The Smart Way - More Profits, More Time, More Freedom

How your Budget grows your business and makes you money – Part 3

Alistair — Fri, 04 May 2012 08:19:10 +0000

The Turn-Key Business Growth System

The Smart Way

How to Use Your Budget

Your budget is a tool to crystalise your vision of your business at some specific point in time.

In the short term you need to be able to try and work out what your income and costs will be for say the next 12 months. This exercise forces you to set targets based on what has happened in the past, and what you think will happen in the future.

It also forces you to look at how you set your prices. You need to ensure that you are charging enough to cover all your costs plus what you need to take out of the business. Without regularly checking your actual income and costs against your budgetted figures, it is all too easy to find out that your margins have disappeared because you have given away too much in discounts or your costs have gone up – or both.

One client I was working with manufactured a range of products. His focus was on generating revenue, until we used the underlying financial data to calculate the margin on each product and then compared them to the budget we had prepared. The results made interesting and surprising reading – but that is usually what happens when you find out the facts and stop making assumptions.

One range of products cost on average £45 to produce, when labour, material and overhead costs were taken into account. The profit generated was on average less than £4. Another product cost £4 to produce and generated a profit of £2. The assumption had been that the higher income generating product was also generating the higher profits.

The margin calculation we were looking at was the profit as a percentage of the sales value. The higher valued product had a margin of 9%, and the lower valued product had a margin of 50%. As long as there was a market for generating more sales of the lower valued product, then production should be shifted to it. There would be three particular outcomes:

Total revenue would reduce
Total profit would increase
Cashflow would improve as the production costs necessary to produce the increased profits would be reduced

By focusing on spending a small amount of time ‘working on the business’ as opposed to ‘working in the business’ the owner in this example was able to create some significant changes in his business. The value of his time, good management information, and understanding how to use them all paid significant ‘dividends’.

In the long term you need to decide what your business will look like in 5 or ten years. Do you want to retire early? Double or quadruple your turnover? Be earning significantly more than you are at the moment? This is a great exercise to carry out, as when you look this far into the future you may find that you need to start making changes right now – not in 2 or 3 years time. You might need to develop new products or services, change the stucture of your business, or access new funding.

Your budget is a tool that will teach you so much about your business. It will help you to better develop, manage, grow, and control your business.

Have a go at creating a first draft of your budget and use it constantly to remind you of where you are going – and to hold yourself accountable.

To your success.

Alistair

Telephone: 01875 830568

Mobile: 07981 107914
email: a.summers@how2businesscoaching.com
Web: www.how2businesscoaching.com

Do you want to grow your business and have less stress?

Alistair — Tue, 01 May 2012 12:32:10 +0000

The Turn-Key Business Growth System

The Smart Way

Have you decided whether we are in a recession or out?

If you are not sure, then stop trying to figure out the answer. Regardless of the state of the economy, you need to:

1. Build a business that can operate in any environment

2. Focus on creating sustainable business growth by creating and accelerating Profits, Performance, and Productivity

3. Create a Business Turn-Key Operation that runs on autopilot – without you!

4. Create a business that has value that supports you or can be sold as part of an exit strategy

You cannot affect where we are in the economic cycle, but you can ensure that if anybody is going to Survive and Thrive – it’s going to be you.

Forget what the media, colleagues, and friends may be saying about gloom, doom and double dip recessions. This is the time to be bold and use the challenges and opportunities that lie ahead in 2012. Nobody says it’s going to be easy, but the rewards are there for the taking.

This is a great time to get ahead of the competition, to innovate and differentiate, to create new products and services – to be better than the competition.

I Can Help You Create Extraordinary Results in 2012 with my:

Turn-Key Business Growth System

The way in which any business needs to be run now has changed. We live in uncertain economic time where there are no second chances. The businesses that will survive and thrive need to strive for excellence in everything they do, in every area of their operations, and in every dealing with their customers.

You need to be able to think smarter and work smarter, use all your resources to best effect, and create systems that will enable you to manage, develop, grow and control your business. There are too many projects and tasks to handle. Work overload and Information overload are accepted on a daily basis, as are the constant stresses and strains of business and family life – with seemingly no light at the end of the tunnel.

I can provide that light at the end of the tunnel with my own Business Growth System.

The Turn-Key Business Growth System

The System has been designed to provide an integrated and systematised approach to running a business that allows business owners and staff alike to manage, develop, grow, and control a business in order to create sustainable business profits and shareholder value.

The Services

1. The Business Growth Programme

The Business Growth Programme provides an integrated and systematised approach to running a business that allows business owners and staff alike to manage, develop, grow, and control any business – by following The 10 Step Turn-Key System - or The 10 Stepping Stones.

