Toni Hunter's SuperBlog

Obviously, we all network to build a contact database in the hope of developing relationships that create business leads, but for those of us who are commited to business networking, both online and offline, the benefits are multi-faceted.

When I look back over the last ten years and reflect, I am amazed a how much I have changed as a person as a result of my networking experiences.

Skills

By rolling up my sleeves and getting involved, I have learned many skills that my retail training and professional accountancy training could not have taught me.  These include;

1. creating, organising, promoting and hosting events
2. managing a team, including chairing a committee of volunteers
3. opportunities to work in the charity sector, which have since been a significant part of gaining my Diploma in Charity Accounting
4. many different forms of marketing, communication and negotiation skills
5. and of course – blogging and social media techniques.

Friends

The number of great friends I have acquired as a result of networking moves me.  Friends that I can pick up the ‘phone to, banter with on Twitter, share books with, ask both personal and business advice or simply meet for a cuppa whilst our children play.

So the second half of my “10 ways” is devoted to paying homage to them as a small token of my appreciation.

1. Mervyn Foster.  Looked after me like a surrogate father in the early days of my time on the HBN committee; partnered with me when hosting The Missing Link in Cambridgeshire; “bullied me” into attending Toastmasters and is often my chaparone to networking events allowing me to chew of his ear in the car!  A life-long friend and trusted counsel.
2. Julie Buck.  Another HBNer that has had a significant impact on my life.  Her passion for business and helping others to be healthy and successful is infectious, and as a result Hunters’ Health was conceived.  She is a great leader, and like Mervyn someone I can confide in.
3. Heather Townsend.  A more recent addition to my networking circle, Heather was one of my first Twitterbuddies.  Her no-nonsense approach to business and love of networking drew my attention.  We now chat for hours on social media about business and personal issues. She is now an accomplished author as well as a successful coach, I am proud to know her.
4. Other Twitterbuddies and Bloggers that deserve a shout out: Helen Stothard, Katherine Connolly, Maxine Welford, Darren Leighfield, Jim Connolly.  Thank you for your support, entertainment and generosity.

Number 10

And finally, it has to be said that the biggest benefit that networking has given me other than an amazing Linked In, Twitter and Facebook contact list, is BELIEF.

My networking experiences have helped me to become the person I am today by developing my confidence and helping me to enjoy my work, knowing that I add value to my clients business.

The information provided in this blog illustrates my opinions and experiences, it does not constitute advice and I do not accept responsibility for any actions taken or refrained from as a result of reading this post.

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Often when I mention the words “business plan” to people, whether they are just starting up in business or already established and looking to grow or change their business, they give me the “do I have to?” look!

Business plans haven’t been dreamt up by accountants to allow them to charge a fee to their clients for “added value” services or simply to bore you to tears.  Every book you read about business success and every leader you hear speak will highlight the necessity of planning.  So “yes” you really have to, unless you like to live life by the seat of your pants.

Failing to plan and planning to fail

If you are starting up your business and you don’t have a plan, how do you know

• what that business will do
• what it’s target market will be
• how it will work  (processes, structure, personnel etc)
• how it will be financed? (funding, cash flow, collateral/security/personal guarantees etc)
• whether it will make money and
• whether you will get out of it what you want?

Are banks still lending?

There has been much reported in the news over the last year or so about how difficult it is to get bank lending nowadays for small and medium sized businesses.  Ask any business bank manager this question and they will quip “we’re always open for business” but there is no doubt that they are being very cautious. If anything is going to help you get the banks on your side,  it will be a comprehensive, well thought through business plan with back up for your assumptions and a realistic timescale for paying back the loan.

If you want to approach an investor, your business won’t even be considered for investment if you don’t have a business plan that you can back up with facts and figures that make you and your business a credible investment.

Getting value from the planning process

Planning is not just something business owners should do when setting up their enterprises or when getting finance.  There are plenty of benefits of planning on a regular basis.

