tag:blogger.com,1999:blog-87118810229908649832024-03-18T20:19:46.800-07:00Owning and running a small businessSome thoughts and learnings from my personal experience of owning and running a small(ish) business for 20 years or so.Fredhttp://www.blogger.com/profile/18323306501746264111noreply@blogger.comBlogger141125tag:blogger.com,1999:blog-8711881022990864983.post-21515180367316326912020-11-14T00:12:00.000-08:002020-11-14T00:12:02.124-08:00Steady as she goes<h3 style="text-align: left;"> <div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhJTjCrlKQuckI1nzQXF3yWSqOLYJooYCaAMUnCKcG5c6K_LzyVvD8R70BrmIJCQaLzM0XQ6yrOT9DR_tmZLHNQnWam4ZLa26tOCTt7EclVA5FZaEhPsT5jngpH5hPMrwCAjgUoNri9Mx0/s625/Tortoise.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="423" data-original-width="625" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhJTjCrlKQuckI1nzQXF3yWSqOLYJooYCaAMUnCKcG5c6K_LzyVvD8R70BrmIJCQaLzM0XQ6yrOT9DR_tmZLHNQnWam4ZLa26tOCTt7EclVA5FZaEhPsT5jngpH5hPMrwCAjgUoNri9Mx0/s320/Tortoise.jpg" width="320" /></a></div><br /><span style="-webkit-text-size-adjust: auto; font-family: arial; text-size-adjust: auto;">‘Steady’ is not a word you’d normally use to describe an entrepreneur.</span></h3><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 25.1px; text-size-adjust: auto;"><span style="font-family: arial;"><br /></span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 25.1px; text-size-adjust: auto;"><span style="font-family: arial;">The more typical image is as flamboyant buccaneers, identifying a customer need, raising capital and using energy and intellect to fulfil that need, managing risks along the way.</span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 25.1px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">Tales abound of erstwhile entrepreneurs starting an enterprise in their parents’ garage, from a laptop in their bedroom or from a run-down shop. Almost overnight they become millionaires, then billionaires and high-profile media personalities.</span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 25.1px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">That happens, of course, but for many business owners the journey to riches is a little more sedate and in some cases, more predictable. The few who do succeed (the statistics say that the majority don’t) and become successful and wealthy often achieve this over years, or decades of steady and predictable growth. </span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 25.1px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">Through the wonderful power of compounding (known and loved by many investors), 10% growth, year after year, will create a business of scale if carried on for long enough.</span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 25.1px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">Of course, most businesses don’t grow in a straight line. </span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 25.1px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">They have good years and bad. </span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 25.1px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">The year 2020 for many businesses will be more about survival than growth. With depleted reserves and additional loans, many may take several years to recover. But recover they can and as long as the longer term trajectory is up, they can get back on their former growth curve.</span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 25.1px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">Let’s look at an example. </span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 25.1px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">A small shop with turnover of £100k in their first year. Sales growth averaging 10% each year for 20 years would rise to a turnover of over £670k in year 20. That’s growth of nearly 7 times! That excludes inflation. So that is more units sold, more profit (if margins and overheads are managed) and more scale.</span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 25.1px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">Of course, that is a hypothetical and simplistic scenario. </span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 25.1px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">There’s a truism in business though - that what you plan for, you achieve. Planning for a minimum of 10% growth (in normal times) is eminently achievable for most businesses. The plan needs to have substance - in our example of the shop, in one year growth may come from increasing the range, another year from expanding or reconfiguring the space, adding new employees, moving on-line etc. Growth won’t be linear but if the trend line is a minimum of 10% growth, scale can be achieved by steady, consistent, application.</span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 25.1px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">Getting rich quick can be a compelling and seductive objective for some. The lucky few with extraordinary talent or perfect timing may succeed.</span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 25.1px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">For the majority, steady, persistent application can deliver similar results...but it doesn’t happen overnight.</span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;"><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">www.base52.co.uk</span></p>Fredhttp://www.blogger.com/profile/18323306501746264111noreply@blogger.com1tag:blogger.com,1999:blog-8711881022990864983.post-6050271458589564942020-10-18T06:08:00.005-07:002020-10-18T06:27:43.463-07:00Something for a rainy day<h3 style="text-align: left;"><span style="font-family: arial;"><span style="-webkit-text-size-adjust: auto; text-size-adjust: auto;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhzlKKKM1O0QE-8h7C9skynPBEo9bOyjCuJyglvn8TLE1vzXEWbnuSE__boZFXn_Pj2PKGfA7Yf4dV5GlLhyMGBJUpHtRxwnyX_r5zq5ABc8QxcuXBN0woNkdZ9Cco-eW94pbMHwjIUnbQ/s619/Rain.JPG" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="495" data-original-width="619" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhzlKKKM1O0QE-8h7C9skynPBEo9bOyjCuJyglvn8TLE1vzXEWbnuSE__boZFXn_Pj2PKGfA7Yf4dV5GlLhyMGBJUpHtRxwnyX_r5zq5ABc8QxcuXBN0woNkdZ9Cco-eW94pbMHwjIUnbQ/s320/Rain.JPG" width="320" /></a></div><br />I had a Zoom meeting with a client last week to review and sign off some accounts.</span><span style="-webkit-text-size-adjust: auto; text-size-adjust: auto;"> </span></span></h3><div><span style="font-family: arial;"><span style="-webkit-text-size-adjust: auto; text-size-adjust: auto;"><br /></span></span></div><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">The accounts mainly covered ‘pre-Covid’ trading so it was a solid year. The current financial year will be a different story. They are a B2C or ‘Business to consumer’ service business. They were closed and had no sales during the period of lockdown and since then sales have been ‘fair but patchy’. Further restrictions on the horizon make the future uncertain.</span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 22.8px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">But this business is better-placed than most. </span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;"><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">During the better trading years they chose to leave a reserve in the company in case tougher times arose in the future. Tougher times have now arrived, with knobs on and their prudence has been rewarded by having a reserve to fall back on to allow for the inevitable reduction in profits and cash flow this year.</span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 22.8px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">How many of the rest of us showed enough foresight and self restraint to do a similar thing? </span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 22.8px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">Not many of us I suspect. </span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 22.8px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">Of course now is not the time for accumulating reserves. Some businesses are still fighting for survival and the majority are probably just ‘getting by’. </span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 22.8px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">The medium term priority for all businesses must be to return to profitability. Government financial support has helped but we know that this is unlikely to be sustained in the longer run.</span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 22.8px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">Many businesses will have taken advantage of Bounce Back Loans or Coronavirus Business Interruption Loans so cash positions may be relatively favourable. Loan repayments will commence from next year however and it is profit rather than cash which will be the key measure of longer term sustainability.</span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 22.8px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">In a post-Covid world, when it arrives and business fortunes begin to turn, the first priority for many of us will probably not be setting something aside for a rainy day.</span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 22.8px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">One of the lessons of this crisis however is that we all need to become more resilient and prepare for the unexpected. </span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 22.8px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">Keeping a little bit in reserve, like my prudent and far-sighted client, is something we can all benefit from.</span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;"><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;"><a href="http://www.base52.co.uk">www.base52.co.uk</a></span></p>Fredhttp://www.blogger.com/profile/18323306501746264111noreply@blogger.com1tag:blogger.com,1999:blog-8711881022990864983.post-64100901604659924042020-10-15T00:12:00.000-07:002020-10-15T00:12:07.949-07:00When the dividends don’t work<h3 style="text-align: left;"><span style="-webkit-text-size-adjust: auto; font-family: arial; text-size-adjust: auto;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhikeCPYKs9BAYP7cBw66L32yaTtgqmq8c7kyTTLxhtIo7SNFwnFbKqfjBSX5RsfQTK-KquHEoZbvGdxhuondmn8mk8XG40haydJFfxuL8twz2k7xtjyVi_WoYbZVceVtBRVDdXfmbgLGQ/s622/Tax.JPG" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="427" data-original-width="622" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhikeCPYKs9BAYP7cBw66L32yaTtgqmq8c7kyTTLxhtIo7SNFwnFbKqfjBSX5RsfQTK-KquHEoZbvGdxhuondmn8mk8XG40haydJFfxuL8twz2k7xtjyVi_WoYbZVceVtBRVDdXfmbgLGQ/s320/Tax.JPG" width="320" /></a></div><br />Most owner/directors of private limited companies will choose to pay themselves with a mix of salary and dividends.</span></h3><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;"><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">Usually the most optimal set up is to pay themselves a salary up to the National Insurance Primary Threshold and top up the rest of their income as dividend.</span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 22.8px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">In the current tax year (1920/21) that would mean drawing an annual salary of £9,500. Drawing a dividend of £40,500 in addition to the salary would give a gross income of £50,000. The income tax due on this would be only £2,287. No employee National Insurance would be due but a salary at this level would count as a qualifying year towards State Pension eligibility.</span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 22.8px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">In comparison, personal income tax and employee National Insurance contributions on a £50,000 salary would be £12,358. Some £10,000 higher than the combined salary/dividend option.</span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 22.8px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">The tax saving is much reduced if the combined company and personal tax impact are considered. Dividends are paid after corporation tax (unlike salaries they are not a tax deductible expense) so every £100 of dividend paid instead of salary incurs an extra £19 corporation tax. The company would also pay employers' National Insurance on salary above £8,632 per annum.</span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 22.8px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">Nevertheless, for modest incomes, if looking purely on the basis of tax efficiency the combined salary/dividend option works best and most accountants will recommend this route.</span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 22.8px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">So why wouldn’t an owner/director always choose this option?</span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 22.8px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">There are a some cases where I think the salary/dividend route may not be the best choice:</span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;"><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;"> <b> </b><b>1. </b></span><b style="font-family: arial;">Where there are a number of senior managers who may not be shareholders</b></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 22.8px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">Where there are a number of senior managers who are not shareholders there might be a case for the owner drawing a ‘market rate’ salary for the contribution they make and topping up with dividends if profits are sufficient to allow this. This enables the owner to be transparent about profitability and remuneration with their senior management team. They might also combine this approach with a profit-based bonus scheme. The benefits may outweigh the tax savings gained from the salary/dividend remuneration method.</span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 22.8px; text-size-adjust: auto;"><span style="font-family: arial;"><br /></span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 22.8px; text-size-adjust: auto;"><span style="font-family: arial;"> <b> </b><b>2. Where an owner is preparing for exit</b><span class="s1"></span></span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 22.8px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">As above a ‘market rate’ salary reflecting the owner’s true contribution to the business might be a sensible transition in the years before they exit the business. The remuneration can be easily flexed if they gradually reduce their involvement. As with 1 above a top up dividend can be drawn on top of the salary if profits allow. This can be an added incentive for a business owner to drive the business to generate ‘surplus’ profits after allowing for their management contribution. In this way the business may be more likely to become a standalone investment rather than a lifestyle business.</span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;"><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;"><b><span> </span>3. Where there are several shareholders with varying levels of input</b></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;"><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span style="font-family: arial;">Using salary rather than dividend in this case allows greater flexibility. As with 1 and 2 above dividends can be used as a ‘top up’ on the salary where all the shareholders benefit in proportion to their respective shareholdings.</span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 22.8px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">There’s a saying in tax circles, ‘Don’t let the tax tail, wag the business dog’. </span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 22.8px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">I think it can apply here. </span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 22.8px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">It's not conventional wisdom for an accountant to say this but, in some cases, less tangible, business and operational considerations may sometimes override harder tax savings.