The Programme is aimed at business owners who want to take their business to the next level and need ongoing support – but just don’t know how to do it.

The Programme focuses on Creating Results by Building Smart Businesses, and above all – creating More Profits, More Time, and More Freedom.

2. The Business Stepping Stones

Business Stepping Stones is based on the 10 Step Turn-Key System. You can mix and match only the Steps you need to move your business forward.

Business Stepping Stones provides a series of Steps to choose from for business owners who want to take their business to the next level and need focused help in specific areas – but don’t know how to do it. Each Step provides an immediate injection of support, advice, and help – to find solutions to your problems, overcome your obstacles, take advantage of your opportunities – and help you create the results you want.

3. The 100 Day Growth Challenge

The 100 Day Growth Challenge is about accelerating your business results by focusing every single day on your goals, projects, and tasks. An initial diagnosis will identify the gap between where you are and where you want to be and highlight your obstacles and opportunities. The challenge focuses on taking daily actions that constantly move you forward towards your goals.

4. The Business Clinic

The Business Clinic provides individual sessions aimed at business owners who want to take their business to the next level, but feel that they only need ad hoc support – but just don’t know how to do it. The support is provided as often as is required – in person, by telephone, or by computer.

My Business Clinic provides an immediate injection of support, advice, and help – to find solutions to your problems, take advantage of your opportunities, and give you options.

What to Do Next

I believe that the Business Growth System provides a unique opportunity to take your business, your staff, and yourself on a journey that will help you to overcome your challenges, seize your opportunities, and build the vehicle that will create the life you truly want.

I have a series of packages that are flexible in helping you to grow your business – and there is one to suit every pocket.

If you want to find out more about this new innovative business solution please contact me using the details below.

You don’t have to do it on your own.

To your success.

Alistair

Telephone: 01875 830568

Mobile: 07981 107914
email: a.summers@how2businesscoaching.com
Web: www.how2businesscoaching.com

How your Budget grows your business and makes you money – Part 2

Alistair — Tue, 24 Apr 2012 17:30:10 +0000

More Profits, More Time, More Freedom

Get Your Business Back on Its Feet

The Smart Way

How to Create Your Budget

Developing your first budget can be a daunting task, but once it is completed you will have an invaluable tool that you can use to monitor, review, manage, and control the progress of your business.

It is worth summarising some points from Part 1:

Your budget is a critical tool that drives your business forward. It is a dynamic, constantly changing reflection of where your business is going.
Your budget is a Financial Map that reflects the vision and goals of where you want your business to go.
Your budget is a creative process that turns your Financial Map into a Performance Map – a tool that considers and combines both financial and non financial elements of your business.

The Budget Process

Here are 8 steps to producing your budget:

You need to predict your sales, cost of sales ( the cost of materials and associated costs in producing your product or service), and overheads – based on available data.
Available data – use monthly figures, annual accounts prepared by your accountant, bank statements, own sales invoices, sales activity, and supplier invoices.
Use either an excel spreadsheet or a notepad, pen and calculator to prepare the figures.
Create a sales forecast based on leads generated and converted – based on historic data and your knowledge of what the market is likely to produce in the next 12 months.
Estimate your sales each month for the next year based on the last 12 months, and your view of what the market is likely to produce in the next 12 months.
Calculate the Gross Profit (Sales less Cost of Sales) you need to achieve in order to cover your overheads, the income you need to withdraw from the business, and some surplus profit for reinvestment.
Estimate your overheads for the next 12 months based on the last 12 months, and any increases in costs or additional costs that you are aware of.
If you are using excel then you can vary both your monthly sales figures and the gross profit percentages to produce different profit scenarios.

You are now ready to produce your budget!

You now have a tool that you can use to monitor, review, manage, and control your progress.

To your success.

Alistair

In Part 3 I will show you how to use your budget.

Telephone: 01875 830568
Mobile: 07981 107914
email: a.summers@how2businesscoaching.com
Web: www.how2businesscoaching.com

How your Budget grows your business and makes you money – Part 1

Alistair — Mon, 23 Apr 2012 22:34:44 +0000

Get Your Business Back on Its Feet

The Smart Way

To Budget or not to Budget

Few people like figures. You can see most faces glaze over when you start to discuss monthly figures – or worst of all the Annual Budget. It is perhaps a mixture of fear of the unknown and a lack of knowledge as to why and how to use the information.

I see a budget in a completely different light. I see it as a critical tool that drives any business forward. It is a dynamic, constantly changing reflection of where a business is going.

