Business Growth Mastery

Things of interest....

noreply@blogger.com (TonyL) — Wed, 12 Nov 2008 20:59:00 +0000

A couple of things that I have found really interesting over the last few weeks

1. a friend of mine is about to launch a new portal for freelance contractors - see http://www.just4contractors.com/ and let me kno what you think.

2. I uploaded a series of presentation of effective change management - see http://www.slideshare.net/businesschange

3. We have just launched our Business Growth Academy, where you can get 24/7 hep and support for your business - see http://www.businessgrowthmastery.com/BGM_Academy_Home_Sales.html

Happy hunting...

Tony

Business Growth Mastery: How to manage excessive pay demands

noreply@blogger.com (TonyL) — Wed, 18 Jun 2008 20:20:00 +0000

Business Growth Mastery: How to manage excessive pay demands

How to manage excessive pay demands

noreply@blogger.com (TonyL) — Wed, 18 Jun 2008 20:01:00 +0000

Alastair Darling, the UK Chancellor has come out today warning that trade unions guard against a 'disastrous return to 1970's style inflationary pay demands.

He is right to be concerned as the global economy is feeling the impact of inflationary pressures on oil prices, the cost of food and increasing energy costs. Although the official inflation rate in the UK is quoted at just 3.3%, it is well established that if you take just these three core items, the the rate would be well north of 8%.

So as a business owner, how can you guard against excessive pay demands?

On the one hand, you need to ensure that you pay a fare salary, otherwise you are likely to struggle to retain top talent. Having said that all the research that I have seen is that money is lower in the priorities of the employee than it is in the perception of management.

Let me explain.

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Thriving in a Downturn - Part 2

noreply@blogger.com (TonyL) — Wed, 18 Jun 2008 19:44:00 +0000

In the June 2008 edition of Director Magazine, Jane Simms highlighted the need for UK Directors to seize the chance to exploit new opportunities in global markets.

I, like her wholeheartedly believe that there are amazing opportunities for even the smallest operator to take advantage of the perspection of UK business in overseas markets.

However, the biggest hurdle that you will have to overcome in doing so is not the red tape, the long distances or even the time differences.

No, the biggest hurdle that you will no doubt have to overcome is your own self doubt.

There are 10 simple steps that you can take today to ensure that you take control of these doubts and cast them aside...

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Thriving in a downturn - part 1

noreply@blogger.com (TonyL) — Wed, 18 Jun 2008 19:40:00 +0000

Time is something that we all have equality in.

No one has any more time than anyone else.

However, what if I can show you a way to give you an extra 2 months in every year – what do you think you’d do with this extra time?

Successful people in all walks of life put a high value on time – it is after all, the one thing that once lost can never be reclaimed. So, if you are to thrive in the coming weeks, months and years it follows that you need to really maximise the time that you have available.

Success tends to come from working smarter rather than harder. I’m not a strong believer in burning the candle at both ends – you need to get a good balance between focused effort and recuperation.

The question is how you can improve your time management skills to allow you to achieve this.

Before we look at a proven way to improve your time management skills, let’s look at the 7 key time wasters...

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AIM - promised land or nightmare destination?

noreply@blogger.com (TonyL) — Wed, 18 Jun 2008 19:37:00 +0000

Ever since the Alternative Investment Market was established in 1995, it have become the listing of choice for ambitious entrepreneurs. However, many business owners have found the market to be too intrusive for them to develop their business.

So, what do you need to know?

Close on 1700 business trade on AIM, with a combined value of £88bn - so it is certainly the promised land for raising funds!

The attraction of AIM to many business owners is the ability to rise funds for future growth of their business...

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Virtualise your business

noreply@blogger.com (TonyL) — Wed, 18 Jun 2008 19:34:00 +0000

What does Virtualisation mean to you?

The latest business fad - another in a long list that includes total quality management, Y2K etc.

Well, many people think this way.

I certainly don’t. Why?

Well for a business that has designs on growth, you should be looking at all options available to you to allow you to scal up your operations in the most cost effective way possible. I believe that operating within the Virtual world allows you to do this by providing you with access to the very best technology available on a ‘pay as you go’ basis.