1. Take the time to think through a plan and then write it down, you are more likely to actually do it than if you keep it in your head.  Even better, communicate that plan to a trusted adviser such as your accountant or a business coach who will be able to help you evaluate it and provide an objective viewpoint.
2. Take off your rose tinted glasses, a great looking plan may make you feel good now, but it will demotivate or be dismissed as irrelevant later.  Be realistic and honest with yourself and don’t forget to factor in non-monetary elements such as the amount of time you intend to invest. 
3. Use the planning process to brainstorm.  Perhaps carry out a SWOT analysis to help you to ‘stretch’ your thinking.
4. Use the plan as a way of involving key people in your business.  This will help them to be more committed to the results and encourage leadership/loyalty.
5. Most of the ‘added value’ of business planning comes from regular reflection.  Don’t take the time to write a plan and then archive it!

In summary

A good business plan will help you to understand where your business is going, give it structure and direction, provide a communication channel for key stakeholders and build credibility when obtaining any funding or investment that you need from external sources.

If you haven’t got an up to date, clear and realistic business plan, take action now. 

The information provided in this blog illustrates my opinions and experiences, it does not constitute advice and I do not accept responsibility for any actions taken or refrained from as a result of reading this post.

As an avid networker, I am constantly intrigued by “experts” offering networking advice to small business owners.

Personally, I have rarely struggled with networking.  In fact, I find it enjoyable and sometimes exhilarating, but I completely understand why for many it is an uncomfortable experience.

I recently read a blog post about being self-conscious when at networking events that I felt worthy of sharing with you, because it offers clear advice that I am in complete agreement with – It’s not about you!

http://myescapevelocity.com/take-the-self-out-of-self-consciousness-when-youre-networking

To summarise the author, Liz Strauss writes:

“Everyone likes an intelligent, interested person who gives us true attention.
We all like people who ask meaningful questions and listen to how we answer them.
I learned that being that person makes walking into a room of strangers easier to do”

So, next time you are at a networking event, stretching your comfort zone, anxious and sweaty palmed, take the heat off yourself and focus on others and you will be surprised what an adept networker you will become.

For further tips on developing your networking skills, try “Joined Up Networking” by Heather Townsend.

The information provided in this blog illustrates my opinions and experiences, it does not constitute advice and I do not accept responsibility for any actions taken or refrained from as a result of reading this post.

Everyone in business has heard the term “Cash is King” and understands the importance of cash flow, but when in the day to day ‘busy-ness’ of business it is easy to take your ‘eye off the ball’.

So in these difficult times, if you find yourself in a position where cash flow becomes a matter of urgency rather than a procedural chore, what can you do to turn things around?

Here are my top five quick fixes, each one worthy of a post of its own.

1. Debt Collection

Focusing on getting paid for what you have provided is an obvious place to start. 

Don’t allow customers to improve their cash flow at your cost and don’t get lazy when it comes to implementing rigid credit control procedures. Many ledger clerks are instructed by their managers not to issue payment until a debt has been chased both in writing and verbally, so don’t cut corners or get caught off guard. 

If you are uncomfortable with this discipline or you have accepted that this is not your skill set, outsource it.  I recommend Ken Brown from Direct Route for everything from collecting a single difficult debt to completely managing your sales ledger. 

Also, be sure to focus on servicing customers that do stick to your payment terms.  Don’t forget my previous advice about allowing “he who shouts loudest…” to distract you from those that are key to your success.

2. Improve terms and conditions of sale

Meet with each of your valued customers without delay and renegotiate terms.  By prioritising their needs and building confidence in your business relationship, agreements regarding quick payment, or even payment on delivery can be made. 

If need be, offer an early payment discount to encourage quick settlement.  Often the reduction in margin, is substantailly less than the cost of finance such as overdrafts or the deminished goodwill from not meeting debts as they fall due.

Don’t forget that it costs a lot more to attract and service new business than it does to obtain more business from your current clients.

3.  Get your bank manager onside

Having up to date management accounts, a clearly defined business plan that demonstrates that the current difficulties are short term and building an open, honest business relationship with your bank manager will no doubt create flexibility. 

Once they have built confidence in you as a business owner, they will at short notice be able to offer solutions and support.  Involve your accountant in this process.

4.  Manage suppliers

This aspect is often not given enough attention.  In the same way that you manage customers, prioritise, negotiate and treat your suppliers with respect. 

Being honest with them and honouring any payment arrangements you have agreed with them will keep your integrity and prevent suppliers from ‘digging their heels in’.

Also, if you hold stock, review your processes and speak to your suppliers about delivery times etcetera, they may be able to help you to manage a ‘just in time’ system by offering you a priority service. 