</span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;"><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;"><a href="http://www.base52.co.uk">www.base52.co.uk</a></span></p>Fredhttp://www.blogger.com/profile/18323306501746264111noreply@blogger.com1tag:blogger.com,1999:blog-8711881022990864983.post-26101075583871854792020-09-26T02:00:00.008-07:002020-09-26T07:26:06.290-07:00Creativity matters<h3 style="text-align: left;"><span style="font-family: arial;"><span style="-webkit-text-size-adjust: auto; text-size-adjust: auto;"><div class="separator" style="clear: both; font-size: 19.08px; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg2xoRXFiHIiXsrDm4Qp3yr6tmrBZQwu3rAmuzJAEhO8QYy7P8GsHJfQykeq28LIbR2JR1kiJ5ISSFAQLVVzyUWEJx4-i6PmsugQmZa37hP801igx-J9mhteXtjJRy07k9hzJS1sZg1gxc/s627/Creativity.JPG" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="420" data-original-width="627" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg2xoRXFiHIiXsrDm4Qp3yr6tmrBZQwu3rAmuzJAEhO8QYy7P8GsHJfQykeq28LIbR2JR1kiJ5ISSFAQLVVzyUWEJx4-i6PmsugQmZa37hP801igx-J9mhteXtjJRy07k9hzJS1sZg1gxc/s320/Creativity.JPG" width="320" /></a></div><br /><span style="font-size: small;">When I started my business, many moons ago, no one mentioned creativity as a helpful skill to have in the toolbox. </span></span></span></h3><p><span style="font-family: arial;"><span style="-webkit-text-size-adjust: auto; text-size-adjust: auto;">Most books were about practical things - processes, systems, building a team and of course, working hard.</span><span style="-webkit-text-size-adjust: auto; text-size-adjust: auto;"> </span></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">That’s what most of us focus on - being diligent, learning from mistakes, getting stuff done. </span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 22.8px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">But creativity matters. </span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 22.8px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">Good ideas can be the difference between continued hard slog and genuine step changes in your business. Of course, the ideas need to be implemented but having the inspiration in the first place is the starting point.</span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 22.8px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">Like Archimedes displacing the water in his bath, the ‘Eureka’ moment can be transformational.</span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 22.8px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">There are lots of opportunities to be creative in business. One I would avoid, especially if it involves flouting the rules, is creative accounting. That aside, you can be creative with how you deal with people, creative about how you tackle an operational matter and probably most of all, creative about marketing.</span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 22.8px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">Being creative and implementing your best ideas is what makes your business unique so, in my opinion, its a key skill to have, or to learn in business. </span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 22.8px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">So how do you ‘learn’ to be creative? 'It’s not my strength', you might say.</span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 22.8px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">I’m not an expert on this but for me its about stepping back from the ‘day to day’ grind and making time to think differently. People get inspired at different times, usually when they ‘switch off’ and let their subconscious brain take over. Maybe on a long walk or drive or for the joggers amongst us, on a long run.</span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 22.8px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">Monty Python star, John Cleese is an unlikely advocate of being creative. His style is to make a specific time to be creative. He finds a place he is comfortable in, where he won’t be interrupted and before he starts he clears away all the mundane things on his list which might impact negatively on the session. He’ll make that phone call, put the bins out, reply to that urgent email etc. Then he’s ready.</span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 22.8px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">He’ll think about the thing he needs to be creative about - the comedy sketch, the problem to solve, whatever it is and work hard on it for an allotted time - maybe 90 minutes or so. The unexpected word in there is ‘hard’. No one expects creativity to be hard work. Aren’t moments of inspiration supposed to just appear, as if by magic, as with Archimedes and of equal fame, with Newton’s apple?</span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 22.8px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">Cleese argues that it can be hard work and needs time and discipline.</span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 22.8px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">He goes further. When he has created his new ‘thing’, he tries a bit harder. He takes the draft and works on it a bit more to get a better result. He cites this extra effort as a reason why he was sometimes more successful that other comics with coming up with truly memorable output.</span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 22.8px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">So it may not be the first thing on the skills list for a budding business owner or entrepreneur but creativity is underrated. </span></p><p class="p2" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; min-height: 22.8px; text-size-adjust: auto;"><span style="font-family: arial;"><span class="s1"></span><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;">With time, space and some hard work it can make a big difference to your business.</span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;"><br /></span></p><p class="p1" style="-webkit-text-size-adjust: auto; font-stretch: normal; line-height: normal; margin: 0px; text-size-adjust: auto;"><span class="s1" style="font-family: arial;"><a href="http://www.base52.co.uk">www.base52.co.uk</a></span></p>Fredhttp://www.blogger.com/profile/18323306501746264111noreply@blogger.com1tag:blogger.com,1999:blog-8711881022990864983.post-34720674825838805882020-06-28T03:44:00.000-07:002020-06-28T03:44:50.854-07:00Yes, no or maybe?<div class="p1" style="font-stretch: normal; line-height: normal;">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjWfhN_HluC8HLWvFr40Km9POB2UlynhH2iKnAj8ac3jrL31cWGCmG-V0uJA7MsGhp6OsSqalUEuP5sfhUExYWBU51Bhba9uxustdpWtopGrWk7B_eZjvWmWuJFUFOHiy-9IjKbGJAAWaM/s1600/Yes.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="419" data-original-width="634" height="211" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjWfhN_HluC8HLWvFr40Km9POB2UlynhH2iKnAj8ac3jrL31cWGCmG-V0uJA7MsGhp6OsSqalUEuP5sfhUExYWBU51Bhba9uxustdpWtopGrWk7B_eZjvWmWuJFUFOHiy-9IjKbGJAAWaM/s320/Yes.JPG" width="320" /></a></div>
<h3>
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">There’s a tendency for business owners and entrepreneurs not to want to pass up the opportunity of a potential sale.</span></h3>
</div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">The famous saying attributed to Richard Branson goes something like, ‘If some one offers you an opportunity, say yes and think about how you’ll do it afterwards’. </span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">There is good sense in this. You want to show confidence and enthusiasm to a prospective customer so making them aware of your immediate concerns is not the smartest sales tactic. </span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">For lifestyle businesses too where the owner is the person delivering the service, saying yes and being positive at the outset is a good tactic. If it turns out on further investigation that it is not such a great idea you can always offer help in some other way. Perhaps refer the prospect on to someone in your network who would do a great job. That way you make two people happy and spread a little bit of goodwill.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">Pricing specialist and business thought leader Ron Baker argues that ‘knowledge businesses’ - those that deliver value by means of their intellectual capital and ‘know-how’, should consider charging less if they gain new knowledge from a particular assignment. They may not make as much profit as on a more routine job but they have added to the bank of the firm’s knowledge which should be beneficial in the longer run.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">In these challenging times, where sales and cashflow are at a premium, the inclination to say yes is greater than ever.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">There are circumstances however where I believe that turning down a potential sale is the best thing to do. By all means try to refer the prospect on to someone else if you can, but sometimes it is better not to to proceed.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">An example would be where the business has a clear niche where they do specialised and highly profitable work. Stepping out of that niche to exploit an opportunity will shift focus and resources from what the business already does very successfully. So it may not be the best approach.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">Another instance where caution is recommended is where the new opportunity would require significant input from the owner. If this would shift their focus from managing their core business, the benefit from the potential new sale might not outweigh the costs.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">Passion and enjoyment are also important. You may make money on a new assignment but if it doesn’t make you happy or inspire you, you may want to think twice.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">So in many cases I would agree with the great man and saying, ‘Yes’ and going for it is the best approach. </span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">Every now and then though, after reflection, a better way forward might be, ‘Thank you for the opportunity but we are not able to help you this time’.</span><br />
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;"><a href="http://www.base52.co.uk/">www.base52.co.uk</a></span></div>
Fredhttp://www.blogger.com/profile/18323306501746264111noreply@blogger.com1tag:blogger.com,1999:blog-8711881022990864983.post-90777894472009439022020-06-12T23:12:00.000-07:002020-06-12T23:12:12.166-07:00Back to the fray<div class="p1" style="font-stretch: normal; line-height: normal;">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEil7_j8jkkAf1WWxlGFHLwgN3KLm5xNp06ynSBnp6c-KrO2zdIgJE8mwBu-1gSX1Tf4rdO4k5J5x6jmKfmb88wUNxmAmz4VXD6NQP8JMduo0_baxufsM9gImYA3TDG4BqEKS8ISwUYwNWM/s1600/Open.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="310" data-original-width="470" height="211" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEil7_j8jkkAf1WWxlGFHLwgN3KLm5xNp06ynSBnp6c-KrO2zdIgJE8mwBu-1gSX1Tf4rdO4k5J5x6jmKfmb88wUNxmAmz4VXD6NQP8JMduo0_baxufsM9gImYA3TDG4BqEKS8ISwUYwNWM/s320/Open.JPG" width="320" /></a></div>
<h3>
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">For many businesses, after the initial panic and scramble to ensure survival, lockdown has been a time of treading water.</span></h3>
</div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">Employees on furlough, rent holidays negotiated with landlords, non essential spending halted, loans secured. Then its been a matter of waiting for things to change.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">There is still a long way to go as the Government advisors keep reminding us but lockdown is starting to ease with the re-opening of non essential retail imminent. The hospitality sector is expected to follow soon.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">The ‘new normal’ means social distancing and strict hygiene measures will remain in place. Business owners and their teams have been planning how they will re-open in these circumstances.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">Much of the planning will be operational - one way systems to limit contact, hand sanitiser stations, screens for employees, restricted customer flows and so on.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">There are other factors to consider which may get less attention in the rush to re-open. </span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">The biggest of these is answering the question, ‘Is your new business model viable?’ </span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">In other words, after estimating your sales and allowing for costs of your new way of working, are you making a profit? </span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">If not, what is your ‘break-even’ level of sales?</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">Knowing the answer to both of these questions is critical in my opinion. </span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">The first because it is the acid test for your recovery plan. If you are losing money to start with you need to know this and have a projection of how long losses can be sustained for. </span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">The second is the initial target you are aiming for. Reaching break-even as soon as possible is imperative if the business is to maintain financial viability in the longer run.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">I would argue that the most important aspects of financial management at this time are forecasting (of projected profits and cash flows) and regular monitoring and review.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">The easing of lockdown is a time for optimism and hope.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">Combining this with good financial management will increase your chances of weathering the storm until we reach calmer waters.</span><br />
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;"><a href="http://www.base52.co.uk/">www.base52.co.uk</a></span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><a href="http://www.base52.co.uk/" target="_blank"></a></span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span class="s1" style="font-size: 19.08px;"></span><br /></div>
Fredhttp://www.blogger.com/profile/18323306501746264111noreply@blogger.com2tag:blogger.com,1999:blog-8711881022990864983.post-70696816807587201262020-06-07T03:31:00.000-07:002020-06-07T03:31:39.338-07:00Time for reflection <div class="p1" style="-webkit-text-size-adjust: auto; font-size: 19.1px; font-stretch: normal; line-height: normal;">
<span class="s1" style="font-size: 19.08px;"></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgTJSaG9KdeZnOyukKrX9N3X78ifYWhaJfn1sVlFk5mv3O6uWh3RsKJ1DFi_rQYU9we8TgfWikoPdP2UbBxHrwMReOCmO6K3iWiMP0zLRc8RXJyOjJNhy5FerP0IM3gSvtHqtdjCRIPuYo/s1600/Parachute.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="774" data-original-width="1253" height="197" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgTJSaG9KdeZnOyukKrX9N3X78ifYWhaJfn1sVlFk5mv3O6uWh3RsKJ1DFi_rQYU9we8TgfWikoPdP2UbBxHrwMReOCmO6K3iWiMP0zLRc8RXJyOjJNhy5FerP0IM3gSvtHqtdjCRIPuYo/s320/Parachute.JPG" width="320" /></a></div>
<h3>
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">One of the features of the lockdown, for most of us at least, is having more time.</span></h3>
</div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">Less time on commuting, socialising, shopping etc means more time for, well...whatever takes your fancy, as long as it doesn’t involve non essential travel or mingling with other households.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">I’ve been working from home, doing a bit more gardening and had more time to think. </span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">I’m reading, ‘The Passion Economy’ by Adam Davidson and one of the chapters is about a behavioural scientist who is motivated by influencing lots of people to make positive changes in their lives. One of her techniques is to write a long list of things you are good at doing. She is evidently a person of many talents as her list took a few days to compile. I think mine will be finished much sooner.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">When you have the list you then draw a circle around the things you enjoy or are passionate about. If you can make these things part of your career or your business, that’s a very good place to be.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">This is not too far away from the Japanese concept of ‘Ikigai’. Broadly translated this means. ‘Reason for living’. If you can find enjoyment and purpose in your work, you will be more fulfilled and probably do a much better job.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">Before starting my business 17 years ago I read, ‘What colour is your parachute’, the seminal career planning book by Richard N Bolles. This has a similar approach to helping you choose your career path if you reach a fork in the road. What are you good at? What do you enjoy and what kind of environment do you like to work in? It helped me reach a conclusion that I wanted to be my own boss and shape my own destiny.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">So most of us have more time. Time to reset and reevaluate things.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">I might just have a go at my list today. Not because I’m at a particular crossroads, but because I have the time and it might lead to something positive.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">Who knows, a new career as a wine-maker or bee-keeper may beckon?</span><br />
