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All posts by damienfoley
Movember- Adam Garone
Aussie Adam Garone talks on how an idea became a worldwide movement to fight and create awareness about prostate cancer.
Quote- Benjamin Franklin
Cash For Christmas
Christmas is a time when many businesses must manage their cash. For some businesses, especially those in retail, this is a time when they will see an increase in their sales. For others this is when they start to see a slow down.
Slow Down In Cash
If your business is one that traditionally starts to see a slow down in cash during the Christmas period, here are some tips to manage you through this period.
1. Overdue Accounts- Follow up on these immediately. Start calling clients whose accounts are overdue. Its important to maintain a good relationship with clients. This includes good communication so they understand your payment terms.
2. Cash Reserves- Start putting money aside to pay accounts that will fall due during the period. Keeping your suppliers happy ensures you maintain a good relationship with them.
3. Payment Plans- With both clients and suppliers, you may need to enter into a payment plan with them. This should be organised as early as possible so terms can be agreed to before it becomes an issue.
Increase in Cash
Your business may see an increase in sales during this period. This is commonly seen in retail and tourism where the Christmas holidays account for a third of their yearly sales. Here are some tips to manage for when you receive most of your income in this period.
1. Accounts Payable- Stick to your accounts payable payment terms during this period. If you receive a discount for early payment, consider if this is advantageous to your business.
2. Cash Reserves- Ensure you put away cash for those periods when sales are a little slow. Look at where you can earn interest on this cash.
3. Cash flow Projections- Be aware of when you think you are going to need to draw down on your cash or take out a bank overdraft. Preparing cash flow projections is an important part of understanding when you will need to do this.
Is your business experiencing problems with customer payments? Do you have problems managing how to pay your suppliers on time? Do you need assistance with budgeting and financial management? Contact Damien Foley to organise an appointment to discuss your situation.
~ Damien Foley
Its Not What You Know, Its Who You Know!
We have all heard these words before, but how true are they? Is it more important to have contacts then it is to learn and gain knowledge? Are the two independent of each other or is there a relationship?
I attend a number of networking events so I wanted to share with you what I do when preparing for a networking event.
1. Identify key events– your time is just as precious as money in business. Choosing which events to attend is crucial. Networking is about meeting people that will add value to your business.
2. Cost of attending– There is not only the money cost but the trade off. You could attend the event or you could spend that time working in or on your business (“Work on your business, not just in it“).
So I have decided the event is worth attending as it could create some great opportunities for me.
3. What is the purpose of me attending– Give yourself goals or objectives for the event.
Now I need to prepare for the event
4. What do I need to know before attending– You may need to do research before going to the networking event so you go prepared.
5. What do I need– You will need 20-50 business cards, an elevator pitch to introduce your business and possibly brochures. TIP: I highly recommend a pen and a notepad. Extra TIP: stick to the basic essentials. SECRET TIP: Your own personalised name tag!!!
6. Clothes– You have found out what the event or location dress code is, so dress to this. TIP: it is easier to dress down then to dress up. Extra TIP: Wear something eye catching that grabs attention.
7. Logistics– Know how you are getting to the event and leave enough time to arrive on time. TIP: Find out parking places and cost from the event venue. Extra TIP: Give yourself extra time to freshen up before walking into the event.
8. Personal Grooming– Look how you want to be remembered, as you only get one chance at a first impression. TIP: brush your teeth if you’re a smoker or strong coffee drinker. Secret TIP: Tic Tacs or mint chewing gum can be used for mouth freshener.
You are now at the event.
9. Remember your goals and objectives at item 3.
10. Moving around– don’t walk around asking for business cards and handing out your business cards like a black jack dealer. Take your time to talk with people.
11. Alcohol– my personal preference is to not drink. But if you are, moderation is essential.
12. Relationship– take the time to listen to others as well as talk yourself. TIP: build a repour/relationships. Extra TIP: Don’t spend all your time talking with people you already know or with one person/group. Secret TIP: We have 2 ears and 1 mouth, use them accordingly.
13. Finishing the conversation– If you want to meet the person for a follow up meeting after the event, let them know.TIP: by saying. “[name] I would like to meet up again for a chance to talk more. Would you like to meet later for a coffee?” Extra TIP: When you say you are going to call them, call them. Secret TIP: read the Extra TIP again so you remember.
