Become more savvy with your finances

As business owners we need our businesses to make money.

In my opinion an established business which does not pay its owner(s) a decent wage is really a hobby. So given that we need our businesses to make money it follows that we need to be sufficiently au fe with business finances to understand if our business is running our finances, or whether we our running our business finances.

Unfortunately, a large numbers of business owners are not financially savvy enough.

If you would like to see if you are one of these, try answering the questions below:

  1. Do you have a clear financial plan?
  2. Do you know if your business is currently profitable?
  3. At this point do you know how much money is in your bank and what money you can expect in and out of your bank account over the next month?
  4. Do you know what customers/products/services are profitable?
  5. Do you have a robust invoicing and debt collection system so clients pay you in a reasonable time (do you know what reasonable is?)?
  6. Are  you always able to pay your suppliers on time?
  7. Can you always pay your salary/dividend/drawings?
  8. Do you know how much you have to sell, and at what price, to provide the lifestyle you want?

If the answer to two or more of these questions is “no” you are probably not as financially savvy as you need to be to run your business effectively.

However, help is at hand and there are ways you can help yourself.

  • If you have an accountant/bookkeeper ask them questions about your financial position and what you could do to improve it
  • Talk to your business friends who seem to be financially sorted and ask them what they do
  • There are volumes of business books out there that can help you understand the basics
  • Take time to properly plan
  • You may want to go on a finance for non-financial managers course to learn the basics in a workshop setting.

Finally, I have written a series of FREE financial and business guides which you can download from my website http://www.fionabevanfinancialmanagement.co.uk/guides.php

You can download as many or as few of the guides as you like without registering so please do take advantage of them.

Fiona 🙂

What can we do?

As I was out walking this morning reflecting on what a lovely day it was (hence the piccie below) I got to thinking about what an exceptional world we live in – and how much we take it for granted.

I was reminded of the words of the TV advertisement from the WWF. We are the first generation who understands the destructive effect we are having on our planet – and the last who may be able to do anything to stop it!

That is quite a profound statement, and one that makes most of us feel powerless. When big businesses fail to change the way they are acting, what can small businesses do to affect anything?

Well, I guess, we can do our bit.

There are millions of small businesses and together we have a voice. By changing the way we run our businesses we can do our bit to influence opinion – and benefit from reduced costs and increased profits.

Some small businesses I know have started to offset the carbon emissions they are responsible for, so that any negative impacts their businesses may have on the environment are offset by positive ones. In doing so, they have attracted customers who are also mindful of their environmental impact.

Others have moved away from travelling long distances to meetings – which others have also travelled to get to – and moved to online meeting tools such as Zoom. Travel costs are saved, as well as a good chunk of time. 

Where travel is unavoidable some business owners are moving towards public transport – which can often be cheaper and more convenient than using the car – or walking or cycling.

In the office, many small businesses are looking at having online document management systems so that printing is kept to a minimum. This saves paper, ink and time – not to mention office space.

In changing our habits we will also start to influence larger businesses because they will want to sell us the services we use –  and will start to see reductions in sales of those we don’t.

I am in the process of doing an environmental audit of my business to try to minimise the negative impact Bevan Financial Management has on the environment – perhaps you would like to do the same for your business? 

Worst case? We just save some money! Best Case? We save our world!

Fiona

Start as you mean to go on!

Small businesses are the mainstay of the UK economy. Forget the large companies – small businesses are where it is at!

The UK is a nation of entrepreneurs and we brits are great at taking the plunge into business ownership – whether it is a self employed professionals or as small business owners employing staff.

However, for many entrepreneurs taking the plunge is not the hardest part – it is running a successful company in the longer term that provides the stress.

The problem here is that the prospective entrepreneur has often not done their homework.

In particular:

  1. They have an idea they are sure is going to work, but have not done a full business plan to explore whether it can be converted into a successful business.
  2. They have not consulted appropriate professionals to ensure their company is set up in the best way.
  3. They don’t align their personal and business goals. They soon find their business running their lives rather than them running their businesses.
  4. They don’t finance their business sufficiently from the outset, which means they can never afford to do jobs properly. Marketing in particular often suffers in this scenario.
  5. Because they haven’t planned properly they don’t fully appreciate the risks involved in setting up their business until it is too late.

