Category Archives: Business Tips

Hints and Tips business can use to grow and develop.

Accounting and Finance, Business Tips, Sales

Cash For Christmas

Christmas BaubleChristmas 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

Business, Business Development, Business Tips, Chambers of Commerce, Marketing, Motivation, Sales

Its Not What You Know, Its Who You Know!

Grant Hackett and Damien Foley
Grant Hackett and Damien Foley- RDA Gold Coast Event October 2011.

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

Business Development, Business Tips

Business Plans- Your Business Road Map

Light Bulb Business Plan Traffic LightsA 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.

South Park- Underpants Gnomes

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Business Development, Business Tips

Work On Your Business, Not Just In It!

Russian Dolls
You can grow your small business into a big business by working on it.

Many big businesses began as a micro business. The owner in this small business did everything- take calls, do paperwork, find sales, and finally the work to make the product or service sold. As a small business owner you can relate to the long hours and the small pay! And if you don’t work you don’t get paid!

So how did these big business owners become big? how did they turn their small business into a big business? They no longer do everything, they employ people to do it for them. They still work hard, but not the same as they did when they started. Many big business owners became big, because they planned to become big. That is, they not only spent time working in the business, but took time away from it to work on it! this is an important part of any business growth story. You have to plan for your business to grow and start putting milestones in place to work towards.

But How?

  • Commit Time– Block out a few hours per week to work on your business. This means no interruptions or doing it here and there.
  • Jot Notes– Keep a diary or book that is dedicated to your Business Development. Then when you reach your Block Out time you can review your notes. This could be anything from identifying ways to improve production, a new supplier, a possible new product line or offering, new business alliances or venture opportunities- anything. Write it down!
  • Experts and Mentors– Many entrepreneurs who grew their business will tell you how important it is to have the input of others. Be willing to ask for advice and guidance. Experts such as accountants, solicitors and business consultants are a valuable resource. Mentors are a good sounding board for any challenges you have, acting as both guidance and support. Input and ideas from outside the business brings diverse thinking and new opportunities.
  • Self Sabotage– Sometimes the thing preventing your business from growing is you! A business owner can, mostly out of comfort and fear of the unknown, be the biggest hurdle preventing the business from growing. They could prevent putting in management or taking on new investors, seeing them as threat to control. They could view business growth as too risky when the business is fine the way it is. Fear is a big component of self sabotage! Be open to change.
  • Plan Ahead– Use your business development time to set goals and milestones. It is important to put when you want to achieve a goal or milestone. “A Goal not written down and without a deadline is a wish. A written goal with a deadline is a commitment!”
  • Personal and Professional– Not only plan for your business goals, but also your own personal goals. These could impact on your business goals. Making money is not the outcome, it is what the  money can  do for you that is the outcome. On a deserted island or in death, money has no worth.

These are just some of the ways to work on your business. In order to grow your business, you must dedicate time to achieving the outcomes you are wanting. Use experts and mentors to guide and support your business to grow. Don’t be your own enemy to success, be open to the change that will take place, don’t fear it. Plan where  you want your business to be in the future, but also plan where you want to be personally so there is no mismatch in goals.

~Damien Foley

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Business Tips, Communication, Human Resources, Marketing, Procurement, Sales, Technology

Business Relationships

two hands shakingI recently had a meeting with the Flagstone Junior Chamber of Commerce. The question was asked “what is business about?” The most obvious answer one can give is ‘Profit’. But how do you make that profit? When you look at business, you suddenly realise the success of a business comes from its relationships. Lets look at this from the starting point of profit and work back.

We make a profit by earning more income then what we spend on expenses. Income minus Expenses= Profit/(Loss)

We spend money on expenses and capital to produce the goods and services we sell. In order to purchase those goods we need to buy them from other suppliers, be it the owner or their salesperson. In order to sell our goods and services we need to sell them to other people.