5.  Increase profitability

Certainly not the easiest or quickest approach and one where you might want to seek support from your accountant or a business coach.

Looking at overheads is an obvious point, but how about reviewing historic data to identify which products/services in your sales mix generate the biggest contribution and assign time and effort in pushing these.  Perhaps redirect your marketing budget and reward your team for selling these items or finding innovative ways to deliver these at lower costs.

As well as focusing on your most profitable products/services, take time to identify your most profitable clients

Budgeting can take time, but often some ‘quick wins’ can be discovered by carrying out these accounting exercises.  They can also drive long term process and cash flow improvements. 

The information provided in this blog illustrates my opinions and experiences, it does not constitute advice and I do not accept responsibility for any actions taken or refrained from as a result of reading this post.

For more advice on subjects such as this, please ‘join my lists’ for a monthly business support newsletter.

Do you want more from your business in 2011 than you had in 2010?  If you do, then I have a quick test for you, which will set you on the right track!

On a scale of 1 to 10, where 10 is the highest, score the following people, who supply your business with key services:

1. Your accountant.
2. Your marketing advisor.
3. Your lawyer.
4. Your IT consultant (hardware/software or Internet.).
5. Your bank manager.

The cost of average advice

If your scores were 7 or below in any of those areas, you need to ask yourself why you are wasting your time, taking advice that is average or little better than average.  Just as you can tell a lot about a person, by looking at the kind of people they hang out with, you can also predict how successful a business will be, based on the quality of the people it calls upon for advice.  Unless you want an “average” business (and you don’t, otherwise you wouldn’t be reading this blog), you must avoid taking average advice.

Surrounding your business with average providers is never a good idea, but as we progress through the worst economy in living memory, it’s a recipe for trouble!

The value of great advice

Interestingly, you do not always have to pay more, to find a better quality advisor or provider.  Some low quality providers charge too much for their services and others seem to undervalue just how great they are.  So, why not spend some time reviewing the people you rely on for advice, support and guidance.

Look particularly for new people in the areas where your business is weakest, as those advising you currently in that area, are clearly failing you!

This relatively straight forward process can help you massively improve your business results very quickly!

Guest author:   Jim Connolly is another of my valuable Twitterbuddies and a most accomplished business blogger. His contributions are a regular source of education and inspiration.  To read more posts like this one please click here

During his first budget speech in the Summer the current chancellor announced that the standard rate of VAT would be increased from 17.5% to 20% on 4^th January 2011, the third rate change in two years. 

If you are using the flat rate scheme, this change will affect you too.  Be sure to check your new rate on the HMRC website.

Administrative Burden

For business that supply goods and services to other VAT registered businesses, the burden will be one of administration.

• The default rates in bookkeeping systems such as SAGE need to be altered – ask for help
• Business owners and bookeepers need to be clear about the tax point being used – the time of supply is important.
• If you are using the Cash Accounting Scheme it is imperative that you can identify payments received on or after 4^th January 2011 that relate to supplies made prior to that date, to be able to account for them at 17.5%
• Make sure your book keeping is as up to date as possible, confusion surrounding work/supplies that span the VAT change are likely to be exacerbated if you are behind with your paperwork.
• If you display prices inclusive of VAT you will need to be prepared to change literature/brochures/websites etc.

Financial Burden

But for business such as tradesmen and retailers that supply goods and services to non-VAT registered consumers, there are additional considerations as the change may have a significant financial impact.

• How price sensitive are your customers?  Will they find a cheaper alternative or simply stop purchasing your offerings if you add another 2.5% to your prices?
• If you don’t increase your prices, can your business afford the reduced margins?  If you don’t increase them now, when?
• Speak to your customers, they may be willing to pay a deposit in advance of receiving your goods and services to take advantage of the current VAT rate. (For full details on whether this ruling can apply to your business click here )
• Ensure you have procedure in place that will allow you to measure the amount of work carried out up to the date of the VAT rate change, such as detailed timesheets, as you are entitled to split your invoice.  i.e. work performed in 2010 charged at 17.5% plus work carried out in 2011 at 20%.

Effect on Economy

The Chartered Institute of Personnel and Development has predicted that the VAT rate increase will result in the loss of an estimated 200,000 UK jobs.

The effect on an already under pressure retail sector is going to be huge, I don’t think anyone dare to hazard a guess at how huge.

