Why delegation is great!

I was talking to a businesswoman recently – she is successful in her field but is starting to get bogged down in the day to day running of her business. In particular, administration and bookkeeping are starting to grind and take the shine out of her enjoyment of her businesses.

This is theme I come back to time and again because it is a common story but one that has a simple solution – DELEGATION.

We may have many ‘good’ reasons why delegation is hard and why we should do all the ‘easy’ jobs in our businesses:

– it can be expensive to pay someone else

– perhaps they will do the job wrongly or prove unreliable

– it will take time for them to settle in and the process will be distracting

However, you cannot escape the truth that however much you try to ‘create’ time by managing it better, there will only ever be 24 hours in a day! There will come a point (or you may already be there) where there is simply not enough time to do all that is needed in your business.

So I would answer each of the objections above like this:

– You are much more valuable to your business than you may credit. Your time is likely to be worth much more to your business per hour than the £20-£30 per hour you might need to pay a good administrator/bookkeeper.

Also there are jobs which only you can do in your business. These undelegatable jobs include creating business strategy, and leading and managing your business (even if you work alone your business needs to be managed!). If administration and bookkeeping are keeping you so occupied you do not have time for strategy, or management, then your business will suffer considerably.

– Are you really sure you are the best bookkeeper/administrator anyway! Surely you did not start your own business to play around with the books or to file!

– If you engage a trained bookkeeper they will settle in very quickly. Also, because they already know what to do as a bookkeeper you won’t have to spend time showing them what to do.

So do yourself a favour. If you have too little time to do the important things in your business – DELEGATE!

Fiona 🙂

Help with pricing

One of the most common problems I come across amongst SME business owners (and, in fact, businesses of any size) is deciding how much to charge customers for their products or services.

It’s an important problem to solve as it can make a huge difference to how profitable a business will be. Price too high and you won’t find customers. Price too low and you won’t make money – and perhaps put off potential customers because you are too cheap.

You may well ask how can a product or service being cheap put off customers? Well, if you are advertising a high quality offering to customers, but pricing too low, they will not trust that it actually is high quality.

The place to start when reviewing your pricing strategy is with your costs. If you don’t know with enough detail where the costs in your business occur – as a direct result of producing your sales or as overhead expenditure – you will not be able to price effectively.

As we know, to be profitable a business must at least cover its costs. So knowing all the business’s costs will help to ensure that products and services are priced in a way that covers these costs.

Pricing is such a fundamental skill for all business owners, that I have decided it will be the topic for my first business owner masterclass on-line course – which is now available on the Qintil learning platform. (https://courses.qintil.com/Courses/MiPsmeanbusiness/business-owner-masterclass-pricing).

I have come to think that online learning is a great way of sharing expertise to a wide audience. The tools available to help create an engaging and effective learning experience are getting better and better. 

If, like me, you have been in business for a long time and now feel you have want to share your knowledge with an audience wider than your immediate client base, how about having a go at creating your own online course?

Personally, I use a tool called Easygenerator. It is very easy to use and you can upload videos and audio files as well as the usual written content. You can try it out for free and see if you like the quiz templates provided and the format of the courses.

I have certainly enjoyed playing around with what I can produce for business owners who need inexpensive help in key areas of their business finances.

It’s time to get personal

The new year is often the time for resolutions which by this time in the year have often fallen by the way side. Even the resolution to start planning for the next year can be a goal that is never fulfilled. But planning for the future is a key part of making sure that you are in control of your business and your life and not the other way around.

Do you have a clear idea of what you want to achieve personally over the next 20 years? In 2039 when you look back, what goals would you like to have ticked off and what resources do you need to put into place to achieve these goals?

These are questions a good goal based financial planner helps you to get clearly defined.

But why is it important to know the answers to these questions?

Anyone who reads my blog regularly will know that I am passionate about planning and believe that it is much more likely that we will achieve the results we want, if we have a plan in place. This applies equally to personal goals and to business goals. And they are interlinked. It is unlikely that success meeting a business goal will be meaningful unless personal goals are also met. In fact, I believe our personal hopes and desires should provide the backdrop to our business goals – especially where we are business owners. After all, how is a business successful if it does not reflect the owner’s personal values and fit with their life plan?

