Category: Blog

When talking to my clients about their business growth, I’m always trying to get them to think outside of the box. It’s very easy to become all consumed within the business, almost blinkered to what’s going on outside. However not taking time to look around us could be costly. There are many resources in our environment we can explore for fresh inspiration and these valuable 4 are often forgotten or ignored.

1. Get outside counsel

Sportspeople are a great example of looking to others for inspiration. Think of any major team, athlete or individual, they’ve all got coaches. A coach will sometimes spot minute things that can be changed for an improved result. Who could you ask to do that for your business? Business coaches, new employees and even existing staff may have ideas of small changes in processes that could bring about business growth.

2. Other industries

What about when you need to design a new product or service, where do you look? Many years ago a marine inventor told me that his inspiration is nature, with the idea that nothing is new. When he needed to design a new rudder he looked to fast sea creatures and based the design of the rudder on the shark.

It’s unusual for us to look outside of our own industry for inspiration for business growth. Sticking to what you know can be extremely restrictive. Let’s take a service delivery company such as a website designer as an example. They may well argue that they could learn nothing from a manufacturer.

In fact, the website designer (or any service delivery business) could learn a lot from a manufacturer by exploring how they use processes to maximise output.

By understanding and documenting processes in a service delivery business two things could happen:

1. In documenting the process a natural review will take place; are all stages necessary, could any streamlining occur?
2. Using the process as an ongoing checklist or project plan will create a heightened momentum, thereby increasing capacity and business growth

3. Use ALL your available skills!

Many small business owners started out as an employee in a big business. Although it’s amazing how much knowledge of big business processes is quickly parked and not applied in the new business.

It’s true that you need to act like a big business, to become a big business (more on this in my recent blog: 4 reasons to act like a big business). So use that big business knowledge to optimise performance. If you’ve always been a small business owner, then get advice from someone you know with a corporate background.

4. Don’t forget the experts

Celebrities should also be inspiring us to focus on what we’re good at and leave the rest to the experts. Rather than try and manage their finances or their diary, celebrities will employ a book-keeper, an agent or a PA. This gives them more time to spend on their day job. We should do the same.

So remember to take time to explore the outside environment. Look at how other people and industries manage their businesses, can you take any inspiration and apply learnings in your own business?

If you’d like help to implement any of my advice, or for a fresh pair of eyes, why not contact me to arrange a Free Business Review? This is a genuinely free 2 hour session whereby I’ll come into the business and spend two hours giving you advice to make positive changes. Click here to arrange yours now.

Have a great month!

Monitoring and measuring your business allows you to think and behave like a big business.

In my last blog, I explained actions to give small businesses the capacity to become big businesses. The final one being to monitor and measure activity, it’s the only way you’ll know what’s working.

Know where you’re headed

The first step to measuring your activity is to have goals to measure against. Set targets and put a plan in place to meet those goals. How many sales do you need to make a month to hit your revenue target? What revenue do you need to break-even?

How the big boys do it

Large organisations with senior management operate by monitoring and measuring data fed to them by lower levels or electronic sales systems. With this information, it’s possible to track activity without the need for multiple site visits. Progress or problems can be identified and actions taken to ensure profitable growth.

Monitor and measure for growth

As a small business, you should be doing the same. The scale may be different but the principle the same. If this crucial monthly view is missed, how will you ever meet your goals?

On a monthly basis, look at your finances, sales, order book and delivery schedule. How do the numbers compare to your budget? Just like a big business, this information will give you the ability to take action when needed to ensure profitable growth.

What about sole traders?

Find other sole traders and hold monthly meetings where you can hold each other accountable. Or take on a business coach who can have that monthly meeting with you. It’ll be worth its weight in gold.

If you’d like some help to implement any of this, why not contact me to arrange a Free Business Review? This is a genuine free 2 hour session whereby I’ll come into the business and spend two hours giving you advice to make positive changes in your business. Click here to arrange yours.

Have a great month!

Many of my clients think and act like a small business, because they are. However operating like this prevents them from becoming the big business they covet.

There’s one area where many small businesses already think and act like a big business and that’s in their website. It’s often hard to judge the size of a company from their website, it could be one person in their bedroom or it could be 50 people. So if it works to act like a big business in one area, it will work in others.

In this blog, I’m explaining the other ways acting like a big business can help you become a big business.

1. Price correctly

Small businesses often price themselves at the lower end of the market, considering themselves unable to charge more due to their size.

My recent blog on pricing goes into more detail on why you should be charging what you’re worth. Critically, you’ll be able to provide a higher quality product/service leading to better retention, reputation and from that will come new business. A step towards becoming that bigger business then?

2. Understand your finances

Getting the job done is often the primary focus of a small business. Having lots of processes in place seems like a pointless exercise and something only bigger businesses need.