The purchase of those goods and services happens as a result of your business creating a relationship with the supplier. You may have found them online or been introduced to them through another person. Likewise, you create sales by developing relationships with your customers. (refer to the article on Customer Service- “Retail V Online- Retails Secret Weapon To Win Customers“).

Internally you have people who you employ or owners in the business with you. Externally you have relationships with third parties such as government, industry regulators and organisations etc.

The business success can depend on how good the relationship is between all of these people. And like in any relationship, good communication is important. This is why Social Media is becoming such an important tool used by business to build relationships with current and prospective customers.

Business is a creation of man and as a result is built on our social interaction with one another. If your business doesn’t have a good relationship with someone or someone doesn’t have a good relationship with your business, this can affect the success of your business.

~ Damien Foley

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Business Tips, Communication, Human Resources, Marketing, Sales

Retail v Online – Retails Secret Weapon To Win Customers

Folder marked "My Business Strategy To Win Customers- Private and Confidential"I recently visited a small art gallery. I asked the owner how business has been. “I have been busy but sales are slow. We have a lot of tourists come through and I can have 300 people in a day. We have them sometimes complain that I don’t speak to them but I can only talk to so many people, telling them the exact same thing. I am also competing with cheap prints from online.” There are a number of points made in this but we will look at retails greatest secret weapon- ‘Customer Service’. Customer service is what you can use to differentiate yourself from online sellers, as well as your competitors.

You might say customer service is no secret. I will give you actual examples of how it is still not being used by big business and how your business can use it to win customers.

I have a client with a business they’re about to start. I went to research bank accounts for them. Dressed in business shirt and pants, I went to 4 banks in walking distance of each other in a multicultural suburb (this is relevant). This is the following customer service I was given when asking for information;

Bank ‘A’:

– I walked in and was met by a lady dressed in a nice blouse and dress pants.

– She pulled out the relevant brochures and asked me to contact them if I had any questions.

– She was friendly and polite. I said thank you and left.

Bank ‘B’:

– I walked in and was promptly met by a lady with a friendly smile dressed in a very professional looking, neat and tidy business outfit, with blouse and scarf.

– “How can I help you today sir?” I told her I wanted some information on their business accounts as I had a client looking to start a business. “If you have the time would you like to come in to my office sir and discuss what your client needs? My name is ‘Jane'”.

– She showed me into a private office with a tidy desk and brochures lining the wall. She had me explain the business, asking what its needs were, while taking bullet point notes. She then took from the wall several brochures, marking the different facilities as she explained how each would suit my clients needs. She placed these in a clean glossy folder to hold them together.

– She then contacted another department by phone who could discuss another facility she was not trained in. On speaker phone, the call took 15 minutes to be answered. During this time the manager made small talk and brought me a glass of water. It finally answered. The manager mentioned to the operator how long we waited.

– I spoke to the customer service person who asked questions and took my email contact to send me the information.

– Returning to the business manager she asked if she could have my details to follow up later how I was going. Leaving with brochures and email to be sent, the manager showed me out with a courteous smile.

– I arrived home to the email as promised. I was called a week later by the business manager asking if I required any additional information or had any questions.

Bank ‘C’:

– I walked in and a ticket dispensing machine was my first contact. I took a ticket, sat and watched television until my number displayed 8 minutes later.

– The desk area was separated from the public seating area only by a thin shoulder high petition.

– I spoke with the customer service manager who asked me several questions. She took down the details in a form. Giving me several brochures slipped into an everyday envelope, I would be contacted by their business manager, who was out, to discuss my details further.

– I received a call the next day. He asked me several questions with his only finishing reply “well you have the brochures. If you have any questions call me.”

Bank ‘D’:

– I walked upto a lady in an open space customer service area. I was after information for a client who was about to start a business. Her reply was “We can only give you information if you have an ABN. I have some booklets but they are old and we are waiting on the new ones with the up to date information to arrive.”