I have discovered, by working with my goal based financial planner Andrew Stinchcomb, that there are key things I want to achieve in my life. Some of these things have always been clear to me – others have come to light through discussions with Andrew and my husband, Jeff. The key outcome has been that we now have a clear idea of what we need resource-wise (and this inevitably means money) to make our dreams a reality.

It’s funny what comes out in the wash in our discussions. A while back Jeff and I had a light bulb moment. We had always talked about taking a year out when our boys leave home to travel around Europe in a camper van. It was originally a pretty lose idea and more of a dream than something we thought we might really do. However, this idea crystallised into a key goal during our discussions – such that, should it not happen, I would feel really bereft. Andrew gave us a clear idea of how much per month we needed to save and invest wisely to make it happen.

As my business is my only source of income, I therefore had, and still have, a very clear picture of what I need to accomplish business-wise, in terms of number of clients and levels of income. This has made it much easier for me to identify good opportunities as they are presented to me and to motivate myself. I know what I will be sacrificing if I don’t push myself.

So take a look at your life goals and ask yourself “Is my business providing to route to these goals?”.

🙂

Fiona 

Of Course

Last month I had a fantastic breakthrough!

I have loved running the series of workshops up and down the country for accountants in practice but have got to the stage that I have to take a break – because it is very difficult to market courses around the country in the post GDPR environment.

I was getting quite discouraged until I had a chat with my good friend Alison. She is a business coach and has delivered quite a lot of training over the years. She suggested developing an on-line group of courses.

So I decided that’s what I am going to do. I will use the course material I have already developed, along with new quizzes and other fun learning aids. Furthermore, I will also develop a series of courses for business owners to help them master their finances.

Well, much of October was spent investigating on-line platforms and training tools – along with putting together the first 3 courses (hopefully the first of many).

It’s been hard work but a lot of fun!

What I have found exciting is that I have been able to make use of quite a lot of material that was in my back catelogue. Not only have I been able to make use of material I gathered for my books but, in the past, I have had some great opportunities to gather  material in other mediums that I can use now.

For example, I have been interviewed by Alan Philpott of Glastonbury FM for their Packed Lunch programme. Alan sent me all the interviews and I have been able to use extracts to liven up my courses.

Similarly, when I ran my first day workshop last September on How to Build a Management Accounting Business for CIMA members in practice, my great friend Angie Cussell videoed it for me. This turns out to have been a great decision. I have been able to use snippets of video in the courses to bring them alive.

As I mentioned, last month Alison got me started on the whole journey but other people have also helped me to develop the course concept.

David Ringsell put me in touch with Qintil which is the platform the courses will be hosted and Sam Easen got me started using the Easygenerator tool to create the courses.

Several people have been Beta testers and given me feedback on any changes I should make to ensure the courses are as good as I can make them – including hubby Jeff.

Trevor Lever and Andrew Stinchcomb have also helped me to crystalise how the whole venture might be promoted.

So it’s been a team effort, for which I am very grateful. In fact most of the best things that have happened in my business have been as a result of the great peeps I have around me – thank you all!!

 

Fiona 🙂

Collecting the cash

Piggy Bank

In these turbulent times it is more important than ever to be on top of cash collection. However, many small business owners find it a real challenge to chase customers who are late paying.

A phrase we hear often is, They’re a really good customer, so I don’t want to annoy them by chasing for payment”. Let’s just analyse that sentence for a minute. Why are these customers good for your business? Because they allow you to do lots of work for free? Surely, a good customer is one who appreciates your efforts and is happy to pay because they value you. If you have done the work you agreed with your customer, to the level they expected, why should they not pay the agreed price in the agreed time period?

So don’t be shy about collecting YOUR money.

Other problems we see regularly are:

              Not setting payment terms up front

If you have not agreed when the customer should pay BEFORE the work is done, you will struggle to collect the money in a reasonable time frame. Make sure your terms of engagement/purchase confirmation clearly state when you expect to be paid.

