Author: etcwebsite

Theresa May says we’re on course to deliver Brexit and negotiations between the UK and EU leaders continue. Having been at the ‘cold front’ over the last 18 months with business owners, I’m giving my perspective on Brexit and the small business.

In short, I believe that Brexit won’t negatively impact the majority of small businesses.

It’s business as usual for small companies

Heads of large corporates may feel Brexit will be detrimental to them, but small businesses with a local client base won’t be affected. For example, plumbers, builders, photographers, and website designers serving their local community shouldn’t see any dip in demand for services.

In fact the bulk of UK industry will carry on as normal. Between 92 and 93% of businesses have less than 5 employees and therefore fit into that small/micro category.

Business owners will continue to provide for their families, ensuring Brexit works for them.

Opportunities for Brexit and the small business?

In the long term, there may be bigger opportunities for export businesses. Once trade talks are complete we can start to trade overseas. Experts say that even if the pound regains some of its value, it’s still expected to be at least 10% below where it was before the referendum. This means UK goods will be cheaper to overseas customers.

The internet of course provides a much bigger marketplace too. If you don’t currently export your goods or services, this could be a new opportunity. See more on selling your products to new markets in my recent blog about diversifying.

Funding

ERDF funding previously provided by the EU will no longer be available, forcing the UK government to invest in UK business. Although it may take time to come through, funding will start to become available. It’s likely to be very targeted, so business owners will need to look out for it.

Go with it

So Brexit is happening, but I don’t believe there’s any reason to worry. Simply go with it and use it to your advantage where you can.

If you are worried about how Brexit will affect you, contact me for a Free Business Review. I’ll spend two hours with you completely free of charge to help you identify opportunities to ensure your business moves forward profitably.

Are you in a seasonal business? Or do you know where your natural peaks and troughs are? With this knowledge you can make a plan to increase sales and move your business to the next level.

It might be that you are a wedding photographer or a landscape gardener with a flood of business in summer months. Even if it isn’t obvious, tracking income monthly will highlight patterns of quieter months you may not even be aware of. My recent blog on budgeting will help with this process.

What to do about those quiet months? The answer is to diversify.

Managing cash flow

With very seasonal businesses such as the wedding industry, managing cash flow through the year can be troublesome. The goal should be to break-even each month, allowing profits to be creamed during the peak period.

So this is where diversification comes in. How can you use your skills in other ways to increase sales in the quiet times? Here are some examples to inspire you:

Same product, new market

OK, so who else could be interested in your product? A wedding photographer could easily transfer their skills to provide photography to the business sector. Think corporate head shots or product photography. A client of mine has taken on a regular contract with an estate agent to photograph their new properties. This is a great example of a regular requirement to pick up the slack and keep paying the bills.

A wedding cake baker could also offer cakes for birthdays, Christenings, anniversaries and more to fill up their order book.

If your business isn’t particularly seasonal this concept of exploring new markets can still be applied to increase sales. If you have a local shop front such as an art gallery, why not set up a website or utilise an online marketplace such as Etsy or notonthehighstreet to market your items nation/worldwide?

Same market, new product/price

Another approach is to offer different products to your existing customers. For example, a landscape gardener will be busy in the drier, warmer months. A gardener client of mine has the skills to lay driveways and so promotes this service to the same clients during the winter.

Domestic plumbers on the other hand are busiest in winter, with frozen pipes and broken boilers. So during spring and summer plumbers promote servicing and gas safety checks to fill their order book.

Cake makers are again another great example of offering a new product to the same market (and they peak during the wedding season). More and more bakers now offer cake decorating classes. A local baker from Hagley in Worcesteshire was so successful at this that she stopped baking wedding cakes altogether, opting for the safer and less seasonal teaching service.

New product, new market

Finally, new products to new customers is also an option and isn’t necessarily as hard as it sounds.

For example, a wedding stationer selling invites will have a relatively narrow market of engaged couples. However they could use their creative skills to design and sell other printed items such as birthday cards, posters and so on to a wider audience.

Again, you don’t need to be a seasonal business to consider this strategy. Supermarkets and car manufacturers do it well, selling items such as value foods or budget cars right through to premium ranges of food and high end cars. Having this wide product range gives them access to people in all areas of the market.

Inspiration

With so many examples of diversification out there, I urge you to look outside of your business for inspiration. Think about the businesses near you and ones you use, how do they use their skills to develop additional products or to widen their audience? Looking outside of your comfort zone for ideas could just result in that light bulb moment.

If you’d like help to implement any of my advice, 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!

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.