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;"><a href="http://www.base52.co.uk/">www.base52.co.uk</a></span></div>
Fredhttp://www.blogger.com/profile/18323306501746264111noreply@blogger.com0tag:blogger.com,1999:blog-8711881022990864983.post-80388718112965502522020-05-29T22:49:00.001-07:002020-06-07T04:02:11.692-07:00Being unique beats being efficient in small business <div class="p1" style="font-stretch: normal; line-height: normal; margin-bottom: 3px;">
<div style="font-size: 27.2px;">
<span class="s1" style="font-size: 27.25px; font-weight: bold;"><span style="font-family: "arial"; font-size: x-small;"></span></span></div>
<div class="separator" style="clear: both; font-size: 27.2px; font-weight: bold; text-align: center;">
<span class="s1" style="font-size: 27.25px; font-weight: bold;"><span style="font-family: "arial"; font-size: x-small;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgRmJffS_c8VtddOrSZ73TrCzKvVO8M_S1JxLORQSUwgIODmW5E7VqhP5DK_HeVtAQpztz_5N5WH23avFik9AfbG285ER3SEf_TFtk7yr8-BzG0X7vVMGivZoT5n9RX4LUeYBjno-MB9qU/" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="816" data-original-width="1245" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgRmJffS_c8VtddOrSZ73TrCzKvVO8M_S1JxLORQSUwgIODmW5E7VqhP5DK_HeVtAQpztz_5N5WH23avFik9AfbG285ER3SEf_TFtk7yr8-BzG0X7vVMGivZoT5n9RX4LUeYBjno-MB9qU/s320/Commodity.JPG" width="320" /></a></span></span></div>
<div style="font-size: 27.2px;">
</div>
<h3 style="text-align: left;">
<span class="s1"><span style="font-family: "arial"; font-size: small;">There’s a good rule in business, especially small business, not to make your product or service a commodity.</span></span></h3>
<div>
<span class="s1"><span style="font-family: "arial"; font-size: small;"><br /></span></span></div>
</div>
<div class="p3" style="font-stretch: normal; line-height: normal;">
<span class="s2"><span style="font-family: "arial" , "helvetica" , sans-serif;">Adam Davidson makes this one of his 7 rules for thriving in business in the 21st Century in his book, 'The Passion Economy'.</span></span><br />
<span class="s2"><span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span></span>
<span class="s2"><span style="font-family: "arial" , "helvetica" , sans-serif;">Another way of expressing this is to ensure that you differentiate yourself from your competitors by more than just having the lowest price.</span></span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 25.1px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s2"></span><br /></span></div>
<div class="p3" style="font-stretch: normal; line-height: normal;">
<span class="s2"><span style="font-family: "arial" , "helvetica" , sans-serif;">In a market where there is aggressive price competition lies a never-ending spiral of efficiency gains, cost cutting and wafer-thin margins.</span></span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 25.1px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s2"></span><br /></span></div>
<div class="p3" style="font-stretch: normal; line-height: normal;">
<span class="s2"><span style="font-family: "arial" , "helvetica" , sans-serif;">There will always be a competitor who has lowers costs, uses technology better or gets better economies of scale. It’s a dog-eat-dog world and only the biggest, hungriest dogs survive.</span></span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 25.1px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s2"></span><br /></span></div>
<div class="p3" style="font-stretch: normal; line-height: normal;">
<span class="s2"><span style="font-family: "arial" , "helvetica" , sans-serif;">So that’s great in theory but if you provide bookkeeping services or sell pizza or make widgets of some description, how can you stop them being commodities?</span></span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 25.1px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s2"></span><br /></span></div>
<div class="p3" style="font-stretch: normal; line-height: normal;">
<span class="s2"><span style="font-family: "arial" , "helvetica" , sans-serif;">Bookkeeping is bookkeeping, right?</span></span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 25.1px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s2"></span><br /></span></div>
<div class="p3" style="font-stretch: normal; line-height: normal;">
<span class="s2"><span style="font-family: "arial" , "helvetica" , sans-serif;">Well, not necessarily. </span></span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 25.1px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s2"></span><br /></span></div>
<div class="p3" style="font-stretch: normal; line-height: normal;">
<span class="s2"><span style="font-family: "arial" , "helvetica" , sans-serif;">At its most basic level, bookkeeping is just posting invoices, matching bank payments and receipts, maintaining sales and purchase ledgers and reconciling bank accounts. </span></span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 25.1px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s2"></span><br /></span></div>
<div class="p3" style="font-stretch: normal; line-height: normal;">
<span class="s2"><span style="font-family: "arial" , "helvetica" , sans-serif;">There are lots of possible variations in how this service is delivered - at client’s premises or remotely, using the latest technology or ‘old school’ manual ledgers, processing monthly or quarterly or daily, ‘real-time’ processing, with add on management information (what do the figures mean?) or without, digital dashboard or paper reports.</span></span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 25.1px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s2"></span><br /></span></div>
<div class="p3" style="font-stretch: normal; line-height: normal;">
<span class="s2"><span style="font-family: "arial" , "helvetica" , sans-serif;">It is these variations which move the service on from being a commodity to a unique service which is valued by your unique group of customers.</span></span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 25.1px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s2"></span><br /></span></div>
<div class="p3" style="font-stretch: normal; line-height: normal;">
<span class="s2"><span style="font-family: "arial" , "helvetica" , sans-serif;">If you can find your point of difference and find customers who place a higher value on this, you can move out of the commodity world to a place where there is less of a need to compete solely on price. </span></span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 25.1px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s2"></span><br /></span></div>
<div class="p3" style="font-stretch: normal; line-height: normal;">
<span class="s2"><span style="font-family: "arial" , "helvetica" , sans-serif;">The extra bits you do which are unique to you are harder for your competitors to copy so you can focus on client care and improving your offering, rather than the relentless pursuit of efficiency.</span></span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 25.1px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s2"></span><br /></span></div>
<div class="p3" style="font-stretch: normal; line-height: normal;">
<span class="s2"><span style="font-family: "arial" , "helvetica" , sans-serif;">So in big commodity businesses, the focus may be on low prices, cost savings and productivity gains. </span></span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 25.1px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s2"></span><br /></span></div>
<div class="p3" style="font-stretch: normal; line-height: normal;">
<span class="s2"><span style="font-family: "arial" , "helvetica" , sans-serif;">For small businesses, I’d argue that what’s more important is making your product or service unique and for your customers to recognise the extra value which you provide in the price they are willing to pay.</span></span></div>
<div class="p3" style="font-stretch: normal; line-height: normal;">
<span class="s2"><span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span></span></div>
<div class="p3" style="font-stretch: normal; line-height: normal;">
<span class="s2"><span style="font-family: "arial" , "helvetica" , sans-serif;"><a href="https://www.blogger.com/www.base52.co.uk" target="_blank">www.base52.co.uk</a></span></span></div>
Fredhttp://www.blogger.com/profile/18323306501746264111noreply@blogger.com0tag:blogger.com,1999:blog-8711881022990864983.post-74241779150306351282020-05-22T23:38:00.000-07:002020-05-22T23:38:25.178-07:00Zooming towards a plan<div class="p1" style="font-stretch: normal; line-height: normal;">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgHUk11gtbzMe_CUd3Nvs22GnCjllgFE3wbFbpxVHOAuC6ErIJZNwxcEvseyWYM0mjTpiluAFkS_w1WXyXLED5soBuHwe9PaaF0SiRSb7kzbh1LTDhDSBRKvBfFDUMp9vf5qMRnw4qLlhg/s1600/Freedom.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="828" data-original-width="1240" height="213" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgHUk11gtbzMe_CUd3Nvs22GnCjllgFE3wbFbpxVHOAuC6ErIJZNwxcEvseyWYM0mjTpiluAFkS_w1WXyXLED5soBuHwe9PaaF0SiRSb7kzbh1LTDhDSBRKvBfFDUMp9vf5qMRnw4qLlhg/s320/Freedom.JPG" width="320" /></a></div>
<h3>
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">I had some Zoom calls with clients this week about personal financial planning.</span></h3>
</div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">I’m joined at the meetings by an Independent Financial Advisor (IFA). He’s the expert and runs the meetings and I observe and occasionally chip in if the conversation strays into my realm of a client’s business interests or tax matters.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">My IFA buddy and I have been doing these meetings together for a few years now. What strikes me is that surprisingly few people plan their finances and align the management of these with the their personal life goals.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">Stuff just tends to happen. </span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">We have various jobs and accumulate several pensions. Maybe we invest in a buy to let property because it seemed like a good opportunity at the time or we inherited mum and dad’s house and decided to let it out. We have a few ISAs and maybe some premium bonds. We were made redundant from our last job and started the consulting business. We still have a hefty mortgage on the family home. </span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">And we don’t have a plan.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">This is a typical scenario for a reasonably ‘successful’ person in their 50s. They have a patchwork of assets, active and potential income streams but they are not joined together into a coherent strategy.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">Often its at this stage that people will start to think they need a plan. </span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">Maybe they’d like to retire and they don’t know if they can afford it. Maybe they want to help the kids out now and leave them a reasonable inheritance. Maybe they just want to travel the world and enjoy life when they still can.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">This is where a good IFA can really add value by pulling all the strands together and helping to construct a plan. I’ve seen cases where an advisor has been able to present options which individuals had not considered or thought would be unrealistic. </span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">In short, a good plan can be transformational. It can bring clarity, open up new horizons and turn possibilities into realities.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">Not everyone is ready to commit to a plan of course and many people will leave our meetings still undecided and will carry on as before. </span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">An exploratory meeting can be a great way of unblocking the inertia. An external expert looking at your situation and putting forward some options you may not have considered can be a catalyst for change.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">That change, in the context of a plan which can then be implemented, can be the difference between muddling through and living life as you really want to.</span><br />
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;"><a href="http://www.base52.co.uk/">www.base52.co.uk</a></span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span class="s1" style="font-size: 19.08px;"></span><br /></div>
<div class="p2" style="-webkit-text-size-adjust: auto; font-size: 19.1px; font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span class="s1" style="font-size: 19.08px;"></span><br /></div>
<div class="p2" style="-webkit-text-size-adjust: auto; font-size: 19.1px; font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span class="s1" style="font-size: 19.08px;"></span><br /></div>
<div class="p2" style="-webkit-text-size-adjust: auto; font-size: 19.1px; font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span class="s1" style="font-size: 19.08px;"></span><br /></div>
<div class="p2" style="-webkit-text-size-adjust: auto; font-size: 19.1px; font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span class="s1" style="font-size: 19.08px;"></span><br /></div>
Fredhttp://www.blogger.com/profile/18323306501746264111noreply@blogger.com0tag:blogger.com,1999:blog-8711881022990864983.post-74660831268583718802020-05-16T01:38:00.001-07:002020-05-16T01:46:15.060-07:00Looking for the positives <div class="p1" style="font-stretch: normal; line-height: normal;">
<div class="p1" style="font-stretch: normal; line-height: normal;">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiZ_jcXiU_n-tnASfuv0skLBMbWm0wA8ZwmcMYw4rsfFvfh1Cze2fcZpKB_KKfRaNlhELi5qB2A5uuk4NFRrVmhvJ2E4WOG2Dn1-iFivm7r-aAQ6GlSbABx8dRo_vwZ4aVuJNYLK5W_RNE/s1600/Positive.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="617" data-original-width="1267" height="155" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiZ_jcXiU_n-tnASfuv0skLBMbWm0wA8ZwmcMYw4rsfFvfh1Cze2fcZpKB_KKfRaNlhELi5qB2A5uuk4NFRrVmhvJ2E4WOG2Dn1-iFivm7r-aAQ6GlSbABx8dRo_vwZ4aVuJNYLK5W_RNE/s320/Positive.JPG" width="320" /></a></div>
<h3>
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">As has been said may times we are living in unprecedented times.</span></h3>
</div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">Much of the impact is negative - on lives, livelihoods and on mental health. We’ve all witnessed positive aspects with examples like the commitment of NHS staff and other key workers, a greater sense of community and more acts of kindness.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">Many businesses continue to struggle and there is a long way to go before they can be sure of their longer term survival.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">In our business too, we have faced (and are facing) challenges but there are some positive aspects which will stay with us when the immediate impact of the pandemic has passed.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">I’ve been reflecting on these and here are a few:</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<span style="font-family: "arial" , "helvetica" , sans-serif;"><b>Valuing the team</b></span><br />
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">I’ve always recognised that we have a talented team. This crisis has just reinforced to me how brilliant they all are. Coping with the challenges of moving very quickly to working remotely, juggling personal lives and home schooling and doing their best to deliver for our clients, despite all the difficulties.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;"></span></div>
<span style="font-family: "arial" , "helvetica" , sans-serif;"><b>Embracing new technology</b></span><br />
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">The enforced change has meant that we have all had to adapt very quickly to using technology like video conferencing and cloud software applications. Face to face meetings have their place but most of us realise we can have a productive meeting on-line now without having a rush hour journey in busy traffic. We can also successfully maintain a client’s books remotely and have a conversation with them about the results, without resorting to the post or having a meeting in the office.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<span style="font-family: "arial" , "helvetica" , sans-serif;"><b>Client relationships</b></span><br />