              Setting unnecessarily long payment terms

Don’t assume that you have to offer customers 30 or 60 day payment terms. Start from a position of offering zero payment terms and only offer extended terms if there is a commercial advantage in doing so. Bear in mind that even if you offer 30 day terms you will most probably be paid later than that. As you don’t know the financial position of all your customers the only safe money is the money in your bank account.

              Not sending invoices out promptly

If you do not send out your invoices as soon as the work is complete, you automatically build a lag before you receive payment. Invoicing is a chore, but regular invoicing is vital to achieving financial stability.

The most common reason small businesses fail is because they run out of cash.

The most common reason they run out of cash is because they do not collect the money they are owed quickly enough, or allow debts to go bad.

Make sure you business succeeds by being cash collection savvy.

🙂 Fiona

Minding your Ps and Qs


Running your own business can be the biggest thrill you will achieve in your working life, or the most stressful and demoralising experience you can imagine. On some days it is both!

However, I have come to realise from my own experience, from talking to business owners, and from gurus such as Ron Baker, Peter Thompson and Steven Covey, that running a successful business is all about minding your Ps and Qs.

Given the stresses involved in running your own business it is vital you are passionate about your product or service. Let’s face it, it is much easier to engage with potential customers if you can show passion for what you do.

Once you know what you want to do, you need to have a robust plan. We business owners are often knowledgeable about our product or service but avoid those business areas we struggle with – often marketing, sales or finance. The process of creating a business plan forces us to review ALL the areas of our business which are crucial to our future success.

We need to present ourselves to the market. If, like me you run a service lead business, one of the best ways to do this is to network. People buy from people they trust so you need to be out there meeting, and getting to know, local business owners.

Consulting professionals to help in areas you are not expert in is wise. Very few of us are instinctive business people and there will be one or two areas we struggle with. Interesting it is often more cost effective to get an expert in to do an efficient job than to try and do it ourselves.

To me a key element of a quality service is communication – this means listening and responding to clients’ concerns. Even if you sell a product there is a service element to what you do and this will be your contact with your customer.

Effective communication will allow you to qualify a potential client’s needs and what they particularly value. Having established value it should be fairly easy to give them a price.

To close, your business will not be measured by the outside world on what it is but on what people perceive it to be. So keep your ear to the ground and ensure peoples’ perception matches your reality.

Fiona 🙂

To Party or Not to Party? – that is the question?

This is a question many business owners have been asking themselves this Christmas. With the country in recession and business difficult, is it appropriate to have a staff Christmas party?

In my opinion the answer is a resounding YES!

In fact, the traditional Christmas party is more important than ever as a morale booster and a general ‘thank you’ to staff. When times are hard businesses find they have to cut back on increases in staff salaries and perks. This can leave staff feeling demoralised. A party – and I don’t mean an expensive, swanky one – can help staff look favourably on the company they work for. More than that, not having a party when you have always had one in the past, can leave staff feeling negative.

If money is tight don’t forgo the usual celebration – just look for a way of doing it cheaper. Staff are not generally interested in how much money you spend; they are more interested in the gesture. If you usually pay for everyone to have a meal and drinks in a restaurant, how about this year sharing the cost so staff pay for their food and you pay for the wine – or vice versa? Or you could cut out the middle man altogether and have a party at your house or business premises. Or how about getting them involved in how the budget is spent? Whatever you decide, explain the need for doing something less extravagant than usual and you will have your staff on your side.

Whatever you decide to do, DO SOMETHING and show your staff you are not using the recession as an excuse to play Scrooge.

For any Somerset business owner in the Wells area who works on their own don’t forget the Billy No Mates Christmas Bash. It’s great fun and gives you the opportunity to have a Christmas party even if you work on your own. To find out more or to book just click on the Eventbrite link below.

https://www.eventbrite.com/e/billy-no-mates-christmas-bash-2017-tickets-38799276681?aff=eac2

Do you show business confidence?

A business’s confidence is key to its success.

A confident business does not have to apologise for its existence – it can just get on with providing a great product or service.

In an owner/managed business the level of business confidence conveyed is directly related to the confidence you as the owner have in yourself and your business proposition. Even a business which offers great service and is well respected by its customers can be undermined, if you continually doubt yourself.