– Deciding against giving me the booklet, she asked me to wait while she brought over the business manager. The business manager came over wearing an ill fitting knitted button up cardigan that looked faded and stretched. She spoke with her arms folded, pulling the cardigan across herself.

– She also told me she couldn’t give any assistance unless we had an ABN. But she did offer the booklet. The booklet was thick, in grey and white with the words “Terms and Conditions” the most visible words, marking the pages with the possible accounts to be used.

– Still standing in the open area she then asked some more questions on other facilities. She could only give me print offs from their website. I waited as she went looking for each page online to print and give me.

– In leaving, she said she could help more once we had an ABN. Then they could customise a package.

Result

The customer service at each of these banks was very different. I left the 4 banks with first impressions. Each an impression of their customer service my clients would receive as a customer of that bank. I hadn’t even read the brochures for their fees and rates yet and I was already leaning towards a particular bank based on the service I just received.

Which bank do you think I was leaning towards- Bank A, B, C or D?

If you made a choice, remember you were making a choice based on the above service I received. You haven’t seen the fees and rates either. Customer service is incredibly important, leaving an impression greater than price alone.

What Your Business Can Do

Retail has the secret weapon of customer service. Something a website cannot offer. The lady from the art gallery meets 300 people a day. A website owner never meets the potential owner of their product, the client only has the information to read. The website owner never has the opportunity to ask questions to provide personal service. The retailer does.

So ensure customer service is a priority to you and your staff. It might not be that customer that returns for business, but a friend of that customer who has heard about your service!

~ Damien Foley

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Business Tips, Technology

Computer Back Ups Are Like Car Insurance Because…

Computer Back Ups
Computer Back Ups

We only realise how important it is when we need to use it.

We use computers in business to hold important information as emails, documents and files etc. But if your computer crashed, what would happen to your business? I read recently of a home business that had their laptop stolen. The laptop wasn’t the most valuable thing stolen, the information it had on it was far more valuable. Because all of the business information was on the laptop they effectively had no business.The best advice for this to be prevented is to have backups that are:

– backed up regularly- the more frequent the back up the less information is lost.

– multiple backups- more than one back up copy.

– both onsite (same location as computer) and offsite (different location to computer).

– tested regularly.

Here are some ways to minimise the risk of your business being hurt by the loss of your computer with backups:

1. Make Hard/Paper Copies-Pro: less likely to be stolen or become corrupted by a virus etc. Con: Cost of paper, environmental impact, Cost of storage, cost of administration, still susceptible to fire and water if on site, hard to maintain and move.

2. External Hard-drive– Pro: relatively cheap, can be done automatically, easy to retrieve information, can be based off site. Con: Also susceptible to viruses, if located on same premises as computer still susceptible to theft, fire and water, limited storage space.

3. Backup Tapes/Disks/USB– Pro: Easy to use, compact and easily removable from site, somewhat cheap, can have multiple back up copies Con: Susceptible to virus, can be easily damaged, limited storage space, can be subject to theft, fire and water.

4. Website/Third Party Storage Provider– Pro: can be easy to set up to backup automatically and regularly, offsite location to computer, usually higher storage space, can be easy to retrieve, may have multiple ‘mirrored’ site storage Con: Cost can be minimal depending upon host provider, would need an expert to set up correctly, would need assurance as third party provider there is security with both access and cyber attacks, business confidentiality and information privacy might not allow it without high cost, storage space subject to hosting package.

5. Cloud Applications– Pro: you have little if any software and information held on your computer as held by third party provider, little if any disruption to work if result of theft, fire or flood as just log on from another computer, generally a high level of security with trusted providers, usually have ‘mirrored’ back up in various locations. Con: Cost but minimal and usually paid monthly, plans are typically paid for by the amount of storage space used, need the internet to access so not best for no or slow internet access.

So if you don’t already have a backup policy for your business information technology, it might pay for itself in the future. We never know when we can be the victim of theft, fire or flood. Will you now be looking into what back ups your business has or should have?

~ Damien Foley

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