery.
gauging or assessing risk and developing Risk Management does not aim to
strategies to manage it. Risk create a totally risk-free society. The company, and more critically its
Management is the process of prioritising Customers and Suppliers, can be
risk with the greatest loss and the affected by something going wrong that
greatest probability of occurrence. Risk compromises the organisation’s ability to
that would have lower loss is handled deliver products and services to its’
later. Risk Management identifies a new Customers and more fundamentally be
type of risk, the kind wherein it has a able to survive should those difficult
100% probability of occurring but circumstances arise.
continues to be ignored by the
organisation due to lack of identification All organisations face business
ability. continuity risks.
Another problem encountered in Risk 80% of those with a tried and tested
Management is difficulty in allocating Business Continuity Plan are likely to
resources. Consequently, the ideal type survive a major business discontinuity;
of Risk Management is one that reduces only 20% of those without a Business
the negative effects of risks. Continuity Plan are likely to survive.
Over 90% of organisations that suffer a
Risk Management can cover almost significant data loss are not in business
anything, depending on the field of two years later.
discipline. For bankers and financial
officers, Risk Management may be the Similar to all types of processes, Risk What is involved in Business
sophisticated use of techniques such as Management follows certain steps. Continuity?
currency hedging and interest rate The first step is to establish the
swaps. Hospital administrators think context. Identifying the objectives or Recognise that there are risks to the
about quality assurance when they think the basis upon which risks are being organisation and that these risks have
about Risk Management. To safety evaluated does this. The framework for been identified, the impact of them
professionals, Risk Management involves the process and agenda for occurring has been understood and steps
the reduction of accidents and injuries. identification must be established. have been taken to address them, so that
Lastly, analysis of the risk involved in if they occur, the organisation is able to
Before anyone can start Risk the process must be developed. After respond in a way that enables the
Management, a statement of risk must be the context has been identified, the business to survive.
made. Such statement must compose of next step is to identify potential risks.
a description of the loss and a description The chosen method of identifying risks The following can be considered to be
of the current conditions that may lead to would depend largely on culture, the elements of any Business Continuity
a possible loss. industry practice and compliance. activity:
A sensible Risk Management is all about The next step is to create the plan, • Risk identification
ensuring that workers and the public are proposing applicable and effective • Risk Assessment
properly protected. It enables innovation controls for managing risks. The last • Risk Ownership
and learning. It provides overall benefit to
society by balancing benefits and risk. A
two steps are implementation of the • Mitigation (Prevention)
good Risk Management enables
plan and review and evaluation of the • Contingency Planning (Disaster
plan. Chances are, the initial Risk Contingency Planning)
individuals within the organisation to Management plans would have
understand that aside from the right of • Disaster Response Planning
imperfections. Review and evaluation (Communication)
protection they too have to exercise allows for improvement of the plan.
responsibility. • Disaster Recovery Planning)

Tel: 0870 420 2756 Fax: 0709 280 8482
Next month: How To Get Money Out Of A Business :: The Benefits Of Outsourcing Your Business Functions
Practical Business Advice from the Independent Experts Issue 23 June ‘09
How To Achieve Sales Targets

Sales personnel often ask themselves In the event that other people are
how to achieve sales targets? Prospects involved, clearly state who is accountable
are more savvy now when buying for each of these actions.
products and there is a wider choice of
products in the market place. What can Identifying results or deliverables is
sales people do to achieve these important, as these will indicate if the
targets? actions have been successfully
completed. Use these results and
1. Selling Is About The Value The deliverables as a basis to make any
Customer Gets - Many sales people adjustments to your action plan, or even
study very well the features and functions to the strategy if required.
of the products and services that they
sell. What is more important is to Even if the prospect did not buy, the 5. Enjoy The Journey - Make sure that
understand what value the product or chances that they will refer you to the whole process of achieving sales
service brings to the person who buys it. someone else is high. In addition, they targets is an enjoyable journey for you. If
may later decide to buy your product. you find that it is not, you may want to
For a given product, different people buy find ways of creating some fun along the
it for their own unique reasons. It is So, do remember to give your contact way.
therefore necessary to know what are the details even if you do not make a sale.
kinds of needs that the product or service There are people who use fun stationery
serves. 3. Strategise And Follow Your Strategy when planning and tracking their work.
- When you are faced with a question of Even strategising can be fun when using
You can then find out the needs of the how to achieve sales targets, the first colours and pictures. Mind maps are a
prospect first and then only present your step must be to strategise. great way to get your creative juices
product or service in the light of their flowing.
requirements. Without a strategy, you will be aimlessly
going through actions not really knowing Another way will be to reward yourself
This approach will not only help you close if you can achieve your target. not just at the end of achieving your
the sale with the prospect that you are Then, of course, follow your strategy. objectives, but also at milestone
dealing with. It will help to increase achievements.
referral sales that you can get. In following your strategy, monitor the
results to check if your strategy is These do not have to burn a hole in your
2. Serve Before Selling - Sales people working the way you intended it to. If it pocket. While you could take a holiday at
can be so focused on selling that they does not, then it is time to evaluate and the end of the project, at milestone
may not realise that this approach is make adjustments based on your achievements, you might want to reward
normally seen as very aggressive by the findings. yourself with watching a movie or buying
prospect. that new pair of shoes.
This simply means that you have mini-
To understand the prospect needs and to targets and dates against which you track It could even be as simple as having that
serve the prospect with no expectation of your progress. ice cream only when you achieve the
selling is actually proving to be a much milestone.
more effective way of selling. While strategies are high level, they are
still not cast in concrete. It will be Steps on strategising, planning, tracking
Once you know the prospect’s needs, be pointless pursuing a strategy that you and rewarding are common thoughts on
generous about tips on how the person realise is not making headway. how to be successful at sales.
can meet their needs.
4. Develop A Plan Based On Your Add to this the concepts of serving before
One of the options, of course, is to use Strategy - It is important that a strategy selling and the value you bring to the
the product or service that you are is converted into a working plan with customer, and you will have a winning
selling. This approach is subtle and non- dates and expected results or strategy on how to achieve your sales
threatening. deliverables at each of these dates. targets.
© 2009 - UK Business Advisors Limited – No unauthorised use of any of the contents of this newsletter is permitted - All rights reserved
The impact of technology has made
Sales Techniques That Will Close Sales people look differently at how a business
can be successfully transformed. Here
There will, of course, be competitive again, is another opportunity for you to be
products and prices to be considered. of value to your client. It is not sufficient
that the customer buys a good or great
Having described the concept, how can product. They also need to know how to
you do this in a well-organised way? In use it such that they can maximise the
this case, first list all the product features returns on the investment.
and their related benefits. Now for each
of the benefits, write down what is the You need to be able to justify why your
business need that can be met. Once you product will give better returns. If
have written all of these down, convert necessary, you may also need to meet
these to questions that you can ask the others in the business to show how your
customer. You will find repetition in this products will have an impact on their
first version. Clean it up and organise the business.
questions in a natural flow. Note down
also the benefits and features along with You must articulate how the products
the questions. uniquely benefit the business. You must
be able to provide information and data
You can now use this questionnaire when related to the business. You know how it
you meet the customer. If required, you will help their business. If you can do this
Have you wondered why, despite being can also discuss benefits and features of very well, they will even sometimes call
able to describe the benefits of the the product. Getting quantifiable on you to ask your opinion because they
products you are selling, the customer information will help in the business know you care about the success of their
did not buy? You were told not to sell justification later. business, and not just on the sales and
features but the benefits of the product, commissions.
and that is exactly what you did. Yet you When the customer sees that you know
are not able to close the deal. What is your contents, you can expect a better There will be other challenges, especially
that missing element that is needed? response, as the customer knows that regarding prices. Even if the product
you are not wasting any time. The price is lower than the competition, if you
The answer may be that the benefits you respect you show for the customer's time cannot relate the value of your product to
described are not benefits that apply to is a very good basis to build a good the business's needs, it will be tough to
the customer. The question is what is in it customer relationship. This technique will close the sale. With the kind of value
for the customer to be interested in what help you establish which benefits will help proposition that you can bring to the
you are selling. the customer, based on the business table, you will stand a much higher
requirements as established by the chance of closing the deal.
If you are selling to a business customer.
organisation, focus first on the business One exception will be when you find out
requirements that are driving this deal. The next step is for you to understand the during the investigation stage that the
Whatever you sell had better give returns customer's industry and to be able to customer is not ready for your products
to the business. Otherwise, this might be articulate the trends and why yet or does not need them. Be big
your last sale to this organisation. requirements not articulated by the enough to walk away. You would have
customer should also be considered. established your credibility. When the
Once you know the business needs, Typically, customers appreciate this customer does need your products, he
connect them to the benefits that your additional knowledge that you bring to the will call you because he knows that he
product can offer. This means you must situation. can trust you.
know your product's features and related
benefits. If you already know your So far, it has all been about value to the Take some time to prepare a
product well, that is half the battle won. If business. Successful selling also needs questionnaire as described above, if
not, you must find out. If yours is a empathy to human needs. Quite often, there is none right now. Use it to
technical product, a user-based the person you are selling to will be well understand the customer's business
understanding is all that is needed for a versed in the operational aspect of the requirements. Then present it based on
sales person. Later, you can bring in job, but will have a limited knowledge of the unique customer requirements. With
technical expertise as needed. The next the industry direction. They are typically these techniques, you will get the
thing to do is to establish the needs of the driven by the daily operations. While they customer's attention because you are
business that your product can meet. may know industry directions, they helping to solve their business issues
Present this from the customer's normally appreciate any specific using your product. You stand a much
perspective and your chances of closing information that will help them. better chance of not only winning the
the deal are very much increased. deal, but building a rapport and trust with
the customer for the longer term.

Tel: 0870 420 2756 Fax: 0709 280 8482
Next month: Business Processes :: Risk Management :: Business Continuity

© 2009 - UK Business Advisors - No unauthorised use of any of the contents of this newsletter is permitted - All rights reserved
Practical Business Advice from the Independent Experts Issue 22 May ‘09
Taking Stock Of Your Biggest Asset: Your People

If you are going to make people 3. Motivation: Assuming by the time you
redundant then do remember that you have read this you have already made
are talking about the job that is no longer redundancies, the remaining staff are not
required rather than the person. And then only worried that they are next, but they
what are you going to do with the core are also likely to be doing more of
team who are going to help the company someone else’s job so they may now be
survive – tell them its OK and we’ll ride both fearful and overworked. How are
out the storm (do they believe you?) or you going to turn this into positive energy,
are you going to do something more to get people to think and act differently
proactive? because they want to? How are you and
I am nervous when articles talk about any other managers monitoring the
cutting people costs by 10% as it implies Some thoughts arise: situation for stress to, at the least, avoid
a degree of indiscriminate cost cutting. long term absence and potentially at
1. Sales & Marketing: You need more worst a stress claim.
The feeling of action taken (redundancy) sales through either marketing or new
may only put off the evil day of really product development. Fine, but if that
looking at what you want your business were the case and it was that easy you
to achieve. There are ways to reduce the would have done it already. What
salary bill – stop the use of temps, stop stopped you from doing that last year or
overtime, introduce flexible working the year before? What has changed,
(reduced hours, flexible hours, job share), apart from declining sales or a fear of
reducing salaries (with consultation! and declining sales? What needs to be done
starting at the top), introduce unpaid differently, or, more specifically, what do
leave, retire staff at 65 (following due you need to do differently?
process). 4. Communications: How are you going
to improve communications? Which of
2. Leadership & Management: Then
This might be seen as window dressing the following statements is likely to
what about your leadership team. What’s
but demonstrates to staff that the encourage staff to be more focused on
working and what isn’t? Until there is
business position is serious and that you the future and help you maintain the
clarity on this the old adage will probably
are trying to consider their needs so if, or business:
apply – “if you always do what you’ve
when, redundancy occurs, staff are always done, you’ll always get what
prepared and may even return during the a. We are in trouble and you need to
you’ve always got” – in other words back
eventual economic upturn. work really hard to keep the company
to where you are now.
afloat or;
With the future in mind, there is the b. We need to generate £100K in sales a
opportunity to deal with the problem month (and this is likely to decline in the
children that you may have ignored in the next quarter) and our costs are £80K a
past by managing them more overtly (out month – how can you help to make a
of the business?) rather than the difference? What ideas have you to cut
compliant latest recruit. costs or increase sales?
It costs money (which increases over Approach (b) creates greater ownership
time – so will be more expensive next and if business really is dire, it makes the
year) yet sends powerful messages and redundancy process much easier by
may enable you to get others to resign managing expectations.
before being pushed. Imagine the effect
this will have on other staff. Some of this may be counter-intuitive.
The first step is to understand what the
change is. The second step is for you to
believe it and be committed to it. And
then, thirdly, do it.
Decision Making For Good Leadership
Decision making is of prime importance They help team members and leaders to
for good leadership. Generally it is take the right decisions when they are
thought that a good leader takes all faced with a dilemma.
decisions and they have to be the best.
Such decisions need to be made with the
In this modern age it is impossible for one involvement of everybody. The
person to take all the decisions and for all consensus process is a very useful
the decisions to be the best. There are methodology to make such decisions. For instance, outlining the procedure of
too many unseen variables and too many recruitment and selection in an
people involved in implementation for a 2. Policy Decisions organisation, is a process of detailing the
leader to take all the decisions and for actions that a team will take when they
them to be the best ones. Policy decisions are necessary to provide follow this procedure. It will also detail the
for resources and official permission for actions to be taken if there are
the operations of an organisation. exceptions.
For instance, if the Performance 4. Structured Decisions

Appraisal Process needs to be reviewed,
then a couple of policy decisions need to Structured decisions are taken by
be taken. A decision needs to be taken to individuals who are directly executing the
set up a committee which will analyse the plans of the organisation. These
existing process. The different teams in decisions are informed by the data
an organisation need to volunteer a available to the employee, the
representative to become members of procedures/structures that have been put
However, understanding the types of the committee. in place, and the knowledge of the
decisions and the people involved in policies and paradigms of the
making them can help the leader to The management team needs to allocate organisation. The decision maker could
manage the complexity of decision money and time for this team to function be the CEO or the security guard at the
making. The factor that makes decision- and come up with an insightful report. gate.
making easier and the types of decisions
are given below. All decisions that are taken to ease the Understanding the kinds of decisions, the
functioning of the teams are policy number of people who need to be
Decisions are Data Based decisions. involved in taking them, provides the
leader with a confidence to take
A good leader makes decisions based on Policy decisions are taken in a decisions - sometimes alone and
data, which is analysed for patterns of participatory mode with the involvement sometimes with others.
information. The information is then used of everybody who will be involved in the
to make thought-through decisions. execution of the task. This will also give the leader the
confidence in the decisions of his team
While it is true that you cannot know 3. Procedural of Functional Decisions members - as they are taken with an
everything, doing an analysis of available understanding of the values and
data about a predicament will, Procedural decisions are taken by a few procedures of the organisation.
nevertheless, lessen risks of failure. people who will be carrying out the
plans/policies/goals of the organisation or
While all decisions need to be data- who will be impacted by the decision. Contact us now to find out
based, there are at least four different These are decisions that will help
implement a process. how you can develop your staff
kinds of decisions.
and leadership skills to impact
1. Paradigm Decisions the profit and performance of
your business.
Paradigm decisions are those which
provide guidelines for decision making for
all people in an organisation or team.
Decisions such as: Having a smoke-free

organisation, having a non-discriminatory
people policy, etc. are paradigm
decisions.