No up front installation costs, no up front acquisition costs, no ongoing mintenance costs, reduced risks, improved performance - these are all benefits of moving towards a virtual IT structure.

To cap it off, you don’t need to employ the ‘geek in the corner’ to ensure that it all operates properly.

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How can you create your ideal lifestyle?

noreply@blogger.com (TonyL) — Fri, 18 Jan 2008 13:54:00 +0000

What are you planning to do in 2008 to ensure that you create your ideal lifestyle?

I believe that all business people should look to create something that allows them to deliver their ideal lifestyle. This should be your reward for the risks that you take in becoming a business owner.

If you can't, then are you really getting the rewards to reflect the risks that you are taking. If the business can't survive without you, you own a 'job' not a business! If this is the case for you, do something about it now!

However, lets assume that you can create your ideal lifestyle - what does it look like?

Do you know?

Make a list of the top 10 things that you enjoy doing?

How many of these do you undertake on a regular basis?

How can you adapt your life to enable you to do more of the things that you like to do?

In the next four weeks, build at least five of the activities that you have listed above into your schedule. At the end of the four weeks, review the period and see whether your business has thrived.

I suspect that you will be pleasantly surprised!

In most instances, if you can achieve a better balance, performance improves in every area.

Let me know what you think and lt me have some of your experiences.

See www.businessgrowthmastery.com for more ideas of how you can achieve major growth and enjoy the process.

Thanks

Tony

Welcome to 2008 - is it all doom and gloom?

noreply@blogger.com (TonyL) — Wed, 09 Jan 2008 08:16:00 +0000

As we move into 2008, the world economic situation is uncertain at best!

We are being constantly bombarded with talk of recession or at the very best, a significant reduction in the economic growth. This, coupled with the ever advancing strength of the Chinese, Indian and Russian economies amongst others are creating a period of uncertainty and worry within the main Western economies.

What does this mean to you, as an owner/leader of a business that you want to see grow?

Does it have to be all doom and gloom?

What can you do to ensure that you continue to thrive?

Here is my 10 point plan for maintaining your growth aspirations during periods of economic uncertainty;

In any situation, whether good or bad, there are always opportunities. Think about your business model and consider what opportunities exist for you to adapt your product/service offering to meet a need that has only arisen as a result of the uncertain outlook.
Review your vision for your business - is it still valid? Is it still desirable? The New Year period tends to be a time for reflection. Reflect on your vision and adapt it to meet the present situation. Is your vision for the business still enough to drive you to take repeated action, day in, day out? If it isn't, understand what will and do it. Any lack of action now will have a major impact on your ability to achieve your ambitions.
Look at every part of your business plan - are there ways to adapt your activities to meet the new opportunities or to stop doing activities that are no longer valid. You should be constantly reviewing the validity of your actions especially during such uncertain times.
What has your management information/ key performance indicators been telling you over recent months? Have you seen any trends developing? For instance - has your ability to arrange sales meetings reduced? This may provide an early insight into the situation that your clients/ customers find themselves in - are they starting to pull the reins in? If so, take the initiative and go and talk to them about how they are intending to move things forward - the more proactive that you can be now will strengthen your ongoing relationship with your clients.
Reassure your management team and address any under performance sympathetically - it is no good jumping in with two feet - it is likely that they will use the 'uncertainty' as a reason for their drop in performance. Talk to your management team and involve them in coming up with ideas to take advantage of the situation.
Do the same with your wider team - they are usually the closest to your clients/ customers and should have a very good understanding of the issues that each face. Collectively, develop ideas that can position your business at the forefront of your customers mind - you are there to support them through these challenging times.
Curb the urge to slash prices and ultimately profitability! - Instead, look at ways that you can establish greater value. This will maintian your margins and improve your ongoing relationship with clients/ customers.
Manage your cash carefully. Where you can, rein back on unnecessary expenditure. Do you really have to travel first class? Can you conduct a teleconference/ video conference rather than a face to face meeting etc. Target yourself to come up with ways to cut 5/10% from your cost base - You'll be surprised how easy this can be!
If you are looking to exit your business or to realise value from your investment, don't be downbeat. As I said earlier, there are always opportunities in any downturn and investors are always looking for their next deal. Money is still available for the right business. If you are planning your exit strategy, don't stop! Yes, review the situation, but don't just give up and wait for the upturn.
Finally, remember, if you think you can or you think you can't - you're absolutely right! Don't hijack your chances of growth by buying into the media hype that 'recession is around the corner' or 'the end is nigh' etc. Maintain a positive outlook and apply these ideas to your business and you will continue to achieve your growth objectives.

