Business Growth and Development

Breeze Blog by Breeze & Wyles Solicitors LLP: Merger and Acquisitions: What is in it for me?

2012-02-06T16:57:00.000Z

Breeze Blog by Breeze & Wyles Solicitors LLP: Merger and Acquisitions: What is in it for me?: The reasons to consider an acquisition are relatively small in number and are set out below. However, it is important that this is a process...

Preparing your business for investors

2011-12-17T13:43:00.000Z

Business owners often view investors as an alternative to bank finance. In most cases entrepreneurs would seek to raise external equity because they are running out of cash and were turned down by a bank. The only message that investors would receive is that the entrepreneur lost control of their business regardless of how you dress the situation up. If you were an investor, would you want to put your hard-earned cash and invest significant amount of time in such a venture?

So, when is the right time to start raising external equity? And what can one do to ensure that the business is ready to attract and secure investors?

When considering raising capital, timing is everything. Understanding the business's needs and early planning is key. The best approach is to prepare and seek funding well in advance, before it becomes critical. No potential investor will be impressed if they waste their time on a venture with no clear plans in place. So, the first things that an entrepreneur ought to consider are:

Purpose: what is the money for? And when will it be needed?
Reason: why external equity and not bank finance? Why would an investor want to invest in your business? What's in it for you and them?
Sources: who would be a good investor for you? And why?

Once you have answered these questions and decided that external equity is the right route for your business, have a clear understanding of what will be involved. Investors are there to make a profit, so do not underestimate the impact they will have on your business. They will have the right to influence how your business operates, how much money you are allowed to earn and how your valuable resources are allocated. On the other hand, the right investor can accelerate growth of your business through guiding and mentoring you and your team as well as provide access to their contacts, to name a few.

To attract potential investors, a business needs to satisfy their criteria for investment. Here are a few points to keep in mind:

Sector: consider whether the sector you are in is a high, medium or low risk. The higher the risk - the more equity investors will demand.

Competition and Market: how does your business compare to your competitors and what are the market entry barriers, i.e. how easy would it be for others to penetrate and saturate your market?

Profitability: most investors will want to invest in a profitable business. However, most importantly, they will want you to demonstrate that the business will continue to make a profit in years to come. Therefore forecasting and financial modelling as well as understanding your figures is paramount when talking to potential investors.

Valuation and Pricing: undervaluing a business is just as dangerous as overvaluing. Make sure that you have a sensible and realistic valuation for your business. Entrepreneurs often lose investors quickly because their valuations are excessive or insupportable.

Management: can your business clearly demonstrate that your management is capable and competent? Do you have the right skills, expertise and experience to run the business and maximise its potential? After all it is the management and not the investor that will continue running the business and as such, they will want assurances that you have quality management in place to ensure the business's continuity and profitability.

Exit: as I mentioned earlier, investors are there to make a profit. Therefore have a clear understanding of how and when an investor will get their money and exit your business.

There is a host of other important areas for entrepreneur to think about, including shareholding structure, directorship, your earnings, the amount of equity to give to investors, where to find the right investors and how to present to them, investor relations and how to keep them in the loop, etc. Therefore, it will take time to ensure that you have everything in place and can clearly demonstrate to your potential investors that your business is ready to engage with them.

Succession Planning: Business owners favour MBO as means of selling business

2011-11-03T19:37:00.000Z

Whilst the economy continues to wobble with an increasing number of vendors struggling to find trade buyers for their ventures, more and more business owners are considering management buyouts (MBOs) as an option of selling their businesses.

According to The Telegraph, the number of business owners who would consider MBO as their exit strategy has tripled in the last three years. However, selling a business to management still remains an unpopular choice amongst a high number of owner-managers as they perceive it to be a more challenging and riskier deal to execute. Andrew Haigh, Managing Partner at Coutts Entrepreneurs, said: "By ruling out a sale to their management team, [business owners] are closing down a potentially attractive exit route, which accounts for 20% of business sales."