Tel: 0870 420 2756 Fax: 0709 280 8482
Next month: How To Achieve Sales Targets :: Sales Techniques That Will Close Sales
Practical Business Advice from the Independent Experts Issue 21 April ‘09
Getting Your Company

Ready For Sale
Getting a company ready for sale is a bit Does it sometimes look like a series of
like getting your car ready for sale. random chances that your product or
Polish it up, get rid of the rattles, make service ever gets out the door intact? If
sure you can find the log book and the the owners weren’t there to supervise the
service record. business, would the staff know what to
do? How well would the business run if 5. What are the finances like? - Do you
How do you get your company ready for the owners are away for a week/ a have sustained growing earnings, or do
sale? We consider that the following month? The better it could operate, the they make a roller coaster look like a
points are key: more valuable your business would be. walk in the park? Can you demonstrate
financial control? Are the accounts
1. Vision - Do you have a compelling What about your suppliers? Do you have useful or simply something to keep your
vision which an interested party can buy access to favourable sources of supply, accountant out of the way? Can you
into? Is your business clearly moving or excellent discounts? Are these explain the trends?
towards the realisation of this vision? formally agreed and tied down? Could a
new owner benefit from them? Even if you don’t sell the business you
2. How does the company generate its know that what gets measured, gets
revenue? - Is this through a well honed 4. What are the resources like? - Do done. Resolve to take more notice of the
process based on lead generation, your staff have an employment contract, accounts and use them as a signpost of
qualification and closure which is clearly backed up by a staff handbook? Are progress.
producing a regular flow of high quality there decent processes for recruiting staff
new customers– or is it, like most into the company, motivating and 6. Make a plan of what you’re going to
companies, based on your own developing them, and even removing do - Set aside some time and take a cold
personality and the fact you’ve been in them without involving an industrial look at the business
the market for 20 years. If the owners tribunal. Can they cope with change and
are the company’s greatest asset how think for themselves – or do they really • Where are we now?
are you ever going to exit? depend on your dictatorship? • Where do we want to get to?
• How are we going to get there?
Do all your customers sign a contract, or What about the buildings and equipment?
will they simply walk away once they You wouldn’t try to sell your car without at Its not rocket science,
know you’ve left the business. Resolve least putting it through the car wash – so its not even very clever,
to get all new customers to sign a does the office and or warehouse look a but it is very difficult.
contract. mess and what could you do about it?
In fact, in our view, you need help to do it.
Do you have an unhealthy dependence Are the IT systems coherent without You’ve known you’ve had to do it and
on one or two large customers? Resolve dependency on the intuitive skills of Fred simply not got around to it. Working in
to deliberately seek out a number of mid in the corner? Strong IT can help you the business, rather than on the
tier companies rather than a few larger and the new owner make better decisions business, you’d have done these things
ones. faster. by now if you were ever going to without
help.
3. How does the company operate? -
Have you patented everything that you
can? Do you have registered trademarks Call us now for a confidential conversation about how you
or any other intellectual property (licence can maximise the value of your business.
agreements and the like). Are they
secure? It’s not always easy to do this,
but it does “lock in” the value.
Improve Profits With Innovative Business Ideas
Innovative business ideas are key to If the first one does not look like it will be
sustain and improve your business profitable, then move down your list and
profits. pick one that will. Any more good ideas
left can be filed for future use.
This ability is needed to stay ahead of
competition even as competition 3. Involve Your Staff
responds to the ideas that you
implement. How do you keep generating Sometimes, the people who carry out the
these ideas? operations are aware of some things that
you may not be aware of. Involve these
people to generate innovative business
ideas. 5. Keep Learning
Brainstorming with the staff will provide Learning cannot be restricted to just what
you additional ideas that you could use. we learned at school. It must continue
beyond that.
The important point about this approach
is that your staff will be much more It will, of course, include learning in the
inclined to carry out ideas which they area of your business. It should,
were involved in developing. however, include also learning in other
1. Involve in Activities to Trigger Your areas. Sometimes, ideas come from an
Mind experience in life.
Take a walk, go for a swim or read The Internet provides information in a

something that will get your creative wide variety of areas and is also one
juices flowing. Just sitting at your desk place where you can get a lot of
may not work. Albert Einstein used to day information.
dream in the park. Thomas Edison used
to go fishing. Generating innovative business ideas is a
must for businesses to stay competitive.
It seems like the mind works best when it Not a question of choice. Try it out if you
is allowed to relax doing something else. 4. Do Not Be Afraid to Fail have not. You will enjoy it more than you
Then somehow, it is able to come up with think, and be very motivated when some
ideas relatively easily as compared to if Having new ideas brings along with it the of the ideas start succeeding.
you sat at your table and tried to force necessity to implement them. Some
them out. people freeze even before they think of
any ideas because some previous ideas
2. Apply Constraints Last have failed.
When generating innovative business If you fear failure, then it is tough to scale
ideas, it is important to allow the ideas greater heights in your business venture.
flow spontaneously. Focus on volume
first. Do not worry about the cost, skill or Accept that you will fail at times, but there
the effort required. will also be times when you will succeed.
If you applied constraints as you are Thomas Edison apparently failed 10,000
generating ideas, you will have a times before he got the light bulb
tendency of not listing out all possibilities working. J. K. Rowling submitted Harry Do you have a business
that you can think of. Potter to more than 5 publishers before idea that you would like to
one decided that it was worth publishing. profit from?
Only after generating a whole list of
ideas, then think through them and You can be assured that the best have
prioritise them. Then start looking at the had failures. They are but a way to know Call us now to find out
cost, skills required and the effort. How what doesn't work. how to exploit your
can these be managed in way that the innovation.
initiative will be profitable.

Tel: 0870 420 2756 Fax: 0709 280 8482
Next month: Taking Stock Of Your Biggest Asset: Your People :: Decision Making For Good Leadership
Practical Business Advice from the Independent Experts Issue 20 March ‘09
Evaluating Your Business Idea

You may have several ideas for a new This type of analysis can show you if your You could get friends to ask for quotes
business or only one. Before you start business idea is viable and should from the competition, or use a more
pouring your effort and money into an encourage you to exploit opportunities direct approach and have discussions
idea you need to see if it will stand up to and help you decide how to tackle with a local expert.
some analysis. threats.
Remember, a company could be a
Try a SWOT analysis. Decide on your Unique Selling potential competitor or a potential joint
Proposition (USP)... venture partner.
This requires you to think about the
Strengths, Weaknesses, and Why should a potential customer come to Perhaps you could approach them with
Opportunities your business will have, you and not a rival? Will you specialise in an idea for a product or service that
and the Threats it may face. a certain area? would complement theirs.
You should be able to identify where and When setting prices, do not immediately
how you can contact your potential assume undercutting is the only solution.
customers and have an idea of the You need enough income to cover your
demand for your type of service or overheads and a low price may give the
product. impression that your skills and work have
little value.
Write a Business Plan...
Cash flow is another important element in
There are many versions and it seems starting and running a business. Make
every bank and business advisor has sure you do not have to make too big an
slightly different requirements. investment before you get paid. You
should know how much you have to earn
However every version should keep you to at least break even.
focused on what you want to do with your
business and the strategies to achieve
this in a certain time frame.
It should identify the services or products

you intend to offer initially, and those you To help with your business idea,
hope to expand into later. please go to our website and
download a free business plan
Remember the plan is a working template and free cash flow
A high level of skill with a range of document. If you miss deadlines you
equipment, or a friend that is prepared to template.
should be able to modify the plan to get
loan you some money would be your business back on course.
strengths. If you have never run a
business before that could be a Once you have decided on the type of
You will also find other useful
weakness. business you want to start do some resources to help your business
research to see if there are any gaps in achieve sustained, profitable
A ready, enthusiastic market would be an the local market. Find out your growth.
opportunity, while several businesses competitor's pricing.
almost identical to the one you are
thinking of starting or a weakening
economy would be threats.
Reviewing Your Business Plan
It is essential for your business that you Proving that the plan is working What went wrong? Was the system used
have a route map which shows exactly effectively in the early stages is essential flawed? What did you need to do to
how you will achieve your business in demonstrating that the overall plan is actually complete the task? You will need
goals. achievable. So, check that every detail of to adjust future tasks of the same type to
your plan is being achieved. accommodate the revised procedure
Without a plan you are planning to fail. adopted.
Not everything works out as planned, so
you must find out the answers to the
following questions:
1. - Did you achieve the financial goals

for the period within the timeframe
allocated? Maybe you achieved some,
but not all of them.
2. - Did the systems that you used to

complete the tasks work well? Maybe
some worked very well, but others were
not so successful.
Continuous improvement is essential in a
Analyse the answers that you obtain. For good business plan. Adjusting and
those systems that worked successfully, tweaking the elements within the future
continue working with them for the future plan based on your experience can only
tasks. improve the effectiveness of the plan and
generate confidence that it can be
For those items that did not meet the achieved.
targets set it will be necessary to
evaluate why they did not work Plan your work and work your plan and
The plan that you develop needs to be a effectively. you will be well on the way to achieving
living document that is constantly your goals.
checked and updated. If not done on a
regular basis then there is really no point
in generating it in the first place. What does a business plan do?
It is critically important that you know that

Gets the ideas from your head onto paper
you are actually achieving the plan. If not, Gives you clarity and focus for your business
then you will need to adjust the plan to Allows you to budget and manage your cash flow
accommodate any revisions that occur. Helps you identify your products, services and the market
The very basics in a good business plan

What’s in a business plan?
are to detail the tasks and systems that
you will use to progress the plan. You will
need to review your plan on a monthly Vision – your future aspirations
Mission – what you do for your clients
basis initially to ensure progress is being
Objectives – defined targets for your business
made as planned.
Strategies – how are you going to get there
Plans & Actions – what you are going to do to successfully achieve it
You may choose to change the frequency
of the review at a later stage when the
A working business plan need not cost the earth or take weeks to develop. We can
initial kinks have been ironed out and the do this interactively with the managing director/business owner in less than a day at
planned progress is being achieved. a cost that is probably a lot less than you think.
The initial goals in the plan are usually

CALL US NOW TO FIND OUT MORE
small in terms of financial profits, but it is
just as important that they be achieved
on schedule as the larger goals that
occur at a later date.

Tel: 0870 420 2756 Fax: 0709 280 8482
Next month: Getting Your Company Ready For Sale :: Improve Profits With Innovative Business Ideas
Practical Business Advice from the Independent Experts Issue 19 February ‘09
The Truth About Sales & Marketing Is your sales team performing?
At a time when the world is facing its Are you hitting your sales forecast?
biggest economic test in years and • Knowledge
Do you have a sales strategy?
retailers are slashing prices to shift stock,
it is valuable to step back and have a Having a full understanding of the These are just a few of the sales issues
look at the sales and marketing process marketplace and how your products facing businesses today.
being deployed in your company. serve its needs. Do your homework.
This is usually the basis of your The success of any company is very
competitive advantage. much dependent on generating revenue
through your products or services in the
• Strategy market place.
Are your sales people using some of the

Providing a focus and direction for following key elements to sales
the sales and marketing effort success?
commonly understood through the
company. Promoting benefits, not features
of your product or service
• Structure Being clear on your sales
Over the years, sales and marketing has proposition and your unique
been portrayed as a specialist art that The division of work among selling points
only the few, naturally gifted, can excel individuals and the coordination of Planning the sales meeting
beforehand
in. Proponents of this view can often be the work once it has been divided.
Understanding the customer
found with CV changes every two to Even if you only have one sales need and where they are in
three years and a trail of organisations person, tasks have differing priorities. their “buying cycle”
left with a feeling of disappointment that Listening more than speaking
things “didn’t quite work”. • Marketing Operations Being open minded, not
defensive and welcoming
To connect the powerful commercial Relating customers’ needs to your objections
ideas of the business to the necessary products. Driving customers to being Working to sales targets
levels of sales or customer retention the positively disposed towards your
sales and marketing function should be products. In many businesses this is As the person responsible for sales in
your business, maybe you should
treated as a process that is 95% graft largely driven by consistency and
consider the following:
and science, 5% natural ability. service delivery.
How do you motivate your sales
An effective approach is based upon six • Sales Operations team?
universal principles of sales and Can your sales people sell?
marketing effectiveness that impact Making it easy for customers to buy Are the sales targets in place
performance. These principles are your products. and are they being achieved?
relevant to all types of sales Are you getting a return on the
organisations irrespective of size, • People investment for your sales
sophistication or location. channels?
Is your sales team being
Recruiting, integrating and
managed effectively?
The exact weight that each principle developing commercial people to
carries in producing final results will vary achieve maximum performance (and Sales are essential for a company to
between markets and, to some extent, removing any under performing survive.
between companies. people quickly).
Call us now for a no obligation
A critical foundation is forming a common All of these principles need to be review of the sales strategy within
view of those weights between incorporated into the process and actively your organisation.
customers, senior and front-line managed to take control of the sales and
management. marketing function.
© 2009 - UK Business Advisors Limited/Harold Forbes - No unauthorised use of any of the contents of this newsletter is permitted - All rights reserved
If you go to networking events, make
Is Marketing A sure you go regularly; if you use
advertising, it is better to be in every
Luxury In Times issue of the same publication or in
several publications at the same time
Of Trouble? rather than taking a scatter-gun
approach.
Many small & medium enterprises- Aim to have 8 to 12 communication
SME’s - (and some large ones for that activities running every year with clear
matter) have difficulties when it comes to Really put yourself into their shoes to try
messages and lots of opportunities for
marketing. Quite a surprise, really, when and understand this and if you find it
your prospective customers to see them.
Amazon in the UK alone lists more than difficult have a conversation with some of
And make sure your staff understand
65,000 titles on the subject; but that may them and listen to what they tell you
what you are doing as well.
be where the problem lies. In difficult and (there are sometimes real benefits to
complex areas of business it is getting a third party to do this for you so
sometimes difficult to see the wood for there is no “baggage” in the
the trees. conversation).
Over the years of working with SME and Once you have built this understanding,
start up businesses with little or no can you build a database of potential
marketing budget we have developed a clients or customers?
simple view of what marketing is and the
critical elements to be managed for The second area of consideration is why
success. should they choose you? Even if you
think you have a unique offer for the
market, people will have alternative
choices even if it is simply to do nothing.
Finally, don’t forget that communication is
Try to draw a picture of the choices a two-way process. You must measure
available to your target customer. Some what you get back from your activities to
will be closer substitutes than others (e.g. understand how effective you have been
tomato soup versus chicken soup or with getting your message across.
tomato soup versus sandwich).
And if you are not getting the results you
Try to write a single statement of the wanted you are either not saying
The first point is to understand what benefit to the customer for each choice
marketing really is and the authors view anything of interest or your message is
and then add six points that differentiates not getting noticed. In either case, you
is that it is the process of defining who each choice.
are the people in the market wanting to need to go back to the start of the cycle
buy your product or service and why they because, if you are not saying anything of
For you own product or service, look to interest, you probably haven’t really
should choose your offer; the action on see how your customers can learn about
that understanding is to communicate understood your customer’s motives and
your points of difference from how you if you are not getting noticed you
with them so that they are motivated to present yourself to them. This can be
buy. probably haven’t understood where they
hard work but do it well and you will be are.
rewarded in the third stage.
A common error is to think that
“everyone” is part of the target market: Even when you are getting the results
If you understand who and where the you want, make sure you are getting
they are not. Virtually all businesses will people are that may consider buying from
derive about 80% of their business from feedback from customers about how
you, what motivates them and how your happy they are with your product or
just 20% of their customers. product can satisfy them better than other service and the relevance of your
offers, then the third stage of attracting communications with them. The world is
This is called the Pareto Principle and it motivated prospects is comparatively
turns up all the time. It is therefore critical constantly changing and evolving and
easy. what was important yesterday may not be
to understand who that 20% are. Where
do they live? What are their interests? tomorrow. Marketing is not a luxury in
The key here is to be consistent and to times of trouble or at any other time: it is
What motivates them? What do they be seen (or heard). If you distribute
value in life? How frequently do they buy the bedrock of keeping your business
leaflets, make sure you distribute them alive.
your product or service? What else could frequently.
they choose to buy instead?