For more ideas on how to achieve Business Growth Mastery, why not download our eight week programme that takes you systematically through the process of achieving business growth - go to http://www.businessgrowthmastery.com/ now.

Here's to a successful and prosperous 2008.

Tony

When does a business need professional support?

noreply@blogger.com (TonyL) — Fri, 26 Oct 2007 19:26:00 +0000

So says the FT, in an article published in November 2006. The article, written by Rupert Merson, posed the question "when is it right for a young business to recruit a finance director?"

Like Rupert, I believe that upon appointing their first finance director, an entrepreneur will realise thet they are running 'the' business, rather than 'my' business. It is a time when they 'grow up' and realise that for their success to be sustainable, they need to be willing to share responsibility for the big decisions.

I'm not saying that an entrepreneur should abdicate responsibility for finance or for any part of the business for that matter, but they must be willing to take advantage of the experience that the FD will bring. The FD will take the management of the financial position and indeed the management of the business to a place most founders couldn't even imagine on their own.

A finance director will have a different attitude to risk, will read the numbers in a different way, will bring new professional relationships with him/her and will provide an ideal foil for the founder within the existing management team.

However, the founder and the business will only benefit from this experience when they are ready to accept and recognise that they have reached the limit of their capabilities.

Rupert put it well, in the FT article - "For the entrepreneur, the role of the real finance director starts and finishes with an engagement with real business challenges - with a bit about cash and tax in the middle"

What I think Rupert is saying here is that an FD should not be seen as just the finance guy, s/he should not be constained within the finance function of the business. The entrepreur should see and utilise the FD has an integral part of the decision making process across all areas of the business.

As the business grows, there will be key stages where you will need to appoint/ change your FD. However, it is critical for the growth business to access professional FD support at an early stage of their development. By doing so they will put their business on the fast track to success.

Obtaining professional FD support needn't be expensive. FlexiFD.com offer you unlimited support for a fixed low monthly fee. This is an ideal way for early growth businesses to gain the support before maybe appointing their first full time FD when they reach a specific milestone, which could be based on turnover, aspiration, acquisition or a whole host of other reasons.

The simple truth of the matter is that wherever you are in your development, it is never too early to introduce professional FD support and there are cost effective and highly efficient ways that you can access this support today.

What can I do to improve cashflow?

noreply@blogger.com (TonyL) — Fri, 26 Oct 2007 19:24:00 +0000

One of the biggest challenges that businesses of all sizes face, is maintaining a healthy cashflow.

Although I said that businesses of all sizes face this challenge, the ones that feel this challenge the most are typically SMEs.

It can be more difficult for smaller businesses to manage cashflow asd they are usually dealing with smaller amounts and ensuring that sufficient money is available to pay suppliers and salaries can put a major strain on even the most successful business. This strain is often felt the most by the owner manager!

Many businesses focus on increasing their sales and profits and often fall into the trap of forgetting about cashflow. If you are making lots of sales and profits, then there will surely be plenty of cash available in the business, right?

Unfortunately, no, it isn't right!

One of the main reasons businesses fail is poor cashflow. A business can survive for a long time with making a loss as long as they have sufficient cash, but they can't survive without cash even if they are making good profits.

If you are not sure why cash and profit can be so different, please get some support - FlexiFd.com can provide you with professional FD level support that will help you with this and many other challenges faced by growth businesses.

Ever heard the phrase - Cash is King?

When it comes to running a business, there isn't much more closer to the truth. Effective cash management is vital to ensure that your business can survive and thrive.

So how can you manage and improve your cashflow? Here are my top 5 tips to help you along the way.

1. Use other people's money! - don't pay suppliers until you have to. Take full advantage of their credit terms and delay making payment to the last possible moment.

