Monthly Archives: January 2020

Are you planning to do better?

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So, are you planning to do better in 2020 than in 2019? Most of us are – and January is the time when we resolve that it will happen. But do you know what better is? And what does ‘better’ mean anyway?

Many business owners, especially if they are a sole trader, struggle to even know whether they are doing well or not.

The reasons for this are as follows:

Firstly, many business owners do not have a plan for their business. This means that, even if they have up to date profitability figures in front of them, they don’t know if the figures are good or bad. It is only by having a robust plan, covering several years and based on your own goals, that you can judge whether your business will meet your goals, or not. A business which does not meet the owners’ goals is not doing well – however much profit it might be making.

Secondly, many business owners do not have up-to-date financial information. This means that even if they know their goals, they have no idea if they are meeting them. Some business owners keep a pretty close eye on sales/turnover but leave the rest to sort itself out. However, sales are just part of the picture. If you don’t control your costs or your cashflow, your business will struggle.

Thirdly, it is vital to know who’s definition of ‘doing well’ is important. For me, the only measure which is meaningful is YOURS. I see business owners struggling to match someone else’s ideal, rather than their own.

Finally, if you don’t know whether or not you are doing well, the chances are you will via to one extreme or the other. You will either believe you are doing far better than you are, or you will believe you are doing far worse. The first delusion will probably mean you come across quite unexpected problems with cash flow. The second will leave you feeling disillusioned and demotivated.

So, do yourself a favour and make sure you have a robust business plan, which you are updating with current financial figures. That way you will know for sure if you are doing well – and you will know if this year is ‘better’, following your definition of the word, than last year.

Fiona 🙂

It’s an uncertain world out there

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With all the uncertainties businesses are facing, how can we make our businesses more resilient?With all the uncertainties businesses are facing, how can we make our businesses more resilient?

I think the few years are going to be the least predictable, and most uncertain, since I started my business.

None of us know how Brexit will impact the environment in which we are running our businesses. Even if we do not trade directly with the other 27 EU countries we will be impacted by how the split with the EU effects the UK economy.

Also there is the increasingly urgent issue of climate change. I think we will have to (and should) increasingly consider the environmental impact of the business decisions we make on a day to day basis.

This may mean that we change: the way we travel; the resources we use and how we use them; and the scope of work and the spread of clients we serve.

And then there is the ever increasing speed of technological advances to keep up with.

I can see that each of these issues will cause the costs of running our businesses to rise and the speed of change in the business environment to increase.

So what can we do to make our businesses as resilient as possible given the challenges ahead?

I have often talked about business planning and I am a firm believer that businesses which have a plan are more resilient than businesses run on a more laissez faire basis.

There are several reasons for this. A business run by someone who is very clear on their personal goals will be more focused than one where the business owner is less clear about what they want to achieve. The process of business planning encourages a review of personal goals, which are then reflected in the goals of the business.

Once you have a distinct goal it is easier to decide on the best direction for your business and you are better able to make decisions quickly in response to the changing environment because you are confident about the path you want to take.

This means that you can properly assess the resources you will need to employ get you to where you need to go – whether that’s people, money or training.

In short business planning helps you to build a business that is fit for purpose.

Fiona