There is a common misconception - a perceived risk - that managers would not be able to raise necessary finance to purchase a business and once the talks begin about management buyout that the relationship between the owner and the managers would change. All deals present a certain number of risks. So does MBO, it's just a different set of challenges. Any vendor should consider management as potential buyers for their business, especially in today's volatile economy. Why? Because managers would have been closely involved in building your business with you, helping it become what it is today. They would know your business intimately, how it operates as well as the market and your customers better than anyone else coming in from the outside.

A research carried out by The Corporate Finance Network amongst businesses with turnover of less than £10m and vendors aged over 60 found that 80,000 companies stopped trading in the last year, and not as a result of insolvency. As many as 80% of business owners would have simply retired due to the lack of succession planning and failure to make the business attractive to potential buyers.

Exit planning is key to a successful and satisfactory business sale. MBO is no exception. Coutts' research shows that out of all MBO respondents, none of the businesses interviewed had any plans in place to move forward with a buyout option when the time came; and whilst 42% said they knew what to do, less than a quarter (22%) sought professional advice. If a deal is to be a success, then both the vendor and the management need to be thoroughly prepared well in advance.

If you are looking to exit and sell your business, then contact Alex Parkov to discuss your options:

info@alexparkov.co.uk or click here to complete an enquiry form.

For more information, please visit www.AlexParkov.co.uk

How can businesses survive in today's economic climate?

2011-09-27T12:07:00.000+01:00

In the article “Has Western capitalism failed?” the BBC World Service’s Business Daily programme asked a number of leading figures if they thought whether the Western-style capitalism failed. The answers (and some of the comments) are worth a read. It would appear that those interviewed by the BBC are unanimous in their comments that the system itself hasn’t failed, but rather its interpretation by those who use it.

In my view, Business is not all about systems and targets – it is first and foremost about people. In my work with business owners, I ask them all one fundamental question: “Why does your business exist?” The answer is unsurprisingly predictable: “To make money!” I don’t think that there is anything wrong in wishing for personal prosperity; however, if the reason for existence of any business is only to accumulate wealth for its owner, then the current economic situation we are in should not come as a surprise to anyone. It is only after further discussions with business owners that we discover other values. Living by these values, prioritising and communicating them to your team and implementing them is a different matter. However, I think that once the values and attitudes towards owning a business have changed, then business owners’ approach in running their ventures may change too.

By looking at a business as an entity (or a person, if you will), who’s reason for existence is to serve and help its customers by providing them with its products and services might make business owners view it differently and ensure that the business has the freedom to grow and prosper and it gets what it needs to continue helping customers, rather than continue serving its owner only. Put it this way, if we (the West) abolished slavery by the early 19th century, then why do we still keep our businesses as our slaves in the 21st century? Ultimately, by neglecting their ventures and focusing on their own needs, business owners become slaves to their own businesses when the business is exhausted and tired and no longer capable of supporting their lifestyle in its current form and becomes a burden to owners. Disappointment and panic set in and business owners push and pull and kick their businesses to work harder to keep providing for them and try to borrow money thinking that it will solve all problems, when the truth is that it may not be the money that the business needs.

I think that every business has the potential (and the right) to grow and be prosperous and such potential is only limited by its owners. I also think that any business can survive in today’s economic climate by changing the way it is structured and run, reviewing its values and ensuring that it has everything it needs to be stable and profitable. Such a process is not a quick fix and may require some time and business owners need to think if they are ready to commit to these changes and to their businesses and the sooner they realise it, the sooner they may enjoy their own prosperity.

But what do you think?

Breeze Blog by Breeze & Wyles Solicitors LLP: Can't Pay, Won't Pay - How to get results

2011-06-06T16:02:00.000+01:00

Breeze Blog by Breeze & Wyles Solicitors LLP: Can't Pay, Won't Pay - How to get results: Cash flow to most businesses in these difficult times is a key business objective. If your business is suffering through slow or non-payers, what options do you have?

You might find some answers on this Breeze & Wyles' blog article regarding debt recovery. One thing to consider when dealing with slow and non-payers is how to prevent this from happening in the future...

Breeze Blog by Breeze & Wyles Solicitors LLP: Business must keep a Close Eye on Web Law

2011-06-06T15:57:00.000+01:00

Breeze Blog by Breeze & Wyles Solicitors LLP: Business must keep a Close Eye on Web Law: If you own a website, then you'd be wise to keep an eye on what changes in Web Law might be introduced. Read this article to find out more...