Tel: 0870 420 2756 Fax: 0709 280 8482
Next month: Evaluating Your Business Idea :: Reviewing Your Business Plan
© 2009 - UK Business Advisors Limited/Harold Forbes - No unauthorised use of any of the contents of this newsletter is permitted - All rights reserved
Practical Business Advice from the Independent Experts Issue 18 January ‘09
Optimise Employee Training and Development

With cost cutting being a common by the employee. This provides the The significance of this is also in the fact
occurrence in business, it is important to manager with an opportunity to review that this request can be noted down, so
optimise employee training and and provide feedback on the employee's that when such a role becomes available,
development to ensure that both the plan. the employee can be recommended for it.
organisation and the employee can get
the best returns. An employee development planning form
should be used to document the training
Employee development is too crucial to and development plan details. An action
the success of the organisation to be plan should be included with planned
sacrificed. However, there also are not dates for the training and subsequent
unlimited funds for employees to attend reviews of the plan.
every training that may be deemed
useful. 3. Periodic Reviews
An employee development plan can be
A proper program needs to be in place to effective only if it is regularly reviewed to
identify important training stints required ensure that the planned actions are being
to ensure money is well spent. It will also done or changed as required.
be necessary to fit in the training The manager also has the opportunity to
programs within the work schedule of the suggest other training programs that the Even if the plan is done with the best of
employees so that work is not disrupted. employee may not be aware of. This intentions, the daily activities take over
includes opportunities to work with and unless these reviews are done, the
The best way to do this is by having an another team as part of skill development activities will not get the
employee development program on an development, as the manager probably priority that they should get. The
annual basis. The key steps in this has a broader view of the organisational employee development plan should be
program should be as follows: activities. reviewed quarterly or at least every four
months.
1. Employee Self Assessment In cases where the number of training
The first step is for the employees to do a days exceeds the guidance provided by It may sound like a laborious task, but
self-assessment of the kind of the organisation, it will be necessary to doing these steps streamlines the
development required. The assessment prioritise the training programs. employee development exercise. The
will be based on the person's job scope employees also feel that the organisation
and performance plan for the year. This whole exercise provides the cares for them.
manager with an overview of the training
Based on this, the employee can review cost. The employees will be able to The best way to do this is to block off
both internal and external training identify the training programs that are these activities in your calendar right at
programs and identify those best suited. already scheduled and block it off in their the beginning of the year. Your other
In addition to this, opportunities to work in calendars, so that they can plan their activities should be worked around these.
specific projects should also be included. work activities around this. While this However, if you need to miss one of
helps, there might be times when the these due to some good reasons, then
The employee should also consider the employee may have to forego some of make sure you reschedule.
future role and function that he or she the training due to work pressures.
aspires for. The intent is to share this Well-planned and executed employee
future plan with the manager so that they Feedback should also be provided on the training and development brings benefits
can also plan for the employee's future employee's future plans. Knowing this to both the organisation and the
aspirations. All these should be helps the manager in two ways. In the employee. This, in turn, will benefit your
documented in a self-assessment form. immediate future, he could arrange for customers who ultimately decide the
the employee to be assigned to some continued success of the organisation.
2. Document The Employee other project or team to gain experience
Development Plan and exposure on his or her desired future
The manager will meet each of the role.
people reporting to him individually, to go
through the completed assessment form
Effective Training Techniques Through Employee Involvement
Some points for investigating learner Switching on activities include creative
needs are as follows: opening exercises that develop positive
first impressions, which are crucial to
How many participants will be gaining learner commitment. These warm
attending the session? up activities are learner-centred and
What are their current job content-relevant.
responsibilities?
What are their skill levels as The intent is to get learner involvement
applicable to the training subject? and for the trainer to develop
Is attendance voluntary or relationships with the learners. These are
mandatory? not the same as icebreakers, which are
How will the training affect their usually used to entertain and energise
Employee involvement is key to effective current or future job responsibilities? learners.
employee training. Employees attending
training are preoccupied with their own If this investigation is not possible before When people arrive at the training venue,
thoughts and problems. Some are willing the training session, then when the they are probably still preoccupied with
to learn and some are not. There are session starts, it is a good idea to request their own problems and thoughts. The
those who are open to new ideas and the participants to introduce themselves warm up exercises will also be a means
others who resist. How can you get them and to mention what they would like to of addressing this.
involved so that they can take ownership achieve from the training session.
of their own learning during the training? Employee training can be made effective
3. Communicate With Your Learners with some extra effort in getting their
1. Put Yourself In The Learners' Shoes involvement and hence ownership for the
Communicating the objectives and training.
When delivering training, there is course program outline to the course attendees
content to be covered. While this is before the session will help them prepare You will find that the extra work pays off
important, priority has to be given to the for the training. Properly written, this because you will find the session much
fact that the learners are able to receive communication can also be used to more satisfying and feedback from the
your content. motivate the learners such that they will attendees will be positive.
have a positive outlook towards the
What better way than to put yourself into training.
the learners' shoes and ask yourself a
few questions that these learners have If this is not done for some reason, then it Contact us now to find out about
when attending training: is important that this be done at the start the extensive range of training
of the training. programmes that we can offer
What is this session about?
Will it be of use to me? covering all aspects of your
Communication is two ways. Therefore, business:
How can I apply this to the real feedback from the learners must be
world? somehow incorporated into the training.
What motivates me to attend this Leadership
session? This is extra work. It will be much easier Management
Is the content delivered in an easy
and simple way?
to just deliver the content as is, but the Sales
purpose of the training is to enable the Marketing
Are different teaching methods learner via effective training, not just
involved or is it a boring lecture? delivering content. Finance
Operations
Answering these questions to yourself 4. Switch On The Learners Personal Development
will help you better prepare to deliver
effective training. Health & Safety
However well you may be prepared to IT
deliver the session, if the learners are not
2. Assessing Learner Needs switched on, the training will not be very …and many more areas
effective. Switched on learners will be
Checking out on learner needs is ready to receive content, which means
essential to get learner involvement. This there is a need to conduct activities to
task could be difficult due to time, budget achieve this.
or information constraints. However, it is
important and some kind of assessment
will make a difference.

Tel: 0870 420 2756 Fax: 0709 280 8482
Next month: The Truth About Sales & Marketing :: Is Marketing A Luxury In Times Of Trouble?
Practical Business Advice from the Independent Experts Issue 17 December ‘08
Different Types of Funding Overdraft - Banks are surprisingly

supportive when presented with a well
thought through plan and competent
R&D tax credit - This allows a reduction management.
in your taxable profit by 150% of the
spend on R&D, or if you are making Bank Loans - Lenders tend to look for a
Corporation Tax losses to recover £24 in good business plan and security.
every £100 of R&D spend in cash. Typically the loan is approved by a
centralised back office function rather
Export - To start exporting or moving into than the person you meet. Terms and
new markets grants of 50% of costs up to rates depend upon the risk. Repayments
£20,000 each. can be very flexible to meet your specific
needs.
Training and Education - Knowledge
Transfer Partnerships, Achieving Best
Finance for business can be obtained Practice in Your Business, Investors in
through a number of different sources. People, Modern Apprenticeships, New
Let's review some of those channels to Deal for various grants.
help you decide what's right for your
business needs: Leadership and Management grant -
£500 towards leadership development.
Grants
Environment -
There are over 930 different EU and UK
grants and loans available from over 100 BOC Foundation for the
issuing bodies. This is the cheapest form Environment: 25% to 50% of Project
of finance and an important part of the cost, typically £20,000 to £100,000
funding package that companies and Clean up Fund: Emission reducing
individuals need. We can help you find equipment up to 75% of cost
your way through this maze. Community Chest Fund: Up to
£25,000 for projects near active SITA
Grant for Research and Development sites
(R&D) - for businesses looking to carry High Impact Fund: £150,000+ for
out research or development of a larger projects near SITA sites
technologically innovative product or Assisted Areas
process. This is quite carefully defined Regional assistance grants of
so don’t assume it’s available regardless. between 10 and 35% for capital
Amounts available: £5,000 to £500,000 expenditure in less favoured areas of
35–60% of eligible project costs the UK.
available. Mortgages - These can include flexible
Loans repayment terms to meet your business
Grant for Business Investment (GBI) - needs. This can even be incorporated
To assist businesses to increase their Loans are an excellent source of finance into your overdraft finance so that you
productivity through investment in capital if you have suitable security to borrow have one flexible account for both
equipment and technology. For against or a reliable earnings stream. personal/ business mortgages and
businesses looking to modernise, expand This needs to be planned and presented overdraft
or diversify to maintain or establish well to obtain funds.
sustainable growth and provide skilled Small Firms Loan Guarantee Scheme -
jobs. Amounts available: £10,000 to £2m Credit cards - Provides up to 56 days Up to £250,000 unsecured loan - these
- in exceptional cases larger grants may free credit if you play the game! are much misunderstood and nothing like
be available. Up to 35% of eligible project as easy to get as the name implies.
costs dependent on area and case.
Different Types of Funding …..continued
Business Relationship Funding
This is another source of funds that can

Equity The Factor will own and place a first be overlooked. It may be possible to
charge over the book debts and they introduce potential alliances to add value
This is not as easy as the papers would might also take other charges, depending to both parties. It may produce an
have you know. Only 1% of business upon the strength of the financial ultimate exit route in the medium to long
plans received by Venture Capital Funds information. term.
are successful. However, a good
business proposition consisting of a Invoice discounting – is either Joint Ventures: Requires a legal
strong demand for the product or service, Confidential or Disclosed; it depends agreement embodying the deal and
management track record and a sound upon the strength of the financial another company
financial plan will enhance the chance of information. The service is the same as Partnerships: Two companies
success. Factoring, except that the sales ledger collaborate with possible funding.
administration and the debt collection is Joint working relationships: These
Business Angels - These are high net the responsibility of the client and not the are an informal partnership which
worth individuals who are successful Factor. Pre payment of the approved may be more project specific where
businessmen looking for investment sales invoice is still up to 95% and the the parties can share resources.
opportunities. They can provide both time factor will still have a first charge on the Agencies: These can be
expertise and money. Typical investment book debt and therefore own the debt. geographical or product specific and
size is £25,000 to £250,000 but can go This service can also have credit generally incorporates a payment for
as high as £2m for the right opportunity. protection cover. All sales invoices need the right to the agency.
Exit within 3-5 years. Microfunding is a to be for a business to business debt, Distributors: Very like an agency but
new organisation supporting new and some proof of delivery is generally may not necessarily involve up front
innovations and inventions from required. payment.
entrepreneurs: Alliances: These do not require a
http://www.microfunding.co.uk. Trade Finance - This is funding provided separate company and can be
against stock purchases, signed embodied by a legal agreement to
Venture Capital - These are investment contracts and orders whereby the funder work together.
funds seeking high rates of return. will prepay a certain percentage of the Trade investors: Otherwise known
However typically investments are over a value. as Corporate Partnering. This can be
million pounds. Some funds are targeted a good way to involve a much larger
at lower amounts depending upon the company in the business with a view
sector and region. These funds are to possible trade sale further down
looking for exponential capital growth the line.
over 3-5 years. Associates: This can be a loose
arrangement with no fundamental
Asset backed finance commitments either way, rather like a
preferred supplier.
This can cover machinery, sales invoices Equity Swop: Two companies
even sales orders. It can be a very exchange shares to a similar value to
flexible source of finance to the growing develop both businesses.
business Franchises: This can allow the
business to grow without further
Leasing - This will cover your capital direct investment.
expenditure and spread the cost over a Licensing: This involves licensing a
three to five year period. It is particularly product or service to enable others to
useful if you do not have taxable profits to sell it. This requires you to own the
maximise your capital allowances. Sale intellectual property.
and leaseback of a property you own is
another good source of funds. Payroll Finance - it is possible to borrow
up to two months worth of your payroll
Factoring - Factoring offers a sales provided you meet certain criteria. Call now for a no obligation
ledger administration and debt collection financial review of your
service. Up to 95% of an approved sales Pension fund - It may be possible to use business.
invoice is paid within 48 hours, quicker if your pension funds for a loan back to the
required. Credit protection is also business or as a way of reducing your
available to protect against a bad debt. exposure to tax.

Tel: 0870 420 2756 Fax: 0709 280 8482
Next month: Optimise Employee Training and Development, Effective Training Techniques Through Employee Involvement
Practical Business Advice from the Independent Experts Issue 16 November ‘08
Key Steps to Developing a Quality Business Plan

There are many important steps to But your project may be too important They should be proceeded by a
consider when developing a business and you may want to call in a consultant commercial engineering study which
plan for your company, but the first step for help and consultation. Even so, you projects a realistic estimate of sales.
is to fully understand the main uses of a should stay in control of its development!
business-plan. 4. In a Business Plan, the marketing
Tips for developing a quality Business plans as well as the financial forecasts
The four main uses of a business-plan Plan. require a basic understanding of how
are as follows: these important elements are calculated.
1. To be credible, a business-plan must You can use good software – some of
• A Business Plan is a written document be coherent and each parameter in the which is free – to faciliate the
that you can use in your search for Business Plan must be based on facts. development of your Business Plan.
external financing.
2. There are many methods to build 5. The last point and certainly not the
• A Business Plan is a tactical planning Business Plans, but very few can help least significant: A Business Plan is never
and management tool for your business. you correctly carry out reliable financial ended "once and for all". A regular follow-
projections based on a preliminary up and comparison between the
• A Business Plan is a document showing commercial engineering and market theoretical Business Plan and the reality
the capacity of your team to control and study. of its execution are essential. You can
manage all the aspects of the company. then modify your Business Plan and
Indeed, one frequent mistake when adapt it to improve performance and
• A Business Plan brings you new ideas building Business Plan's is to first define achieve your goals.
to refine your project by checking and the target in terms of market share, and
estimating the induced hypothesis. then try to "find" the number of customers
necessary to fill these objectives! This
The necessity of Business Plans process should be reversed.
The drafting or update of your business- 3. In addition, one essential point in a

plan is essential to the good Business Plan is to define concrete
management of your company. It can be policies and measures. This definition
used when searching for a business aims to gain a reasonable number of
partner, for obtaining external financing, customers, based on a sufficient
and for defining some stages of the knowledge of the market. The
development of your company, such quantitative estimate of this gain must be
as: calculated on realistic monthly and
annual increase rates. A well-founded
• The creation of your company. pricing policy then makes it possible to
• The launching of a new product. estimate the sales turnover in the years
• The establishment in a new market. ahead.
• The transfer, buy-out, or the structural
development of your company. The calculation of the costs of the
planned actions in your Business Plan
Should you call in a consultant or are essential and make overall financial
write the Business Plan by yourself? projections possible. In short, financial
forecasts – including those related to the
You should be the main (if not single) financing of the project – must be
author of your business-plan, because elaborated from the basic elements of the
the Business Plan is, so to speak, your project.
own "baby", it is a reflection of your
personality; it is by this means that your
investors will discover the person with
whom they collaborate.
How Important Is Strategy In Your Business?
On a scale of one to ten, having a good Figure out what resources you've already 9. Follow the same cycle next year.
business strategy rates about a fifteen! got, and what resources you need to get (Dream, Plan, Act, Check).
you past those barriers.
No matter what kind of business you Creating a business strategy and
have -- whether you sell products or a And then create an action plan that following it will ensure that you enjoy the
service, as the saying goes, "if you fail to clearly lays out how you will achieve your journey as much as getting to your final
plan, then you're really planning to fail." goals. Involve key employees with this destination.
part of the planning process.
Creating a strategy can mean the
difference between you working 60 to 80
Apply now for a no obligation,
hours a week all year long -- and then strategic review of your
breaking even, or worse, losing money. business.
On the other hand, many successful A strategy review could help your
entrepreneurs who have a strategy work company make a step change in its
fewer hours and make piles of money -- performance, productivity and
and they usually attribute their success to profitability.
having a strategic plan and following it.
So what is strategic business Our review will develop an agreed

