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A gift from the Government! Ease your cashflow and Build your Pension, all at the same time – is this too good to be true? November 20, 2008

Posted by businessgrowthmastery in Entrepreneurial, Financial Management, General, Vision & Strategy.
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A couple of years ago, the Government changed the rules surrounding Pensions, allowing those with a Self Invested Personal Pension (SIPP) to invest in their own business.

A number of specialist providers have assisted many organisations to do so and the impact can be amazing on both your business finances and your personal pension assets.

However, since 1 October 2008, this opportunity has got even better!

Why – well although you have been able to contract out of the State Earning Related Pension Scheme (SERPS) since April 1989 – these funds being known as Protected Rights – it is only since the beginning of October that you have been able to have the same investment freedom if these Protected Rights are invested into a SIPP.

So how can this benefit you and your business?

Click here to find how…

The financial meltdown – recession proof your business… September 29, 2008

Posted by businessgrowthmastery in Financial Management, General, Leadership.
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So what are the top five things that you can do right now to ensure that your business can greet a recession successfully:

 1. Set, measure, and consistently monitor inventory targets, sales goals, and revenues. But make profit – net profit – the main overriding focus.

2. Weed out unprofitable accounts…

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Changes to Directors responsibilities… September 1, 2008

Posted by businessgrowthmastery in Financial Management.
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Joanna Hughes from the FT (http://www.ft.com) wrote…

Company directors could have to disclose any “significant doubts” over whether their business truly is a going concern under plans being drawn up by the UK’s corporate reporting watchdog.

The Financial Reporting Council is proposing an overhaul of the existing guidance for directors as the effects of the credit crunch spread to the wider economy. More companies are expected to fall into financial difficulties this year.

“Going concern” is the crucial judgment made separately by both directors and auditors that a business is financially viable for 12 months from the date the annual accounts are signed off.

The FRC is amending guidance drawn up in 1994. Under the existing paper, directors can reach one of three conclusions – that they are confident the business is a going concern; that they have some doubts but are content to use “going concern”; or that the business is not viable.

The regulator is proposing adding another that would require them to disclose if they had “identified material uncertainties that may cast significant doubt about the ability of the company to continue as a going concern”.

In the current jittery environment, disclosures made under that heading could prove a severe blow to a company.

“We don’t think this is a new departure but, given it is a long time since we last had a recession, some people might have put these considerations at the back of their minds,” said Ian Wright, director of corporate reporting.

Mr Wright said the changes were designed to reflect developments in accounting rules since the mid-1990s. This year companies have faced a new rule, IFRS 7, for the first time, which requires a great deal more detailed disclosure of a company’s liquidity risks.

“It’s timely to remind everyone of additional requirements that didn’t used to be there,” said Mr Wright.

The impact on small to medium sized businesses espcially is significant – it is a pretty clear at the moment to state whether you able to proceed as a going concern, because you can apply some analytics to it. However, as soon as you create an ’emotional’ decision, all hell breaks loose – who is to say that my assessment is the sames as yours and when there is difference, who is right??

How will the Credit Crunch affect your business? July 16, 2008

Posted by businessgrowthmastery in Economic Environment, Financial Management, General, Leadership, Mastermind Group, Operations.
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As always with this type of question, there is no straight answer, other than – it depends!

However, in economic downturns, there are as many winners as there are losers. The question you should be asking right now is – in which camp do I want to be?

 

 

There is a saying that “when the going gets tough, the tough get going” and this has to be your mantra if you want to be one of the winners.
It is no good complaining about the state of the economy – there are enough people doing that. It is no good blaming the banks -they’re still open for business and for good business propositions, there is always money available.

However, the days of cheap money and a queue of people waiting to help you refinance are long gone and good riddance I say.

So what can you do to ensure that you are one of the winners and that you continue to deliver exceptional growth within your business?

For one, take these five simple steps;

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it depends!Undoubtedly, the impact of the credit squeeze, the increasing price of borrowing and the continued hikes in the cost of raw materials are having a big impact on business globally.

9 ways to improve cashflow in your business! July 11, 2008

Posted by businessgrowthmastery in Entrepreneurial, Financial Management, Leadership, Mastermind Group.
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Of all the business tips I’m asked about, one of the most frequest realtes to how to improve cashflow. As you will realise, cash is king – without it, you’re dead! So it is vital that you implement a structured approach to improving the cash position within your business.

Incidentally, my response to the question is to point clients in the direction of the “9 steps to improving cashflow” – see below;

Implement the following 9 ideas to improve the cashflow within your business;

1. Use cashflow sales checklists.

For sales people, get them to ask every single customer to make another add-on purchase with the one they’ve already made. A great way to do this is to have a shopping checklist of what the customer could buy.