2. Get you money in quickly! - Review your payment terms with your customers and make sure that they are complying. Reduce your payment terms down to 14 or even 7 days. If you are feeling uncomfortable about approaching your existing customers, certainly give it a go with new customers!

3. Keep on top of your debtors! - contact all of your customers a few days before payment is due to remind them.

4. Manage your stock levels efficiently! - do you need to keep all of that stock? Can you find suppliers who will 'partner' with you and deliver your 'stock' on a 'just in time' basis.

5. Look at alternative ways to raise cash - can you finance your invoices, can you arrange an overdraft facility, do you need to consider alternative investments?

Never under-estimate the importance of cash management - inefficient management of cash has been the cause of major failures for the largest of companies in the past. Don't let your business become the next victim. Apply these five key strategies today.

Is it too late to plan your succession?

noreply@blogger.com (TonyL) — Fri, 26 Oct 2007 19:22:00 +0000

This article could have been titled "What's going to need to happen to let me maximise the value of my business?

The simple answer to succession planning is that it is never too early to start to plan. You have probably heard the phrase - "Failure to Plan is a Plan of Failure" - this is never closer to the truth than it is as far as succession planning is concerned.

In all businesses, large and small, the way that they prepare the business for a change in leadership can have a huge impact on the future.

In larger businesses, the management team should be constantly looking to groom the next generation and the scope to do so is greater with more opportunities for mentoring, training and job rotation.

However, in smaller businesses, the risk is even greater and the potential to groom successors is more difficult. Many SME businesses have a strong managerial dependence on the owner manager and successful succession and ultimately the chance to realise maximum value will be determined by their ability to transfer skills/ knowledge and key relationships into the hands of the team that will remain. That is to remove the dependency on themselves.

Failure to do so may well result in;

1. a lower price being achieved
2. a lock in clause forcing you to remain in the business for a predetermined period
3. excessive warranties on future performance

That is why it is so important to plan.

18% CGT - a hit or miss for the entrepreneur?

noreply@blogger.com (TonyL) — Sun, 21 Oct 2007 20:31:00 +0000

The UK Chancellor announced recently that the rate of Capital Gains Tax will increase by 80% in April 2008.

After years of so called encouragement to enterprise, although with all of the additional red tape and stealth taxes, I've never been sure about the underlying motives, the new Chancellor announced that he is 'simplifying' the Capital Gains Tax rules! Put simply, this creates a set 18% rate across the board and does away with the taper relief system where business assets held for over 2 years would attract a CGT rate of just 10%.

So, is this simply another tax raising scheme for the Government?

On the face of it, I believe that it is! Especially for honest business entrepreneurs who are looking to build long term returns. A business owner who can sell his/her business before April 2008 will pay only 10p in the £, as long as they have owned the business for over 2 years. From April onwards, they will pay 18p in the pound!

But are there any winners?

Yes there are. Speculators can now reduce their tax from up to 40% to just 18% by buying and selling business assets. Property speculators are rubbing their hands together as I write this blog.

But is this right for the long term prosperity of the UK economy. No, I don't think so. It cannot be right when people who invest time and effort in building long term prosperity lose out whilst speculators or gamblers (as I like to call them) win.

I believe that the Chancellor will come to rue the day that he made this decision. I believe that the impact will be to stump the growth of UK entrepreneurship. I believe that investors will look at other types of investment rather than providing the funds required to help growth businesses to achieve their objectives.

So what can we do about it? I suggest that all business owners contact their local MPs and join forces with the CBI/ Chamber of Commerce/ IOD and all of the other business support networks to demonstrate how unfair this taxation change is and explain the impact of it on your plans.

Business Growth Mastery - a free eight day course

noreply@blogger.com (TonyL) — Sun, 21 Oct 2007 20:10:00 +0000

Having successfully built a number of business, taking some through major growth and consulted with some of the largest players in the financial services and utilities marketplace, I have gained a lot of experience that I am now, along with a number of colleagues collating and making available to business owners who wish to grow their business.

We have developed an initial eight day course which is available for Free download from www.flexifd.com.

This programme provides business owners with an eight phase development plan and highlights the key areas that they ned to address to achieve their growth aspirations. Additional materials are available via the website, and I will making regular posts via this blog also.