management? Very simply, it's the Business Development Proposal,
process of defining the goals and which will identify the key steps
objectives for your business, creating an needed to move the business
action plan so you can reach them and forward, such as:
then following the plan.
· Vision & Mission
How do you create a strategic plan for
you business? · The Marketplace
· Sales & Marketing
1. First, know what your vision for your · Operations
company is. If there were no barriers, · Resources
nothing stopping you from taking your · Finance
company as far as you could -- what · Actions
would that look like? 5. Create a set of milestones or
benchmarks. This is very important, so What do we actually do?
2. Next, what are your company's core that you can measure your progress.
operating values? What are its guiding
Plan: Meet to plan the review. This
principles? In other words, why are you in 6. Share the plan with your employees,
business and how do you do business? and anyone else who will be involved in will provide us with the overview of
the process. Your annual strategy is the the business.
3. Now create a 3 to 5 year plan. Your roadmap that will make sure everyone
long-term plan is based on the broad ends up at the same destination - but to Assess: One-on-one reviews with
objectives that will help you get from be effective, everyone needs the same company stakeholders.
where you are now, to where you want to map!
be. Feedback: This brings all the
7. Put the plan into action. Now that you participants together for a two-hour
4. Develop a plan for this year. These are have the roadmap, it's time to begin the session. From this a Business
the specific objectives you plan to journey.
Development Proposal is facilitated.
accomplish this year that will lead you
closer to your long-term goals. 8. Check your progress. Just like any trip,
you need to check the map every now Implement: develop an action
Remember to be "SMART" when setting and then; to be sure you're still on the based, time lined plan to deliver the
your annual goals (Specific, Measurable, right road. If something isn't working, the objectives.
Attainable, Realistic, Time-oriented). sooner you figure it out and make the
Include a list of the barriers that are necessary adjustments, the sooner you'll Review: meet regularly with you to
stopping you from getting where you be back on track. measure the performance to targets.
want to go.

Tel: 0870 420 2756 Fax: 0709 280 8482
Next month: Different Types of Funding

Practical Business Advice from the Independent Experts Issue 15 October ‘08
Ten Tips To Improve Your Networking Skills

Effective networking makes the world go Think Beyond The Box. We tend to get
round so it is a vital skill for expanding a bit narrow-minded about where we
business and making life easier. should be networking but airplane trips,
waiting in line, public events, weddings
That is all very well but it is also an and any other place where people gather
investment of time and energy and for can present easy networking
some people this is a nightmare as they opportunities.
have to conquer their social fears and the
desire to melt into the crowd until it's time Networking skills take time to perfect and
to leave. even the best professional networkers
can still make blunders. Learning new
Here are some simple tools and tips to tools and practicing your skills will
make your networking more effective. Improve Your Listening Skills. Ask certainly make networking easier with
They basically involve taking initiative questions and show interest in those time and probably a lot more fun too.
and refining your conversation skills. around you, especially if you are at a
seated event that includes a formal meal.
Be Prepared. With a bit of light research Learn to ask questions with sincerity and
interest and then keep quiet and listen to
The Importance Of
before the event you can find out who will
be there and what the occasion is. For a the other person's reply. Networking
business event, you can brief yourself on
the topic of the occasion and at least be Take A Risk. Most people are quite
relieved to have someone approach them On a hot July day several years ago
able to hold a conversation. people gathered in droves to drink, talk,
first, so do not miss out on meeting
someone interesting just because they and do business. This wasn't a
Be Positively Charged. Arrive at the convention, reception or staff outing. The
function with a positive attitude and look look a bit cold and disinterested. They
are probably nervous and if you approach event was called Young Professionals, a
like you are glad to be there. The host will local business networking group for, as
appreciate someone who is not hanging them with warmth and interest, they could
turn into quite good company. the name suggests, young working
around waiting to be entertained or professionals. This event acted as a
introduced to someone. Help liven up the magnifying glass on the importance of
event with genuine warmth and Leave Gracefully. Always thank the host
or organizer of the event before leaving networking in business.
enthusiasm and you will find yourself
being invited to more events. and say farewell to guests you have
spoken to. The first thing you'll notice at an event
like this will be the amount of people that
Set Goals. If the thought of going to a attend. Discovering an opportunity like in
social event where you might not know Promises Kept. Your integrity and
reliability are resting on this. If you told the business world can be a refreshing
anyone leaves you in a cold sweat then feeling, especially to those that are
setting a few goals can ease your someone that you will fax them, e-mail
them, phone them or contact them after constantly scrutinized at work. If nothing
anxiety. Decide on a minimum time that else, networking provides members of
you can bare to stay for - like a hour. the event, then do so as soon as you
can. the business community an outlet to
Then decide that you will not leave before reassure one another that their current
making at least one new contact. You job doesn't have to be the only job they
can amend the goals as you gather more Stay In Touch. Once you've made
contact with someone stay in touch with ever do.
confidence.
them. People like to know that they are
thought of and important enough to be The first step in networking is putting
Know Your Lines. Have a few opening oneself out there to be met by others,
lines prepared to help initiate contacted even if you do not need them
for anything. and engaging in conversation about
conversations with strangers. Ask them business, and life with other likeminded
how they know the host or if they've been individuals.
to the venue before. This will usually lead
the conversation to what you both do and
why you were invited.
The Importance Of Business Networking Puts More
Networking Money In Your Pocket
…..continued
The next thing you'll notice at the event Business networking puts more money in They also allow only one person from
are the prevalence of business cards. your pocket by helping you overcome the each profession or industry to belong to
The importance of business cards in number one biggest problem facing new the group. This keeps the quality of the
networking is essential. If you have business owners - prospecting for new referrals high. One such group is
business cards be sure to bring them customers. Business networking events Business Network International (BNI).
everywhere, if you don't yet have a card, can go a long way towards making the
make one. whole prospecting problem go away. So what are the advantages and
There are two main kinds of networking disadvantages of each kind of
Many of your employees might be people opportunities available to the average networking? They both have their place
you'll meet networking for business. If entrepreneur. Passive networking and but strong networking groups represent a
they don't have a business card you strong networking. Both have unique bigger commitment than passive
won't be able to hire them. Having a benefits and drawbacks. networking groups.
business card and distributing it freely will
help you become successful at By belonging to a strong networking
networking. group, you are committed to be on the
lookout for referrals for group members.
If you need reassurance, look at those Strong networking groups also usually
that profit off networking the most, real meet on a weekly basis whereas passive
estate agents, stock brokers, and other networking groups usually meet monthly.
broker types. Do you ever see a drought
in business cards among these Passive networks can have multiple
individuals? Some people have stacks of people from one profession or industry as
cards high enough to hit an 11 foot members. They also have no
ceiling. requirements for passing on referrals to
other members. Referrals do occur in a
Another thing you'll notice happening at The most well known example of passive passive networking event but it is not
the event are the unabashed marketing networking is your local chamber of facilitated by the meeting and is totally up
of products, and services. Market your commerce. You can find a chamber of to the business owner to initiate. You can
product when networking. commerce chapter in almost every major belong to multiple passive networking
city worldwide. groups. Any business you get from
What if you don't have a product for sale? passive networking will most likely be a
You may have a service, or an idea, Your local chamber of commerce gives result of the amount of effort you put in.
whatever it may be, market it while you the opportunity to meet with many of
networking. You will be surprised at how the movers and shakers in your local Strong networks on the other hand
many people can help you achieve your business community. Through the many restrict membership to only one person
dream. events they plan on a monthly and yearly per industry or profession. This greatly
basis, they offer you a chance to connect increases the likelihood that you will
A few things you'll want to bring to a with a number of potential prospects for receive referrals from participating
meeting are a pen, pad, and something your products and services. members. Meetings are structured in a
to hold things in, like a portfolio. While way to encourage referrals and there is a
networking be sure to take notes if Weekly networking groups or clubs are formal referral exchange that happens
necessary, ask questions of others, and an example of strong networking every week. It is strongly recommended
capture the moment. Many rely on fate to opportunities. These kinds of business that you only belong to one strong
bring them to success in business, and networking events can be found in many networking group in order to keep the
life. But for those seasoned veterans of major cities worldwide. quality of your referrals high.
business, and life will tell you, diligence
and hard work are as important as A strong networking group will meet on a In either case, it is important for members
anything else. weekly basis for the sole purpose of of these groups to see you as
exchanging business leads with one professional and competent. Referrals
When you are networking try your best to another and learning better ways of will go to people the referrer knows, likes
get the most out of the situation. Next networking to grow their business. The and trusts.
time you are at a networking event, most successful networking groups
instead of enjoying the free pigs in a require your weekly attendance and insist Want more business? Start attending
blanket, make the most of it by actively that their members provide fellow business networking events in your area.
networking. members with referrals throughout the
year.
Tel: 0870 420 2756 Fax: 0709 280 8482
Next month: Key Steps to Developing a Quality Business Plan, How Important Is Strategy In Your Business
Practical Business Advice from the Independent Experts Issue 14 September ‘08
5 Ways Great Managers Improve Employee Performance The Bottom-line on Satisfied Employees
It may appear that all great managers 2. Setting Goals The success of an organization does not
know the secret to improving an solely depend on management but on the
employees performance. But what these Make sure you have a vision for how you work of its employees as well. An
managers know is no secret at all: want your business to operate now and in employee that enjoys his or her position
everything you ever needed to know the future. Communicate your vision to and feels rewarded by their efforts will
about enhancing the productivity of your your employees so that they are directing ultimately be the most successful in their
employees is actually contained in a few their energies toward a common goal. careers and the most beneficial to the
simple techniques that are guaranteed to They will feel like they are a part of the company.
increase the efficiency of your business. business and this will enhance
performance. There is nothing like being around happy,
satisfied employees who bring their
3. Praise optimism and productivity to the
organization. These are the employees
Take advantage of big and small who are the most attentive to the needs
opportunities to praise your employees of the customer and strive to go that extra
for work well done. Your recognition of mile to be the most helpful.
their performance means a lot and it is
important that you acknowledge their
efforts.
4. Feedback
5 Things That Every Great Manager
Be lavish with praise but selfish with
Knows
criticisms -but do offer kind words of
constructive feedback that makes your
These five things are not profit margin,
employees feel respected and valued.
gains, losses, tax deductions, or assets -
but instead are the human factors of
management.
5. Management A positive attitude is contagious and can
You cannot put a price or value on the change the attitude of every staff member
Be available as a resource to your around. However, just as a positive
factors that drive an employees
employees. They should feel comfortable mindset is easily spread, so is a negative
performance. This is because most
to approach you with questions and one. If a member of the team is unhappy,
people remain with an employer because
concerns and not feel as if they are watch out! His or her negative attitude
of the quality and satisfaction derived
imposing on your time. They should be can become infectious - contaminating
from a rewarding and balanced
able to depend upon you for guidance fellow co-worker and customers alike.
workplace.
and as a model of what excellent
performance is all about. Pessimistic employees can breed an
Great managers recognize and respect
this "x factor" of the business world and atmosphere of low morale which equals
A Last Word... decreased productivity, employee
work to improve it with these simple tips.
turnover, and unproductive time spent
As you can see, there is no one secret to gossiping and complaining among co-
1. Motivation
improving the performance level of workers.
employees. You can start today with
Every employee is unique; therefore the
these simple tips that are easy to In order to combat negativity in the work
motivation to perform better will be
implement into the everyday workings of place, it is essential that employees
different for each person. Identify the
your business. After all, your employees receive ongoing motivation from
motivator for each employee and provide
and business deserve anything and management to perform their work to the
opportunities that encourage their interest
everything that will help them flourish and best of their abilities. Regular contact with
and performance.
continue to grow. employees is necessary to show that you
care about their contributions.
The Bottom-line on Satisfied Employees
The Importance of Performance Reviews …..continued
If you employ people in your business, For instance, some Key Performance Another way to beat low morale is to
you're going to be faced with a number of Areas for a receptionist might be: develop an employee satisfaction survey.
tricky management issues - dealing with This is an easy, anonymous way for
tardiness, sick leave, and keeping your answer incoming calls within 3 rings employees to voice their concerns and
staff motivated. take messages accurately and pass problems without being identified. Issues
them on quickly that are brought up from the survey can
Performance reviews can be useful for type at a rate of 25 words a minute be addressed during an organizational
motivating employees, but only if they are meeting.
accurate. An inaccurate review, which The more measurable a Key
fails to recognize the employee's value to Performance Area, the better. Some Other ways that an employer can create
the organization, can be worse than no other measurable Key Performance an environment that motivates
review at all. Areas include: employees include:
If a performance review fails to take note number of sick days Staff lunches
of an employee's shortcomings, it won't number of absent days Holiday celebrations
be taken seriously. number of instances of tardiness Employee of the month
number of customer complaints Continuing education programs
If an employee consistently performs number of customer compliments
poorly, it's vital to document this, as well number of co-worker complaints An organization that recognizes that its
as any corrective action that is taken. employees are valuable and deserve to
receive a certain amount of praise and
Your staff may be genuinely unaware that recognition will benefit from increased
their performance in some areas is poor productivity and employee satisfaction
(or exceptional!), unless you tell them. and retention, which in turn, will positively
affect customer satisfaction. Otherwise,
Most employers conduct performance the expense of training each new
reviews annually, in order to decide on employee so that they may excel in some
salary increases and bonuses. Since other organization is foolish, time-
performance reviews should build on consuming and expensive.
previous reviews, it's better to conduct
them more regularly - every 4 months is a Management with the "easy-come-easy-
good frequency. go" mentality creates conflict, confusion
and quite a bit of turnover in the
Employees thrive on feedback, and workplace. Nothing positive can be
regular performance reviews provide a gained by treating employees in such a
consistent framework for providing manner. It's no wonder that some
positive reinforcement. employees treat their positions as a 9-to-
Of course, you would have to keep 5 job.
Under-performing employees can also accurate records of all of these, in the
benefit. Regular reviews can identify employee's personal file. Any organization can make changes for
weak performance areas, and allow you the better and help create an
to set clear goals and expectations, and You should prepare a performance environment that is conducive to
to coach and mentor the employee to review form for each employee, which employee happiness. After all, the
improve their performance. lists the Key Performance Areas for the success of your business depends upon
job, and provides a matrix for you to it.
Objectivity is vital. You need to record the performance in each area.
concentrate on measuring performance, The organization with the right approach
and not on quirks of personality. For example, you might rate the will be the one to reap the rewards of
employee's performance in each Key success.
The performance review should relate Performance Area against a scale of
directly to the employee's job profile - 'Poor, Satisfactory, Good, Very Good, Managing staff, being responsible
your employees do have job profiles, or Excellent' for them and staying within
job descriptions, don't they? The job employment law can be a pain!
profile should identify the Key Performance reviews should be a
Performance Areas for the job. collaborative process - as far as possible, Contact us now for a no
the employee should agree with your obligation review of your HR
assessment . practices.

