Why keeping your accounts up to date could mean all the difference between running a successful business, limping along, or failing. Would you fly a plane while wearing a blindfold? I ask new clients ‘Would you fly a plane while wearing a blindfold?’. They look at me confused, and always reply ‘No, of course not!’. At this point they are probably wondering why they hired me. Stupid question, right? Wrong! Here’s why: A significant proportion of my clients proffer similar responses when I start to investigate their bookkeeping and accounting methodology. They invariably tell me that they hand over receipts to their bookkeeper and once a year the accounts are resolved and sent to HMRC, usually at the last minute. Many then look confused again when I don’t look happy with their response. Why am I not happy? Because their accounts are typically 17 months out of date or worse. They have been led to believe that the accounts are for tax purposes, rather than as a managerial tool. This … [Read more...]
Boost your exports – Tips for SMEs
One of the biggest assets to grow your exports is free - THE U.K. FLAG – are you making the most of it? 500 years ago, if a ship arrived offshore, would you run for the hills or fire up a feast? It's pretty likely you'd make a snap judgement based upon the flag you saw flying - and how fast you could run. A similar scenario still plays out if your product or brand is unknown when it reaches an export market for the first time. A customer will look for your flag. If your brand is relatively unknown and the perception of the U.K. as the 'Country of Origin' is positive in your target market, then leverage it. Not just a 'MADE IN THE U.K....' (or DESIGNED IN THE U.K.) on pack, but print the U.K. flag on packaging, build it into presentations and leverage iconic images from the U.K. on social. Landscapes, buildings, celebrities, you name it. It works. I’ve seen the boost it can make to a company’s sales many times. ‘MADE IN THE U.K.' not only plays an important role in first … [Read more...]
Financial information you need to run your business effectively
In order to manage your business effectively you need to be sure that it has enough cash to keep trading and that it is running profitably. To ensure this happens, I recommend you review your financial status at the start of each and every business week. You will have financial records, probably in one of the most popular accounting software packages such as Sage, QuickBooks or Xero. Either your own staff or your accountants will use these to prepare VAT returns and the other legal requirements such as the annual accounts required by Companies House. These accounting systems can also produce many of the essential figures you need to review on a weekly basis. Additionally, you need to forecast which clients are likely to pay their invoices this week. This is often not the same as those who should pay this week. Accurately forecasting your weekly cashflow is a skill every business needs to master. Not all of the figures in the list below will apply to all businesses. You … [Read more...]
How to continuously sharpen your company’s competitive edge
The use of the word ‘continuously’ is purposefully placed in the title of this blog article. Why? Because I fully believe that if a company does not continuously sharpen its competitive edge, it won’t be long before they do not have one in today’s ever-increasing pace. I’m sure we can all think of examples of companies who have been market leaders and no longer exist or have had to sell assets and/or shrink in size to survive. Eastman Kodak is a prime example. Kodak began to struggle financially in the 1990s when digital camera technology hit the retail market. Only recently they have emerged from bankruptcy, after selling many of its patents to current giants including Google, Apple, Samsung, Microsoft. Woolworths is another case in point. It used to be one of my favourite stores for spending my pocket-money. A few pence went a long way in Woolworths – a child’s paradise. Several months before they closed their retail outlets in the UK, I recall walking in and out of Woolworths, … [Read more...]
Now is the time for Entrpreneurs to 'take over the world'.
"The Government are not doing this.... They are not doing that". "If only the banks would ...... I think the bankers have caused all sorts of problems" Whoa....... STOP ..... Is it not time WE, the dynamo's behind trade got hold of the issues by the scruff of the neck? Yes, we can make a difference. Procrastination in business is rife. "We are waiting to see what happens to interest rates"... "When the market picks up we'll go ahead". ALL OF THESE ARE REASONS TO PROLONG ECONOMIC STAGNATION. The future is in the hands of business leaders. Yes, we all know there are uncertain times, but positive action can help us all to recover. I have heard some business leaders say "Now is not the time to expand our overseas activities". By contrast others have said to me "There has never been a better time for us to take advantage of overseas opportunities". Who do you think will be the winner here? So let us embrace opportunity, encourage lateral thinking, and resurect those hunting … [Read more...]
Now is the time for Entrpreneurs to ‘take over the world’.
"The Government are not doing this.... They are not doing that". "If only the banks would ...... I think the bankers have caused all sorts of problems" Whoa....... STOP ..... Is it not time WE, the dynamo's behind trade got hold of the issues by the scruff of the neck? Yes, we can make a difference. Procrastination in business is rife. "We are waiting to see what happens to interest rates"... "When the market picks up we'll go ahead". ALL OF THESE ARE REASONS TO PROLONG ECONOMIC STAGNATION. The future is in the hands of business leaders. Yes, we all know there are uncertain times, but positive action can help us all to recover. I have heard some business leaders say "Now is not the time to expand our overseas activities". By contrast others have said to me "There has never been a better time for us to take advantage of overseas opportunities". Who do you think will be the winner here? So let us embrace opportunity, encourage lateral thinking, and resurect those hunting … [Read more...]
Isn’t it time there was a little more joined up thinking in support for small businesses?
Why is money for enterprise not invested in areas where enterprise produces the best returns? Today’s announcement of the second round of enterprise zone investment was disappointing for those who believe that this investment needs to be placed in areas where the best returns can be had. The government, in its wisdom, has agreed to the plans of a number of organisations for the creation of Enterprise Zones in a variety of areas. The majority of this investment is going to areas where arguably there is not the culture of enterprise and entrepreneurship.One enterprise zone that has been agreed is in Oxfordshire, David Cameron’s back yard! And yet one of the most deprived areas of the country, believe it or not, is Bognor Regis, a town known for its long hours of sunshine and very high unemployment rates. The Coast to Capital LEP put forward a plan for the establishment of an advanced manufactiuring Enterprise Zone for this area and it was rejected. On another note, another of the new … [Read more...]
Surprising results from SME survey
In a recent survey carried out by SGBA (Southern Group Business Advisors) amongst SMEs in the South of England some surprising information was gleaned. Firstly over 65% were optimistic about their business and its potential to grow with 58% of respondents saying that access to finance and the lack of skilled personnel were inhibitors to growth. When asked if, given appropriate support, would they consider exporting if they had not done so before, a surprising 67% said no. This is a key feature of the LEPs objectives -that is to increase exports. So from this survey they look like they will have an uphill, struggle to achieve this goal. More than half of all respondents did not have a business plan, nor did they have an environmental policy or energy and waste reduction plan. However interestingly the great majority stated that they would try to win business from the public sector (if they had not done so before) given appropriate support. This is a big change as previously many SMEs … [Read more...]
South East is economic powerhouse still
Some useful information about one of the strongest economic areas in the country has just been released by Coast to Capital Local Enterprise Partnership (LEP). This LEP covers much of the Gatwick Diamond, Croydon and Brighton areas. C2C says that our area is an economy that generates £32.5 billion GVA (Gross value added) per year(2007) , exports £9.1 billion, plus £3.67 billion of tourism income. The area has 79,020 businesses with 113,000 self-employed (10.5% of the population), and 721,000 jobs (of which 27% or 194,000 are in the public sector). Approximately 8000 new businesses are started each year but only one quarter of the area is dependent on GVA produced by the public sector. The resident population is 1.694m, with a working age population of 1.075m, and an employment rate of 74%. In all parts of the area there are businesses that are world leaders, are internationalised, are high value added and have sustainable business policies. In parts we have a proven track record of … [Read more...]