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">The crisis has meant we have had to work intensively with many clients to help them access Government support in the form of grants, tax deferrals and loans. I believe this support and the sense that, ‘We are in this together’ has strengthened our relationships and the impact will last beyond the pandemic.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<span style="font-family: "arial" , "helvetica" , sans-serif;"><b>Working differently</b></span><br />
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">We have all had to adapt to new ways of working. Although I miss my colleagues and the daily interaction at the office, I find I’m well-suited to working from home. I have more control over what I do and when and with less interruptions. Work colleagues have adapted too, with those home schooling or fitting in study for exams around work adjusting their hours and work schedules to suit. I can see us operating more of a hybrid system in the future with a mix of office and home working.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<span style="font-family: "arial" , "helvetica" , sans-serif;"><b>New markets</b></span><br />
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">Although most of our clients are located close to our office we have always attracted clients from further afield. Often this has been by word of mouth or by a chance encounter on-line. I see this trend continuing now we are even clearer that we can provide a first-rate service remotely and we can easily engage with prospective clients via Zoom etc.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<span style="font-family: "arial" , "helvetica" , sans-serif;"><b>Freedom for the boss</b></span><br />
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">I’ve been trying to gain more personal freedom from the ‘day to day’ routine of running the business for some years now. Not to do nothing, but to have space to think creatively, be more strategic, do what business owners and managers should do more of. I’ve had limited success. I’ve still had that ‘guilt’ thing that if I’m not in the office, I’m not really working. I think that’s changed. I think I know and the team know that things can function perfectly well (probably better) without me being in the office very day.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">So some positives are emerging from a crazy and turbulent time.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">I hope you find some positives too or maybe some of these things resonate with you?</span><br />
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;"><a href="http://www.base52.co.uk/">www.base52.co.uk</a></span></div>
</div>
Fredhttp://www.blogger.com/profile/18323306501746264111noreply@blogger.com0tag:blogger.com,1999:blog-8711881022990864983.post-16249036415395477272020-05-03T03:25:00.000-07:002020-05-03T06:56:59.709-07:00Bouncing back with a Bounce Back loan?<div class="p1" style="font-stretch: normal; line-height: normal; margin-bottom: 3px;">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjkKxwLteORDCbz6C4AFrlbwx83e2CIS0ukzRAtE578dhvWLHURMP_X-JbZ7r3X-z3a_yponoFx_eGCfiGzUZW-G0KlL7HwHVCSlCMGm-fAeStSF6cccfxAb4jB-XYqtut0CN8OwDqo7gM/s1600/Bounce.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="814" data-original-width="1250" height="208" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjkKxwLteORDCbz6C4AFrlbwx83e2CIS0ukzRAtE578dhvWLHURMP_X-JbZ7r3X-z3a_yponoFx_eGCfiGzUZW-G0KlL7HwHVCSlCMGm-fAeStSF6cccfxAb4jB-XYqtut0CN8OwDqo7gM/s320/Bounce.JPG" width="320" /></a></div>
<h3>
<span style="font-family: "arial" , "helvetica" , sans-serif;">The Government’s Coronavirus financial support measures have broadly involved grants and loans.</span></h3>
</div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s2"></span><br /></span></div>
<div class="p3" style="font-stretch: normal; line-height: normal;">
<span class="s2" style="font-family: "arial" , "helvetica" , sans-serif;">Grants to support job retention by furloughing employees, grants for business rates support and grants for the self-employed.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s2"></span><br /></span></div>
<div class="p3" style="font-stretch: normal; line-height: normal;">
<span class="s2" style="font-family: "arial" , "helvetica" , sans-serif;">Loans in the form of tax deferrals, the Coronavirus Business Interruption Loan Scheme (CBILS) and the recently announced, Bounce Back Loan Scheme (BBLS).</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s2"></span><br /></span></div>
<div class="p3" style="font-stretch: normal; line-height: normal;">
<span class="s2" style="font-family: "arial" , "helvetica" , sans-serif;">Grants are ‘free money’. They don’t have to be paid back so the decision to take one, if needed, is a ‘no-brainer’. In accounting terms it is treated as income in the profit & loss account and is taxable. It would be good practice to spread the income over several months in the accounts over the period of need, rather than including it all in the month of receipt.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s2"></span><br /></span></div>
<div class="p3" style="font-stretch: normal; line-height: normal;">
<span class="s2" style="font-family: "arial" , "helvetica" , sans-serif;">So what about loans?</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s2"></span><br /></span></div>
<div class="p3" style="font-stretch: normal; line-height: normal;">
<span class="s2" style="font-family: "arial" , "helvetica" , sans-serif;">Again, tax deferrals are worth doing. They are interest-free and allow you to pay certain taxes at a later date. In these uncertain times, that provides a bit of contingency. The tax deferred should show as a liability on your balance sheet and cash flow plans should reflect the new, later payment date.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s2"></span><br /></span></div>
<div class="p3" style="font-stretch: normal; line-height: normal;">
<span class="s2" style="font-family: "arial" , "helvetica" , sans-serif;">Longer term loans like CBILS or the Bounce Back loans require a bit more thought. </span><br />
<span class="s2" style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<span class="s2" style="font-family: "arial" , "helvetica" , sans-serif;">The Bounce Back loans, launching on 4 May are good value. No interest or repayments are due for the first 12 months. After this the interest rates will be relatively low at 2.5%. Banks have promised a simple, on-line application and approval process.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s2"></span><br /></span></div>
<div class="p3" style="font-stretch: normal; line-height: normal;">
<span class="s2" style="font-family: "arial" , "helvetica" , sans-serif;">The first instinct of most business owners will be to apply for one. Cash is tight, the future is uncertain and it provides a bit of a buffer. These are good reasons.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s2"></span><br /></span></div>
<div class="p3" style="font-stretch: normal; line-height: normal;">
<span class="s2" style="font-family: "arial" , "helvetica" , sans-serif;">Good sense though would be to think ahead and plan how you will use the loan. Ideally this should be within the context of a forecast of profits and cashflows over the next year or two. A key consideration should be that the loan repayments, when they fall due, are affordable.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s2"></span><br /></span></div>
<div class="p3" style="font-stretch: normal; line-height: normal;">
<span class="s2" style="font-family: "arial" , "helvetica" , sans-serif;">So grants, yes. Tax deferrals, yes. Loans, maybe, but with some caveats.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s2"></span><br /></span></div>
<div class="p3" style="font-stretch: normal; line-height: normal;">
<span class="s2" style="font-family: "arial" , "helvetica" , sans-serif;">Think hard about what you will use the loan funding for, before you apply and try to make it last for your recovery period and beyond.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s2"></span><br /></span></div>
<div class="p3" style="font-stretch: normal; line-height: normal;">
<span class="s2" style="font-family: "arial" , "helvetica" , sans-serif;">When its gone, its gone...so plan a few months ahead, beyond your immediate and urgent needs.</span><br />
<span class="s2" style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<span class="s2" style="font-family: "arial" , "helvetica" , sans-serif;"><a href="http://www.base52.co.uk/">www.base52.co.uk</a></span></div>
Fredhttp://www.blogger.com/profile/18323306501746264111noreply@blogger.com4tag:blogger.com,1999:blog-8711881022990864983.post-1365768378511835872020-04-25T00:55:00.000-07:002020-04-25T00:55:59.320-07:00Focus on what you can control<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjwG_NpS77m2WOb-GCBtp9OfHjeLG9RWoO9RUzTctB5TQQwHMpfK2IgNTa5Kz-9njb8oMqcg-EZzY6mqvQyVGwkeT9_YI3F67D-B4n3vdQ2glspw8Elt7l22dg5cJurQyMJTv0QVlZM6WY/s1600/Future.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="828" data-original-width="1276" height="207" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjwG_NpS77m2WOb-GCBtp9OfHjeLG9RWoO9RUzTctB5TQQwHMpfK2IgNTa5Kz-9njb8oMqcg-EZzY6mqvQyVGwkeT9_YI3F67D-B4n3vdQ2glspw8Elt7l22dg5cJurQyMJTv0QVlZM6WY/s320/Future.JPG" width="320" /></a></div>
<h3>
<span style="font-family: Arial, Helvetica, sans-serif;">I watched a good video clip by a celebrity doctor this morning about protecting your mental health and emotional well-being during lockdown.</span></h3>
<div class="p1" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p2" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">The tip that most resonated most with me was ‘Control’. Working out what you’re in control of and what you’re not. Spend time working on the things you can control and don’t waste so much energy on worrying about those you can’t.</span></div>
<div class="p1" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p2" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">This applies to business owners struggling to come to terms with the lockdown. For many their business premises are shut, their employees are on furlough or working remotely and cash is tight. There’s no money coming in and there are bills to pay. Their business world has been turned upside down in a few short weeks.</span></div>
<div class="p1" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p2" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">So lets think about what we can’t control for a moment. We can’t control how long the lockdown will last or how long social distancing and other measures will stay in place. That’s out of our hands. We need to work within the changing rules but we can’t really influence how and when they will change. </span></div>
<div class="p1" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p2" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">We can control how we adapt and work within the current and changing environment.</span></div>
<div class="p1" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p2" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">The initial priorities for most of us have been about crisis management. Protecting our employees, protecting our premises and protecting our finances. For those of us lucky enough to be in sectors which are still trading, looking after our customers and helping them weather the storm has also been a high priority.</span></div>
<div class="p1" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p2" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">The initial frenzied activity may have been replaced by some kind of calm. We’re not going into work but we’ve done most of the urgent stuff we needed to do. Survival for the next few weeks is secured and some businesses are ‘treading water’ until some kind of normality returns.</span></div>
<div class="p1" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p2" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">This is where I think we also have a degree of control. </span></div>
<div class="p1" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p2" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">We can spend time visualising how that new kind of normality will look like in our sector in the short, medium and longer term. How will we adapt our businesses to this new environment?</span></div>
<div class="p1" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p2" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">This is not easy but I think is worth the attention of all of us business owners. </span></div>
<div class="p1" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p2" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">Those of us who follow the latest developments, think hardest and adapt fastest will have a greater chance of success when the current restrictions start to be relaxed.</span><br />
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;"><a href="http://www.base52.co.uk/">www.base52.co.uk</a></span></div>
Fredhttp://www.blogger.com/profile/18323306501746264111noreply@blogger.com0tag:blogger.com,1999:blog-8711881022990864983.post-78369282892851118622020-04-19T07:44:00.000-07:002020-04-19T23:43:57.986-07:00Preparing for the new normal<div class="p1" style="font-stretch: normal; line-height: normal; margin-bottom: 3px;">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgoV59UmdYZEZxtDgItiVwrHJJ-nca8Mh1qIEwvWQ2M5tsxUBMhCmB6T3x6aKQb3tq7-Msx_QLB7XjeJ4dlchOwyiFjMJkQesWY8GCtlAuu_9PGtzsH2tyAPwj6EK98JKBLG7S5XOZBfIA/s1600/Covid+3.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="314" data-original-width="465" height="216" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgoV59UmdYZEZxtDgItiVwrHJJ-nca8Mh1qIEwvWQ2M5tsxUBMhCmB6T3x6aKQb3tq7-Msx_QLB7XjeJ4dlchOwyiFjMJkQesWY8GCtlAuu_9PGtzsH2tyAPwj6EK98JKBLG7S5XOZBfIA/s320/Covid+3.JPG" width="320" /></a></div>
<h3>
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif; font-weight: bold;">We’ve been in lockdown now for almost a month.</span></h3>
</div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s2"></span><br /></span></div>
<div class="p3" style="font-stretch: normal; line-height: normal;">
<span class="s2" style="font-family: "arial" , "helvetica" , sans-serif;">Although the Government have tried to dampen down talk of exit plans, attention is moving to how measures might be relaxed in due course and how we might return to more normal conditions, or perhaps a ‘new normal’. </span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s2"></span><br /></span></div>
<div class="p3" style="font-stretch: normal; line-height: normal;">
<span class="s2" style="font-family: "arial" , "helvetica" , sans-serif;">The consensus seems to be that at least in the short term, social distancing measures will still apply until a vaccine or another scientific solution minimises the risk of the virus growth accelerating again. </span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s2"></span><br /></span></div>
<div class="p3" style="font-stretch: normal; line-height: normal;">
<span class="s2" style="font-family: "arial" , "helvetica" , sans-serif;">The most likely sequence for an emergence from lockdown, according to Buzzfeed, seems to be allowing some non-essential shops and industries to open, followed by a relaxation in some social distancing measures and in due course, re-opening pubs and restaurants. Permitting larger public gatherings and events and opening up travel are likely to be further down the track. </span><br />
<span class="s2" style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<span class="s2" style="font-family: "arial" , "helvetica" , sans-serif;">This sequence is still speculative but it does align with measures to relax lockdown seen in some other European countries and the Buzzfeed article has been picked up and reported on by mainstream media.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s2"></span><br /></span></div>
<div class="p3" style="font-stretch: normal; line-height: normal;">
<span class="s2" style="font-family: "arial" , "helvetica" , sans-serif;">There is still great uncertainty over the timing and it makes planning difficult for businesses.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s2"></span><br /></span></div>
<div class="p3" style="font-stretch: normal; line-height: normal;">
<span class="s2" style="font-family: "arial" , "helvetica" , sans-serif;">But plan we must.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s2"></span><br /></span></div>
<div class="p3" style="font-stretch: normal; line-height: normal;">
<span class="s2" style="font-family: "arial" , "helvetica" , sans-serif;">The focus for some businesses has been surviving lockdown. Gaining access to the Government financial support, speaking to their banks, customers and suppliers. This remains the focus for many with essential funding not yet in place to ensure their survival over the next few weeks.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s2"></span><br /></span></div>