Starting your own business is a BIG step. If it fails you may not just lose your livelihood but also your house (and your family if you have had to work very long hours).

It makes sense to give your business the best possible chance of succeeding.

To help I have written a guide on starting your own business which can be downloaded for free from my website www.fionabevanfinancialmanagement.co.uk

I have tried to cover all the issues you will need to think about before taking the plunge as well as some of the things which might trip you up.

Enjoy!

Fiona 🙂

Making networking fun!

Networking is a part of modern business life. As an employee we often have to network within, and outside, the businesses we work in to build relationships that facilitate our jobs.

For business owners networking is even more important, because it is the main way we meet other business people. These may become suppliers, customers or strategic introducers who will (hopefully) refer customers to us. 

Whatever the circumstances networking is the start of building, and then maintaining,  important relationships.

Most networking is done over refreshments of some description and involves a roomful of people, many of them trying to sell to people they have only just met. 

Good networkers know that networking is not about selling – it is about starting a conversation that might, at sometime in the future, lead to business. But there will always be people at a networking event who have not got the memo!

Recently there has been a move away from networking indoors to more outdoors based meetings. For me these are much more fun and are more likely to attact people I will have something in common with.

I love walking and cycling, so networking I can do whilst walking or cycling, with people who like walking and cycling is always going to be a great way to start building profitable business relationships.

Conversations come much more easily when you are not sitting face to face or standing in small groups. It is also easy to move around the group to talk to different people without any awkwardness.

Of course, if there is a coffee and cake stop along the way so much the better!

The best networking event I ever went to was organised by NRG and Raising the Baa. It involved groups of us herding sheep and trying to get them into pens. Some of us were designated as ‘sheep dogs’ and some as ‘farmers’ directing the dogs. It was the BEST fun!

So, if you have the opportunity to try an outdoors networking event – and you love the outdoors – I would really recommend giving it a go. It’s networking, whilst getting fresh air and exercise, with a change of scene from our usual business day. 

What’s not to like!

Fiona

Your destiny is in your hands

As we all get back into the swing of work after the Christmas break it is a good time to look forward to what the new year may have in store for us.

Many businesses will find this year a real challenge. There is a lot of uncertainty around what will happen with regards to Brexit and this uncertainty has already lead to reducing sales and profits for many.

It is interesting that often the unknown has a more detrimental impact on the economy than actual problems. You only have to look at how the pound has plummeted, along with the stock markets, over the last year to see that this is the case – even though we have not left the EU yet.

The economyis driven by confidence and that confidence is fragile. The press frosters negative feelings about the future – because bad news sells papers – and suddenly everyone is in a spin,  confidence collapses and, guess what, the economy suffers. It’s bad news, just as the papers warned!

As business owners we have to be careful that we don’t get caught up in a spiral of negativity. Negativity prevents business growth because good decisions are postponed. Investment in the future is delayed as outcomes become, apparently, more uncertain.

The fact isthat good, focussed, businesses should not be afraid of the future because economic downturns tend to favour them, as less well managed businesses fall out of the market place.

The key to success over the coming months will be to focus on making your business as efficient and effective as possible. This is always the case but less so when the economy is bouyant.

If you need to invest for the future growth of your business don’t put off doing so; but before committing make sure that you have a robust business case for the investment. Be in charge of your own fate.

Many companiescut back on marketing and training, but these are the very things that will help your business to thrive when your competitors are floundering.

Above all makesure that you have updated your business plan and built in some ‘what/if’ scenarios. That way you will be clear on the goals you have for the coming year and what you need to do to achieve them. There is no reason why you shouldn’t reach your pot of gold!

So here it is – Merry Christmas

I was looking through my December posts from previous years for inspiration and thought it was worth revisiting some of the themes. Once again the immortal words of Slade burst out of the speakers of shops once again as they have since 1973. 

Whether they make you smile or shiver will often depend on your frame of mind at the time you hear them – or how often you have already heard them in any one day. I have often wondered how shop workers stop themselves running and screaming from their shops when the constant blaring of Christmas pap gets to much for them!

It is unfortunately a sign of the times that Christmas permeates much of everyday life for so long before the big day itself. I think it detracts from the spirit and excitement of yuletide. Whether you are a Grinch or an elf Christmas will affect your business and, in some cases, drive you up the wall.