Luminar International: Succession Planning: How To Retire From Business

2011-06-06T15:47:00.000+01:00

Luminar International: Succession Planning: How To Retire From Business: An interesting article about some of the options available to business owners that are looking to retire and sell their businesses...

Luminar International: The Advantages of Deferred Consideration

2011-05-03T19:21:00.000+01:00

Luminar International: The Advantages of Deferred Consideration: "by Paul Berry , UK Partner at Luminar International It may appear to be a strange opening statement that actually business sellers may be ..."

Retiring Business Owners Need Not Struggle to Sell Their Ventures

2011-05-03T15:48:00.001+01:00

In the article, Shortage of Buyers for Retiring Vendors, in The Telegraph of 13th December 2010, Richard Tyler talks about difficulties that business owners encounter when they are looking to sell their businesses and retire.

He says that vendors struggle to find buyers for their ventures due to the uncertain economic environment and face closing their businesses instead or continue running their firms into their late 60s. Staff may also find it difficult to raise the necessary finance to buy owners out because of bank lending policies.

Although potential investors might not pay the multiples that we saw only 3 or so years ago, there are a few things that baby boomers can do to ensure their comfortable retirement:

Business owners ought to start looking at Exit Strategies early in the process. This will allow them to set their goals and targets and monitor their business's performance
Set realistic expectations in terms of the price they want for their businesses. When selling a business, most owners will engage the services of their accountants and business brokers. We often see overinflated prices whilst bidding wars commence; however, it is the seller that is left disappointed in the process as their business "sits on the shelf" for months or sometimes years
Get an independent valuation carried out early as it will give retiring business owners a better understanding of the areas they may need to improve
Vendors may want to consider selling their businesses to staff and should involve their existing management teams in advance to avoid a bitter disappointment when their staff cannot come up with the cash
Engage professional services: business disposal experts, such as M&A lawyers, corporate finance specialists and business advisers will add value and help owners to get closer to their target price
Review and streamline processes and systems in the business to make it more attractive to potential buyers. After all, investors would be more willing to pay the price closer to what the owners have in mind when the business is running "itself"
There is also another option available to retiring business owners: Deferred Consideration. It is often more beneficial and profitable when part of the money is deferred for 3-5 years. The sellers will get part cash up-front and the remainder at the end of the term. This will remove the pressure on the buyer to raise the whole amount up-front, raise more confidence in the business they are looking to buy and make the transaction much easier

If you are thinking of selling your business and want to ensure that when it comes to it you sell it swiftly, comfortably and profitably, then contact Alex Parkov to see how he could help.

Alex Parkov, Business Adviser

http://www.alexparkov.co.uk/

info@AlexParkov.co.uk

Breeze Blog by Breeze & Wyles Solicitors LLP: Mergers and Acquisitions: the due diligence proces...

2011-04-12T12:24:00.000+01:00

Breeze Blog by Breeze & Wyles Solicitors LLP: Mergers and Acquisitions: the due diligence proces...: "Buying a company is a difficult, but potentially rewarding process, which may take days or weeks depending on the complexity of the company ..."

Breeze Blog by Breeze & Wyles Solicitors LLP: Mergers and Acquisitions: the current environment

2011-04-12T12:23:00.000+01:00

Breeze Blog by Breeze & Wyles Solicitors LLP: Mergers and Acquisitions: the current environment: "For 18 months or so acquisition activity has been dormant as shareholders have been reluctant to sell on the basis of valuations that reflec..."

Luminar International: Setting Your Business Up For Sale

2011-04-12T12:16:00.000+01:00

Luminar International: Setting Your Business Up For Sale: "All business owners look ahead to the time when they retire and hope that they will sell their businesses swiftly, painlessly and, most imp..."

New Eden

2011-03-31T00:18:00.000+01:00

I have received an interesting article from a friend and a colleague of mine, Dave Croydon, which I would like to share with you and hope you find it as interesting and thought-provoking as I did...

An acquaintance of mine recently expressed the opinion that anyone who showed any desire to become a politician should automatically be disbarred, as a result, from ever becoming one. It ranks alongside Groucho Marx's comment that he wouldn't want to join any club that would have him as a member.