For example, where finances are concerned (in my experience) small businesses assume as long as there’s money in the bank, they’re doing OK. So they don’t actually ‘know’ what it’s costing to run the business, what expenses are made up of and what their future orders look like.

As you might expect, big businesses will have a handle on their finances. They’ll know what confirmed orders they have for months and even years ahead. This data allows them to plan and manage growth. See my recent blog on budgeting for more info on this. Putting in a process like this enables you become a big business.

3. Have processes others can follow

Can you imagine being big enough to take on additional staff? If you’re taking on more people that can only be because you have more work. So imagine having to train staff to follow undocumented processes when you’ve suddenly got a workload bigger than you can manage. Yep, not very appealing. Putting in processes as a small business is much easier than trying to do it later. Your new staff then have an easier induction process and can deliver your service just like you have, as ‘the norm’.

4. Monitor and measure

So, you’re charging what you’re worth, have the right processes in place to manage your finances and your service delivery through your staff leaving just one box to tick. As with anything, measuring and monitoring performance will give you the ability to manage your journey to become that big business. For more information on this, read onto my next blog.

If you’d like some help to implement any of this, why not contact me to arrange a Free Business Review? This is a genuine free 2 hour session whereby I’ll come into the business and spend two hours giving you advice to make positive changes in your business. Click here to arrange yours.

Have a great month!

 

 

The best ways to craft great clients, is to do your due diligence at the outset.

In the service industry it’s natural to want to take every piece of business, with the focus on the service you will provide. What’s less often, is the consideration of how the new client will perform for YOU! How easy will they be to manage and how quickly will they pay?

It’s time to stop treating your sales process as a one-way street. Instead, give some focus to crafting great clients by ticking your own boxes. Create a checklist, to include:

Credit check

Can they pay? Companies like Experian offer credit search facilities for businesses. For a small cost you’ll be able to find out information such as credit score, Director information (as listed at Companies House), credit limit and rating, and adverse information.

Recommendations

Do you know any other businesses that already work with your prospect? If so, ask what they’re like to work with. This will give you valuable insight on their viability as a client, as well as tips on how best to manage them.

The payment process

As a supplier, you’ll likely have your own payment terms but often, bigger businesses will also have their own payment terms. Find these out at the start to see how they match up. If you discover a particular process to follow then you can use this to your advantage, ensuring you get invoices in to hit payment dates and avoiding nasty surprises later on.

Their expectations of you

While you may be confident in your ability to deliver a great service, check your prospect’s expectations. Be honest about whether you can meet their timescales and any other stipulations made.

Once all steps are complete and your decision made, there are some more ways to manage your client’s performance:

Terms and conditions

If you don’t have terms and conditions, it’s very hard to expect clients to know what you want and even harder to get them to adhere to it! Set out the both parts of the bargain into what you will do and what you need them to do. For example your service level agreement and your payment terms. Issue this at the start and point out key areas to the client.

Accounts contact

You’ll often find the client contact you have may not be the person paying your bills. Clarify who this is at the start to avoid delays in payment.

Provide your details

Once you have the accounts contact, it’s a great idea to send them all your details at the outset so that they can set you up on their systems as a supplier. This should also minimise delays in payment.

Ongoing reviews

As part of your account management process, be sure to bring up any issues before they become big problems. By following all of these steps your troublesome clients should be a thing of the past! As always though, for help in implementing any of these tips just get in touch for a free business review.

In all my years of working with small businesses one thing is consistent, bad clients!

Most small businesses are run by an owner/manager for whom the business is their life. Often these business owners will hold onto bad clients because they feel guilt over turning away custom. In this blog I’ll explain the 3 symptoms of a bad client and explain why you really don’t need them.

1. The Bad Payer

These clients are the ones taking up hours of time in chasing old invoices, by email and on the phone. Maybe you’ve had to draft letters demanding payment too. Just get rid of these bad clients.

Invoicing for work you know will not be paid really is a waste of your time. Not only that, being known for doing work without pay will affect your credibility and attract more of the same. Use your time more effectively by finding new clients who can pay on time.

2. The Mood Hoover

Do any of your clients live in a state of negativity leaving you feeling drained, frustrated and even angry? You’re not alone and this type of bad client is known as a ‘mood hoover’. Getting rid of them will improve your frame of mind and when that happens, anything is possible! Certainly you’ll find it easier to find clients who are a pleasure to work with.

3. The Morally Questionable

In my role as a business consultant I’ve also come across businesses who’ve discovered their clients are operating in direct conflict with their own morals and values. In some cases even in conflict with the law. This really is a danger area for you as a supplier, if discovered by other suppliers and clients. Sack these bad clients today and protect your reputation.