Some people go absolutely barmy over decorating their space, love secret santas and are generally pretty unbearable from the beginning of November until New Year. As a business owner it can be difficult to strike a balance between allowing staff to have fun and ensuring that business is not too disrupted.  Even when you strike a balance with your staff doing business at this time of year can be a challenge.

It is very difficult to get any type of decision from potential customers in the run down to Christmas. On the other hand Christmas is often set as the arbitary date for the completion of projects – leading to huge pressures on teams.

Customers will often use the Christmas period as an excuse for not paying invoices, citing Christmas close down and staff holidays as the reason. Normal payment systems often do not kick back in until the 2nd or 3rd week of January. The result can be cash flow problems unless you plan to avoid them.

So, unsurprisingly, it is all about planning for a positive Christmas and making sure that you take control of any challenging situations before they cause you a real problem.

Fiona 🙂

Have a merry Christmas!

Screen Shot 2014-12-04 at 08.18.22

This post is a follow on from my previous one at the end of November.

As a business owner the festive period can be a challenge.

Our families have a set of agendas for Christmas we are expected to fall in with, and at the same time we are trying to ensure that our business does not struggle because of the reduced working days at the end of December.

However, with a little planning it can be possible to keep everyone happy.

Firstly, it is important to manage your business issues.

A key part of this is managing customer expectations of what can be accomplished before Christmas. If you are a service provider you may often be set Christmas deadlines for projects you are working on. This deadline is generally arbitary and there is no business reason why a deadline of 24th December, or 31st December, is necessary. So make sure you have the conversation with your client from the outset to find out what their ‘real’ deadline is. This will take the pressure off you without inconveniencing your client.

One aspect of the Christmas shut down is that companies, particularly large ones, use it as an excuse for not paying their suppliers. If you have invoices which are due for payment just before the holiday period make sure you contact your customers to ensure you are on the last payment run before they shut down. If payment is due over the holiday period see if you can persuade them to pay you a little earlier, so it will hit your bank over the three working days after Christmas.

If you plan to shut down your business over the festive period make sure all your customers are well aware of the fact in advance, so they can contact you if there is anything they need before you close.

For many business owners it is possible to take a break from their business completely. If you fall into this category I would definitely advise you to do – you will return to work refreshed and raring to go in the new year. In any case, most businesses find their customers are on holiday anyway and so taking the break has very little negative impact on the business.

If you do have to work try to compress the work you have to do into as small a time as possible to maximise the time you can have off.

Secondly, it is important to manage your family’s expectations.

If you have to work, make sure your family are aware of your committments so that they plan key events at times you are available to participate. Do not overcommit yourself or you will find the Christmas period very stressful indeed.

If you have staff it is also important that you balance their needs for a break with their families with your own. Many business owners will allow their staff to have a break over the whole Christmas period and then fill any gaps themselves. This means their staff are happy but their own family is not so happy. Your need for a break is as important as your staff’s – as long as you adopt a fair approach to who can take holiday, on which days, you should prevent any big problems.

Fiona 🙂

Happy Christmas?


Christmas can be a very hectic time of year and can be particularly challenging for business women with families.

Now, I am sure there are families where the menfolk take on their fair share of the Christmas chores, but I would venture to say that they are the exception rather the rule. Most of the writing of cards, buying and wrapping of presents, the catering and family organising tends to fall on the shoulders of the girls – it’s our traditional role which doesn’t seem to have changed with our entry into the workplace.

This means that Christmas often becomes a juggling act between business and family obligations – often meaning stress rather than fun is the result.

Until a couple of years ago I found it difficult to get the balance right, and two years in a row was actually ill over the Christmas period as a result. It is one of those inexplicable phenomina that as soon as you relax after a period of hectic activity that your body sees it as an opportunity to be ill!

So I decided I had to pace myself to survive and enjoy Christmas again.

Firstly, I try to buy Christmas presents throughout the year – this not only helps with the pacing thing but also helps to spread the cost.

Secondly, I cut myself a little slack and don’t put pressure on myself to provide a ‘perfect’ Christmas. Just because Nigella and Delia have the time and skills to produce endless quantities of delicious Christmas fare, does not mean that we mere mortals have to emulate them. I don’t see the point in spending hours in the kitchen preparing food which my family will demolish in 5 minutes!