We have been fortunate enough to benefit from one of the lowest rates of VAT in Europe for many, many years, but will this increase really have a significant effect on our huge deficits?  I am not convinced.

For guidance on how to implement the change and minimise the impact on your business, please get in touch.

Another easy to read article about the VAT increase and price sensitivity : What’s a small business to do?  

The information provided in this blog illustrates my opinions and experiences, it does not constitute advice and I do not accept responsibility for any actions taken or refrained from as a result of reading this post.

If not, you are probably not making the most of your best clients by allowing the less important, or less profit making clients distract you.

So honestly, how well do you know the profile of your client portfolio?  

Have you ever stopped the frenetic daily routine for a moment to sit back and think about who your clients are?  Why you work with them? What contribution they make to the profitability of your business?

Sometimes it can be very interesting to do just that. You might be surprised by what you find out and you may even be disappointed.

Many businesses are so busy going about their business that they don’t find the time to think about their customers, but wouldn’t it be a good idea to ask:

• How many clients do we have?
• What does each client give us?
• What do we give to them?
• How much of a contribution does each client make towards the bottom line?
• Are we maximizing the opportunities from each client?
• Are we over servicing any clients to the detriment of others?
• If we changed the mix of our clients could we make more money?

He who shouts loudest…

It’s often the case that the clients who shout the loudest or are the most needy are those that are draining a business of its precious resources which could better be used elsewhere.

Perhaps it’s difficult to face up to this because when you do find out, you then have a decision to make – do you disengage from them or is there an opportunity to turn them into a worthwhile client through conversation and negotiation around what you do for them and for how much.

Recommendation

If you haven’t reviewed your clients for a while I would recommend getting some help to do this by a professional that is qualified to analyse your business and come up with some suggestions as what your options are. It may cost you a bit of money in fees to do this but it could be a very worthwhile exercise and it may change the way that you do business in future. 

Doing this yourself can be time consuming and emotionally draining, after all, we all have clients that we prefer, but are they really the best clients for your business?

Related post from my fabulous Twitterbuddy and blogger extraordinaire, Jim Connolly : How to attract better clients

The information provided in this blog illustrates my opinions and experiences, it does not constitute advice and I do not accept responsibility for any actions taken or refrained from as a result of reading this post.

From 1st October 2010, workers who earn the national minimum wage will see a difference in their pay packet.

What’s changing?

• The age threshold and the hourly rate are increasing
• The hourly rate for young workers is increasing
• Apprentices are now covered by the minimum wage legislation, albeit at a lower rate
• Employers will be able to offset the national minimum wage by £4.61 for each day that accommodation is provided.

Planned changes

While these new rules come into effect on 1st October 2010, further changes relating to temporary workers are set to come into force from 1st January 2011.

In particular these regulations focus on “potentially exploitative arrangements” surrounding tips and expenses.

Need more information?

For full details of the changes and rates, please click here

If you are an employer, then George Hay  can advise you on what the new national minimum wage means for your business. We can also help you ensure you comply with the regulations and help you plan around any changes.

The information provided in this blog illustrates my opinions and experiences, it does not constitute advice and I do not accept responsibility for any actions taken or refrained from as a result of reading this post.

It is a discussion I have had with many of my clients when appraising their progress and looking at how the business is going to grow in the upcoming months.

Once outsourcing has been considered, utilised or perhaps discounted, finding someone to support you and help develop growth has to be the next step, but it is a daunting one. 

 So I have commissioned this post from my good friend, and professional contact Katherine Connolly  of Keeping HR Simple  to help alleviate concerns.

You know you’re too busy….

You know you have a great sales pipeline and you also know that another pair of hands would free up your time.  You want to work on your business as well as in it.  So what’s stopping you from making the leap from business owner to employer?

It doesn’t have to be complicated

Taking on your first employee doesn’t have to be complicated, especially if you prepare for it in advance.  Regardless of the fact that you have a small business, as soon as someone agrees to work for you and you agree to pay them for the work they do, you take on certain responsibilities for them.  That may sound a bit scary but it doesn’t have to be. 

Your obligations

You need to be aware of your obligations, most of which are common sense, and have a plan to meet them. 