If you recognise any of these symptoms in your own clients, then don’t waste another moment of your time on them! Take control, you’ll feel so much better for it and it really will improve your business and productivity. If you need any help reviewing your book of customers then contact me for a Free Business Review. I’ll come in and spend 2 hours helping you identify actions that will positively impact your business.

Is cheap pricing really a problem? What price should you be selling at? After completing competitor analysis, many businesses price themselves below their competition with the belief they’ll get more business. In this blog, I’ll be explaining the problems this can cause and empowering you to charge what you’re worth!

1. The busy fool

If your pricing is too cheap, problems are plenty. Firstly, you’ll have heard the expression ‘busy fool’ and this really rings true here. You may be getting the extra business you’re craving but you’ll be working hard for it and generating very little profit. I would argue harder than you need, when the more profitable result could be achieved with a higher price.

2. Poor retention

This first issue with cheap pricing can also contribute to the second, which is poor client retention. If you’re providing a service and you’re the cheapest in the market you’ll likely be busy initially. However, if you are unable to cope with demand, the quality of service you provide will suffer. Customers who are just buying on price will move to the next cheapest at the drop of the hat.

If it’s a product you’re providing, you will likely have to use cheaper materials to sell at the lower price you’re striving for. Again, the quality will be lesser and the result? Poor client retention.

3. Getting the right clients

In a business to business environment, the right price is essential to attract your target market. Businesses know that a cheap product/service equals inferior quality.

A couple of years ago I started working with a marketing agency that was unable to attract the large corporate companies they desired. I discovered they were charging just £30 per hour for their services, which in that industry is more akin to a freelance/sole trader operation. The only work they could win was small businesses looking for stationery.

Since I started working with them, they have increased their prices in line with professional marketing companies to £65 per hour and are now able to win the business they crave.

Forget cheap pricing, charge what you’re worth!

So, don’t be a busy fool. Charge what you’re worth and you will attract better clients who value service and are prepared to pay for it. You will in turn be able to provide a higher quality product/service and this will lead to better retention, reputation and more new business. My blog on the relationship between price and value goes into more detail on this.

After all in football, the higher the price, the more skilled the player! It’s the same in business and if you are too cheap, what you’re actually saying is that you’re not very good.

As ever, if you need any help with putting this into practice then contact me for a free 2 hour business review where I will give you tools to immediately improve your business.

Have a great month!

In the process of reviewing the finances in a business, I’ll look at what clients are buying to determine their break-even point. This in depth review sparks discussion on how much is being spent and the value it brings. Very often, I discover that clients have opted for the cheapest price and as a new business that’s OK. In this blog, I’m sharing the reasons why this isn’t always sustainable.

Buying a service

There are certain functions in a business that you’ll likely outsource, such as accountancy, bookkeeping, marketing and so on. While price should definitely play a part in the decision making process, simply choosing the cheapest may not benefit your business in the long run, and could even end up costing you more than you expect.

Let me share an example of this. A client of mine needed some computer maintenance and made a quick, price based buying decision. In fact, the individual wasn’t properly qualified and created an issue with the entire system, costing thousands of pounds to put right.

So think about the your needs, check testimonials or get recommendations. Compare the services provided as well as the price when making your decision. In my example, a more expensive service initially could have prevented the huge bill.

Choosing a product

The same theory applies in practice when buying a product. Printers are a fantastic example of a product that can vary hugely in price. With small desktop printers costing less than £50 to commercial printers running into thousands, how do you know which to buy?

The answer is straightforward. For product purchases, compare initial purchase cost as well as running costs and longevity. Combine the two to give a more realistic figure on how much the product will cost over time. Not forgetting to ensure it does what you need it to! With all that information to hand, you’re well placed to make your final buying decision.

In the example of a printer, in fact the cheapest printers use the most expensive inks and often a bigger investment upfront will be more cost effective in the long term, as well as providing additional capability.

In our personal lives, we come across the same scenarios. When choosing a fridge in Curry’s, the options are from the budget basic to the dear but desirable. The extra functions combined with the improved reliability will account for the bigger price tags. So in business as well as at home, the message is very much, buy what is appropriate to your needs as well as your budget.

The only way to meet your business goals is to plan to meet them. Budgeting is a crucial stage in the planning process and it’s easier than you think. Here are my 7 easy steps to successful budgeting:

1. Plan when to complete the budgeting process

When to set your budget depends on your financial year; 3 months ahead of the start of the next financial year is the perfect time. So if your financial year runs January to December, then budgeting should happen in October.

2. Gather your information

You’ll need the details on expenditure and historical sales in order to prepare your budget so ensure you have this ready for budgeting 3 months ahead of your next tax year.