Tel: 0870 420 2756 Fax: 0709 280 8482
Next month: Ten Tips To Improve Your Networking Skills, The Importance of Networking, Business Networking puts More Money in Your Pocket
Practical Business Advice from the Independent Experts Issue 13 August ‘08
Are You Still Having Cashflow Problems? The Office Administrator

You have agreed trading terms with your Different items can be dealt with in There are a number of descriptions of the
customers, you are invoicing your different ways but it is normally possible to administrative function but quite often it is
customers promptly, and you are chasing shave at least 10% from the overheads by the oil that keeps a business ticking over
your debtor ledger in a structured way, doing this exercise firmly and objectively. efficiently. Without a workable
thus ensuring you are paid promptly. This could make all the difference between administrative system amazing things can
success and failure. happen in a business. Some of the usual
In addition, you have spoken to your problems have to do with lost papers, lost
suppliers, negotiated on their trade terms If you are still finding it difficult to balance vat returns, Inland Revenue dates missed
to you (including price), have looked the books then there is one more question and general muddle. What is worse is to
around for competitive quotations, planned before you embark on getting into (further) discover that work has not been invoiced
your cashflow for payment and sought debt. or records about jobs are lost or
their help in promoting their product(s). inaccurate.
But you are still having problems with There is many an MD who is well aware
cashflow! that administration is not his strong point
and he will quickly get someone to help
Before turning to finance sources for more him. The essential skills of that
money then start to examine your cost administrative support person is an ability
base. to multi task, to keep records straight, to
be able to find essential bits of paper
Produce an up-to-date set of management immediately and to keep the MD informed
reports. Look at the total expenses of the of any potential untoward happening
business to date, and prioritise them while allowing him to get on with the
starting with the largest expense and essential business of the organisation.
ending with the least. Starting at the top But, of course, there is much more to the
ask yourself the following questions about administrative function than this.
each line:
There are a number of areas that loosely
Does this item contribute directly to my Does the business really have any fit under administration, especially in a
sales? future? small company. This may include:-
Could I eliminate this item altogether (or If the business is just starting and/or going  Insurances. Most companies will
reduce its cost by doing it another way) through a temporary lean period, then have office and contents insurance,
and still make the same sales? outside finance might be the right thing to employer and public liability
do. insurance. There are also special
Is the item being paid for on a loan, HP, insurance policies to cover company
lease etc., if so would the finance source But you must look long and hard and cars, professional indemnity
consider reducing the repayments in some possibly take outside objective advice insurance and other key man
way on a temporary (or maybe even before embarking on this road. It is so easy insurance policies.
permanent) basis? to delude yourself into thinking that there is  Pensions. All companies where
a business there at all sometimes. there are more than 5 employees
Does the 'sundries' line account for more should be offering a pension to
than 5% of the total? If so it needs to be So go back to basics and do (redo) your employees. These are usually
broken down and examined. market research and review your sales Stakeholder pensions and can
methods. Maybe this will highlight some include pension contributions by the
Are there any bad debts (either certain or modifications that could change your company to employee’s pension
potential)? Have I learnt anything from approach and improve the business. plans. Pension control sits loosely
these? between the HR function, the payroll
and the accountant – but whoever
looks after the pension, the detail is
important.
The Office Administrator
A Purchasing Focus …..continued
A purchasing strategy is not the domain dramatic effect on the profitability of  Health and Safety. Any company
of the larger company or corporation. enlightened companies. As a model if a with over 5 employees should have a
Without an effective strategy to manage company spent: health and safety policy in place, and
supply chains or coordinate the • 50% on purchases, this includes having first aid available
purchasing function you will never be in for employees. Keep in mind that,
• 44% on other costs,
control of your costs. should there be a claim, the MD is
they would have
the person who would be prosecuted.
• 6% profit.
The lack of strategy can result in poor By improving the purchase process by  Facilities Administration. In small
customer service, missed delivery dates 10% the results are dramatic. companies, to have an in house IT
and reduced staff moral. This is largely support function is not usually one of
• 45% on purchases,
never calculated but has a draining effect the priorities, although it is essential
• 44% on other costs,
on the business. for the smooth and efficient working
they would have
of the office and someone will need
Purchasing and supply chain • 11% profit. to attend to computers, e-mail
management should never be seen as a This doubling of profits has been problems, printer malfunction and the
back room function but a key area of achieved without any staff reduction or like. Similarly the functioning of the
business. reduction in customer services. telephones, alarms and security all
fall under administration. Likewise,
In today’s commercial environment In two of the recent cases we have been the ordering of essential supplies is
purchasing can often redress the involved in, a small engineering vital to the efficiency of the business.
continuing lower price pressure from company has improved the material
clients by maintaining or improving the  Accounting. A number of small
purchase costs by 16% and in a larger companies will outsource the
cost of sale (COS) equation. company we produced savings of 26% accounting function but even when
Cost reduction policies/ strategies over the first year and 9% the second year. this happens there are finance
recent years have traditionally focused related functions in the office which
on what can be seen and touched,’ A coordinated approach is needed to need to controlled. One of the
headcount’. avoid supply failure. Increased rather essentials is to have an easily visible
than decreased costs are likely to result record of cash in and cash out so that
Their reduction has been the result of if the decisions are not consistent or there is an at a glance view of current
Productivity improvement, Automation inline with company ethos, structure and liquidity. Excel is a flexible vehicle for
investments, Outsourcing (sub objectives. Companies should avoid having these controls in place and
contracting) and cutting out some jumping on the bandwagon of fads and easily managed. But some
activities see as unimportant. Headcount fashions. accounting software is very
as a result has fallen and in many cases reasonably priced and user friendly
this has been a correct and and worthwhile investing in while the
To get you thinking and moving forward
modernisation process. business is young.
to a purchasing strategy and lower costs
In some cases though it has been in here are six questions to ask yourself.  Payroll. Payroll has become a
blind panic to reduce costs and has 1. What is the % ratio between complicated business. Most
obvious drawbacks. These polices have bought in goods / services and companies will outsource the payroll
an effect of short-term cost increases, staff/facilities costs? function but if it is kept in house it
take time to administer and when not 2. Who is responsible for needs to be run by a competent
professionally implemented have a purchasing, are they trained or trained person using software that is
further drain on staff morale. qualified? compliant with the Inland Revenue
3. Are the purchasing decisions criteria.
In many cases can also lead to industrial made in a rigid policy or is there
action and a skills shortage in the staff flexibility to adapt to situations? There are so many more areas that will
base. Once done Directors have to look 4. Are all purchases made fall to an efficient administrator in a small
else where for the next wave of cost centrally, does everyone business, areas that will, in the organic
reductions. involved know what is being growth of the business be eventually
Procurement is the obvious place. purchased? hived off to an in house accountant, an
Bought in services and material can 5. Are you confident you have the HR manager, an IT consultant or a
amount to as much as 80% of the right buying process for both low facilities manager. In the meanwhile
revenue base. With these sorts of and high volume /value items? those efficient administrators are like gold
numbers it is clear that a saving of 10% Are your confident you have the right dust, so please give them the value they
(which is very realistic) can have a policy to cope with the future needs deserve.
and trends?

Tel: 0870 420 2756 Fax: 0709 280 8482
Next month: 5 Ways Great Managers Improve Employee Performance, The Importance of Performance Reviews
Practical Business Advice from the Independent Experts Issue 12 July ‘08
21st Century Leadership - A People Focused Approach Are You A Born Leader
One of the greatest The people focused leader has the People are not born with any particular
challenges of leadership is interpersonal skills to develop skill. We are all born afraid of falling and
the definition. There are relationships throughout the organization of loud noises, but after that everything
literally thousands of especially in the new millennium where else is learned. So it is to become a
books, documents, and many workers have more knowledge leader.
lecturers that have each than those that are leading them.
defined what their idea of Leaders are made not born. Leadership
leadership is. The people focused leader is quickly skills are acquired over a period of time
replacing the autocratic leaders of based on several factors. Here are 5 of
There are definitions for corporate yesterday. They recognize the them.
leadership, civic leadership, home importance of the people element to be
leadership, and more. We attempt to critical to the success of the organization. 1. Leaders come in all different shapes
break down leadership and make it more and sizes.
complicated than it is. At its core, With the marketplace becoming more
leadership is an individual achieving global, competitive, and turbulent, It is interesting to study effective leaders.
results through people. characterised by a highly mobile, skilled, At face value they are all different. They
and educated workforce. The people all have developed their own style based
In many cases you are considered a focused leader will need to demonstrate on their own personality and what works
leader if you hold a particular title, have a their "people skills" to drive organizational for them.
certain set of personality traits, a performance and business success.
particular skill, or lucky enough to be a 2. A true leader accepts responsibility.
born leader. None of these by itself
define leadership, mainly because Everything from how they speak to how
leadership is an individual decision. they act is part of being responsible. It is
easy to follow them because you know
Just because someone is in a leadership where they are going and know they will
position doesn't mean they necessarily lead you as well.
exercise leadership. In some cases the
informal leader exhibits leadership even 3. Leaders work at being leaders.
though they aren't in a leadership role.
They are always improving their skills
The people focused leader is adaptive and learning from the situations they are
and receptive to change. They in. They study people and have learned
understand the need to change in order how to effectively interact with them to
to stay a step ahead in order to meet the get what they want.
demands and challenges of a rapidly
changing marketplace. They have a 4. Leadership starts at the top, but is best
vision for their organization that is clearly achieved when developing a team
communicated throughout and the ability As we move forward in the new atmosphere.
to influence at all levels in order to meet millennium leadership will be the _________________________________
organizational goals and objectives. differentiating factor between successful
and unsuccessful organizations. "Whether you think you can or you think you
The people focused leader realizes that can't, you're probably right" - Henry Ford
it's not just management that drives Rapid innovation and quality
performance in the organization, but also improvements will require even greater __________________________________
its people. Happy employees are effort from the workforce in the future, Leaders know they can do better when
productive employees. The people and those that are able to change, people are working together for one
focused leader understands the influence, and transform his/her common goal. Sharing in leadership is
importance of creating an environment organization will be ready to lead their part of this process. Making everyone
that encourages diverse views and organizations well into the 21st century. accountable for what they do, but judging
stimulates employees to take initiative, success on the overall efforts of
work as a team, and continuously learn. everyone.
Are You a Boss or Leader? Are You A Born Leader
…..continued
There’s a difference between being a __________________________________ 5. Situations call for different types of
boss and a leader. Which one are you? leadership. A well-rounded leader is able
“Man cannot discover new oceans until he to adapt to their surroundings and lead
Webster’s definitions of a boss include: A has courage to lose sight of the shore” – accordingly. Coaching a football team is
person who exercises control over others Andre Gide an example of this. Sometimes the
and makes decisions, usually the person ______________________________ players need a kick in the rear and other
of highest rank or authority, a supervisor, times they need a pat on the back.
a person who commands in a They care about and inspire, their staff,
domineering manner. realizing that they are the front line 6. Leaders are respected for what they
ambassadors of the store. They not only have accomplished in the past. A real
In contrast the definitions for a leader see where the store is at now, but they leader can speak from a position of
include: A person who rules, guides, also envision what it will look like or how practical experience and know they will
inspires, escorts, directs, influences, it will impact their community ten years be listened to because they speak from
persuades, and is out and ahead of or at from now. Whether they actually own the that vantage point. A respected leader is
the head of others. They have influence, store or not, they make the store their able to command more from his people
power, and commanding authority over own. than a leader who is not.
those they lead. They tend toward a
certain goal or result, are in the foremost With a good leader, people usually feel 7. Leaders seek opinions and compile
position, and usually “pull” people toward drawn, or “pulled”, into the same vision. ideas before forming a game plan. Good
what becomes a common vision. Have you ever gone into a store or leaders know that they cannot come up
restaurant and been treated so well by with every idea that will work. By allowing
People usually follow a leader because the staff there that you just knew that you input they are able to make a more
they want to rather than have to. would return again? Not only did you just responsible decision.
receive knock-your-socks-off customer
Influential leaders, who lead with great service, but you also met employees As you can see leaders
ethics, whether they are Presidents, empowered by the vision of a true leader. have skills and they use
Kings, corporate CEOs, Girl Guide or them to accomplish
Scout leaders, bear some traits in A leader usually develops and motivates something every single
common. They are passionate about leaders under them. People who get day. You can become a
what they do and what they believe in; “fired-up” and captivated by the vision good leader if you are
they are visionaries, can see the “big and rise to the occasion. willing to work and to learn
picture," and are driven inside to draw how to become one.
people into what they believe – to jump For leaders, leadership is a way of life. If __________________________________
on the train with them. there's leadership spontaneously
required at a gathering, leaders will step "The problems that exist in the world today
A boss in a grocery store sees shelves up to bat, even if it's just to open a door
that need to be stocked, employees that cannot be solved by the same level of
as people arrive. thinking that created them." – Albert
need to be scheduled,
doors that need fixed, Einstein
Can a boss be a leader? Definitely.
floors that need to be ________________________________
cleaned, and the year-end The question is: Which one are you? Or
staff social that needs to rather, maybe the question should be:
be planned. They work Which one would you like to be?
toward these ends, seeing
them to fulfilment,
sometimes in very creative ways.
A leader in a grocery store sees those We have extensive experience of working with managing director
things too, but he or she also feels owners of businesses as well as our own knowledge of working with
excitement about being in business, or teams and managing staff.
about making profit from people’s need
for food and daily household products
and how that profit can be poured back
Contact us now to find out more about our leadership, management
into the store to make it superior over and coaching services.
other grocery stores.