So how do you keep your confidence levels boosted?

Firstly, make sure you have a great product/service, which you can easily describe to third parties. If you sell a service, productising elements of your service can make it easier for potential customers to understand what you do.

Talk to your customers so you are clear why they buy from you. Although this might be hard at first, it will enable you to talk confidently to prospective clients about the effectiveness of what you do.

Whilst you are talking to your customers, ask them for testimonials. Not only can you use them in your marketing, they will also boost your confidence.

If you know where you want your business to go, you can confidently decide what you need to do to get you there. So, have a robust, regularly updated business plan. Alongside this, try to build a great business skills base. There are many facets to even small businesses, so the more you know about each of them the more effective, and confident, you will be.

Be part of a strong business network. Business networks are a fundamental part of raising the profile of your business and finding support locally. Regular contact with other business owners, many of whom face similar problems to yours, will help make running your business less lonely too.

Finally, think about how you are presenting yourself. If you are well prepared, wear the right clothes for the right occasion, and think about your body language, you will be best able to express yourself confidently.

If you want a little more help with your business confidence download my free guide to confidence on my website
fionabevanfinancialmanagement.co.uk/tools

Which cat are you?

Some of you will have seen my post on LinkedIn talking about a great meeting I had with Trevor Lever of TLC.

Trevor has been a great supporter of my business over the years and is a terrific sales effectiveness coach. Although Trevor is now looking to take a bit of a back seat these days he has been kind enough to share his brilliance with me.

I am very pleased to say that he has given me care of his cats as he doesn’t have as much use for them as he did! I am sure he won’t mind me sharing them with you.

There are four sales cat types: trader cat, poacher cat, farmer cat and hunter cat. As business owners we will often have an affinity for one particular cat but need to be able to ‘play’ at being any cat.

Trader cats are the classic networkers who work hard to develop advocates they can trade referrals with. Reciprocation is the name of their game.

Farmer cats spend most of their time working with existing clients to increase the value of goods and services they can ‘sell’ to them – they concentrate on cultivation.

Poacher cats stalk businesses with the types of clients they want and their clients away. They will use differentiation to make themselves appealing to customers.

Hunter cats are excited by finding new opportunities and new customers who have never used their type of service before. Hunters use education to help new clients understand what they have to offer.

I have to say that of all these types of cat I myself have been least comfortable with being a hunter – and I expect most accountants would feel the same way.

However, I have had to become much more brave in approaching brand new customers since I have started my new venture providing workshops and mentoring for members in practice.

I have had to become more of a “hunter”. It really has not been enough to stay in my corner of the forest waiting for people to come to me!

Although it has been a challenge I am becoming braver by the day!

Fiona 🙂

It’s great to share

Over the years we build up layers of experience and learning in our chosen fields and this experience and learning helps us to be good at what we do.

Many of the skills we acquire we are barely conscious that we have, because they are so ingrained in who we have become. However, they are often the skills that our clients most value.

Over the last month I have had the priviledge of spending some quality time with some great CIMA members in practice. I have been running a couple of one day skills workshops for them and it was a great experience.

It got me thinking about what made this group so great. The particularly important talents they have (which I hope I share with them) are not ones learned through doing the CIMA qualification, but are as a result of the journey that took them down the CIMA route in the first place and have continued since.

So what are these magic talents:

1. Curiosity. They want to know what makes their clients tick. Curiosity may have killed the cat but it certainly makes for a much more effective professional!

2. They (we) care. Curiosity leads us to get closer to our clients and their businesses, which means that we care deeply what happens to them. This means clients know they are in hands that will only do the best for them – even if tough love is sometimes required.

3. They (we) want to enlighten and share. We know that we are of best value to clients if they have a clarity and understanding of their business’s financial situation. Unlike some other accountants who think they weaken their own position with clients if they explain what the numbers mean.

Unsurprisingly most of the people in the workshop had not really noticed that they had these skills, nor recognised their value. Instead they concentrated on just their acccountancy skills when talking to prospects.

Hopefully the workshop helped them to see the full range of skills they have to offer.

Perhaps it’s worth taking time to think more about your own ‘hidden’ skills!

Fiona 🙂