Finally, I close the office on the same day the boys are home from university. This means I can spend some quality time with the family. I give my clients plenty of notice so we can cover any issues in good time and, in any case, most of them are winding down too.

So, in parting, I would just like to say this, give yourself a break and enjoy the festive season.

MERRY CHRISTMAS – and a happy 2019 too.

Fiona 🙂

Getting to know you!

“Piglet is so small that he slips into a pocket, where it is very comfortable to feel him when you are not quite sure whether twice seven is twelve or twenty-two.” This Pooh quote is all about having someone you can call on to help when you need it – and don’t we all need people like that!

Successful business owners surround themselves with people who can do the jobs in their company that they cannot do, so they can concentrate on their own strengths. Obviously having employees is one way of filling the skills gap – another is to use consultants and other professionals.

So how do you find skilled professionals who will add great value to your business?

For me referrals and recommendations are the only way to go. If someone I know well has introduced me to someone they have worked with before, I can shortcut the due dilligence process. In my experience good people hang out with other good people.

I make sure that I network in groups that help me to find great people I can use myself and recommend to clients and other contacts. I love meeting new people and networking groups are a great way to keep in contact with my strategic partners regularly. Clearly networking can require quite a lot of time but these days I can enhance my networking by using online tools.

In this respect I like LinkedIn because it allows people to recommend me, and I can read recommendations given to people I might be thinking of using, in a quick and easy to use format. I can also catch up with what’s important to them through blogs and posts.

If I have had a great service from someone I make sure I recommend them so that their profile on LinkedIn is enhanced – I also ask people I have worked with the recommend me. When I get a good recommendation it is a great morale booster and helps others to get a feel of what working with me would feel like.

It’s easy to put networking on the back burner when we get busy but we must continue to do the things that got us busy – or we will experience periods of slack time when one job comes to an end and before restarting our networking re-fills our time again.

How to get paid revisited

getting paid

Getting paid is a blog theme that I come back to on a fairly regular basis because I often come across service providers who are finding it difficult to get paid. There are clearly two sides to this particular coin – us and the client. We can be as much, or more, to blame as our customers for not getting paid, because of the way we think and act.

Firstly, as Brits we are sometimes embarrassed to talk to clients about fees and payment. Some business owners hide behind hourly rates, which means there is no upfront agreement about exactly what the client will be expected to pay. This means it is highly likely there will be disagreement and therefore delay in payment. Not only that, but disagreement about fees can leave a bad taste in everyone’s mouth.

Secondly, many service providers are slow to invoice, which means clients receive bills quite a long time after they have had the service. This sends a message to the client that the supplier is probably pretty well off and so doesn’t need the cash quickly (or the invoice would have been sent more promptly). Consequently it is more likely that payment will need to be chased.

Other suppliers do not make it clear what their payment terms are. Now, it is in clients interests to delay payment as long as they can (especially at the moment when many businesses are finding cash flow difficult) so if you are not clear on payment terms you cannot be surprised when payments don’t come through. Make sure your letter of engagement clearly states what your payment terms are and re-iterate these terms on your invoice.

Further to payment terms ask yourself the question ‘Am I a bank?’ If the answer is no (as I expect it is for anyone reading this blog) only give credit if it is absolutely necessary – and then ensure there is some allowance for interest in the price you are quoting! Otherwise, make your payment terms ‘payment on receipt of invoice’. You probably won’t get paid immediately but at least you can chase earlier.

I know business owners who don’t like chasing for payment, even if they have agreed a fixed price, invoiced promptly and have clear payment terms, because they think their good clients will think badly of them. This, in my opinion, is the worst ‘sin’ of all. Firstly, GOOD clients pay as agreed in the contract – a good client is not one who bitches about the agreed price and then fails to pay promptly. Secondly, we are business people who should expect to be paid for a good job done, so there is nothing to be coy about when it comes to asking for what you are legally and morally entitled to!

So, to recap:

1.  Agree clearly with your client the exact terms of the engagement both in terms of job to be done and fee to be paid.

2.  Bill as soon as the job is complete.

3.  Be clear on your payment terms and give as little credit as possible.

4.  Be professional! If money is owed to you do not be coy about chasing for it.

Fiona 🙂