<div class="p3" style="font-stretch: normal; line-height: normal;">
<span class="s2" style="font-family: "arial" , "helvetica" , sans-serif;">Before too long the focus needs to shift to emerging from lockdown. </span><br />
<span class="s2" style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<span class="s2" style="font-family: "arial" , "helvetica" , sans-serif;">What will this look like in your sector? Some sectors will be permanently changed. Some will have a very gradual return to more normal conditions. There are scenarios we need to plan for and adapt our businesses to the new reality.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s2"></span><br /></span></div>
<div class="p3" style="font-stretch: normal; line-height: normal;">
<span class="s2" style="font-family: "arial" , "helvetica" , sans-serif;">One of the buzzwords at the moment is ‘pivot’. In other words, changing your business offering and business model to suit the new conditions. Pubs and restaurants doing takeaway and delivery services, events companies moving on-line, football teams playing in empty stadiums.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s2"></span><br /></span></div>
<div class="p3" style="font-stretch: normal; line-height: normal;">
<span class="s2" style="font-family: "arial" , "helvetica" , sans-serif;">Pivoting is a technique widely used in start up businesses. </span><br />
<span class="s2" style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<span class="s2" style="font-family: "arial" , "helvetica" , sans-serif;">If their initial start up offering is not taking off the entrepreneurs will pivot their offering to make it more attractive and relevant to customers. Often these pivots are very radical and involve a complete rethink of the business, starting with the customer and how the assets and resources of the company can best be deployed to meet their needs. </span><br />
<span class="s2" style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<span class="s2" style="font-family: "arial" , "helvetica" , sans-serif;">One of the most unusual and counter-intuitive pivots I read about recently was a former events company which is now manufacturing and distributing its own brand of gin.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s2"></span><br /></span></div>
<div class="p3" style="font-stretch: normal; line-height: normal;">
<span class="s2" style="font-family: "arial" , "helvetica" , sans-serif;">Most of us will not be doing anything as radical as moving into the gin business but we may need to think about making some significant changes to adapt to the new environment. </span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s2"></span><br /></span></div>
<div class="p3" style="font-stretch: normal; line-height: normal;">
<span class="s2" style="font-family: "arial" , "helvetica" , sans-serif;">Will our sector return to a ‘pre-Covid’ situation when we come out the other side or will it be permanently changed? </span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s2"></span><br /></span></div>
<div class="p3" style="font-stretch: normal; line-height: normal;">
<span class="s2" style="font-family: "arial" , "helvetica" , sans-serif;">We need to be ready and prepared for the ‘new normal’ when it comes.</span><br />
<span class="s2" style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<span class="s2" style="font-family: "arial" , "helvetica" , sans-serif;"><a href="http://www.base52.co.uk/">www.base52.co.uk</a></span></div>
Fredhttp://www.blogger.com/profile/18323306501746264111noreply@blogger.com0tag:blogger.com,1999:blog-8711881022990864983.post-68588647831834805192020-04-10T00:01:00.000-07:002020-04-19T06:37:15.609-07:00Its all changed, but good business practice still applies<div class="p1" style="font-stretch: normal; line-height: normal;">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi2ejM_LJw4fHflBn4-LpCga_V4p9qXH30EnGT-tOkNCPIHn2Uv7cisFJrbDlwA0WCywrmy4N6dwAMeFpqcE-s_1orBsqwKb2yEiVqMt4LkgDS5VN2V3NRTtWiowCy1tU6oMjQFGm41KwM/s1600/Covid.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="831" data-original-width="1258" height="211" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi2ejM_LJw4fHflBn4-LpCga_V4p9qXH30EnGT-tOkNCPIHn2Uv7cisFJrbDlwA0WCywrmy4N6dwAMeFpqcE-s_1orBsqwKb2yEiVqMt4LkgDS5VN2V3NRTtWiowCy1tU6oMjQFGm41KwM/s320/Covid.JPG" width="320" /></a></div>
<h3>
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;"><span style="font-size: 19.08px;">T</span>his is an incredibly difficult time for everyone, both personally and professionally. </span></h3>
</div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">I’ve rewritten this blog once or twice as I don’t want to understate or show any lack of empathy with the difficulties some businesses face at the moment.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">For business owners, our woes don’t compare with key workers and those on the front line in the NHS, but there are huge challenges nonetheless.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">For some businesses, especially those in retail, hospitality and leisure, turnover has dropped almost instantaneously to zero. For other businesses there has been a sharp decline and the future is uncertain. It’s as if all the day to day challenges we all face as business owners have been crammed into the space of a few weeks and magnified several times over.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">It’s tough and we are all trying to navigate our way through.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">The Government financial support measures will help many businesses through this period. As business advisors we have spent much of the last few weeks advising our clients on what support measures apply to them and how they can make a claim. For some its a lifeline, for others they have slipped through the net, at least for now and are doing what they can to get by.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">Despite all the difficulties I want to argue that the basic rules of doing business should still apply. </span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">That is, it is incumbent on all of us to negotiate in good faith and only agree to receive products and services we can afford to pay for. If we’ve had a sudden financial shock and meeting agreed payment terms is not possible in the short term, we should speak to our suppliers and try to agree a mutually acceptable way forward.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">Something which I believe is not particularly helpful or constructive is saying to suppliers, ‘Things are tough, I’m not going to be able to pay you for a while.’ Another way of putting this is, ‘I’ve prioritised things and paying you is not a priority.’</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">There have been well-publicised instances of some larger firms doing this and leaving their suppliers high and dry. In my own network I am aware that this has happened a number of times.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">In some cases, as well as stopping payment, the customer was still expecting to continue to receive services until their situation improved.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">Of course I get it that things are tough. Of course I understand that businesses want to hold onto their cash. Survival is their main objective.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">But shifting their problems onto their suppliers isn’t helpful in the longer run. </span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">A sensible compromise is agreeing a reduction in the ongoing scope of services delivered to what is affordable and perhaps agreeing extended payment terms for old debt.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">So everything is different but good business practice still applies.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">As the Government has said, this will end at some point and more normal trading conditions will resume. </span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;">Following good business practice during this period will ensure we have a better chance of emerging in good shape and with positive business relationships when the time comes.</span><br />
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span class="s1" style="font-family: Arial, Helvetica, sans-serif;"><a href="http://www.base52.co.uk/">www.base52.co.uk</a></span></div>
Fredhttp://www.blogger.com/profile/18323306501746264111noreply@blogger.com0tag:blogger.com,1999:blog-8711881022990864983.post-25137105511345346812020-03-15T01:26:00.000-07:002020-03-15T04:13:40.048-07:00Managing your business finances in challenging times<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg2gDD0LrORDmE3ZdWLgUNr7quNemg63w3hcG2ZZE1Fat5Nf4nQ6Gdc5ZxPJjY2klS8sEFaIpDUcSdMlZoDtIaaM1q-GCOmHQ_PoS4OekUxg6EefCDG1sL7FNRJ6SDtlQi-SwuAZZUim5Q/s1600/Coronavirus.PNG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1600" data-original-width="1600" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg2gDD0LrORDmE3ZdWLgUNr7quNemg63w3hcG2ZZE1Fat5Nf4nQ6Gdc5ZxPJjY2klS8sEFaIpDUcSdMlZoDtIaaM1q-GCOmHQ_PoS4OekUxg6EefCDG1sL7FNRJ6SDtlQi-SwuAZZUim5Q/s320/Coronavirus.PNG" width="320" /></a></div>
<h3>
<span style="font-family: "arial" , "helvetica" , sans-serif;">Coronavirus is dominating all the headlines at the moment.</span></h3>
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<span style="font-family: "arial" , "helvetica" , sans-serif;">For small business owners, particularly those in sectors which will be affected most by measures to tackle the spread of the virus, these are worrying times. Travel companies, event planning businesses, pubs, restaurants and other businesses in the retail and leisure sector are amongst those who will be impacted severely. In reality, all businesses will be affected to varying degrees and will need to take steps to protect their short term and longer term prospects.</span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<span style="font-family: "arial" , "helvetica" , sans-serif;">There is a lot of information out there about how to protect ourselves and others, self-isolating and so on. There is less advice for business owners to help them get through the next few months.</span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<span style="font-family: "arial" , "helvetica" , sans-serif;">The Government, to its credit, did announce some support for small businesses in the recent Budget. This included some relief on Business Rates, changes in Statutory Sick Pay and support for 'Business Interruption' loans. These measures help a little but business owners need to take practical steps to manage their business finances during these challenging times.</span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<span style="font-family: "arial" , "helvetica" , sans-serif;">These are my suggested steps for small businesses to prepare for the next few months:</span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<span style="font-family: "arial" , "helvetica" , sans-serif;">1) <b>Forecast</b></span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<span style="font-family: "arial" , "helvetica" , sans-serif;">I think it is really important to forecast profits and cashflow for the next 3 to 6 months. The future is uncertain but we need to make our 'best guess' allowing for predictions of what may happen - restrictions on mass gatherings, school closures, more employees self-isolating or working from home, less discretionary spending etc. What does the 'first draft' forecast show? For some businesses, things may not be too bad, profits may be down but they have reserves and cashflow holds up. For others, the situation may be much more severe - monthly losses and negative cashflow.</span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<span style="font-family: "arial" , "helvetica" , sans-serif;">2) <b>Consider what you can change</b></span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<span style="font-family: "arial" , "helvetica" , sans-serif;">If your first draft forecast looks unsustainable, what can you change? Start with income. Can you do things differently to generate more sales? Then look at every item of cost. What can be eliminated or cut back to ensure cashlow remains positive until we get back to a more stable trading environment? How does the revised forecast look? If things still look bleak in the short term, you may need to look at emergency funding to get you through this period.</span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<span style="font-family: "arial" , "helvetica" , sans-serif;">3) <b>Consider funding</b></span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<span style="font-family: "arial" , "helvetica" , sans-serif;">Where do you go to get help with funding? The first port of call for most businesses will be their bank or their accountant. A bank will probably want to see a profit and cashflow projection and your accountant can help you pull this together. The projection should determine how much funding you need and what type - loan, overdraft etc. It will also be necessary to take a longer term view to ensure that the loan repayments are affordable and the business finances will improve over time.</span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<span style="font-family: "arial" , "helvetica" , sans-serif;">These are exceptional times and for some businesses, keeping calm and carrying on will not be enough.</span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<span style="font-family: "arial" , "helvetica" , sans-serif;">From a financial management perspective, I recommend a pragmatic look at your future income and expenses to ensure you can get through the next few months.</span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<span style="font-family: "arial" , "helvetica" , sans-serif;">If you can, that's great and this will be the case for many businesses. Tough times, but they can knuckle down and carry on.</span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<span style="font-family: "arial" , "helvetica" , sans-serif;">For those with insufficient cash reserves or financing facilities who are predicting negative cashflows, they need to act now to make some radical changes and seek emergency funding if they need it.</span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<span style="font-family: "arial" , "helvetica" , sans-serif;">Their future may depend on it.</span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<span style="font-family: "arial" , "helvetica" , sans-serif;"><a href="http://www.base52.co.uk/">www.base52.co.uk</a></span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><a href="http://www.base52.co.uk/" target="_blank"><br /></a></span>
Fredhttp://www.blogger.com/profile/18323306501746264111noreply@blogger.com3tag:blogger.com,1999:blog-8711881022990864983.post-92108039406083772432020-02-23T01:41:00.000-08:002020-02-23T06:40:47.552-08:00Back to basics<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj1LdsLGDMG8UEik-7cOGaLqbhRlE9R1Fs0IkZWYGTnMlIQT_9jnHfwH3Y2gNj-fwRKYuNfWb5OizLfTXAxqGXPAAqZp8UMv3g4q-GKMWzKa4fx_PEhFGMqkD0trumxvIdHmjxZQWH-rAc/s1600/Disney.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="838" data-original-width="1143" height="234" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj1LdsLGDMG8UEik-7cOGaLqbhRlE9R1Fs0IkZWYGTnMlIQT_9jnHfwH3Y2gNj-fwRKYuNfWb5OizLfTXAxqGXPAAqZp8UMv3g4q-GKMWzKa4fx_PEhFGMqkD0trumxvIdHmjxZQWH-rAc/s320/Disney.JPG" width="320" /></a></div>
<h3>
<span style="font-size: small;"><span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "arial" , "helvetica" , sans-serif;">We can all think of
founders who left an indelible mark on their businesses.</span></span><span style="mso-fareast-font-family: "Times New Roman";"><o:p><span style="font-family: "arial" , "helvetica" , sans-serif;"> </span></o:p></span></span></h3>
<div>
<span style="font-size: small;"><span style="mso-fareast-font-family: "Times New Roman";"><o:p><span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span></o:p></span></span></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "arial" , "helvetica" , sans-serif;">Walt
Disney, Steve Jobs at Apple, Ray Kroc at McDonald's are three at the top of my
list. The founders are no longer at the helm but their legacy, the vision,
values and passion they instilled, still lives on in their businesses. <o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "arial" , "helvetica" , sans-serif;">The
founder’s mentality doesn’t just endure in in big companies like Disney, Apple
and McDonald's, it has a lasting effect in great companies of all sizes. Small
family businesses now on their third or fourth generation of management,
successful tech start ups with new owners and management and the small
consulting business taken over by the management team when the founder retired.
