business support / 26 posts found
Setting KPIs and measuring performance
Once you begin trading, you’re faced with a new challenge – successfully managing the course of your brand-new business and making sure it’s a profitable enterprise. It’s easier to manage your startup’s sales and finances when you have access to the best possible information and data about your performance. Tracking specific metrics and key performance indicators (KPIs) allows you to see how you're performing against your targets – so you can take action to improve performance, sales, growth and profitability. But which KPIs should you be tracking? Sales and conversion rates An obvious metric to track is the number of [...]
Redefining Success
If there’s one positive to take from the events of the last two years, it’s the opportunity to consider what’s important. For those of us in business, it’s important to redefine our plan and goals that ensure the business delivers our definition of success. The natural extension, for those with team members, is to revise what the business needs to deliver to the team. Personal success Your definition of personal success will be different to what it was before the world was turned upside down by a global pandemic. For example, wanting to be able to travel the world, regularly [...]
Managing change in your business
Successfully implement change in your business Research by Kotter International found that more than 70% of change projects within a business fail. Why is this? The research findings show that employee engagement is the biggest factor. Whether it is a small change to one or two processes, or a company-wide change, it's common for staff to feel intimidated by it. So what can you do for successful implementation of change? Here are the principals from Kotter’s 8-Step Program: 1. Get the team onboard Build support and create momentum behind the changes you are making by communicating the benefits with the [...]
Writing a mission statement
You've had your initial business idea and written a plan. But do you know WHY you're creating this business, or HOW you’ll deliver your end product/service? What will the company's underlying purpose be and how will your core values drive the business? To get these crucial elements ironed out, it’s a good idea to write a ‘mission statement’ for your startup – a short summary of the aims and values of your business. WHAT does your business do? The first thing to pin down is what the business actually does – i.e. at the most basic level, what is the [...]
Business tips: Getting in control of your spending
Keeping the business in a positive cashflow position is vital. But you can only do this if your cash inflows (sales revenues and other income) outweigh your cash outflows (overheads, supplier costs and other liabilities like tax costs or loan repayments). One way to re-balance the cashflow scales is to get in better control of your spending. This process of ‘spend management’ is all about reviewing your expenses, negotiating better deals with suppliers and getting a razor-sharp focus on reducing your cash outflows. Review your current suppliers Once you have a reliable supply chain set up, it’s very easy to [...]
Could your business survive without you?
Would your business still thrive, or would it suffer a catastrophic failure if you suddenly stepped away? It’s tough to remove yourself from the day-to-day operations when you’re passionate and busy. However sudden accidents, illnesses, or family emergencies can – and will – happen and you need to be able to step back knowing your systems are robust enough to cope. For your business to work for you, you need to make yourself replaceable. Large corporations have plans in place to mitigate what’s known as ‘Key Person Risk’. But when you run a small entrepreneurial venture, who is the backup? [...]
How are dividends taxed?
Dividends received from shares held in UK companies form part of a tax-payers self-assessment. The payments are made by the paying company without any deduction of tax and therefore the amount received is the sum that needs to be declared. Dividends are paid out of the company’s retained profits – these are profits after any corporation tax has been paid – once these reserves are exhausted, it is illegal to declare or pay any further dividends. Tax payable on dividends received by shareholders is not payable at income rates (20%, 40% or 45%), but as hybrid rates. The rates for [...]
As easy as 1, 2, 3…
Well maybe not quite, but you should have your important figures at your fingertips and as ready to slip off your tongue as 1, 2, 3. The world of business can be a difficult place in these times, so arming yourself with data will give you a head start. We know that knowledge equals power, but it is the quality of the knowledge that is important. How much use is there in knowing last year’s profit margin? Not much, when you trying to make a decision based on events unfolding before your eyes. But knowing the current profit margin on [...]
I want more money!
Prepare, prepare, prepare and if in doubt, prepare some more. If you are looking for someone else to put money into your business, it is your job to convince them. There will always be other businesses after their investment, so you need to make it crystal clear why they should pick yours. The most important factor to your investor will be your figures. These must be correct and must agree. Far too often people approach potential investors with incorrect figures that contradict each other. You need to understand what you are showing your investor. Your management accountant will help you [...]
Where is all my money going?
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 [...]