Many businesses reach a stage when they are at a crossroads about the direction to take next or are “stuck” without a clear strategy. It may be a crisis point or it could be an opportunity to take a different path. Directors may no longer be aligned with the planned company direction, and this can cause friction. Rather than putting off hard decisions, it makes sense to face up to the challenges and opportunities, have a strategy review and then put an implementation plan in place. Reasons for a strategic crossroads could include: Change in market dynamics that impact growth or profit potential.Increased competition forcing new approaches.Loss of important customers or contracts.New product or service opportunities possibly requiring research and development.Recognition that the business is too reliant on a small number of key customers.Macroeconomic/political changes such as Brexit.Divergence of what Directors want from the business.Planning for exit / opportunities to … [Read more...]
Why appoint a Virtual Non-Executive Director or Strategic Advisor?
If you run a business that has strategic challenges to address, or if you are looking to raise it to the next level, where can you turn for advice? The answer may be appointing a Non-Executive Director or Strategic Advisor. Even very successful businesses can benefit from an external independent view to help make better strategic choices and challenge established thinking. What can a Virtual Non-Executive Director do for your business? Every business has a different mix of challenges and opportunities at a given point in time and often the owners or management feel their business is unique and difficult for an “outsider” to understand. To an extent that may be true, however, a VNED’s experience of the dynamics of multiple businesses and transferable knowledge of best practice from other markets is proven to bring significant benefits to management decision making. Our Home Counties and London Group Business Advisors have developed a Virtual Non-Executive … [Read more...]
How to Stretch for Success – Business Lessons from our 3 x Ben Nevis Bike Challenge
Some businesses move from year to year making small adjustments but never stretch themselves for the big achievements. Other more ambitious businesses, and their leaders, try to find a way to achieve leaps forward that at first sight look too hard or possibly foolhardy. Some succeed and others fail. Without setting ambitious goals, taking calculated risks, implementing careful strategic planning and proactive problem solving along the way, the big leaps are rarely made. I would like to draw an analogy with a group of middle aged mountain bikers that I ride with most weekends, typically covering 12-15 miles on local technical trails. There was a collective desire for a more challenging project to stretch us. Various options for a suitable longer trek were discussed at “team meetings” - aka post-ride drinks at the pub. This compares with business strategy meetings where ideas are floated, discussed, filtered, and prioritised. In January 2018 the … [Read more...]
Don’t Wait For Brexit Clarity – Get Exporting
Almost every business will be impacted by Brexit – positively or negatively. We can only make educated assumptions about what Brexit will look like and indeed when any transition arrangements may end. With a potential 2-year transition agreement, Brexit would happen in March 2021. Fortune favours the bold and businesses that can benefit from exporting should review their business strategy to achieve their maximum potential. If you don’t your competitors probably will. The good news is that there is a huge range of support available for businesses who want to start exporting or want to expand their exporting. When helping businesses review their strategy, I often ask if they export. The first answer is often no, followed by a, well we have sold this to here and that to there. They have become accidental exporters. If your business has recognised expertise or a niche specialisation then you will often be found globally via your web site even if you … [Read more...]
Power up your business with a Virtual Non-Executive Director
The benefits of Non-Executive Directors are well understood by many successful business owners. They bring an independent view and additional experience that enable better decisions to be made by the management board. Our Home Counties and London Group Business Advisors have developed a Virtual Non-Executive Director (VNED) service that offers Managing Directors and business owners the same independent view and advice without the complexity of shareholdings, appointing legal directors and director’s service agreements. Every company is different and yet there are many similar and transferable aspects from other industries and markets. Our experts are able to utilise their broad business experience and extensive network of contacts to support companies to achieve their strategic objectives. An independent view that challenges existing or new strategies can substantially enhance the robustness of a company’s direction. Sometimes difficult decisions are required to deal with … [Read more...]