2. Use cashflow payment checklists

. For your administration team. Have a checklist of your customers and when their payments are due. Set up reminder e-mails/SMSs/and faxes for each customer to ensure their payment is received on time…. Read more

 

How to manage excessive pay demands June 18, 2008

Posted by businessgrowthmastery in Entrepreneurial, Financial Management, Leadership, Mastermind Group, Vision & Strategy.
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Alastair Darling, the UK Chancellor has come out today warning that trade unions guard against a ‘disastrous return to 1970’s style inflationary pay demands.

He is right to be concerned as the global economy is feeling the impact of inflationary pressures on oil prices, the cost of food and increasing energy costs. Although the official inflation rate in the UK is quoted at just 3.3%, it is well established that if you take just these three core items, the the rate would be well north of 8%.

So as a business owner, how can you guard against excessive pay demands?

On the one hand, you need to ensure that you pay a fare salary, otherwise you are likely to struggle to retain top talent. Having said that all the research that I have seen is that money is lower in the priorities of the employee than it is in the perception of management.

Let me explain.

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AIM – promised land or nightmare destination? June 12, 2008

Posted by businessgrowthmastery in Entrepreneurial, Financial Management, Leadership, Vision & Strategy.
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Ever since the Alternative Investment Market was established in 1995, it have become the listing of choice for ambitious entrepreneurs. However, many business owners have found the market to be too intrusive for them to develop their business. So, what do you need to know?Close on 1700 business trade on AIM, with a combined value of £88bn – so it is certainly the promised land for raising funds!

The attraction of AIM to many business owners is the ability to rise funds for future growth of their business. Although AIM is a regulated marketplace, its regulatory framework is significantly less rigorous that the main market and as such AIM is attractive as there are;…

 

 

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Navigating your way through the credit crunch June 12, 2008

Posted by businessgrowthmastery in Economic Environment, Entrepreneurial, Financial Management, General, Leadership, Mastermind Group, Vision & Strategy.
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As we move through 2008, the world economic situation is uncertain at best!
We are being constantly bombarded with talk of recession or at the very best, a significant reduction in the economic growth. This, coupled with the ever advancing strength of the Chinese, Indian and Russian economies amongst others are creating a period of uncertainty and worry within the main Western economies.What does this mean to you, as an owner/leader of a business that you want to see grow?
Does it have to be all doom and gloom?
What can you do to ensure that you continue to thrive?

Here is my 10 point plan for maintaining your growth aspirations during periods of economic uncertainty;

1. In any situation, whether good or bad, there are always opportunities. Think about your business model and consider what opportunities exist for you to adapt your product/service offering to meet a need that has only arisen as a result of the uncertain outlook.

2. Review your vision for your business – is it still valid? Is it still desirable? The New Year period tends to be a time for reflection. Reflect on your vision and adapt it to meet the present situation. Is your vision for the business still enough to drive you to take repeated action, day in, day out? If it isn’t, understand what will and do it. Any lack of action now will have a major impact on your ability to achieve your ambitions.

3. Look at every part………..

 

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When does a business need professional support? June 12, 2008

Posted by businessgrowthmastery in Entrepreneurial, Financial Management, General, Leadership, Vision & Strategy.
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An article, written by Rupert Merson, posed the question “when is it right for a young business to recruit a finance director?”Like Rupert, I believe that upon appointing their first finance director, an entrepreneur will realise that they are running ‘the’ business, rather than ‘my’ business. It is a time when they ‘grow up’ and realise that for their success to be sustainable, they need to be willing to share responsibility for the big decisions.

 

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5 strategies to improve your cashflow June 12, 2008

Posted by businessgrowthmastery in Entrepreneurial, Financial Management, Operations.
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One of the biggest challenges that businesses of all sizes face, is maintaining a healthy cashflow.Although I said that businesses of all sizes face this challenge, the ones that feel this challenge the most are typically SMEs.

It can be more difficult for smaller businesses to manage cashflow as they are usually dealing with smaller amounts and ensuring that sufficient money is available to pay suppliers and salaries can put a major strain on even the most successful business. This strain is often felt the most by the owner manager!

Many businesses focus on increasing their sales and profits and often fall into the trap of forgetting about cashflow. If you are making lots of sales and profits, then there will surely be plenty of cash available in the business, right?

Unfortunately, no, it isn’t right!

One of the main reasons businesses fail is poor cashflow. A business can survive for a long time with making a loss as long as they have sufficient cash, but they can’t survive without cash even if they are making good profits.
If you are not sure why cash and profit can be so different, please get some support

 

BGM Mentor Services

can provide you with professional FD level support that will help you with this and many other challenges faced by growth businesses.Ever heard the phrase – Cash is King?

When it comes to running a business, there isn’t much more closer to the truth. Effective cash management is vital to ensure that your business can survive and thrive.

So how can you manage and improve your cashflow? Here are my top 5 tips to help you along the way….

 

 

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