Tel: 0870 420 2756 Fax: 0709 280 8482
Next month: Are You Still having Cashflow Problems?, A Purchasing Focus
Practical Business Advice from the Independent Experts Issue 11 June ‘08
How To Conduct A Market Analysis For Your Business

The term "market analysis" is often Part 2 - Identifying Market 3. Is there room for growth in this
confusing to entrepreneurs, especially for Opportunities market?
people who focus on a specific niche or
market segment. This gives you more targeted information 4. What is the size of this market?
about potential problems or opportunities Is the industry growing? Stable?
In fact, many small business owners don't in the potential market, and includes Saturated? Volatile? Declining?
understand the process or complain that information about growth, current and
conducting a market analysis is too future trends, outside factors and more 5. How is my product or service different
complicated or too expensive and wonder information about specific competitors. from the competition?
why or if it is necessary.
Part 3 - Developing Market-Driven 6. How can I reach this market?
What is market analysis? Strategies How is my competition currently
reaching this market?
In the most basic terms, a market Here is where we get into what market Is it the most effective way?
analysis is an assessment of: research does for you. It helps you to What are the alternative ways of
pinpoint opportunities to grow your reaching this market?
A particular problem or opportunity in business. By understanding the market
a market. and knowing what opportunities are 7. What are the business models of my
The needs of the target market available you can create a marketing competition in this market?
relating to the problem or opportunity. strategy that leaves your competitors in Are they effective?
Ideas for marketing a particular the dust! Is there a way to do it differently or
product or service that fills the needs better?
of the target market.
8. What do customers expect from this
When should you conduct a market type of product or service?
analysis? What are the core competencies of
this product or service?
When you are starting a business. What would make the product "new"
When you are entering a new market. "different" or "better" for the
When you are considering a new customer?
product or service.
9. How much are customers willing to pay
Why should you conduct a market Here are 10 questions that can help you for this product or service?
analysis? get started:
10. What is our competitive advantage in
To minimize business risks. 1. What is the market I want to reach? this market?
To understand the problems and Who are they? (Basic Demographics)
opportunities. What is their biggest problem in Knowing the answers to these questions
To identify sales opportunities. relation to this market? will not only help you figure out if there is
To plan your marketing/sales Are their needs being met by the a need for your product or service, it will
approach. products or services provided in this help you figure out the best ways to
market? reach your customers, price your
The process of conducting a market products or service and ultimately make
analysis can be divided into three parts: 2. Who is my competition in this market? more sales!
Are they successful in this market?
Part 1 - Understanding Market Are they marketing a similar product Apply for your free market
Conditions or service?
What is the market share of the three analysis from one of our
This gives you basic information about biggest competitors in this market? independent marketing
your entire market – the size, the specialists.
competition, the customers. Call us now.
need? If you are working with an existing
Marketing - Back to the Basics product, you need to make sure it fits
your intended target market. If it doesn't,
can it be altered so that it does? It's
Too many entrepreneurs and small Once you feel that you have subdivided critical to match the right product with the
businesses dive right into the thick of the market finely enough, then you need right customer.
operations without following basic to evaluate those segments. Try to
marketing principles. In business, as in quantify how large those segments are, Price
most things, it pays to occasionally take a how reachable they are and how unique Pricing your offering is an art. You must
step back and evaluate the bigger they are from one another (i.e. is there consider many factors, such as the
picture. Drafting a very basic marketing considerable overlap from one to the stigma different price points carry - for
plan can help you focus on the right next?). example, being too inexpensive sends a
activities, target the right customers and message that your product may be junk.
set the best prices. Targeting It's also critical to consider the
The next step in the process is to look at competition here. It makes little sense to
The STP Process the segments you've created and make target the same market with a similar
STP is an acronym for Segmentation, some decisions about which segments of product at the same price as your
Targeting and Positioning. It represents the market you are going to go after. One competitors. Entire books have been
the highest level of your marketing plan. of the first decisions you will have to written on the subject of pricing. The
Ideally, you should start this process make is whether to target a "mass" important thing to keep in mind is that
before your product or service is ever market or instead whether your marketing you can't lock yourself into a cost plus
brought to market. It can still be a efforts will be more focused. That is to profit margin way of thinking. Instead,
worthwhile exercise for an existing say, are you going for a larger, less consider the price independently at first in
product though. defined segment or a smaller more terms of your competition and the value
defined segment. The general trend over your offering brings to the customer.
the last decade has been to go after
more defined segments. The extreme Promotion
here would be to go after a "niche" This is what most people think of when
market which is just a fancy term for a they hear the word marketing. As you can
highly defined, fairly small segment. The see though, it takes a fair amount of work
reasoning being that there will be less before you get to this point. Promotion is
competition for those segments. simply how you intend to get the
message to your customers about your
The segment you choose will have a offering. Will you use commercials,
profound effect on everything else you magazine advertisements, radio, the
do. You need to carefully evaluate the internet, mass mailings?
most appropriate route for you business.
When deciding between different market Place
segments, you will want to try and identify Lastly, you need to think about how you
Segmentation the competition for that segment, the will bring your product to market. This is
Segmentation is simply a fancy way of potential value of the segment (i.e. how sometimes referred to as marketing
saying that you need to identify your large is it, how expensive will it be to channels. That is to say, will you sell
customer. Think of every possible reach it with advertising, etc.). directly to the customer or will you sell to
customer. Now, start slicing that distributors or retailers who will then sell it
population into smaller, more defined Positioning to customers? Where geographically will
segments (thus the name segmentation). You've segmented the market and you've you sell your product? Will you sell
It's best to start big here – for example: chosen the segment that you are going to entirely on-line or in a traditional
split individuals from businesses. Now, go after. The last part of your marketing brick-and-mortar location?
go into each segment and divide it plan will help you define how you are
further. You could split individuals further going to "position" your product or service Bringing it all together
by sex, age, socio-economic status, to your selected target market. You probably already have some or most
geographic location, interests and of your marketing plan in your head.
hobbies and so on. At this point, try not to This is where you will invoke another However, following this tried-and-true
pigeon-hole yourself by prematurely handy acronym called the 4P's - Product, process can help you formalise your
selecting segments. Remember, you're Price, Promotion, and Place. marketing strategy and can help you to
trying to find meaningful groups of identify holes in your business and it
potential buyers that will exhibit similar Product sometimes can help you identify
buying behaviour. You need to focus your product towards opportunities that you might not have
your selected target. What do the thought to exploit.
Your goal is to identify opportunities. people/firms in your segment want or

Tel: 0870 420 2756 Fax: 0709 280 8482
Next month: 21st Century Leadership: A People Focused Approach, Are You A Born Leader?, Are You a Boss or Leader?
© 2008 - UK Business Advisors - No unauthorised use of any of the contents of this newsletter is permitted - All rights reserved
Practical Business Advice from the Independent Experts Issue 10 May ‘08
7 Techniques to Motivate Your Team Members How To Be A Team Player
You can motivate your team members 4. Praise and Criticism: This Team players are usually the people that
externally or internally. External motivational technique is similar to are known for sacrifice, sharing, and hard
motivation relates to the working 'reward and consequences' technique. A work. Does this sound like a reputation
environment. However, internal word of praise or criticism shall have you'd like to have? Many strive to be a
motivation relates the interests, aptitudes definite results upon your subordinates. team player in the work place, but it takes
and dreams of your team members. However, like rewards and more than just having a desire, it takes
consequences, this technique should hard work.
Here you shall find seven critical also be used carefully. Sometimes your
motivational techniques to get the best team members will do better with One piece of advice from a father figure
out of your subordinates. criticism and other times they will stop of mine that embodies the concept of
working. team work that he used to say to me was,
1. Reward and Consequences: It is the "Usually doing the right thing is the
most popular technique being used by 5. Success and Failure: To motivate harder thing to do in life".
the managers. It mobilises motivational your team members, you should analyze
energies in the team players. The reward their successes in open and failures in Being a team player often involves doing
can be in the form of special promotions, your office. Most of the people like to the right thing by not always having your
raises or words. However, excessive use continue doing what is working for them. self benefit in mind. This article looks at
of this tool may create jealousy amongst Don't try to change their style unless you several key principals to being a team
your subordinates to disturb the working find them failing to achieve what you player.
environment. Fear of consequences also desire of them.
plays an important role. You need to be To begin being a team player look at the
careful here too. A wrong consequence team you are on and define the team
at a wrong time may backfire. Just create goals. Often these goals will differ from
a balance. your own personal goals. Be sure to keep
the team's goals first on your list of
2. Setting of Goals: Setting of well- priorities.
defined goals helps your team members
to do their best. Set meaningful and Once you identify the team goals think
justified deadlines to get the project about the best way you can contribute to
finished within time. You need to work at the team by reaching these goals. Try to
two levels. First, set your objective. thing about reaching goals as absolute
Second, divide that objective into goals destination, rather than just a possibility.
and sub-goals.
That is to say, look at meeting team goals
3. Advisory Techniques: No one is as something that will happen, not
perfect. Being a team leader you must 6. Competition: It is the strongest something that can happen. With this
always be ready to offer advice when motivational technique to get the best out attitude being a team player will become
your team members face some stumbling of your subordinates. You can use this a reality.
block in their performance. Encourage technique very effectively when combine
them to remove their weaknesses and with setting of efficient goals. Competitive Team players must recognize their
continue what works for them. circumstances will help your team individual strengths in order to provide
members to perform the best. the team with something useful. If you
have a great ability to work with numbers,
7. Interests of Team Members: Do you nominate yourself the maths person, and
know what interests your subordinates? try to work on all aspects of the project
Just find out those interests and entrust that deals with maths. Conversely if
them with tasks that they love to do. It will you're one that is not good at something,
increase their efficiency on one hand and be sure to make that known to the team.
speed of the project on the other.
Random allocation of tasks may not be
too helpful to all of them.
Teambuilding For Any Business How To Be A Team Player
…..continued
If you are shy and introverted, and the

team wants to make you the sales person
for the group, tell them that might not be
a good idea. By establishing your
strengths in the beginning one puts
themselves in a better position to excel at
a task for the team in the end.
Always try to help out others in need

within your team. Often times team
members will become so engulfed in their
own assignments that they fail to realize
others are struggling. If one has the
attitude that they will only do what they're
being paid to do, then they may only
achieve so much for the team. If one
applies the attitude of helping a brother or
sister in need, the team can build and
succeed upon such efforts.
The old cliche that teams are only as

strong as their weakest member holds
true in today's work environment. By
Teambuilding can be an important way of Having a teambuilding consultant visit defining goals, recognizing strengths, and
developing your businesses most your company for a day or a week can be helping others you will give your team a
valuable assets, its employees. cost effective, however, only if you have better opportunity of having no weak
Especially when hiring new employees or no spare resource in your HR or members what so ever.
starting a new business, building a personnel department. This can also be
relationship within your team is of prime more convenient for employees who may
importance. not prefer to stay overnight away from Often members of a team will be struck
home. by how simple exercises draw on the
There are many companies that offer different strengths of team members.
teambuilding courses, both residential Teambuilding exercises usually begin
and in house. Teambuilding courses can with an icebreaker, which is a term used One person in the team may be a natural
be expensive, so let us explore the to describe a 'getting to know each other' leader, another has good analytical or
options so that you are sure to choose session. engineering skills, and another may have
the right teambuilding exercise or great communication or personal skills.
teambuilding course for your staff and Each person will usually be asked to
company. stand up and describe themselves in All different skills come into play and will
some detail. This is often surprising even be brought out of your team members as
In-house teambuilding, done on the site when you have worked with a person for they work through the exercises.
of your company, is the cheapest option many years as there may be many things
as you have no accommodation fees to that you did not know about them. Often after teambuilding sessions
pay. members find they have new found skills
Other exercises throughout your to apply to work situations, and are ready
If you need to keep the cost really low teambuilding course will focus on for new challenges, which is great for
there are many teambuilding guides interaction between members of the business!
available on the internet that will allow team. Common exercises include
your human resources department to building bridges or crossing rivers. Contact us now to find out
create their own teambuilding course how you can develop your staff
suited to your companies needs - all Tasks undertaken on teambuilding
without employing an external courses should be ones that would be
and impact the profit and
teambuilding consultant. impossible to complete as an individual, performance of your business
but easily manageable as a team working through motivation and
together. teambuilding.

Tel: 0870 420 2756 Fax: 0709 280 8482
Next month: How To Conduct A Market Analysis For Your Business, Marketing - Back to the Basics
Practical Business Advice from the Independent Experts Issue 9 April ‘08
Sources of Finance
How to get money into any business is a • They want your business. They have
problem as old as the hills, so don’t feel sales targets just like you. If you can put
that your situation is unusual. There are up a decent plan they will fight to get your
four main ways of achieving this: business.
1. Don’t overlook the obvious! • Don’t leave it too late to approach these
institutions. There are various different
There are things you can do with what sources of funds from banks:
you’ve got that will bring money in to the • Loans: Again, presented in the right
business. • Overdrafts: Never forget that this is a way, this can be an excellent source of
major source of revenue for a bank, and finance, particularly as interest rates are
• Is your marketing up to scratch? Re- they want your business. so low at the moment. The small firms’
examine how you bring customers into loan guarantee scheme may also be
your business. Run a test before you Make sure your bank manager knows helpful in some situations.
commit too much money to it. There are what’s going on and they will be a lot
a hundred different ways of generating more co-operative. 3. The Government
new business, so don’t think that you are
applying them all at the moment. • Lease finance: This enables you to Believe it or not, the government wants to
match the costs of buying the asset with help you grow. There are over 1,500
• Are you collecting in your debts quickly? the income you generate. However, do different types of grants available, and it
Even a small improvement in your debt read the terms carefully and shop is sensible to seek expert advice in
collection can be a source of funds for around. teasing out what may be available. Main
your business. types are:
Focus at what happens at the end of the
• Are you extracting maximum benefit lease as there are many options here. • People based: These tend to be support
from your suppliers? Could you extend with training – such as the modern
credit with them? • Factoring: Asset based debts can apprenticeship scheme for 18-25 year
easily be assigned to a third party. This olds.
• Could you reduce stock levels? Could means they put you in finds immediately
deliveries be closer to “just in time”? and collect the debt for you. • Knowledge based: Various grants are
available for research and development.
• Are you sitting on under utilised assets? • Invoice finance: This is the same thing
Do you have a freehold or machinery that as factoring, except the customer does • Location based: The further you are
you could sell and leaseback? not need to know. This can be very from London the more likely grants are
flexible and do whatever you need. available. Again, this requires specialist
So look at the obvious things before you help.
start looking elsewhere.
4. External investors
2. Banks and other financial
institutions Do not assume that just because you
have a good idea others will catch on
When you’re thinking of approaching quickly. Dealing with external investors is
banks and financial institutions all in the presentation. You need
remember: something snappy to catch their interest
and then well presented detail to hold
• Have a decent plan to show them what their interest.
you are trying to do
Sources of Finance 3 Strategies For Increasing Profits
…….continued
Typically investors can break into three It's a simple yet common question, "How
categories can I make my business more
successful?"
• Business Angels: These are people who
have made money who would like to use Success can mean a lot of different
that money to back others. They will things to a lot of different people but
typically invest from a few thousand when it comes down to it, the success of
pounds up to about a million. No hard your business should only be measured
and fast rules and they can be difficult to by one thing - profit.
find, let alone close a deal with.
At the end of the day, it's not how many
• Venture Capital Funds: These are people came in to your store or phoned
in. It's not even how many widgets you
interested in investments of at least
£500,000, and often a lot more. sold. At the end of the day, what truly
matters is how much of a profit you
made.
• Other Companies: Another company
may well be interested in investing in It would make sense then that your
your company – perhaps with a view to efforts focus on profit as the end result.
outright purchase in a few years time. Be sure to place your contact info on
With that in mind, there are only three each and every candle. This makes it
strategies to increase profits for your easy for the gift recipient to purchase
All of these options will want to have a business. from you. Be sure to also use this tactic
share in your company, and with that
when co-promoting with similar
comes a loss of control. 1) Increase the pound size of each order businesses such as a flower and bath
and body shop.
Be prepared to discuss this early on in 2) Increase the number of times people
any conversation. buy from you Looking at the example Happy Wicks
Candle Store, the tasks of increasing
…and you must plan 3) Increase the number of people who profits was not a difficult one. Truly, it's a
buy from you matter of putting systems in place that
To improve your chances of success in generate increasing profits.
gaining additional sources of finance you Most likely, your business is already
must have something in writing. Often the primed to attack each of these three Take a look at your business and
very act of writing something down will angles and implementing that attack examine the systems you have in place.
help clarify a course of action. It will also should be fairly easy.
help to explain your thoughts to others in Chances are, there are undiscovered
a rapid and coherent way. Let's say that you are the owner of Happy profits laying about. Put systems in place
Wicks Candle Store. Let your customers to gather those profits and you'll find your
know that for every £50 they spend they business reaching new heights of
will receive a free 4-inch candle. When success.
they are eligible for the free candle, offer
them the option of upgrading the 4-inch
candle to a 6-inch candle for only two
pounds.
Implement a customer loyalty program.

Whenever a customer spends £200 with
your store they receive a 20% discount
on their next order. Show loyalty to your
For a free, no obligation review customers, too. Create customer-only
of your financial status, please events and sales, even workshops on
contact us now. how to make candles at home.
Candles are also popular gifts.

Don’t leave it to chance.