So, is it not what you know but who you know? It is a combination of both. If you go prepared knowing what you need to know, then when you do meet the right people, you will be ready to build a relationship with that person. I leave you with these words
“Luck is where opportunity meets preparation” ~ Benjamin Franklin
~ Damien Foley
Toilet Humour
This is a great marketing strategy to remember a brand
3 Ways To (Usefully) Lose Control Of Your Brand- Tim Leberecht
Tim Leberecht in this 7 minute presentation explains how giving your brand to others gives you more information and control over your brand.
Quote- Blind Wise Men and the Elephant
Quote- Lance Armstrong
Business Plans- Your Business Road Map
A good friend of mine called to tell me his daughter, aged 18, had just bought a dog grooming business. Hearing anyone’s story about their business always excites me. I asked him to pass on my congratulations and should she need any assistance, to let me know. Driving myself, I started to go through some ideas of what she may need. After a few minutes I stopped, pulling myself back to the golden rule of any new business- does she have a business plan?
There are many businesses that have set up and done great without needing a business plan. But we all know that the 80/20 Rule applies to business, where 80% of new businesses fail. We don’t set out to fail, but it happens for any number of reasons. So what is a business plan? A business plan in its most simplest form is a road map for your business.
How A Business Plan Is Like A Road Map
1. Written document– Planning a road trip involves working out a number of variables. The best way to plan and to record all these decisions is to write them down. A business plan is exactly that, a document outlining your goals, strategy and actions to deliver the outcome you want. I discussed the importance of working on your business in “Work On Your Business, Not Just In It!”. This goes triple for a start up business and should be done before anything else. Invest in research and writing your business plan to prove to you and potential investors/financiers that your idea for a business has commercial reality and you have a plan.
2. Destination– When we start a journey we always start planning with an end destination in mind. We should do the same thing for a business plan. This is our ‘Exit Strategy’. Look at what you want to achieve with your business and what you want to do when you get there. Do you want to sell your business after 5 years or after achieving turnover of $5m? Do you want to pass the business onto your family or sell out to existing partners? What if there is the unforeseen death of one owner and their share of the business is then owned by their spouse? Starting with this in mind can help plan for the day it happens. I just recently had a client being several partners who, as part of their business plan, are speaking with their solicitor about buyout agreements.
3. Fuel stops– At some point in time your business is going to need financial input to keep the business going. This could be as a personal contribution, loan borrowings from family and friends or third parties as a bank, share investment, or sale of assets etc. Knowing how much and when you need before starting out will ensure you can prepare and be ready for when you need to go looking.
4. Route to Destination– When we set out on a trip we have a planned way of getting there. But like all great plans, they are susceptible to changes and variations, such as roadworks and road closures etc. So we have to find an alternate route to get there. A Business Plan is no different. We may start out with an idea of how we are going to reach our destination but events occur that change our strategy and action. For this reason a business plan is something we must review periodically and reassess with changes in our circumstances. These could be our personal or economic changes. For this reason, a Business Plan is known as a living document. It is always open to change and variation and should always be reviewed and assessed periodically.
5. Resources– So an important resource for a road trip is a licensed driver and a car. What about clothes, fuel, a service before leaving, organising passengers who also help with the driving etc? A business will also need resources at start up and along the way. For example, a business structure, a business name, insurances, an advisor to assist with planning such as a consultant, accountant or solicitor, website, bookkeeper etc. All of these things need to be planned for and considered. As a result you may realise you cannot run the business on your own. You may need a business partner to do some of these things where you have neither the time, money, skill or expertise to do yourself.
6. Decide To Proceed– Finally, while you have the great idea to go on a trip, when you start to plan what is involved you may realise it is not realistic to do. We would all love that around the world year long trip but can we afford it both with our time and money? A business is the same. You may have a great idea but realise that it isn’t going to happen for any number of reasons. But you have worked this out in preparing your business plan and doing your research. You have lost some time and money but not nearly as much as you could have if you went ahead with it. Alternatively you may realise that the business has greater potential then originally thought and you can sell your idea with a business plan to investors to raise capital.
So a business plan should always be written down. We should always start with our exit strategy from the business. We need to work out how much money is needed now and later and what resources we need to make the business work. Finally, we then decide if we should proceed to start the business. Do you have an idea for a business you want to start? A business plan is a worth while investment isn’t it?
~ Damien Foley
Below is a link from the episode “South Park- Underpants Gnomes”. It brings to light some misunderstood ideas about business and the importance of a business plan.
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