<o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "arial" , "helvetica" , sans-serif;">I
recently read, ‘The Founder’s Mentality’ by Zook and Allen which expands on this
theme.<o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: "arial" , "helvetica" , sans-serif;">Zook and Allen are consultants with a large US consulting firm and have observed the impact of
founders over their long careers. The book has numerous case studies of the
positive impacts of founders and the challenges faced by their firms after
their departure. </span></div>
<div class="MsoNormal">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: "arial" , "helvetica" , sans-serif;">The examples mainly relate to larger companies but the principles
are relevant in all cases where a founder is no longer active in the business.</span></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: "Times New Roman";"><o:p><span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span></o:p></span></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: "Times New Roman";"><o:p><span style="font-family: "arial" , "helvetica" , sans-serif;">They</span></o:p></span><span style="font-family: "arial" , "helvetica" , sans-serif;"> describe certain traits which are universal in successful founders:</span></div>
<div class="MsoNormal">
<br /></div>
<ul type="disc">
<li class="MsoNormal" style="mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list 36.0pt;"><span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "arial" , "helvetica" , sans-serif;">What they call an insurgent’s clear mission and
purpose<o:p></o:p></span></span></li>
<li class="MsoNormal" style="mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list 36.0pt;"><span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "arial" , "helvetica" , sans-serif;">An unambiguous owner mindset<o:p></o:p></span></span></li>
<li class="MsoNormal" style="mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list 36.0pt;"><span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "arial" , "helvetica" , sans-serif;">A relentless obsession with the ‘front line’<o:p></o:p></span></span></li>
</ul>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "arial" , "helvetica" , sans-serif;">Let’s
look at each of these. <o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "arial" , "helvetica" , sans-serif;">An
insurgent’s mission and purpose describes an urgency to get things done. This
might involve disrupting sector norms and doing things in a different way with
relentless energy and speed.<o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "arial" , "helvetica" , sans-serif;">An
owner mindset describes itself. Obsessive focus on getting things right and
spending money only on what matters.<o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: "arial" , "helvetica" , sans-serif;">Front
line obsession is about focusing on customers and delivering a great product
or service. It means also giving priority to front-line resources and rewarding and
recognising front line employees.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "arial" , "helvetica" , sans-serif;">That’s
all well and good but how can these traits be applied practically in business? </span></span></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span></span></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "arial" , "helvetica" , sans-serif;">Zook and Allen describe what they call ‘predictable’ stages in a business life
cycle when things go off track after a founder has moved on - overload, stall
out and free fall.<o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "arial" , "helvetica" , sans-serif;">Overload
is where a growing business gets overwhelmed by challenges and new opportunities, stall out is
where growth slows or even stops and free fall is a business in serious
trouble. It has lost its way and starting to go backwards.<o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "arial" , "helvetica" , sans-serif;">Zook
and Allen argue that going back to the basics of the founder’s mentality can
help companies at each of these stages recapture their mojo and get back to
what made them successful in the first place. Even those in free fall can get things back on track again by returning to their founding principles to regain their earlier momentum.<o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "arial" , "helvetica" , sans-serif;">There are lessons for all founders when exiting from their businesses to instil a culture
and processes which enable their vision to continue, when the inevitable
complexities of growth arise.<o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: "arial" , "helvetica" , sans-serif;">As founders, we may not all aspire be the next Disney but we can ensure that some of what we stand for endures and thrives.</span></div>
<div class="MsoNormal">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><a href="http://www.base52.co.uk/">www.base52.co.uk</a></span></div>
<br />Fredhttp://www.blogger.com/profile/18323306501746264111noreply@blogger.com0tag:blogger.com,1999:blog-8711881022990864983.post-78731648507600825352020-02-15T00:33:00.001-08:002020-02-15T00:35:13.302-08:00Don’t get carried away with the bells and whistles <div class="p1" style="font-stretch: normal; line-height: normal;">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgMTH0GAXhf1yKc8ARF2aEl1RkqDAjhalLce9FACiPxya7DQeceWoFlScwwRmG_6QTeq14d4PpZzuBj38SKKQrt6PqLjjdXA7qz8wNoFabJhIXx_VkexXE5l1q08VPIW43FX7KOWgzBpW0/s1600/Bells.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1600" data-original-width="1247" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgMTH0GAXhf1yKc8ARF2aEl1RkqDAjhalLce9FACiPxya7DQeceWoFlScwwRmG_6QTeq14d4PpZzuBj38SKKQrt6PqLjjdXA7qz8wNoFabJhIXx_VkexXE5l1q08VPIW43FX7KOWgzBpW0/s320/Bells.jpg" width="249" /></a></div>
<h3>
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">It’s easy to be seduced by new technology.</span></h3>
</div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 25.1px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">In the accountancy world, ‘Cloud’ is the thing. It’s been around for ages but recently it has come of age. It’s on the telly. It’s advertised as, Beautiful’. Your accounts and tax return are a breeze, completed seemingly in one click.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 25.1px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">As enthusiastic adopters of Cloud software we’ve promoted it to our clients and in a relatively short period of time its become our preferred way of working. The benefits are clear to us - more automation, faster and easier processing, better accessibility for our clients.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 25.1px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">Every now and then you get a reality check though. </span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 25.1px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">I met with a client this week and we were discussing her services for the coming year. I threw in, ‘Now we’re using this cloud software you can login any time and anywhere to view your financials’. </span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 25.1px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">She’s a busy, successful business owner and her response put me in my place, ‘The last thing I need is another login. I want you guys to send me a simple report, when I need it which gives me an overview of my results and actions needed’. </span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">She went on, ‘This is all about making it easier for you, not me’.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 25.1px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">Bam! </span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">She’s right of course. Certainly about the first part. What is important is how she wants to receive her financial information. A login doesn’t work for her. She wants us to prepare management accounts at the frequency and timing she needs to manage the business, So that’s what we will do. The technology is the enabler, rather than the solution.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 25.1px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">On the second point, the technology undoubtedly makes things easier for accountants. It does help us to a better job and do more of what matters - advising on financial performance and being proactive.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 25.1px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">As a business owner I’m also a user of the new technology. </span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 25.1px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">We’ve adopted the cloud for our own accounts and yes, I have my own login. Do I use it regularly? I must confess its more of an occasional thing if I need to check a particular aspect of the accounts. Like my client, I’m a bit ‘old school’. I prefer a monthly discipline of a printed management accounts report which I can review in detail with another team member and take action accordingly.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 25.1px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">Each to their own. </span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 25.1px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">My meeting with my client was a timely reminder and wake up call that new technology is great but in accountancy (and in business) it’s still ‘all about the numbers’.</span><br />
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;"><a href="http://www.base52.co.uk/">www.base52.co.uk</a></span></div>
Fredhttp://www.blogger.com/profile/18323306501746264111noreply@blogger.com0tag:blogger.com,1999:blog-8711881022990864983.post-32943061977116290122020-02-05T08:05:00.000-08:002020-02-05T08:09:53.505-08:00Is your business an investment or a lifestyle?<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiEd98CmrGjLefrBXbwDCWDB4tZxutIu5AmPg2dX159sZ0-mVECQAM1m_cS9S8VYsSzNiHnMwPjDcAdL3RiUtvYHuz_0Gss7LZqbyZQaJ1JBMkcpZVTFht9enwxLfL-Gm5V_x64UaQQxnE/s1600/Investment.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="710" data-original-width="1259" height="180" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiEd98CmrGjLefrBXbwDCWDB4tZxutIu5AmPg2dX159sZ0-mVECQAM1m_cS9S8VYsSzNiHnMwPjDcAdL3RiUtvYHuz_0Gss7LZqbyZQaJ1JBMkcpZVTFht9enwxLfL-Gm5V_x64UaQQxnE/s320/Investment.JPG" width="320" /></a></div>
<h3>
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "arial" , "helvetica" , sans-serif;">Business
owners tend not to think of their business as an investment.</span></span><span style="mso-fareast-font-family: "Times New Roman";"><o:p><span style="font-family: "arial" , "helvetica" , sans-serif;"> </span></o:p></span></h3>
<div>
<span style="mso-fareast-font-family: "Times New Roman";"><o:p><span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span></o:p></span></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "arial" , "helvetica" , sans-serif;">More
often than not they’re a ‘hands on’ owner, usually working hard in the business
they founded, managing the team and driving the business forward. <o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "arial" , "helvetica" , sans-serif;">An
investment? <o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "arial" , "helvetica" , sans-serif;">Not
really. Sure, they may be a shareholder and take dividends on top of their
salary but typically the business is their meal ticket. They run it as well as
they can, they draw an income (maybe not quite as much as they’d like) and
often there’s not much of a surplus after that.<o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "arial" , "helvetica" , sans-serif;">So
really it’s a lifestyle business. <o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "arial" , "helvetica" , sans-serif;">They
enjoy it (most of the time) and it pays the bills but is it a saleable asset? To have value the
business needs to make a profit after allowing for replacing the owner’s
drawings with a ‘market rate’ salary. In other words if a competent manager was
hired to replace the owner, what profit would the business make? If the answer
is nothing or a very small figure, the business does not have a great deal of
value.<o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "arial" , "helvetica" , sans-serif;">All
is not lost though. <o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "arial" , "helvetica" , sans-serif;">Lifestyle
businesses can transform themselves into a business that is a genuine
investment. A business that is resilient and sustainable and generates a profit
without the day to day input of the owner.<o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "arial" , "helvetica" , sans-serif;">It
requires robust processes and systems and a strong and capable management team.
