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business strategy / 13 posts found

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8K – Monopoly Control

by mike tombs
Onto week six of the 8 Key Drivers of Business Value – Monopoly Control And no, we’re not talking about the board game, and neither are we suggesting the sort of monopoly the likes of big energy companies or Microsoft have. The important things here are how well you hold onto your niche, and what makes your business unique. This fundamentally comes down to two main questions: What makes your business unique? Do your customers care? If you can satisfactorily answer both of these, you’re well on your way to something special. The plus side? You’ll have more control over [...]
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8K – Recurring Revenue

by mike tombs
Onto week 5 of the 8 Key Drivers of Business Value: Recurring Revenue! Having a reliable and consistent source of income without having to fight for every sale tooth-and-nail will not only make your business more valuable, but also far less stressful. There are six main types of recurring revenue, which I will put in order from worst to best: Consumables - disposable products like toothpaste Sunk-money consumables – a customer invests in an item (called a platform) and buys supplementary items along with it. Razorblades are a good example. Renewable subscriptions – fixed-term subscriptions such as with magazines Sunk-money [...]
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8K – Growth Potential

by mike tombs
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We’ve hit week two on the 8 Key Drivers of Business Value! It’s easy to think about what you have achieved in your business over its lifetime. Whether it’s awards, or an outstanding reputation or how many years you’ve been operating. None of this really helps in terms of the potential for growth your business has. A few things you should be thinking about: Can you cross-sell or upsell any of your products? Ensuring good client-facing systems are in place can automate much of this process and make a big difference to your business. Are there any complimentary products you [...]
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8K – Financial Performance

by mike tombs
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Today is the first day of our series on the 8 Key Drivers of Business Value Whether you’re growing your business for yourself, for the next generation, or to sell it, you need to ensure you have these drivers up to scratch. One weak area can seriously reduce your chances of hitting your goals for your business and your life. Our first stop is straightforward – Financial Performance. Here are a couple of things to think about to help you get it right: Are you getting the best possible prices from your key suppliers? Do you have any negotiating room? [...]

Should you invest?

by mike tombs
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For most of us in business the recent, and continuing, Brexit fiasco has meant that making meaningful investment decisions has proved to be problematic. What will our future trading relationship with Europe look like and how will that affect our own trading results? However, despite Brexit we still need to continue to operate and expand our businesses, which will require investment. It would be foolhardy to forget that in the UK we have an extremely generous tax allowance, aptly called the Annual Investment Allowance (AIA), that means we can write off the full cost of qualifying assets against our profits [...]

Where is all my money going?

by mike tombs
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So, you have sorted your pricing out correctly. You are winning the right customers at the right rate, everything is brilliant…but your costs have spiralled out of control and they are eroding your profit margin. You need to act fast. Having a cloud-based accounting system and a management accountant will help you to keep your costs under control and prevent them sabotaging your profit. Taking the time to regularly check your costs is an investment in the future of your financial health. The first step is to review all processes and procedures. Many of the things that we do every [...]

How fast can you react?

by mike tombs
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Are your reactions lighting fast? Or are you struggling to keep up? Fast reactions are useful in a variety of situations; accidents, emergencies, but also in business. The ability to react to changes in the marketplace is one of the main areas where small businesses can beat big businesses. Being able to judge the trends and changes in a marketplace and ensure that you are in a good position quickly can be an indicator of success. But what has this got to do with accountants? Imagine you have a small company that sells blue widgets, and the big company that [...]

What’s the difference?

by mike tombs
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Choosing an accountant is an important business decision to make. Surrounding yourself with a good team involves picking people that you trust to work with you and help you to achieve the goals that you want from your business. Understanding the type of accountant that you need is an element of the decision. Generally, there are two types of accountants: financial accountants and management accountants. So, what’s the difference? Financial accountants produce quarterly and annual statements showing what has been happening in your business. These reports are viewed by external personnel such as shareholders, and the tax office. They tend [...]

Struggling with growth?

by mike tombs
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Trying to achieve increased growth can seem a daunting prospect, but as with most thing in business and life, once broken down it becomes clearer. There are only 4 ways to increase growth. 1.Increase the number of customers or transactions. Increase the average value of existing transactions. Increase the gross profit margin on your products and services Introduce a new product or service   So, for each of these we can come up with a strategy that may help. Firstly, increase your customers or transactions. This can be finding new customers or encouraging your existing customers to order more frequently. [...]

Brexit – the outlook for business

by mike tombs
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The political upheavals of the last week have done little to resolve the Brexit issue, the underlying political manoeuvrings or settle a growing list of issues for small businesses across the UK.   Leaving aside the political considerations we now seem to be at a point where there will be a no-deal, a compromise deal (the so-called Chequers’ plan) or a no-Brexit outcome; all are possible.   Those of us working hard to build a business in the UK will be hard put to take much more of this indecisiveness.   There is, however, something we can all do while [...]