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A Happy New Year?
Listed under: One Voice
Published: Monday, December 01, 2008
Time for a check up? Financial expert David Robertson shares the secrets to a healthy and wealthy business
While Christmas is a busy time for many owners and managers who are trying to finish 2008 on an even keel and find the time to plan for the next twelve months, reviewing business practices is an invaluable exercise for the year ahead. With another tough year upon us, owners and managers that invest the time now will reap the rewards of their efforts well in to 2009. So how can you achieve this?
1 Be Realistic
Whether you are just starting out, or want to develop your business further in the new year, be realistic about what you can achieve. Know your strengths and how they can be best be utilised within your operating environment and the current economy. Don’t be afraid to seek professional advice where both you and your business will benefit.
2 Get Protection
In the current climate being prepared for bad debt is crucial, avoid payment problems before they happen. Research shows that 47% of owners and mangers have no provisions in place to cope with bad debt. Investing in bad debt protection ensures you receive payment, even if your customer becomes insolvent, bringing security and peace of mind to areas otherwise beyond your control.
3 Review Suppliers
Are you getting the best deal from your suppliers? Shop around and negotiate longer credit terms – you don’t get if you don’t ask! Suppliers are keen to keep as much business as they can so take advantage of any special deals on offer.
4 Keep in Contact
Can your customers contact you easily? How do you communicate with your core customers? Regular communication is key to knowing your customers and keeping your business at the forefront of their mind. Assess the communications tools you currently use – from the simple things such as answering machine messages, to customer newsletters and your company website. Don’t be afraid to blow your own trumpet. Establish what makes your business unique (whether it's cheaper, got greater choice, more locally based, or more innovative than the competition) and let people know about it.
5 Read the Small Print
If you are looking to secure business funding don’t be tempted by the largest amount without thoroughly understanding the fee structure and reading through all the terms and conditions. If the sum on offer from one lender is significantly larger than the rest, you could still pay dearly so be sure to go through all the small print. There are many alternative finance solutions, such as invoice finance, available instead of the traditional bank loan or overdraft. Make sure you explore all the options before signing on the dotted line.
6 Be Prepared
Businesses need a nest egg too. From a surprise tax bill to a quiet patch, it’s good to ensure you have the funds available for the unexpected. Regularly review your financial arrangements to ensure they are in tune with your ongoing needs.
7 Cash is King
You’ll need a strong cash flow to keep your business afloat so if this is stalling because of orders waiting to be confirmed and late payments it may be time to enlist outside help. Invoice financiers allow businesses to raise finance based on the value of their outstanding sales invoices, releasing up to 85% of the value as it’s raised. A much-needed cash injection is provided up front and then an ongoing source of funding that grows in line with your sales growth. Invoice financiers also provide a valuable collections service to chase outstanding payments.
8 Take a Fresh Look
Are you sitting on a cash cow without realising it? Take time out to look afresh at your business offering and operating area because even a slight shift that perhaps seemed infeasible even six months ago may now dramatically boost your bottom line.
9 Spend Quality Time
It’s essential you take time out from work if only to tackle any pressing issues with a clearer perspective. And as well as enjoying some quality time with friends and family, many owners and managers have their best ideas when they are off the premises.
10 Get the Team Behind You
As your business grows it’s important to keep everyone in the loop and drum home the ethos and goals of your company, as well as any recent developments and successes. Including your team in your vision keeps your business focused and strong and builds a loyal and motivated team of employees behind you.
David Robertson is chief executive of Bibby Financial Services
1 Be Realistic
Whether you are just starting out, or want to develop your business further in the new year, be realistic about what you can achieve. Know your strengths and how they can be best be utilised within your operating environment and the current economy. Don’t be afraid to seek professional advice where both you and your business will benefit.
2 Get Protection
In the current climate being prepared for bad debt is crucial, avoid payment problems before they happen. Research shows that 47% of owners and mangers have no provisions in place to cope with bad debt. Investing in bad debt protection ensures you receive payment, even if your customer becomes insolvent, bringing security and peace of mind to areas otherwise beyond your control.
3 Review Suppliers
Are you getting the best deal from your suppliers? Shop around and negotiate longer credit terms – you don’t get if you don’t ask! Suppliers are keen to keep as much business as they can so take advantage of any special deals on offer.
4 Keep in Contact
Can your customers contact you easily? How do you communicate with your core customers? Regular communication is key to knowing your customers and keeping your business at the forefront of their mind. Assess the communications tools you currently use – from the simple things such as answering machine messages, to customer newsletters and your company website. Don’t be afraid to blow your own trumpet. Establish what makes your business unique (whether it's cheaper, got greater choice, more locally based, or more innovative than the competition) and let people know about it.
5 Read the Small Print
If you are looking to secure business funding don’t be tempted by the largest amount without thoroughly understanding the fee structure and reading through all the terms and conditions. If the sum on offer from one lender is significantly larger than the rest, you could still pay dearly so be sure to go through all the small print. There are many alternative finance solutions, such as invoice finance, available instead of the traditional bank loan or overdraft. Make sure you explore all the options before signing on the dotted line.
6 Be Prepared
Businesses need a nest egg too. From a surprise tax bill to a quiet patch, it’s good to ensure you have the funds available for the unexpected. Regularly review your financial arrangements to ensure they are in tune with your ongoing needs.
7 Cash is King
You’ll need a strong cash flow to keep your business afloat so if this is stalling because of orders waiting to be confirmed and late payments it may be time to enlist outside help. Invoice financiers allow businesses to raise finance based on the value of their outstanding sales invoices, releasing up to 85% of the value as it’s raised. A much-needed cash injection is provided up front and then an ongoing source of funding that grows in line with your sales growth. Invoice financiers also provide a valuable collections service to chase outstanding payments.
8 Take a Fresh Look
Are you sitting on a cash cow without realising it? Take time out to look afresh at your business offering and operating area because even a slight shift that perhaps seemed infeasible even six months ago may now dramatically boost your bottom line.
9 Spend Quality Time
It’s essential you take time out from work if only to tackle any pressing issues with a clearer perspective. And as well as enjoying some quality time with friends and family, many owners and managers have their best ideas when they are off the premises.
10 Get the Team Behind You
As your business grows it’s important to keep everyone in the loop and drum home the ethos and goals of your company, as well as any recent developments and successes. Including your team in your vision keeps your business focused and strong and builds a loyal and motivated team of employees behind you.
David Robertson is chief executive of Bibby Financial Services
