Here comes the summer

On holiday in Rhodes earlier this month

As I am writing this the sun is shining and a heat wave is anticipated for the weekend – even though it is Glastonbury festival time!

Whilst we all love the summer it can bring with it extra managerial problems for business owners who are trying to balance employees motivation, with getting the job done.

It can be difficult to concentrate on doing your job when the sun is shining outside – particularly if it’s very hot. This means business owners need to spend more time than usual focusing their team to their usual level of effectiveness.

Then there is the issue of holidays. If you have staff who have school age children there can be the battle to book time off during the school holidays – and you have to make sure you still have cover for all the roles in your business!

I think that, if you are able to, it can be very helpful to offer a degree of flexibility in working hours to staff who either suffer with the heat or generally want to make the best of the good weather.

Could employees start earlier in the day and finish earlier, for example? Could they work part of the day from home where it might well be more comfortable than in a hot, stuffy office?

In my experience a little bit of flexibility can go a long way to motivating employees to work harder when they are at work.

Then there is the issue of your own holidays. I have seen several LinkedIn posts where business owners seem to be proud that they are still answering emails and responding to business issues whilst on holiday.

To me this is not taking a holiday. 

If you have staff you should ensure that they are empowered (through training and instruction) to act appropriately to problems whilst you are away. 

If you don’t have staff you still need to find a way to balance business needs against your needs for a proper break by: informing clients in good time that you will be out of contact for the duration of your holiday; completing client work before you go; ensuring sales leads are not lost by using a call answering service…

Everyone needs proper holidays to enable them to recharge their batteries and be at their best – and you are no different. I certainly find I return from holiday more effective, focussed and full of ideas just because my brain has had a rest!

Plan for the worst…

Screen Shot 2014-12-04 at 08.49.45


Flooding has become an real risk in many areas across the country, as has coastal erosion, and other natural disaster events, which seem to be more prevalent than in previous decades. As the consequences of global warning are starting to increasingly impact on people’s lives it is important to consider how your business might be affected by future events.

It is a sad fact that at least half of of businesses devastated by flooding (or other natural disasters) will never recover, and those that do, may take a long time to get back on track.

Before they can repair and rebuild there is often the initial wrangling with the insurance company about how much they should pay out, but there are far wider implications to a business than just putting right the premises.

The problem is not just the event itself but the downtime the business experiences whilst the damage is repaired, and the consequences of that downtime.

Do you continue to pay your staff even when they are not able to work and if you do so, how do you afford a wages bill when you have no income coming in? Once even loyal customers have gone elsewhere, how do you persuade them back when you are up and running again?

These are the type of issues many businesses do not consider until forced to do so.

Natural disaster events are just one type of business catastrophe but there are many others all businesses should consider and plan for. The scale of the catastrophe will be linked to the importance of the occurrence to the business.

For example, if your business server fails how big an impact would that have on your business? If all your staff need to access information on that server 24/7 it could cost you dearly and clearly in that situation it is vital that you have a backup plan to cover just that type of emergency.

Alternatively, if you are heavily reliant on one employee what would you do if that employee goes off sick for an extended period of time?

Every business has its own ‘flood’ scenario and it is hugely important that you have a disaster recovery plan to mitigate against the worst effects of a catastrophic event. You need to build your ‘flood’ defenses – first identify the scenarios which could do the worst damage, plan for how you would deal with those scenarios in the most effective way, and ensure you have the ‘backups’ in place.

Of course we hope never to use our backup plans, but at least if we have one in place, we are as prepared as we can be if the worst happens.

Fiona 🙂

Why you should be forecasting

Following on from my previous post I thought I would concentrate on cash flow as a particular area you need to focus attention on.

Many business owners don’t know how much money is in their bank account on a day to day basis and look at their accounts only once a year, so the idea of forecasting for the future leaves them cold.

Many businesses of all sizes fail because they do not have the foresight to ensure that they avoid making poor decisions, or react too late to changing circumstances. In particular, in not doing cash flow forecasting (at the very least) these business owners are putting their businesses at real risk.

Forecasting forward can help ensure you don’t suddenly run out of money. If things are going badly you at least have forewarning of when you MUST get some money in and have time to do something about it. You can then use your forecast to help the bank – or any other parties you are hoping to secure funding from – understand your business and who investing in your business is a good bet for them.

I have written a free guide to help you with forecasting for your business which you can download from my website http://www.fionabevanfinancialmanagement.co.uk/guides.php

Fiona 🙂

Look after your pennies…

Screen Shot 2015-05-01 at 16.26.04

Many owners/managers of small businesses (and larger ones for that matter) struggle to understand their business finances. This lack of understanding can make it very difficult for them to make the right decisions for their business.

Now, I am sure my accounting colleagues would not mind me saying that, most accountants make lousy entrepreneurs. We just lack the creativity and drive which makes entrepreneurs so effective at getting new business ideas off the ground.

So why should entrepreneurs/business owners be great accountants?

Each role requires an entirely different skill set and way of working and, indeed, a different personality type (if you are familiar with DISC profiling). So don’t be shy about admitting that you are stuggeling with the money side of your business.

Many business owners do not seek the proper help and guidance, or have the right level of financial information, to help them make decision.  To me this is a huge mistake which can lead directly to business failure. As a responsible business owner/entrepreneur you do not need to be a trained accountant but you do need to have enough knowledge of financial issues to run your business effectively.

So what do you need to do to get this knowledge? Well, for starters:

  1. Ask lots of questions of your accountant about why the figures are as they are.
  2. If you only receive figures from your accountant once a year, several months after the year has finished, this is not enough! You need to have regularly updated financial information to make decisions on a timely manner.
  3. Have a properly thought through profit and loss and cash flow forecast so you can manage your cash – and make sure it is regularly updated for what has actually happened.
  4. Don’t just be happy with knowing how much you have sold in total and the margin on this total figure. Ask how you can get information on individual customers, products and projects so you are clear which activities are profitable – and which not.

It is not good enough these days to just shrug and say “Well, I am just not good with figures”. You started your business to make a living for yourself, and any staff you have, and you owe it to yourself, and them, to have a good handle on the money in your business.

To help I have written “your guide to understanding business finances” which can be downloaded for free from my website www.fionabevanfinancialmanagment.co.uk

Good Luck

Fiona 🙂

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.

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

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

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