As many of you know I love hill walking. Before you climb a mountain you need a map of where you are going. The map shows you how to get to your chosen goal. It shows you obstacles and opportunities, and the greater your knowledge of maps, the more likely you will get to the top of the mountain and back – safe and sound.

A budget is a Financial Map, or what I like to call a ProfitMap that reflects the vision and goals of where a business wants to go. But it is so much more than that. It is a creative process that forces people to consider:

Where do I want to be in 5 or 10 years time?
If my turnover is £250K now and I want to retire in 10 years with a turnover of £2.5 million – what do I need to start doing now?
How do I create the necessary growth?
What are the costs of producing that turnover?
Do I need to develop new products/services?
What are my margins?
How much money do I want/need from the business?

But the budget is so much more than just a Financial Map. It also forces you to consider non financial elements of the business:

What sort of staff do I want?
What sort of systems do I need to develop?
What kind of marketing plan do I need?
How good is my accounting system?
What kind of management information system do I need?
As the business grows how do I create a culture of excellence?
How do I develop a culture of innovation and creativity to stay ahead of the competition?

Hopefully you are beginning to get the picture now – and that is a key point to understand. Your budget is a picture of where you are going. You don’t just have a ProfitMap, you now have what I call a PerformanceMap - a tool that combines both financial and non financial elements of your business.

Your budget is merely a snapshot of your vision at a particular point in time. As you business journey progresses each day, that snapshot needs to change to reflect changed circumstances. You should constantly be revisiting your budget and updating it to reflect those changed circumstances.

You now have a tool that you can use to monitor, review, manage, and control your progress.

Take an hour and start the process today of looking at your budget – after all, you have 86,400 seconds in the bank to use.

To your success.

Alistair

In Parts 2 and 3 I will show you how to develop and use your budget.

Telephone: 01875 830568
Mobile: 07981 107914
email: a.summers@how2businesscoaching.com
Web: www.how2businesscoaching.com

What would you do with £86,400 each day?

Alistair — Fri, 16 Mar 2012 09:06:49 +0000

More Profits, More Time, More Freedom

Get Your Business Back On Its Feet

The Smart Way

The Value of Time

What if at the start of each day you have £86,400 to spend. How you spend it is up to you, how much you spend is up to you. What you don’t spend is lost forever – you cannot save it. You cannot invest money from today to use tomorrow. There is no overdraft facility – you cannot borrow from tomorrow to use today.

The £86,400 is not money, but how many seconds you have each day. How you use your time is up to you. The value you place on that time is defined by how you decide to use that time. How you decide to use that time is determined by what you want to do with your life and your business. This is defined by your purpose, vision and goals – and they are the fuel that drives those decisions.

When you look back on each day you can see how you have valued each second, each minute, and each hour. To understand more about the value of time, consider what it takes:

To realise the value of one year – ask a student who failed a grade
To realise the value of one month – ask a mother who gave birth to a premature baby
To realise the value of one week – ask the editor of a weekly newspaper
To realise the value of one hour – ask a person who just missed a train
To realise the value of one second – ask a person who narrowly avoided an accident
To realise the value of one millisecond – ask the person who took the silver medal in the Olympics

TIME waits for no one

Yesterday is history

Tomorrow is a mystery

Today is a gift

That’s why it’s called

THE PRESENT

How do you use your time and how do you value your time?

You need to spend your time in the present – taking actions that have real value for you. Those actions create a past that is rich and fulfilling, and a future that will also be rich and fulfilling.

I wrote the above article based on a short video that has become one of my favourites. It lasts for only a couple of minutes, but it just might change your day – or even your life!

http://www.youtube.com/watch?v=73O4A52_JuI&feature=youtube_gdata_player

To your success.

Alistair

Please feel free to share any comments you may have.

Telephone: 01875 830568
Mobile: 07981 107914
email: a.summers@how2businesscoaching.com
Web: www.how2businesscoaching.com

How Paralysis Led Me to More Profits, MoreTime, More Freedom

Alistair — Thu, 08 Mar 2012 10:51:07 +0000

More Profits, More Time, More Freedom

Get Your Business Back on Its Feet

The Smart Way

How to Get to the Summit

A number of years ago I woke up in a hospital bed – and all I could do was blink. Paralysis tends to focus your mind. To say that I was terrified at first is probably an understatement – but you adapt.

You have two choices – give up or climb that mountain. Mountains have always played an important part in my life, and now I had my own Everest to climb. Life takes on a new meaning – only the really important things matter – family, friends, and your health.

