Blackburn Accounting

Strategy No.2

Overdue payments - monies due, owed to you:

Slow and late payments pose the greatest risk to Small Business. Cash in keeps the money flowing, without it the cash river dries up! and so can your Business.

Tips:

Have an efficient invoicing and billing system in place, one that generates accounts at the point of sale
Offers a variety of payment methods and options.
Electronic systems can also monitor receipts and overdue accounts allowing you to better manage and avoid late payments.
Keep on top of your debtor's ledger, remember you are running a Business, it's your livelihood.
Keep in communication - ask for a payment plan or set up a payment plan

Business

Setbacks are inevitable, but as a leader how you respond to them is the difference in how the situation plays out. Your reaction influences the outcome. Bury your head in the sand, give-up, or react without thinking will not solve the problem.

But you can turn the situation around! By acknowledging the setback, reframing it as a learning opportunity and focusing on solutions is a positive and productive way to move forward. You can face and overcome the challenge, build resilience and in doing so, lead by example and inspire your team.

4 Ways to Turn Setbacks around!

Acknowledge and Accept the Setback:

Acknowledge the reality that setbacks occur, don't shy away. Step up as a Leader accept what's happened and face the issue. Take time and delve into understanding the issue, get the full picture then focus on seeking and finding solutions. Plan and develop a course of action. Reflect to learn but don’t waste time dwelling on the what ifs or might have been.

Reframe the Setback as a Learning Opportunity

Life throws us many challenges, both in our personal and professional fields. As a Business owner most likely you will and have experienced setbacks. The COVID pandemic an example. It certainly turned our lives and economy on our heads. Smart operators have used that horrific setback as a learning opportunity. They reframed the challenge, focused on the positives, identified the strengths and lessons learned from the experience. Example, Joe’s café was ‘tested’ with COVID distancing and lockdown rules. With no in-house business Joe had to find solutions and look for opportunities. He did so, by baking takeaway dinners and selling them direct from the refrigerator. Phone, click and collect sales soared and he was able to trade his way through this setback. He turned the situation around!

Business

Wondering

COVID brought us uncertainty and you could say with the recent tsunami of unpredictability particularly from the fallout of trade tariff policy changes, uncertainty is alive and well!

This raises the question; how prepared and well placed are you and your Business to respond to the challenges this uncertainty presents?

Smart Businesses plan ahead. To prepare they identify critical uncertainties, then build flexibility and adaptability into the Business model, strengthen risk management strategies and embrace innovation. These initiatives are supported by fostering open communication and building strong relationships across sectors.

Be smart, consider these 7 Steps to prepare your Business for the uncertain of uncertainty!

Create a Risk Management Plan – Carefully examine all aspects within your Business to identify potential threats and vulnerabilities. Operations, including Accounts receivable, payable, Balance sheet, forecasts and vital cashflow. Identify any risks, develop strategies to mitigate, know what it takes to keep your Business financially fluid, operational.

Develop a Robust Financial Plan – Create this Plan by exploring if or what opportunities you might find. Consider diversifying income streams, if possible, to provide financial flexibility. For example, Government subsidies, grants, and speaking to your Bank about loan reserves. Consider cost savings, can staff take leave or drop-down hours if needed and negotiate best deals and terms with Suppliers. Vital, ensure you have sufficient cash reserves to manage during these uncertain times.

Focus on Best sellers – Know your ‘winners’, popular products and customers. Concentrate your marketing efforts on those, audience, types and preferences. Value, build loyalty and befriend your customers by delivering exceptional service and products.

Business

The importance of structures in Businesses can't be stressed enough!

How strong are your Business arrangements?

You may be a family Business of close-knit members, likeminded and wanting the best for all. You may be thinking that is enough, that you don't need formal processes documenting how decisions are made or who makes them. But as the family changes and grows so do visons and expectations. There comes a time when formal governance structures are critical to provide direction and to reinforce the family's vision and goals.

In essence, for Family Businesses, strong structures are crucial for the long-term success and sustainability of the business and relationships.

Without clear governance structures Businesses can lack direction, experience miscommunication and be vulnerable to tensions and family-dynamics conflict.

The benefits of strong Structures include:

establishes clear roles,

facilitates transparent decision-making,

better manage potential conflicts,

ensures a smooth transition of ownership and leadership across generations,

supports best practice and professionalism by providing formality, authority and clarity.

What can a Family Business Structure look like

A Board

Family Council/Forum

Advisory Board

Senior Executive Team

Business Structures come in two forms (Bodies) and Documents. Bodies including the above and Documents, for example; Family Constitution/Charter, Mutual Obligations Charter, Meeting Procedures and Decision Making, Pre-Nuptials and Binding Financial Agreements.

4 Reasons why Structures are Important

Governance structures, such as a Family Business Plan or Family Constitution establish clear roles and provide a framework for decisions and effective communication, serving both the interests of family and the Business. This framework that separates Ownership and Management provides a clear distinction between family members as owners and those in management roles, helping avoid conflicts of interest. Also, formalizes decision-making procedures and processes by outlining who has authority, and ensuring decisions are aligned with the Strategic plan.

Business

7 Strategies and Tips to help You and your Business Achieve Success!

What does it take?

Ask a successful small Business owner and no matter the decade or era, sentiments expressed include; hard-work, commitment, having a dream, belief, giving good ‘old-fashioned’ customer service, a little good luck, careful financial management and stamina!

And throw in being open to change and the unexpected!

Sounds daunting! But don't give up!

Whether you are starting out or are already established there are sound Business practices and strategies that if adopted provide direction for success.

First, it’s important to define what success means to you, how it looks and means to achieve it. High profits, supporting local communities, going viral, or social impact, whatever the measure or motive there are some common Strategies & Tips to achieving Business success. Here are 7!

Have a Clear Vision – identify, know what your Business is. What do you and your Business stand for, what do you want to achieve, deliver. Your purpose, message!

Tip: Be true to your mission, have belief, passion and commitment. Picture Blue Sky but avoid having your head in the clouds!

Develop a Solid Business Plan - This is crucial, as the foundation of your Business and your guide. Create goals, short and long term with KPIs, along with financial projections. Monitor and measure progress.

Tip: Reassess your goals and adjust if needed. Scrutiny of KPIs is imperative to identify results and underperformance.

Embrace Digital – Technology and Business automation is key to growing your Business. It's staying agile and scalable, from cloud computing to smart Business tools like project management software. There is a range of digital solutions to help small Businesses, by improving efficiencies and cutting unnecessary costs to enhance profit margins.

Tip: Key to leveraging technology solutions is to determine what tech aid can benefit your Business operations.