Tel: 0870 420 2756 Fax: 0709 280 8482
Next month: 7 Techniques to Motivate Your Team Members, How To Be A Team Player, Teambuilding for Any Business
Practical Business Advice from the Independent Experts Issue 8 March ‘08
Time Management: Accomplish More in Less Time

Everyone gets his or her own 24 hours These organisers help you schedule 4. Prioritise - Time management relies
each day, but why is it that some people appointments and duties and make upon good prioritising. This depends
are able to squeeze more keeping appointments a snap. upon your understanding of your
accomplishments into those selfsame resource limits such as time, effort, and
hours? Is it because they have These are also good productivity tools. finance.
supernatural skills? Or is it because they You never know when a good idea could
work harder? hit you. So, if you are constantly armed Timely allocation of these resources to
with a pen and paper - or an organiser for the module that requires them is of
Hardly. The secret to getting more done that matter - you are in a better position paramount importance when managing
without necessarily working harder than to capture the idea and put it in motion. your time.
others is proper time management. Truth
be told, even some geniuses seem to This is especially true when the idea you
struggle with managing their time and just came up with could make your work
end up being less productive than those easier to accomplish and more efficient.
with great time management skills. The fatal mistake most people commit is
to think that they can delegate all the
organising and note-taking to memory.
Unfortunately, just like you must have

forgotten what you dreamt about last
night, you are bound to forget whatever
idea you whipped up a few days ago.
2. Modularise - The best way to deal Time management is no easy task. It

with one major problem or multiple major may even eat into quite a bit of your
problems is to divide and conquer. If you working time.
feel that a problem is too big to handle,
then it probably is. However, you should realise that even
Time management allows you to get though you spend much time planning
more done with less effort. It also helps Instead of buckling under the pressure, and managing your use of time, it will
reduce the stress that accompanies the best thing to do is to cut up the prove to be well-worth the effort as good
having to finish multiple jobs at the same problem into more manageable parts and time management is the only way to
time. deal with them appropriately. successfully tackle any project.
If you truly are desperate to juggle all One of the biggest reasons people are
your responsibilities without having to unable to handle large projects is their “Insanity: doing the same thing
sacrifice too much, then here are some inability to subdivide the problem into over and over again and
tips and techniques to help you on your modules that can be easily expecting different results”
way. accomplished. After making the problem Albert Einstein
more manageable, you can then allocate
1. Keep notes - Some of the best at resources such as schedule, finance, and
managing their time have a handy effort towards accomplishing the project.
notebook in tow in which they are able to To improve the way in which you
keep track of the day and the things they 3. Delegate - Another way to manage manage your time and to help you
need to do. Notebooks are a handy tool your time wisely would be to delegate become more effective in what
in organising a day. some jobs to other people and making you do….contact us now.
sure that everyone can work in sync. This
As the world becomes increasingly will take a lot of communication, skill, and
technology-based, more and more mobile effort - but ultimately, it is the only way to
organisers are becoming available. accomplish anything that may be too
large for one person.
A Fresh Look at “To-Do” Lists
Planning is essential to making the best Hyrum Smith, author of The 10 Natural That is, determine the relative importance
use of our time. A tool that many of us Laws of Successful Time and Life of each task. For example, the most
use to try and maintain a sense of Management, suggests renaming the list important A task would be labelled A-1,
priorities is a to-do list. Have you ever a "Prioritised Daily Task List." the second most important, A-2, etc. Do
used a to-do list? the same with the B's and C's.
The name's a bit long, but it suggests that
more important items are going to be on
the list along with daily maintenance
items. Smith indicates there are three
steps to making a meaningful prioritised
daily task list:
1. Make a list of everything you would like

to accomplish today, including tasks that
are not urgent. Jot down anything and
everything.
2. Give a value to each item on the list.

It's called the ABC valuing system.
Assign the letter A to anything that is vital

and must absolutely be done today. The
letter B goes next to tasks that are
important and should be done.
So now you have a well prioritised list.
Last, letter C is given to anything that is
relatively trivial and that could be done. But it's no good unless you use it
properly. How good would you feel if at
We decide to make a list, and then as we If nothing else happens today, you will the end of the day all of the C's have
accomplish a task from the list we cross it accomplish the A's. If near the end of the been done, but the two most important
off. What a feeling! And when we do day all of the A's have been things, A-1 and A-2, remain untouched?
something that wasn't on the list, we add accomplished then you can do the B's. If
it to the list so that we can cross it off - at the end of the day you have time left You've given the tasks their value; now
another great feeling! We just love to over, you can tackle the C's. proceed according to that ranking for a
cross things off the list. true feeling of accomplishment.
3. Give a numerical value to each item on
Why do we love it? It feels terrific and the list. Go through your list one more This prioritised daily task list can be a
studies show that when we cross a task time and prioritise the A's, B's and C's. powerful tool!
off our list our brain produces a rush of
endorphins, causing us to feel good.
Of course we want to feel good, but this “I love deadlines. I like the whooshing sound they make as they fly by”
is a temporary high. Traditional to-do lists Douglas Adams
are just maintenance lists - it's what
needs to be done to keep our heads
above water.
Find out about our leadership and management development courses,
We often reach the end of the day and covering not only time management, but also including all skills and
realise we didn't spend our time doing the aspects required for enhancing your performance as a leader or
things we most wanted to. That could be manager within your organisation.
because the highest priorities in our lives
rarely make it onto the to-do lists.
Let's change that. Call us now.

Tel: 0870 420 2756 Fax: 0709 280 8482
Next month: Sources Of Finance, 3 Strategies For Increasing Profits

Practical Business Advice from the Independent Experts Issue 7 February ‘08
Say “No” To Cold Calling This reduces the rejections and

stimulates new business inquiries from
others. To become a specialist you
should use different types of marketing
Starting at the A's and working Take a close look at your ideal prospect.
strategies.
through the Z's of the local phone
book is not the most profitable way to Who are they?
To build your reputation you must
sales success. What do they act like?
become involved in the niche you are
Why is this the type of prospect
servicing. Join organisations and trade
Your cold market is all the people you you want?
groups of your niche market. Maybe
do not know.
become a member of their community.
Consider the characteristics of your ideal
Obtain leadership positions within these
You have at best a 9 percent chance that prospect. You have selected your niche
organisations. You want to be visible and
your cold market will turn into your warm market and determined what your ideal
known.
market. prospect looks like.
Create an awareness of you and your
The odds are against you the moment Now, ask yourself “How can I become
business. There are many opportunities
you pick up the phone book. somebody special to them in this area of
to speak at lunches and weekly or
sales?"
monthly meetings of organisational
A survey of buyers discovered that:
groups. Get out there and be seen and
heard.
91 percent of buyers never
respond to an unsolicited inquiry
Write articles with information that your
niche market would find informative.
71 percent of buyers find cold
Submit these articles to trade
calls annoying
publications for your niche. Contact your
local paper about writing niche specific
88 percent of buyers will have
articles, start your own newspaper
nothing to do with cold calls
column.
Stop wasting your time on cold calling
Write letters to the editor of your local
and start building your sales success with
paper about controversial issues. Always
buyers that contact you. This is the best
end your letters with your name and the
place to focus your energy.
name of your business. Write a reply to
an editorial opinion in a niche specific
Your success begins by taking a creative
trade journal.
look at what you are offering to your
prospects.
Develop educational flyers or brochures
to generate awareness about your
Why does someone need your
product or service.
product or service?
Who would need your product or

service? For help with your marketing
activity and to learn about other
And finally, low and no cost ways to promote
Your goal is to market yourself to this
What makes you different from niche as the one that has the solution to your business:
your competition? their needs. It is time to market you along
with your product or service. When you Contact us now for a free, no
decide to target a niche market you have obligation review of your current
When you determine who needs your the opportunity to build a reputation for
product or service, you have pinpointed yourself as a specialist in your field. marketing activities.
your niche market.
Say “No” To Cold Calling 8 Secret Tips When Writing Sales Letters
…….continued
If you are offering a new type of product Did you know that fortunes were made Secret six: Guarantee.
or service, issue a press release. or lost on the strength of sales Offer an unconditional guarantee. Your
letters? reader does not trust you or your product.
Stimulate inquiries from high-potential
prospects by conducting seminars It is not "Build a better mousetrap" You must reassure them that they are not
centred on your niche market. that will make you rich. It is "Create a taking any risk by buying what you are
better sales letter" that will lead you to selling. You must make them feel
You do not want the seminar to be all fame and fortune. comfortable.
about sales, you want to educate your
prospects about you and your product or Secret one: Know your audience. You as the seller need to assume all the
service. This is often overlooked. You don't use risks.
the same approach to sell teenagers that
Advertise to your niche market. you would use for senior citizens.
Advertising will be costly and must be Analyse your audience and find out how
ongoing in order to be effective. your product will solve their problems.
Start a newsletter based on your niche Secret two: Headline.

market. This is the most important part of your
sales letter. You must draw your prospect
Participate in local radio interviews about in with your headline.
your niche.
If the headline does not interest them,
Contact your local television station and they will not read your letter. Your
find out if they produce segments on new product may be wonderful, but if the
businesses in the area. prospect isn't interested in reading your
letter, there will be no sale. Secret seven: Close.
Make it easy to buy and ask for the sale.
Secret three: Introduction.
Introduce yourself briefly and tell the Tell the reader how to order the product
reader how you can solve their problems. and how fast it will get to them. Include
as many different kinds of payments as
Tell them how you have solved the possible.
problems for other people. Use stories to
relate how you have helped people just If you streamline your payment process,
like the reader. it will make it easy for the customer to
buy your product.
Ask for referrals from community leaders. Secret four: Testimonials.
People are sceptical and need Secret eight: Test.
convincing. Include several testimonials If the headline is the most important
Explain to them who you are targeting, secret, this is the second most important.
who your ideal prospect is, and ask if from people who have tried your product
and liked it. The magic number for You need to test every aspect of your
they could introduce you to a couple of sales letter.
individuals that may be interested in what testimonials is three. If you have more,
you are offering. Host a small casual use them.
It can be very time consuming to do
function so that you can be introduced to these tests, but it is very important that
these referrals. Secret five: Benefits.
Your audience does not care about you you do this.
Say "No!" to cold calling. Put the phone or your product. All they want to know is
what will your product do for them. Only test one thing in your sales letter at
book back on the shelf and start using a time.
marketing strategies that work.
Do not describe your product here.
Instead, tell all about the benefits and You can test different headlines first,
Create a marketing plan that includes then test your guarantee, then test your
various strategies and you will have a what the product can do for the reader.
Tell them how their life will improve with price, but you must only pick one thing
steady flow of prospects calling you. to test at a time.
your product.

Tel: 0870 420 2756 Fax: 0709 280 8482
Next month: Time Management - Accomplish More In Less Time, A Fresh Look At “To Do” Lists
Boost Your
Business
Business Advice from the Experts Issue 6 January ‘08
How much risk are your staff?

It would be hard not to have noticed What are the risks?
how much of our production and As with any risk assessment, the Whilst considering weather, although
even service delivery is going off impact of an incident is as important not directly related to staff, give some
shore. One of the impacts from this as the likelihood. You’ll appreciate thought to the impact on your cus-
is the emphasis that is now placed on that a low likelihood doesn’t mean it tomers, if they can’t sell, will they be
commercial differentiators other won’t ever happen, the chances of buying from you and will they be
than price. These differentiators fo- winning the lottery are 14 million to able to pay you? Also your suppliers,
cus on the culture of the organisation 1 yet there is at least one winner can they supply you?
and, more fundamentally, the people. almost every draw!
Illness – Often overlooked until you
Most common: Staff leaving get a phone call to say “I’m sorry
If a key member of the team hands in but….”. Take the time now to con-
their notice a regular ‘knee jerk’ re- sider the impact in the clear light of
action is to rush in a counter offer. day, rather than the gloom when the
£
If this does work then in the majority problem hits when you have to act in
of cases it will only buy you time and haste and repent at leisure. Here are
may add to your problems (not least a few ‘what if…’s to think about:
in that the psychological balance of Short term illness
power has shifted). Also consider Long term illness
that for them to have handed in their Permanent disability
This is where the concept of the notice they will no doubt have men- Illness of a close family member
‘human’ capital asset of a business tally moved on already. Consider these for all of your staff
becomes important and a real chal- and the likely effect. If there is little
lenge for any accountant. Given the impact then what value are they add-
importance, how do you protect ing to the organisation? If no value
these assets let alone value them in then it’s worth managing that situa-
financial terms? tion to turn it around.
The staff are the people who create If there is a considerable impact
and innovate, have the knowledge then, as a smart business person,
and experience that set you apart what are you doing to manage and
from the competition, the style and control that risk?
quality that make you unique in the However, what about…
delivery of your services. And of Weather – Take this opportunity to
refresh your thinking here. For your And why bother?
course there is the fact that people As with any risk review you should
buy from people. staff, weather can impact:
Your site, be able to identify opportunities that
give you a double bonus to make the
So most businesses are exposed to a Whether your team get to work,
exercise even more worthwhile.
significant level of risk relating to The availability of your team
their ‘People Assets’. How well are (“next door’s tree knocked down
you managing this risk? half my house!”).
Tel: 0870 420 2756 Email: info@ukba.co.uk

When is a good time to change gear?
For those of us who drive, there is 2-4,000 rpm, above this it will still You
little consideration given to chang- operate but not as effectively or for When the business can’t func-
ing gear, it’s something we do to as long as you might want. tion without you
attain greater speed without de- When your quality of life is not
stroying the engine or gearbox and It’s knowing what is the optimum what you want
also to keep the the car operate at operational level for your business, When your work life balance
maximum efficiency. then planning and building around isn’t right for you
this knowledge that is most impor-
tant. Plan your gear changes ahead Of course, changing gear isn’t sim-
and they will be as effortless as a ple in business, but does that make
driving an automatic. it less important or critical? That’s
why change-management skills,
When to Change Gear? knowledge and understanding is
crucial. Investing time and money
on this will reap considerable bene-
fits.
Yet what we do to change gear
goes against basic thinking; we’re A lack of real appreciation or poor
trying to go faster yet we take our management of the process will be
foot off the accelerator! Not only like changing from 4th gear to 5th
that, we disengage the engine from and ending up in 1st or neutral or
the gearbox so there’s no power even reverse (I can almost hear
going to the wheels; we’re poten- those gears disintegrating!).
tially losing speed! The Business
When there is little spare ca-
No doubt some of you will know pacity
where this is going and it’s worth When a minor issue had a sig-
giving some time and thought to nificant impact on the business
ensure you’ve not fallen in to that
paralysis state that cripples some The Team
businesses without them realising.
When you don’t have confi-
That state where you don’t dare dence in their performance
take your foot off the accelerator
When good members of staff
because the business has to keep
leave Are You Going To Stay in 2nd
pushing hard and stay ahead of the
Gear?
competitors.
The Market Of course you can stay in one gear
When you think you can’t in- and cruise but that does not mean
Why Change Gear?
crease your sales you can stop concentrating on the
It’s all about reaching capacity
road or switch off, it just means
within an area. In a car usually the
And not forgetting.... everyone else will pass you by.
engine performs best at between

White House, 66 Altwood Road,
Tel: 0870 420 2756 Fax: 0709 280 8482
More useful information, advice and tips coming up next month

© TBBA Ltd
Boost Your
Business
Business Advice from the Experts Issue 5 December ‘07
You Probably Want Things To Be

Chalk and Cheese part 2 – What
Different No two individuals have had the
same experiences in life and no two
would make those parings appro-
priate?
individuals have exactly the same
You’ll probably agree it’s not a thought processes; that’s where the A truly open and interactive brain-
straightforward job running a strength of brainstorming lies. It is storming session won’t necessarily
business. It requires entrepre- because of these differences that resolve the issue that brought the
neurial, marketing, management, everyone has a valid input. So the session about. The beauty of these
accounting and people skills! key to any brainstorming session is sessions is that they can do so much
that it is an open environment where more. They can bring about brand
everyone’s input is relevant and new ideas or opportunities or solve
must be appreciated. other unrelated problems.
Consider each idea or suggestion to The greatest benefit of all from these
be another stepping-stone to help sessions is the difference it can make
you get across a turbulent and fast for you and your staff. Managed
running river. Rather than looking right, you will discover hidden tal-
for the next stone directly ahead, it ents among the team that you can put
can work in your favour to move to to good use. More importantly if
the side or even revisit a stone you everyone is positively encouraged to
passed earlier. partake the staff will the staff will
feel more involved in the business as
There can be no bad or inappropriate a whole so you are likely to see an
On top of all that, we’re expected to contributions. The only thing that increase in productivity and a reduc-
be creative geniuses finding new can go wrong is that someone’s of- tion in staff turnover as they will feel
markets or offerings so the business- fering is shot down in flames; it like they ‘belong’.
es continues to thrive and survive. takes skill to manage one of these All this is achieved for less than the
sessions.
For some of us we’ve been able to cost (in both time and money) of a
grow our business sufficiently to Perhaps the most difficult part is day spent paint balling!
employ others to take up the reins in getting the session going. We find
some areas, however it is the realm it best to start on a completely dif-
of innovation that the expectation ferent topic to the one you want to
for new ideas falls to the owner- ‘solve’. This will help create the
managing. right state of mind for being the
most creative.
This is where the art of what is com-
monly called ‘brainstorming’ brings Some useful starters are:
great rewards. As a note, the politi- The House brick - Come up with
cally correct expression is ‘thought 30 different uses for a house brick
shower’, as this is not widely Chalk and Cheese part 1 – come
known, for the purpose of this arti- up with the most inappropriate
cle we’ll use ‘brainstorming’. parings you can think of.