 They are as follows:

(i) To pay wages

Sounds pretty obvious, doesn’t it, but what would happen if you had a particularly tough month or if a couple of customers don’t pay their bills on time?  You need to have a contingency plan and informing your employee that you can’t pay their wages that month is not enough!  Do you have enough money in the bank to cover at least 3 months salary for them?  It’s really important to communicate with your employee at all times, especially since they will be relying on their salary to make ends meet.

(ii) Not to make unauthorised deductions

You can’t deduct money from an employee’s wages unfairly or without getting their approval in advance (another reason why it’s essential to have an employment contract!)

You can only make deductions from wages in certain circumstances:

• if there is legal authority to do so, e.g. by Act of Parliament – income tax, National Insurance Contributions etc;
• by contract of employment which might provide for deductions to be made in certain specific circumstances, e.g. fines for disciplinary offences;
• or by individual agreement where an employee might agree for the deduction for union subscriptions or to reimburse their employer for overpayment of wages. 

Remember that you will be paying employer’s national insurance on top of the employee’s salary so you will have to include it in your calculations. 

(iv) To take reasonable care of your employee

This is a wide-ranging duty and covers both physical care and psychiatric care (i.e. not to expose employees to psychiatric harm).  As your business grows, this will encompass policies like a zero tolerance approach to discrimination and bullying but that doesn’t mean you should ignore such things until you reach a certain threshold.  The same goes for health and safety – just because you need 5 employees before the law says you need a written health and safety policy doesn’t mean you should ignore your obligations to provide a safe working environment. 

As an example, have you considered where your new employee will work? You may be quite happy working in your spare room or in a garage conversion on the side of your house but you need to put yourself in their position.  If there isn’t room for them to work comfortably and safely, you need to consider other options.

(v) Not to breach mutual trust and confidence

This obligation refers to your working relationship with your employee.  There are three fundamentals that should govern your behaviour as an employer:

1. Be fair
2. Be consistent
3. Be nice

If you practice these without fail, you will find that you’re in the best position to preempt difficult situations and deal with the majority of problems that may arise. 

Don’t be scared to take on your first employee.  Just be prepared! 

Guest author:   Katherine and her partner Jason are successful growing their professional HR consultancy business, by sticking to their core values and Keeping HR Simple! 

If you have any questions regarding this post, please leave a comment below or contact Katherine and Jason on 0800 458 6582.

The information provided in this blog illustrates my opinions and experiences, it does not constitute advice and I do not accept responsibility for any actions taken or refrained from as a result of reading this post.

I am regularly contacted by people who are new to business, or at least considering starting their own business.

Excited

Naturally, they are all really excited about the prospect of working for themselves, being their own boss, making the decisions and being able to directly enjoy the results of their efforts.

Apprehensive

However, I find that when I start to talk them through the statutory accounting and taxation requirements, it becomes obvious that they are worried and some even start to question if they are doing the right thing.  Despite assuring them that my team will handle 

• Companies House administration anc correspondence,
• Preparation and submission of statutory accounts,
• Corporation Tax computations and returns,
• PAYE administration and National Insurance,
• VAT reporting,
• Returns of benefits and expenses and other HMRC returns,
• Construction industry scheme online monthly filing
• Potential HMRC visits

and provide ongoing bookkeeping support, it is understandable that the overwhelming sense of responsibility causes concern for those who have been in the relative ’safety’ of employment or education.

Discouraged?

I think it is a shame that budding entrepreneurs can be stopped in their tracks by all the bureaucracy that surrounds a business, and I would urge any aspiring business owners not to be discouraged, it sounds a lot worse than it really is.

Get support

If you are thinking about starting up your own business, you should really go and talk to an accountant who can explain what is required, help you understand your duties and responsibilities and then take away as much of the fear and worry from you so that you can get on with the exciting bit!

It is also a good idea to join a networking group.  They not only provide you with valuable contacts, they are full of potential friends and peers who can guide and support you with first hand experience.

Find someone you can trust

For some people starting up their own business isn’t a big deal, but remember that the best entrepreneurs are surrounded by the best people for each and every part of their business, so do your new business a favour and find someone who can be the best for you.

Outsource

Delegate the ‘red tape’ of administering your business, and non-essential or non-profit making tasks to a team of carefully selected professionals so that you can make the most of your time and  simply…

…..enjoy running your own business!

The information provided in this blog illustrates my opinions and experiences, it does not constitute advice and I do not accept responsibility for any actions taken or refrained from as a result of reading this post.