I found that I functioned on a different level – all the complexities, worries, stresses and strains of life disappeared. I remember one evening when a doctor sat next to me and said that I may never walk again. What did he know! So life then revolved around moving some part of me that proved all was not lost and that he was wrong. The choice was mine – prove he was wrong or give up – but more than that, be able to do what I did before – but better.

One of my problems was the way in which people saw me. Their view for me was always on the foothills – never on the summit. Their view of the world limited what they thought I would be able do – which really hacked me off. I had to believe that I could achieve anything that I set my mind to.

I worked through years of chronic fatigue and back problems – but 9 years later I was running again and running my own business. I learned from experience all about purpose, passion, vision, beliefs, values, goals, projects, tasks, discipline, motivation, inspiration and a lot more. The Smart Way became part of my recovery process – how to achieve any goal with the minimum amount of effort and energy – and create the greatest return. Mountains, maps, and summits became symbols of what was possible and how to get there.

More Profits, More Time, More Freedom

I combined the lessons, experiences, and knowledge I had gained in business over the years with what I had learned on my road to recovery. I try to, as they say, ‘walk the talk’ – because that is what gets me to the next summit.

The idea of More Profits, More Time, More Freedom lies at the heart of what I do.

More Profits – Money is merely a means to an end – it provides financial security to allow you to do the things that you really want to do. The stress and constant worry of trying to make ends meet, of trying to find the next customer, of fighting a global marketplace that is constantly changing, and not always friendly can lead to paralysis.

More Time – We have a fixed amount of time each day. How we chose to use that time will determine what we achieve. Our ability to take the right actions every day that move us towards our goals will reflect the real value of the time used. Through simplifying and decluttering our lives we see more clearly the path to our goals, and we get more done in less time.

More Freedom - With financial freedom, and more time, we can chose to do the things that we value the most. For each person it is different – spend more time with family and friends, travel, explore new hobbies and skills, enjoy running your business – but most of all – peace of mind to be able to do what you really want to do.

And that’s why I like doing what I do – helping people to find the freedom to do what they want to do, and not be limited by others or themselves.

Alistair
PS

Please feel free to share any comments you may have.

Telephone: 01875 830568
Mobile: 07981 107914
email: a.summers@how2businesscoaching.com
Web: www.how2businesscoaching.com

How to get the results you want

Alistair — Tue, 28 Feb 2012 11:14:21 +0000

More Profits, More Time, More Freedom

Get Your Business Back on Its Feet

The Smart Way

The Action Factor

He stood on the summit. The view was breathtaking. He had dreamed of standing here for so long.

The last 1,000 feet he had been on autopilot – one step at a time, one narrow path to be followed, absolute focus on his goal. To stand on the summit.

After he had climbed his first ‘big’ mountain, a friend had asked how he had done it. His answer had been simple, ‘One step at a time’. That’s one of the reasons he liked climbing. Once you decided to climb a mountain you knew where you were going and what you had to do. All that held you back was your ability to keep take the actions that lead to the summit.

If you look at the mountain it won’t get any closer.

If you stand still the mountain won’t get any closer.

If you close your eyes and hope it will get closer – it won’t.

His friend tapped him on the shoulder – ‘Time to get back down’. He took a last look and started back along the path – but it was not just a path down to the high camp, it was a path along which each step took him towards his next goal. He could already see himself standing on the next summit.

The Right Actions Create Energy and Results

There is too much going on in our lives and in our businesses. We don’t have enough time to get everything done, and what we do get done tends to be fire fighting and the busyness of everyday life. We spend too little time on that narrow path that will lead us to our real goals. Our actions tend to take us anywhere but to the summit. Our focus is in the wrong place.

Believe it or not, you can change what you focus on, and follow that narrow path. All you have to do is change your mindset.

What you focus on you move towards. You can choose what you want to focus on, and therefore what actions you take.

If you want to loose weight, and there is a bar of chocolate in front of you. The choice is simple. Eat it or don’t eat it.

It really boils down to how badly you want something – what price are you willing to pay to achieve your goals?

The choice as always is yours.

To your success.

Alistair

Please feel free to share any comments you may have.

Telephone: 01875 830568
Mobile: 07981 107914
email: a.summers@how2businesscoaching.com
Web: www.how2businesscoaching.com

10 Steps -The Business Growth Seminar – and meet some interesting business owners

Alistair — Fri, 24 Feb 2012 13:36:05 +0000

More Profits, More Time, More Freedom

Get Your Business Back on Its Feet

The Smart Way

The Business Growth Seminar

I am going to run a two hour interactive seminar in March about business survival and growth for your business in today’s challenging times.

I’ll let you know about the 10 Steps that I follow.