It won’t happen overnight. It needs a plan and consistent effort.<o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "arial" , "helvetica" , sans-serif;">A
profitable business not reliant on the owner becomes a business worth keeping
or perhaps selling to a buyer who can see a healthy return on their investment.<o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "arial" , "helvetica" , sans-serif;">So
thinking of your business as an investment can be a good thing. Transforming it
into one is even better.<o:p></o:p></span></span></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span></span></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "arial" , "helvetica" , sans-serif;"><a href="http://www.base52.co.uk/">www.base52.co.uk</a></span></span></div>
<br />Fredhttp://www.blogger.com/profile/18323306501746264111noreply@blogger.com2tag:blogger.com,1999:blog-8711881022990864983.post-81823345835649622752020-02-01T01:22:00.000-08:002020-02-01T13:21:20.478-08:00Thinking big, acting small<div class="p1" style="font-stretch: normal; line-height: normal;">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjQiXjr6eVlujHdH_UwGP012B3Ry5jzElxLI__DSHVfPo0qutsotfQDP7XRFjoVAqZjwly44WCcT7XWPMslluwkkz-9lkJqWjqOPBjVWz6i1G1sfulfx0aWO575La8Xm3VLNgWF6OTIZq8/s1600/Phones2.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="827" data-original-width="1276" height="207" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjQiXjr6eVlujHdH_UwGP012B3Ry5jzElxLI__DSHVfPo0qutsotfQDP7XRFjoVAqZjwly44WCcT7XWPMslluwkkz-9lkJqWjqOPBjVWz6i1G1sfulfx0aWO575La8Xm3VLNgWF6OTIZq8/s320/Phones2.JPG" width="320" /></a></div>
<h3>
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">When we first started our accounting firm we hired a marketing agency.</span></h3>
</div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 25.1px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">They were far too expensive and too much of a luxury for our little start up so the relationship only lasted a year or two. We did learn some lessons though. Firstly the importance of having regular and consistent marketing activities and secondly setting ourselves up as being different from our competitors and ‘acting small’.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 25.1px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">One example that sticks in my head is our process for answering the phone. If we were in the office, we always answered the phone and if we were free we spoke to the caller, whoever it was. No filtering, no screening - if someone asked for us by name, if we were in and available, we would be happy to take the call.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 25.1px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">We’ve grown a bit in the intervening years but our process is pretty much the same, although I confess we do screen out obvious sales calls.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 25.1px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">We’ve all been on the other end of more difficult calls, ‘Is he expecting your call?’, ‘Will he know what it’s about?’, ‘I’ll just check for you...no, he’s tied up at the moment I’m afraid, would you like to leave a message?’</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 25.1px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">Our clunky analogue phone system has just about had its day though.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 25.1px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">We’ve expanded a bit recently so the team is spread in different rooms throughout a large building. If someone calls on the main phone we don’t have the wherewithal to transfer them to some of the more remote outreaches of our office. It’s not quite working.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 25.1px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">So we think its time for a more modern system with Direct Dial numbers for the various teams and wait for it...an automated switchboard. The challenge is how can we continue to give a courteous and friendly reception to callers whilst making the system practical and effective?</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 25.1px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">We’ll be working on this. </span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 25.1px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">I think avoiding too many layers on the call answering options is critical and we definitely don’t want callers to get stuck in a queue listening to something like, ‘Money for nothing’ by Dire Straits for an indeterminate period of time or worse still, giving them a choice of hip hop, pop or chill out music. We want the technology to help not hinder.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 25.1px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">So if you call us in a month or two and an automated message says, ‘Press 1 if you are an existing client...’, please don’t hang up. Stick with it and we promise you will very quickly be able to speak to a real person.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 25.1px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">It’s progress we think and we will be doing our best to keep acting small and giving you a personalised service.</span><br />
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;"><a href="http://www.base52.co.uk/">www.base52.co.uk</a></span></div>
Fredhttp://www.blogger.com/profile/18323306501746264111noreply@blogger.com7tag:blogger.com,1999:blog-8711881022990864983.post-19211839285328037242020-01-26T05:13:00.000-08:002020-01-26T10:58:14.298-08:00Feast and famine<div class="p1" style="font-stretch: normal; line-height: normal;">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhCm1bn0CfqGurtl0V7TYMX4xBR9FVZwcxa9Gt3zV7UfCtmuUK8ZUA1e49RGrqsaLcRNC9_qnhsEFSFKcczqgi8A3nVC88nHoX3yjXmZ6S2GzOq7Rg9_jBWLR8_9PEbaIzQmJIrQDavKAw/s1600/Feast.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="308" data-original-width="464" height="212" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhCm1bn0CfqGurtl0V7TYMX4xBR9FVZwcxa9Gt3zV7UfCtmuUK8ZUA1e49RGrqsaLcRNC9_qnhsEFSFKcczqgi8A3nVC88nHoX3yjXmZ6S2GzOq7Rg9_jBWLR8_9PEbaIzQmJIrQDavKAw/s320/Feast.JPG" width="320" /></a></div>
<h3>
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">Accountants are lucky.</span></h3>
</div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">Lucky in the sense that a lot of the work we do is ongoing or repeat business. So if we look after our clients and do the right things, our firms should grow in an incremental way as we add new clients.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">In other sectors things are less straightforward. A contractor on a 6 month contract needs to find a new customer when the contract ends. The same goes for a builder when they finish the extension they are working on or the freelance designer putting finishing touches to a new company logo.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">When the current job stops for these guys, there can be a gap until the next one starts. That’s not a nice place to be. Bills still need to be paid, life needs to go on, but money may be tight.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">So what’s the solution? How can the feast and famine cycle be avoided?</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">It’s a particular challenge for start ups who may not have the profile or recognition to generate a steady flow of new enquiries. </span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">Let’s start with what won’t work. </span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">Just waiting passively for the next customer, the next job to arrive, won’t work. </span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">You need to make your own luck. That means in the fallow periods putting all your energy and focus into finding the next customer. Whatever it takes. Following up old contacts. Networking. Finding your social media channel and using it to engage with potential customers. Email. Direct mail. Cold calling. Measure the results and keep doing what works.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">Then you get lucky. You get a good lead. Proposal leads to an order and you are on the way again.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">It feels great. This what you love. You get stuck in. </span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">This time though, you need to try and break the cycle and get your next job lined up before you finish the new one. That means putting some of your time aside every week for marketing (attracting new leads) and selling (doing your pitch and closing the deal). I’d suggest that about 10 to 20% of your time is about right for this so that’s half to one day a week. It could be one set day every week or an hour or so a day. It just needs to get done.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">The feast and famine cycle is not a good way to run a business. It needs discipline and focus to break it and have a more regular flow of work.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">The ideal is that you choose when to be idle rather than having it imposed upon you. </span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">When you are on holiday after a good spell of continuous work and your next job or jobs are lined up for when you get back, you will know you are on the right track.</span><br />
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;"><a href="http://www.base52.co.uk/">www.base52.co.uk</a></span></div>
Fredhttp://www.blogger.com/profile/18323306501746264111noreply@blogger.com0tag:blogger.com,1999:blog-8711881022990864983.post-68166013636763820302020-01-18T02:11:00.002-08:002020-01-19T00:10:37.816-08:00Carry on networking<div class="p1" style="font-stretch: normal; line-height: normal;">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgTRBJuZxhajXWPwLXRZfXPgGrFBkUcheeQZjeSJw3o008ajg76_PkcbeoUcSEbo2QjWrW7NDm4q-N0h1uNPj4pqK3JJR2L4upTBNg7pCuytVr8oQ8G5Q3TntPherR_53o3l5m8ZcgRoTM/s1600/Networking.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="848" data-original-width="1276" height="212" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgTRBJuZxhajXWPwLXRZfXPgGrFBkUcheeQZjeSJw3o008ajg76_PkcbeoUcSEbo2QjWrW7NDm4q-N0h1uNPj4pqK3JJR2L4upTBNg7pCuytVr8oQ8G5Q3TntPherR_53o3l5m8ZcgRoTM/s320/Networking.JPG" width="320" /></a></div>
<h3>
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">Browsing LinkedIn this week I came across a post from a marketing expert, specialising in the accountancy sector. </span></h3>
</div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">The thrust of her message was that networking for accountants, particularly start-up accountants was not the best use of their time. There are better ways to spend 3 or 4 hours which would probably deliver more sales leads and be more productive.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">I kind of get this. </span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">As an established accountancy firm owner I’m much more selective these days about the kind of networking I get involved in. More typically its, ‘One to one’ rather than ‘One to many’. A coffee and a chat with an existing contact or maybe someone I’ve not met before where there are opportunities to explore for mutual benefit.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">In my start up days I did the rounds - structured networking groups like BNI and other, less formal groups. I put myself out there and got involved.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">Looking back, I think it’s been worthwhile.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">First it helped me think about my marketing and how I could stand out from other firms. There is nothing like knowing that you are going to have to present to 30 or 40 people to focus your mind and make you think about your message. If you don’t get it quite right, there’s always next week and gradually you refine it to get something a bit more polished and coherent.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">It was a great way to learn presentation skills and other skills like...networking. How to talk to people (and listen!) in a crowded room and make a connection.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">Then there are the contacts I made. The people I met networking who now look after our IT, our HR, manage our payroll, our marketing. They were contacts first, then people I liked and came to trust and then we worked together. They have developed into great, long term relationships. Being a business owner can be a tough journey and having a number of business pals to share it with is a positive thing.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">It was good for awareness and raising mine and the firm’s profile. ‘There was that accountant bloke who I met at that networking group who specialises in that kind of service.’ Word got around.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">Of course there were the sales. Particularly from structured networking we gained a good number of new clients, some of whom remain with us to this day.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">For me, more structured networking which required a regular commitment, came to a natural end. It reached a point where the time and effort involved didn’t justify the payback. So more informal, targeted networking became more effective.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">What would I say to my younger self though if I was starting out again? </span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">I think I’d say, ‘Carry on networking’. Keep reviewing, keep re-evaluating what works and what doesn’t, but carry on.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">The benefits are much more than just achieving the next sale. The learning, personal development and connections you make are just as important and probably more enduring.</span><br />
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;"><a href="http://www.base52.co.uk/">www.base52.co.uk</a></span></div>
Fredhttp://www.blogger.com/profile/18323306501746264111noreply@blogger.com0tag:blogger.com,1999:blog-8711881022990864983.post-17610040346204485052020-01-14T23:51:00.000-08:002020-01-15T00:26:21.972-08:00Partnerships should come with a health warning<div class="p1" style="font-stretch: normal; line-height: normal;">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEht_Nei7ptUIbmR2MvfYeB8Kxrx-Ra89IxPcr1ONfe8GXZrZq7uBX55sI7C1pKPiy9znxkCKszJGPHsp-k-8rtFeazO94_0EFzyQ7auF3XX5WGJ0PG5r-9Du_UqW0KY4n0VDlZAMO748xY/s1600/Partners.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="566" data-original-width="1283" height="141" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEht_Nei7ptUIbmR2MvfYeB8Kxrx-Ra89IxPcr1ONfe8GXZrZq7uBX55sI7C1pKPiy9znxkCKszJGPHsp-k-8rtFeazO94_0EFzyQ7auF3XX5WGJ0PG5r-9Du_UqW0KY4n0VDlZAMO748xY/s320/Partners.JPG" width="320" /></a></div>
<h3>
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">Partnerships can be a beautiful thing.</span></h3>
</div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">Two people (it is usually two) working together to achieve more than they could on their own. </span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">It sounds great but the reality can be different. I’ve failed at working in a partnership. My ex-partner was (and is) a lovely, capable guy but being a double act didn’t work for either of us. We went our separate ways in business after a couple of years and I think we have both been happier and more fulfilled since the split.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">Thankfully our break-up was fairly harmonious (they are never completely so) but in my time running an accountancy firm I have seen some less-friendly splits where the partners have ended up falling out very badly indeed. Often the rift comes from an imbalance in the relationship. One partner feels they are working harder or want more from the business than the other. Tensions build and often come to a head with an agreement to break the partnership.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">For me it was a learning experience. On the positive side, having a partner gave me the confidence to start and develop the business. After we achieved a modest amount of scale however, I wanted more control of decision-making and mapping out the future direction of the business. In a nutshell I wanted to be master of my own destiny. </span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">I have seen some partnerships that work. More often than not, these are a couple who are already in a relationship. They are used to dealing with the ups and downs of life - falling out, making up and able to communicate effectively with each other.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">One of the key ingredients in successful partnerships I believe is having clarity of roles and responsibilities. At the start up stage, each partner tends to ‘muck in’ and do what needs to be done. Very quickly they will need to carve out roles built around their individual strengths. One partner will usually emerge as the leader and I think it works best if each partner is responsible for different activities - marketing, selling, operations and so on.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">Another important feature of successful partnerships is communication. More than this it needs to be open and honest communication. I have observed partnerships where there are clear roles and responsibilities, one partner is clearly the leader and the partners get on well. The weakness has been that the junior partner has not been able to communicate their concerns effectively to the senior partner. This has led to the senior partners taking excessive risks with poor outcomes for the business.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">Partnerships can work but if you are thinking of joining forces with a work colleague or friend, my advice would be to think hard and then think some more. Visualise how you will work together, not just in the good times but in the bad times too, which will inevitably arise. </span><br />