How SMEs can use Cloud Computing to punch above their weight in business
Having a well thought through business strategy is key to keeping ahead of your competition. Adopting cloud computing as part your strategy, can be an important factor in striving for excellence. Cloud computing can enable SME businesses to compete with larger business globally. It can allow both Start-up and established businesses to scale up with ease. This article will demonstrate some of the opportunities that are available to businesses that adopt cloud computing while considering the potential downsides. What is the cloud and where is it? Cloud computing is an Internet-based computing model that provides shared data and computer processing resources typically on a “pay as you go” model. Up front capital costs are replaced with ongoing variable costs. Unlike traditional local IT, capacity can be rapidly scaled up and down with minimal management resources. Cloud computing enables ubiquitous on-demand access via PCs and mobile devices. Cloud services are … [Read more...]
HMRC – Time to Pay Arrangements
The tax debt fell from £22.5 billion to £15.4 billion between March 2010 and January 2013. This is a thirty percent reduction in just 2 and a half years. How have HMRC achieved this massive reduction in the outstanding tax debt? HMRC have tightened the Time to Pay arrangements, despite the politicians saying the opposite. The timescales have been much reduced. Time to Pay arrangements are still available but they are subject to a greater degree of scrutiny. The emphasis for the greater scrutiny of the Time to Pay proposal are: Are your tax returns up to date, so the true liability is known. Your give a clear explanation of how the Time to Pay will work and be of advantage to HMRC. e.g. Saving a number of jobs. The proposal must be realistic backed up by credible forecasts. i.e. a mini business plan. If possible, a lump sum as an up front payment. We suggest that all communications are clear and all agreements are recorded in writing so there is no … [Read more...]
How to get individuals in different departments working together better – Part 2
As MD are you faced with the people challenge where sales is in conflict with operations, or account managers are in dispute with production or the ‘creatives’, or operations not working well with IT? It might be between 2 individual or it might be between the functions themselves. Conflict is inevitable and sometimes desirable to unleash that creative breakthrough, but does the problem seem to be getting bigger - particularly as you grow? In Part 1, I outlined two quick ways of resolving differences between two individuals or departments. Part 2 looks at a longer term solution, which takes time to embed. Part 2 looks at improving your performance management system. If appraisals happen at all, they tend to focus on the most recent activity because there is insufficient detail or memory about events 11 months ago. Inevitably there is an underlying tension around any pay increases exacerbated by difficult economic conditions over recent years. So both parties go through the … [Read more...]
How to get individuals in different departments working together better – Part 1
As MD are you faced with the people challenge where sales is in conflict with operations, or account managers are in dispute with production or the ‘creatives’, or operations not working well with IT? It might be between 2 individual or it might be between the functions themselves. Conflict is inevitable and sometimes desirable to unleash that creative breakthrough, but does the problem seem to be getting bigger - particularly as you grow? Often the management response is a structural one to an essentially people problem. The response might be re-shaping the organisational structure, changing job titles, moving work stations around, or changing bonus arrangements. All might be appropriate but people problems need a people-based solution. This means that the offending people need to be part of creating the solution by being consulted, actively collaborating, creating options and being accountable for agreed actions. How do you do this? My first step would be to quantify the … [Read more...]
Cross Selling – Enabling Sales, Profit and Customer Loyalty
Cross Selling is the practice of selling additional products or services to existing or new customers. It can be used in conjunction with its close relative Up Selling that encourages the purchase of higher value products or services than originally considered. The benefits of Cross Selling are well proven in larger companies and UK SMEs can also use this strategy with excellent results. Cross Selling is an effective method to increase: Sales Profit margins Customer loyalty If your company designs, manufacturers or sells products, services or solutions to B2B or B2C customers via direct, indirect or digital channels it can benefit from cross selling to drive growth and profit. Cross Selling Nine Point Check List 1. Establish your objectives: Sales, profit margin, customer loyalty etc. 2. Understand what your customers buy from you and what they don’t buy from you and why (sales analysis + Customer Relationship Management information). Do typical customers buy … [Read more...]