The seminar is aimed at those business owners who are committed to success and willing to go the extra mile to survive and grow their businesses. The seminar will last for an hour, and there will therefore be plenty of time to meet with other like minded business owners.

My Philosophy = Your Results

The great Jim Rohn was known as a business philosopher, and whilst I am not comparing myself with him, I like to think that I don’t just write about business purely in terms of trading goods and services to make a profit. I like to think that in my own way I am also a kind of business philosopher, and that what I try to teach people about business is also how we can create something that is a reflection of who we are. That reflection is about creating something that is sustainable in the long term, that adds value to peoples lives by what we do, and perhaps, if we are lucky, also leaves behind some form of legacy.

Running a business is so much more than the individual elements of profits, cash flow, margins, ROI, balance sheets, Key Performance Indicators, time management, leadership, personal development …… the list goes on. It is about how you combine all these elements, like a master chef, and create the perfect recipe.

We live in worrying times, and for most business owners, survival or growth seem to be the only options. Ticking over is no longer an option – it is a slippery slope to business failure. The reality is that survival will depend on maintaining market share and – GROWING.

What to do next?

Whilst I obviously want people to get to know me better, I also want to attract a particular niche of business owner – those who are committed to success and are willing to go the extra mile.

Please let me know if you are interested in coming along to the seminar by using the contact details below.

To your success.

Alistair

Please feel free to share any comments you may have.

Telephone: 01875 830568
Mobile: 07981 107914
email: a.summers@how2businesscoaching.com
Web: www.how2businesscoaching.com

The Five a Day Rule – 5 Finance Tips

Alistair — Fri, 17 Feb 2012 15:06:22 +0000

More Profits, More Time, More FreedomGet Your Business Back on Its Feet

The Smart Way

The Five a Day Rule

It’s just like the doctor telling you to eat your five a day to keep healthy. If you want your business to be healthy, apply the same principle to anything that needs to be done. Just like the tree, if you keep hitting a problem, a project, or a task every day, you will create the result you want.

5 Finance Tips

Money flows in and money flows out of a business. Your ability to understand, manage, and develop this ‘flow’ is a critical factor in achieving business success. In order to change anything you not only need to be able to measure it, you need to be able to understand it – and then take the right action to correct it.

1. Keep your Accounting Records up to date

Whether you use an accounting package (advisable ) or some other method, you should as a minimum be producing monthly figures in order to review your performance and take correction action when appropriate.

2. Develop a Financial Budget to track your progress against your goals

A financial budget forces you to document where your business is going and when.

3. Reconcile your bank account monthly – include all outstanding receipts and payments that are not on your bank statement

A Bank Reconciliation is the cornerstone that links your profit and loss account, your balance sheet, and your cashflow.

4. Review an Aged Debtor Report at least monthly

It is not the end of the job because you have sent out an invoice. You need to know what is owed to your business and for what period of time it has been outstanding.

5. Have a system in place to chase monies due

Too many businesses go under because they do not have a robust system for ensuring that all monies due to the business are collected on time.

Start today and do five things that will move your business forward.

To your success.

Alistair

Please feel free to share any comments you may have.

Telephone: 01875 830568
Mobile:       07981 107914
email:         a.summers@how2businesscoaching.com
Web:          www.how2businesscoaching.com

The Five a Day Rule – 5 Marketing Tips

Alistair — Fri, 17 Feb 2012 14:58:49 +0000

More Profits, More Time, More FreedomGet Your Business Back on Its Feet

The Smart Way

The Five a Day Rule

5 Marketing Tips

Customers are the lifeblood of your business. You need to focus on getting a continuous stream of new customers, AND retain and sell again to your existing customers. It’s not rocket science – the more people you talk to that are in your target market, using the right marketing strategies and tactics, and then consistently follow up, the more you will convert into customers. In this instance the statistics don’t lie - it really is a Numbers Game.

1. Define exactly who your Target Market is

These are the customers who are most likely to buy your services, and are distinguishable by certain characteristics as defined by their demographics and psychographics.

2. Define the Demographics of your Target Market

Gender, age, income, occupation, education, household size, and stage in the family life cycle.

3. Define the Psychographics of your Target Market

Similar attitudes, values, and lifestyles.

4. Create a Database of all your Past and Current Customers

5. Find a reason to rebuild a Relationship with each of the Customers in your Database if it does not already exist

Start today and do five things that will move your business forward.

To your success.

Alistair

Please feel free to share any comments you may have.

Telephone: 01875 830568
Mobile: 07981 107914
email: a.summers@how2businesscoaching.com
Web: www.how2businesscoaching.com