3. What to spend?

Create two lists of expenditure for the year ahead. Firstly, what MUST be spent? This might be salaries, rent, materials etc. Then, what would you like to spend? This will include marketing activity such as trade shows, a new website or advertising as well as capital expenditure such as new or upgraded equipment. Don’t be afraid to include everything you want, including a salary increase for you!

4. What income is needed?

Based on your historical sales trends and any retained work for the year ahead calculate whether this income will cover your planned expenditure. If it doesn’t, plan the growth in sales needed to meet the costs.

5. Layout your budget

Create a monthly plan of income and expenditure so you can monitor it.

6. Compare actuals against plan

On a monthly basis, review whether your sales and expenditure are meeting your plan. If you have more than you need, great! If not, then plan to reduce spend accordingly.

A bookkeeper can help with this process and is much more proactive than relying on your accountant who will provide a historical view. Budgeting and monthly reviews via your bookkeeper is more easy to work with and gives the tools to ensure your plans are met.

7. Repeat!

Of course budgeting is an ongoing task, so you can diarise each year when it will be completed. With each passing month and year you’ll build a bank of data with which to improve accuracy. However as always, if you need any help with this process then give me a call for a Free Business Review.

Cost cutting is a great exercise to send more money directly to your bottom line. However to do this, you need to have an understanding of what is being spent and where.

As business consultants, we’ll review the finances of the business but often find they’re not being tracked and managed.  Many clients leave the financial stuff to the accountant, after all they’re the experts. While this may be the case, the expert on what the expenditure is generating for your business, is YOU. Not reviewing the outgoings of a business can result in paying for services no longer used.

In this blog I’m sharing 4 tips to effectively cut costs in your business and as a direct result, increase your profits.

1. Monitor what’s being spent

It may sound obvious, but look at your cash flow on a monthly basis. It’s easy to focus on income and sales but don’t forget that your costs directly impact profit! So, review all the outgoings, do you need and are you using all of them? If not, you can start your cost cutting exercise by getting rid of them!

2. Get a bookkeeper

If bookkeeping is one of those tasks that never makes it to the top of the to-do list, then hire one. It really is that important. A bookkeeper will provide a monthly report on income and expenditure, so you can see what is being spent. With this information, you can then perform your cost cutting exercise.

3. Understand what each cost is doing for your business

Categorising expenditure will help highlight which of your costs are business essential and which are not.

Some things like rent, rate and materials are unavoidable. Marketing activity such as advertising, social media management and so on are essential only when they generate income.

Create a list of costs that should be generating income and review the return on investment for each. Create a plan for any activities that aren’t meeting your expectation, can anything be done to improve performance? If the answer is no, cull it. My recent post, Profitable Marketing will give you some advice on this process.

4. Value for money

Do take care to ensure that if you decide to change a service provider due to cost, that you’ll still get the required service. Sometimes cheapest isn’t always best. Look out for next month’s post, you get what you pay for, for more information on this.

So follow these steps and take control of your expenditure today! Keep following the advice to make sure you look after it in the long term. If you need any help implementing these tips, then call me to arrange a free business review.

Finally, with your bookkeeping process in place, read on to my next blog which looks at budgeting, for the next level in the financial planning of your business. With a budget in place, you can achieve your goals.

Have a great month!

According to a recent survey, a business owner’s average working week is 50.5 hours, 36.5% higher than the national average of 37 hours!

But the principle of putting in long hours to make a business successful is a misconception and often, productivity will suffer.

All work and no play

A poor work/life balance will lead to tiredness, misery, a building resentment of the business and the outcome? A reduction in productivity.

Relationships are affected too; although little research has been conducted, anecdotal evidence suggests the divorce rate is higher amongst entrepreneurs because they’re never at home. Of course your partner and family want you to achieve success, but they want YOU more.

The positive effect of rest on productivity

Some years ago I worked 18 hour days, 6 days a week to turnaround a failing business. After 3 months of sustained long hours, I was at work one day when I fell asleep at my desk. It was literally a wake up call. I took a couple of days out and returned refreshed and more productive. More got done in just 7 hours a day and I had time again for friends, family and me!

Hitting a deadline

There are occasions when urgent deadlines have to be met, these things happen. But you must take time afterwards to recover. Understand and recognise these as one-offs and don’t let them become the norm. That’s when productivity, the business and potentially your family will suffer.

Time management

It’s not just long hours that are commonplace, at least 70% of small business owners never take a holiday and this too impacts on productivity. My article on time management contains some great tips on scheduling and managing your workload. This advice provides the tools and confidence to take control of your working hours so you can get back more time for you!

Don’t forget, for help implementing this advice book a FREE 2 hour business review today. One of my consultants will come into the business, assess the current status and leave you with real advice to set you on a course to focus, develop and grow.