There is a theory in selling that says
How To Beat Those on average it takes seven separate

interactions with a prospect before
they will buy. This not only applies
Cash Flow Blues for new clients but existing ones too.
So maybe this work should be han-
dled by your sales function.
With the current credit crisis, and ever, it can be the long-standing So, your call to check that everything
the Bank of England toying with customers that cause the biggest has been delivered OK is one step
increasing interest rates, it is ap- debt problems, especially if they closer to another sale. The next call to
parent that companies are starting account for a significant proportion check they are enjoying the benefits
to feel the squeeze with customers of your turnover. of your offering is another step closer
taking longer to pay and overdraft 2) Deliver what the client or- plus an opportunity to check every-
interest costs increasing. dered and invoice immediately. I thing is OK for payment at the end of
know this seems obvious but it’s the month.
surprising how many companies
don’t do this. If a debtor is looking When payment hasn’t arrived as
for an excuse not to pay this is the agreed then your next call is a credit
one, it always puts you on the back control call.
foot. This process is all about good custom-
3) Shortly after issuing the in- er service and building a positive rela-
voice contact your client and check: tionship. Follow this process or one
a. The invoice has arrived. similar that fits in with your client
b. That it is correct and in line profile and you’ll put yourself in a
with your clients expectations. very strong position. You’ll also find
c. When payment will be made. that when times are hard for a client,
4) Two days before the payment your bill will be one of the first to be
date contact the client to check eve- paid. How good would that be?
Now would seem to be a good time to rything is OK
5) If payment hasn’t been re- If you don’t have the resources to do
look at a way to beat the cash flow
ceived within 4 days of it being due this work then an ideal solution can be
blues.
contact the debtor and establish a factoring service that can also do the
95% of problems can be avoided by what has happened. credit control for you, there can be
following a fairly straightforward more benefits than you think by fol-
process. lowing this route. An advisor can
Of course, the best approach is to be help you decide the best course of
paid up front but this isn’t always an action for you so don’t delay, act now..
option. As an alternative, we’d sug-
gest the following approach:
1) Always get written agreement
from your client for the sale or or-
der. This could be a letter or note, To be effective this process shouldn’t
e-mail or, even better, a numbered really be undertaken by the office
and signed purchase order. Some ‘Rottweiler’. This is likely to put
businesses fail here, taking orders your client’s back up. In addition,
on trust usually because they have a each contact you make with your
good history with the client. How- client is a step toward your next sale.

Tel: 0870 420 2756 Fax: 0709 280 8482

© TBBA Ltd
Boost Your
Business
Business Advice from the Experts Issue 4 November ‘07
7 Common Mistakes in Business

The more successful entrepreneurs often say that it is the mistakes they make and the lessons they learn from
them that helped them. There are some common mistakes that a lot of business owners and managers make
without realising it throughout the life of a business (and that can be short if these aren’t addressed).
Getting Sales Is The Most Impor- “If you don’t know where you’re a finite spending budget. If you
tant Thing going you will probably end up don’t keep close to your customers
Many businesses have struggled and somewhere else” (Lawrence J Peter). they won’t be close to you. Your
failed because they chased sales competitors are then any other of-
growth. This can easily lead to is- We’re Not Interested In Growth fering from any other company.
sues with cash flow, quality or cus- A company that isn’t trying to grow
tomer service and the perceived is actually shrinking! Markets are It’s Easier Or Better If I Do It
benefit of increased sales is soon always developing or changing. Myself
lost or even made negative. Take, for example, the high street This is a classic mistake that,
CD shop which is rapidly becom- among other problems, severely re-
ing a thing of the past but people stricts growth. It’s important to
haven’t stopped buying music. recognise where your personal set
Therefore, if you aren’t looking to of talents and skills delivers the best
grow, the changing market means rate of return and delegate the rest;
that, without you knowing or see- not easy to start with but tremen-
ing it, your business is shrinking. dously rewarding.
Cutting Costs Is The Way For-

ward
Marketing Aimed At Anyone Saving money is an easy win when
Who Might Be Interested. profits are suffering but it can go
Potential customers only become too far. The measure of success for
customers if an offering solves a the financially wise is return on
particular problem. Marketing that investment. Given the choice of
is general or broad in nature or from spending £1000 or £5000 on mar-
anything other than the customer’s keting, the cost-focused business Are You Making Any Mistakes
perspective is, and this may seem would take the cheaper option and That You Can Learn From?
brutal, a waste of time and money. would be likely to see no return and Take some time now to consider
then be sceptical about the value of these common mistakes with an ob-
Plans Are For Wimps! marketing, whereas the £5000 jective view. There is another com-
This can be popular among some of project could see an increase to the mon mistake to justify what might
the perhaps more maverick entre- bottom line for the long term. be wrong decisions or actions that
preneurs thinking that to be even may not be for the good of the
more successful, they’ve got to op- We Don’t Have Any Competitors business. Is it worth looking at
erate outside the establish pattern There may not be any direct com- these aspects with someone who’s
and therefore dispense with the staid petitors but customers have other not so close to the business? Take
idea of planning! interests, issues and ideas yet only action now.

a good insurance deal (in business
How good a mechanic term this means they can help
make sure you pay the right
is your Accountant? amount of tax).
A Management Accountant is
Here is an opportunity to engage your imagination and open like a skilled mechanic and techni-
up an opportunity for yourself. You will also get to see your cian. They service your ‘car’ on a
accountant from a very different perspective. regular basis, keeping it working
at its best. They can also recom-
Imagine your business is your interior. They will be able to tell mend changes that will improve
car. To keep your ‘car’ legal and you how much fuel you’ve got your ‘driving’ experience and help
performing at its best there are a left and when your road tax is your ‘car’ give you many miles of
number of areas you need to due for renewal. In addition happy trouble free ‘motoring’.
keep on top of such as getting it they’ll be able to tell you how They are also able to spot early
through its MOT, insuring it, much tread you’ve got on your signs of trouble so your ‘car’ is
cleaning it, servicing it, taxing it, tyres and how much washer flu- less likely to leave you stranded or
not to say the regular checks you id for the windscreen. let you down.
should be do-
ing to keep it
working well.
Just as there
are different
types of serv-
ice and support
to help keep
your car on the
road and per-
forming at its
best, there are
different accountancy services to An Accountant who produces
help keep your business (or your year-end accounts is effec- So what is your account-
‘car’) a success and performing tively taking your ‘car’ through ant doing for your ‘car’?
at its best. The following analo- its MOT, they will also be able
gies should help you appreciate to tell you how much fuel and oil Most business owners will make
the differences and identify you’ve used since the last MOT. use of the services of a Bookkeep-
where you may be missing a er or an Accountant because they
trick. In addition to reporting on your know they should or it’s a better
tyres and windscreen washer use of their time. The really savvy
A Bookkeeper, in ‘car’ terms, levels they will also be able to ones will add value to their busi-
will take the ‘car’ through the car tell you about the state of the ness with a management account-
wash for you and change the oil, battery and the cooling system. ancy service.
they may well also clean out the They are also able to help you get

Tel: 0870 420 2756 Fax: 0709 280 8482

© TBBA Ltd
Boost Your
Business
Business Advice from the Experts Issue 3 October ‘07
If only they were more like you

A major element of what makes an excellent business owner or managing director is the high level of
self-motivation. Indeed, it could be argued that the ability to define your own goals, map how to achieve
them and then make it happen are what identifies a truly great Entrepreneur or Managing Director.
The challenge of making it happen Your Pay Back
requires us to motivate others who Done properly, showing respect and
have their own interests, issues, and giving recognition will increase effi-
agendas. ciency and help grow a business. In
addition, business owners and man-
Motivation is a very broad subject. agers will find they have more time
With time being precious in business on their hands.
we’re going to highlight just 3 key
areas. However given the immense The ultimate pay back will be
benefits to be achieved, it is well achieved when it comes to the exit
worth placing considerable focus on strategy. A well motivated team
this subject. will add considerable value to the
company and make for an easy sale
Money Recognition and transition.
This popular choice has its place; Recognising effort and involvement
however, you will doubtless be fa- often has a dramatic effect on moti-
miliar with its short-term nature and vation. It addresses several of
its cost. Maslow’s ‘needs’: safety, social,
and esteem. Recognition doesn’t
A. H. Maslow identified the hierar- have to be a financial reward that is
chy of needs, the lowest being phys- notoriously very expensive. There
iological, loosely meaning food, are many other ways to do this very
clothes and warmth. These are satis- effectively and with little cost; even
fied by money. Our society has de- a simple face-to-face acknowledge-
veloped so much so that these basic ment of good work does wonders.
needs are no longer a key focus.
Respect
People’s motivation now tends to be Respect addresses the social and
focused on the other needs; safety, esteem elements of motivation, be-
social, esteem and self-actualisation ing made to feel part of the group
(‘living our passion’). Hence, mon- rather than having a ‘them and us’
ey no longer has the power it use to. culture supports these needs. Action
Strange but true, making the effort If you’re staff aren’t performing the
The good news is that there are other to say ‘good morning’ has helped way you want them to then it is time
motivators that cost comparatively companies reduce staff turnover to review what actually motivates
little yet have a far more beneficial numbers and increased profitability. them. The chances are it won’t be
effect. They do require some time, what motivates you!
patience and persistence though.

Take your business to the Cinema!
It often helps to look at our businesses and our marketing
from a different perspective. In doing this we open up oppor-
tunities that catapult the business forward.
The scenario that follows may well help
you think differently about your busi- Which one would you go and
ness and move it forward. see?
Now, we all have our own preference
Consider the scenario: for movie style or content, but for most
of us there will be films we definitely
Say you like going to see new films at wouldn’t watch, some we maybe
the cinema. You arrive at the multiplex would, and then there are some that will
and are faced with a list of new releases. always rank high on our ‘must watch’
You know nothing about the films and list.
have to rely upon the adverts and a brief
description about each movie. Films 1 to 6 are very clear about their
message and focused on their target
Showing Tonight! audience so it makes for an easy choice
Film 1 – Crime action for the cinema goer.
Film 2 – Fantasy musical
Film 3 – Thriller (certificate 18) Trying too hard
Film 4 – Family cartoon
Film 5 – Romantic thriller
As for Film 7, in a bid to capture an film; the exact opposite to what they
Film 6 – Adult comedy
audience this studio has tried to suggest were hoping for from the marketing
Film 7 – Adult crime action thriller
that the movie caters for everyone! message.
comedy family musical fantasy biogra-
Indeed you may well find that the film
phy romantic sci-fi costume drama car-
does include a bit of all the elements So What Can We Take
toon !
mentioned, however,
would you be encouraged
Away From This?
to go see it?
Consider what your marketing mes-
sage is. Are you making life easy for
I think I might come out
your potential customers to make a
of that screening feeling
decision to contact you or buy from
confused and disappoint-
you?
ed. The studio will prob-
ably find that far fewer
people actually take the Put yourself in the shoes of some-
one who knows little about your
company or offering, someone
Quick Risk Review - Computers
who doesn’t have your passion or
Thinking about all the computers you have in your business, imagine on
arriving tomorrow one of them refused to work altogether! understanding, they just need to
What would be the impact on staff utilisation, customers and suppliers? make a decision. Does your
How quickly could it be up and running again? ‘message’ work for that person or
What makes you think your back-up and support systems are effective? are they faced with something
When did you last test your assumptions? like Film 7?
If, when considering each computer, your response is that there would be
little or no impact then you should consider if that computer adds value
to the business. Could it be doing more for you?

Tel: 0870 420 2756 Fax: 0709 280 8482

© TBBA Ltd

How To Get Money Out of A Business: Practical Business Advice From The Independent Experts

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

How To Get Money Out of A Business: Practical Business Advice From The Independent Experts

Uploaded by

Copyright:

Available Formats

Practical Business Advice from the Independent Experts Issue 25 August ‘09

How To Get Money Out Of A Business

UK Business Advisors Limited

UK Business Advisors Limited

How To Achieve Sales Targets

UK Business Advisors Limited

Next month: Business Processes :: Risk Management :: Business Continuity

Taking Stock Of Your Biggest Asset: Your People

For instance, if the Performance 4. Structured Decisions

Decisions such as: Having a smoke-free

UK Business Advisors Limited

Getting Your Company

Take a walk, go for a swim or read The Internet provides information in a

UK Business Advisors Limited

Evaluating Your Business Idea

It should identify the services or products

1. - Did you achieve the financial goals

2. - Did the systems that you used to

It is critically important that you know that

The very basics in a good business plan

The initial goals in the plan are usually

UK Business Advisors Limited

Are your sales people using some of the

UK Business Advisors Limited

Optimise Employee Training and Development

UK Business Advisors Limited

Different Types of Funding Overdraft - Banks are surprisingly

This is another source of funds that can

UK Business Advisors Limited

Key Steps to Developing a Quality Business Plan

The drafting or update of your business- 3. In addition, one essential point in a

So what is strategic business Our review will develop an agreed

UK Business Advisors Limited

Next month: Different Types of Funding

Ten Tips To Improve Your Networking Skills

UK Business Advisors Limited

Are You Still Having Cashflow Problems? The Office Administrator

UK Business Advisors Limited

UK Business Advisors Limited

How To Conduct A Market Analysis For Your Business

UK Business Advisors Limited

If you are shy and introverted, and the

Always try to help out others in need

The old cliche that teams are only as

UK Business Advisors Limited

Implement a customer loyalty program.

Candles are also popular gifts.

UK Business Advisors Limited

Time Management: Accomplish More in Less Time

Unfortunately, just like you must have

2. Modularise - The best way to deal Time management is no easy task. It

1. Make a list of everything you would like

2. Give a value to each item on the list.

Assign the letter A to anything that is vital

Let's change that. Call us now.

UK Business Advisors Limited

Next month: Sources Of Finance, 3 Strategies For Increasing Profits

Say “No” To Cold Calling This reduces the rejections and

 Who would need your product or

Start a newsletter based on your niche Secret two: Headline.

UK Business Advisors Limited

How much risk are your staff?

Tel: 0870 420 2756 Email: info@ukba.co.uk

Who would need your product or