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">Before committing, spend some time together preparing a business plan. This can ensure that you are 'on the same page' at the start and is a good trial for seeing how you work together and reach consensus,</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">1 + 1 can equal much more than 2 in the best of partnerships.</span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">In some cases it can be much less than a sum of the parts and can lead to the end of a close and long-standing friendship. </span></div>
<div class="p2" style="font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span class="s1"></span><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;">So tread very carefully and do your homework before taking the plunge. It may help you avoid an expensive and often painful mistake.</span><br />
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span>
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;"><a href="http://www.base52.co.uk/">www.base52.co.uk</a></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span></div>
<div class="p1" style="font-stretch: normal; line-height: normal;">
<span class="s1" style="font-size: 19.08px;"><br /></span></div>
Fredhttp://www.blogger.com/profile/18323306501746264111noreply@blogger.com0tag:blogger.com,1999:blog-8711881022990864983.post-1778532675290218532020-01-10T05:16:00.005-08:002020-01-10T05:28:54.282-08:00In praise of the launch<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgsIyauj1JbtK7nSF0XJqdroTezcMpbSiLmmaDZHW8qYjFz2_bJkqDljn4if_lTlbfGcyigezizRFpkaEYNgLVhawdYL2pRmoDD99xqiTsDhooUriBx1GoYSMxlUFyp3N3ceSr8igTdK9A/s1600/Launch.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="840" data-original-width="1205" height="223" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgsIyauj1JbtK7nSF0XJqdroTezcMpbSiLmmaDZHW8qYjFz2_bJkqDljn4if_lTlbfGcyigezizRFpkaEYNgLVhawdYL2pRmoDD99xqiTsDhooUriBx1GoYSMxlUFyp3N3ceSr8igTdK9A/s320/Launch.JPG" width="320" /></a></div>
<h3>
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "arial" , "helvetica" , sans-serif;">I
stumbled across some old photos the other day.</span></span><span style="mso-fareast-font-family: "Times New Roman";"><o:p><span style="font-family: "arial" , "helvetica" , sans-serif;"> </span></o:p></span></h3>
<div>
<span style="mso-fareast-font-family: "Times New Roman";"><o:p><span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span></o:p></span></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "arial" , "helvetica" , sans-serif;">Photos
of our launch event 16 years ago. My partner and I were starting a new
accountancy practice. We’d just taken out a lease on a small office and we
invited some friends, old work colleagues, local dignitaries and other contacts
for drinks and canapés.<o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "arial" , "helvetica" , sans-serif;">We
are still in the same office but the team and the space we occupy has expanded
significantly.<o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "arial" , "helvetica" , sans-serif;">The
launch was a modest affair but very convivial and enjoyable. I remember being
hugely grateful to everyone who came along and supported us.<o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "arial" , "helvetica" , sans-serif;">It
was good to look at the photos and reminisce. Apart from everyone looking a lot
younger something else slowly dawned on me. A very high proportion of the lovely
guests who came along eventually became our clients. Not immediately, but in
most cases several years later.<o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "arial" , "helvetica" , sans-serif;">Ok, so these were already people we knew and had a relationship with but I have a
feeling that attending the launch made them feel more emotionally connected
with our business. When the time came for them to speak to an accountant, we
were the natural choice.<o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "arial" , "helvetica" , sans-serif;">So a
launch can be a powerful thing with a long tail of goodwill extending into the
future. If you are starting a business I’d recommend putting some time and
energy into your launch and engaging with your network so they feel involved in your venture. </span></span></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span></span></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "arial" , "helvetica" , sans-serif;">It might just pay you back with interest for years to
come.<o:p></o:p></span></span></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "arial" , "helvetica" , sans-serif;"><br /></span></span></div>
<div class="MsoNormal">
<span style="mso-fareast-font-family: "Times New Roman";"><span style="font-family: "arial" , "helvetica" , sans-serif;"><a href="http://www.base52.co.uk/">www.base52.co.uk</a></span></span></div>
<br />Fredhttp://www.blogger.com/profile/18323306501746264111noreply@blogger.com0tag:blogger.com,1999:blog-8711881022990864983.post-13005644322531254372020-01-06T01:01:00.002-08:002020-01-06T01:01:37.663-08:00Who is your ideal customer?<div style="color: #454545; font-stretch: normal; line-height: normal;">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhieVs7OzPkzZq09xoi7Sd9377rg_yQPvKCTdEE0zHRF_j3WAV2kNQTNHA2AvtSDvvXbw2a0eMo8-8s24uafUdfFBLyeTo8YHwUquBOwrCfjFQ-KJPGoZDYWw9PFTNMyAMKDkaitc2ETDg/s1600/Customer.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="838" data-original-width="1267" height="211" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhieVs7OzPkzZq09xoi7Sd9377rg_yQPvKCTdEE0zHRF_j3WAV2kNQTNHA2AvtSDvvXbw2a0eMo8-8s24uafUdfFBLyeTo8YHwUquBOwrCfjFQ-KJPGoZDYWw9PFTNMyAMKDkaitc2ETDg/s320/Customer.JPG" width="320" /></a></div>
<h3>
<span style="font-family: Arial, Helvetica, sans-serif;">A simple question but one that many small businesses don’t take time to think about and build a strategy around.</span></h3>
</div>
<div style="color: #454545; font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
<div style="color: #454545; font-stretch: normal; line-height: normal;">
<span style="font-family: Arial, Helvetica, sans-serif;">Starting a business is tough and there can be a tendency to take on more or less any customers where you can provide them with your product or service and get paid. Being passive about this is probably not a good approach. </span></div>
<div style="color: #454545; font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
<div style="color: #454545; font-stretch: normal; line-height: normal;">
<span style="font-family: Arial, Helvetica, sans-serif;">Let’s say you’re a start up freelance designer. You can turn your hand to most types of creative work but what you really enjoy is film, video and animation projects. If you take on ‘any old job’ you will not be playing to your strengths and before too long you could get stuck in a cycle of poorly paid and unrewarding work.</span></div>
<div style="color: #454545; font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
<div style="color: #454545; font-stretch: normal; line-height: normal;">
<span style="font-family: Arial, Helvetica, sans-serif;">So lets get back to the ideal customer. There are some ‘givens’ - they pay you on time, they recognise the value you provide and don’t squeeze you too much on price, they share your core values and ethical code, they are easy to deal with.</span></div>
<div style="color: #454545; font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
<div style="color: #454545; font-stretch: normal; line-height: normal;">
<span style="font-family: Arial, Helvetica, sans-serif;">More than this we need to paint a mental picture of who they are. Are they members of the public or working in a business? If in a business what position do they hold? What age and gender are they? Where do they hang out? What social media platforms do they use? What do they read? What do they do in their leisure time?</span></div>
<div style="color: #454545; font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
<div style="color: #454545; font-stretch: normal; line-height: normal;">
<span style="font-family: Arial, Helvetica, sans-serif;">Knowing what kind of customer you are looking for should drive your marketing strategy. How will you get in front of these people, build a relationship and sell to them?</span></div>
<div style="color: #454545; font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
<div style="color: #454545; font-stretch: normal; line-height: normal;">
<span style="font-family: Arial, Helvetica, sans-serif;">For our designer, if his ideal customers are small media or publishing companies, he needs to find and engage with the executives who manage the budgets for the kind of work he delivers. That is quite a specialised and small pond and he needs to give some thought to how to reach these people. A blanket Facebook or Instagram campaign is unlikely to achieve stellar results. Targeted networking or attending industry events and conferences might be a more fruitful approach.</span></div>
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<div style="color: #454545; font-stretch: normal; line-height: normal;">
<span style="font-family: Arial, Helvetica, sans-serif;">One way of putting it would be, ‘We get the customers we deserve’. We need to be on the front foot with this. Be clear about the business we are in and the customers we want to work with...then go find them.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;">www.base52.co.uk</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
Fredhttp://www.blogger.com/profile/18323306501746264111noreply@blogger.com1tag:blogger.com,1999:blog-8711881022990864983.post-83387373818754800172019-12-14T00:41:00.001-08:002019-12-14T00:41:13.956-08:00Time to be creative<div style="color: #454545; font-stretch: normal; line-height: normal;">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhSK9XBt-H53TusCWiYLCSXz9mUCT7ajIyUYjeGc3b2-oqjc3fH8t-Uow8_82BzBnrUsmhFjzoXqggqBZ_AJe1wIP1xCWfPBYI9tkoJpHZe43OJytdlFfAWPrvR8qg_RjKwWYf3KGBlt8o/s1600/creativity.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="849" data-original-width="1281" height="212" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhSK9XBt-H53TusCWiYLCSXz9mUCT7ajIyUYjeGc3b2-oqjc3fH8t-Uow8_82BzBnrUsmhFjzoXqggqBZ_AJe1wIP1xCWfPBYI9tkoJpHZe43OJytdlFfAWPrvR8qg_RjKwWYf3KGBlt8o/s320/creativity.jpg" width="320" /></a></div>
<h3>
<span style="font-family: Arial, Helvetica, sans-serif;">As business owners, we have our schedule.</span></h3>
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;">Things to do - client meetings, prospect meetings, team meetings, tasks and projects, business lunches. It’s a merry-go-round with often little time left for reflecting and thinking.</span></div>
<div style="color: #454545; font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
<div style="color: #454545; font-stretch: normal; line-height: normal;">
<span style="font-family: Arial, Helvetica, sans-serif;">But thinking and being creative can be what makes the difference. Developing that great new marketing idea, looking at a different and better way to complete a business process, exploring options to resolve a tricky employee or customer issue.</span></div>
<div style="color: #454545; font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
<div style="color: #454545; font-stretch: normal; line-height: normal;">
<span style="font-family: Arial, Helvetica, sans-serif;">Many successful people make time and create an environment so that they can do their best thinking. Entrepreneur and author, Nigel Botterill does this every day. He works and thinks best in the morning so he sets aside 90 minutes or so at the start of each day and shuts himself away to think and create. He focuses on things that move his business forward - marketing ideas, developing a new product or service, a targeted email campaign, a video series or similar. Its worked for him as a serial entrepreneur with a number of multi-million £ businesses in his portfolio.</span></div>
<div style="color: #454545; font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
<div style="color: #454545; font-stretch: normal; line-height: normal;">
<span style="font-family: Arial, Helvetica, sans-serif;">A few years ago I stumbled upon a great YouTube video from ex Monty Python comic John Cleese about creativity. It’s rather odd, with the great man standing at a lectern giving a presentation to a group of business people. The content is brilliant though. Cleese advocates making a set time for your creative work when you know you will not be disturbed. Also important is finding the right space where you feel comfortable. Before you start he says you should get all the clutter out of your head. Make that phone call, send that email, get that thing off your list. Then relax and be creative. In his case being creative was being funny and writing sketches. A great tip from Cleese is don’t settle for ‘good’. There’s a temptation when you have come up with your creative product to leave it there and move onto the next one. What he does is work a bit harder on it and try to move it from ‘good’ to ‘great’. Sometimes that can be painful and hard work but he believes it can make a real difference. </span></div>
<div style="color: #454545; font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
<div style="color: #454545; font-stretch: normal; line-height: normal;">
<span style="font-family: Arial, Helvetica, sans-serif;">Best-selling thriller writer Stephen King use discipline and routine to be creative. He writes every day, without fail, again in the mornings, in his writing den. Like Cleese he believes in revisiting and improving his creations after the first draft. In his case he puts a draft manuscript in a drawer and forgets about it for a while. He then comes back and looks at it with fresh eyes some days or even weeks later. Children’s author Roald Dahl followed a similar, disciplined routine, writing in an armchair in his garden shed, with extra blankets and a hot flask to keep warm in Winter.</span></div>
<div style="color: #454545; font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
<div style="color: #454545; font-stretch: normal; line-height: normal;">
<span style="font-family: Arial, Helvetica, sans-serif;">My creative time is when I’m running or driving. Away from distractions (apart from watching the road, of course) my mind wanders and occasionally a new idea will pop up which can be developed further on the run or on the road trip.</span></div>
<div style="color: #454545; font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
<div style="color: #454545; font-stretch: normal; line-height: normal;">
<span style="font-family: Arial, Helvetica, sans-serif;">Creative genius and business guru Andy Warhol put it best when he said, ‘Being good in business is the most fascinating kind of art. Making money is art and working is art and good business is the best art’</span></div>
<div style="color: #454545; font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
<div style="color: #454545; font-stretch: normal; line-height: normal;">
<span style="font-family: Arial, Helvetica, sans-serif;">As business owners, we need this time to be creative I think. To create the best art in our businesses. They don’t teach it in business school and there is no rule book but creativity can make your business more distinctive, more exciting and of course, more profitable.</span><br />
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="font-family: Arial, Helvetica, sans-serif;"><a href="http://www.base52.co.uk/">www.base52.co.uk</a></span></div>
<div style="color: #454545; font-family: ".SF UI Text"; font-size: 19.1px; font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: ".sfuitext"; font-size: 19.08pt;"></span><br /></div>
<div style="color: #454545; font-family: ".SF UI Text"; font-size: 19.1px; font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: ".sfuitext"; font-size: 19.08pt;"></span><br /></div>
<div style="color: #454545; font-family: ".SF UI Text"; font-size: 19.1px; font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: ".sfuitext"; font-size: 19.08pt;"></span><br /></div>
<div style="color: #454545; font-family: ".SF UI Text"; font-size: 19.1px; font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: ".sfuitext"; font-size: 19.08pt;"></span><br /></div>
<div style="color: #454545; font-family: ".SF UI Text"; font-size: 19.1px; font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: ".sfuitext"; font-size: 19.08pt;"></span><br /></div>
<div style="color: #454545; font-family: ".SF UI Text"; font-size: 19.1px; font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: ".sfuitext"; font-size: 19.08pt;"></span><br /></div>
<div style="color: #454545; font-family: ".SF UI Text"; font-size: 19.1px; font-stretch: normal; line-height: normal; min-height: 22.8px;">
<span style="font-family: ".sfuitext"; font-size: 19.08pt;"></span><br /></div>
<br />
<div style="color: #454545; font-family: ".SF UI Text"; font-size: 19.1px; font-stretch: normal; line-height: normal; min-height: 22.8px;">
<br /></div>
Fredhttp://www.blogger.com/profile/18323306501746264111noreply@blogger.com0