This was brought back to me forcibly a week or three ago, when I heard interviewed on the Saturday morning Radio 4 programme, Saturday Live, Tim Smit, the man behind the Eden Project - and therefore someone for whom the word 'Vision' can be taken as built in.

He was asked for his recipe for getting the country out of the mire, as opposed to the current lot's recipe of cuts, cuts and more cuts. His reasoned and wholly reasonable response drew mountains of approving e-mails, even before the end of the show, with many exhortations that he be made Prime Minister immediately.

The problem with politicians - it's easy to state problems: less easy to suggest viable solutions - is that very, very few have done much in their lives outside the world of politics, and the exceptions have generally been associated with large corporate Britain. When it comes to the SME market, they may talk a good story, but really they haven't a clue. Even the sainted Vince.

So the sector that represents up to 95% of the British economy's economic output, and by common consent where any growth and recovery will gestate, is being hog-tied by rules and regulations designed with corporate Britain in mind. I've railed about this before (and will doubtless do so again), but the contrast between existing policy and Tim Smit's ideas could not be starker.

So what was he recommending?

AN ALTERNATIVE STRATEGY FOR GROWTH

Reproduced below is a more or less verbatim quotation of the Eden Project's Tim Smit's recipe for growth. Since I couldn't better it myself, I thought I'd share it with you. I took the precaution of re-visiting it on i-Player, to make sure it's accurate.

Interviewer: "Why is Britain such a risk averse nation?

Tim Smit: "1. Most of the politicians we've got in charge have never had a day job. [That's what I said - Ed]

"2. Most of the people in charge of distributing money have only ever made their money on the back of speculation, such as betting against their own currencies, and have given up the tradition of investing in people who make things with their hands.

"3. This country's wealth was built on the back of men and women who made things, and now it's actually the financial world, which does not trust the men and women who make things; they want to bet on currency.

"4. If you're ruled by an accountancy fear, where you know the cost of everything without understanding the cost of not doing things, you can bring yourself to your knees.

"5.You can kill a company in your desire to constrict access to money, because that's the prudent 'mumsy' way to do things."

Interviewer: "So what would you do?"

Tim Smit: "Blow a lot of money: I'd do exactly the opposite of what is being done now. I'd commit myself in a crash and burn style to transforming the technology and energy infra-structure of this country. By doing it, you will build on what's best in Britain, which is its engineering skill. If you give it that impetus, you'll become a world leader, and the market will then follow you, and the investment will be seen to be worthwhile."

In my next missive, I'm going to re-vist this theme with a few thoughts of my own on, in particular, the existing energy policy of successive governments, and the huge potential for massive structural change that is currently being missed by the usual suspects with little or no vision.

You can listen to the interview at: http://downloads.bbc.co.uk/podcasts/radio4/satlive/satlive_20110212-1125a.mp3

Sometimes, the most effective response to any given situation is the exact opposite to the apparently obvious one. Many fortunes have been gained by buying shares or property when everyone else was selling. There are supporters of 'contrariness' who will assert that it is nearly always better to go against the grain of general public opinion. Why would that be? Answers to the e-mail address below.

David Croydon: 01844 238692 or e-mail: dave@hilltopconsultancy.co.uk

Increase Your Margins by Managing Your Costs

2011-02-01T21:00:00.001Z

In today's economic climate with budgets being cut across the board, the UK economy contracting in the last Quarter of 2010 and inflation rising, both Public and Private sectors are looking to maintain their financial stability. A decision to increase prices is a sensitive issue and could prove to be unpopular with customers. It is a gamble that all organisations face. Cutting costs could be a way forward. However, one must be careful how far and how deep those cuts go, as inevitably such cuts may cost an organisation a lot dearer than leaving things as they are.

In my dealings with businesses, I found that it is a carefully thought through combination of the two that works best: a sensible price increase along with cutting unnecessary costs. Here are just a few "easy wins" tips on how an organisation might increase their margins by reducing some of the costs:

If you are still sending your invoices and statements the old-fashioned way (i.e. by post), consider switching to electronic options. Send your invoices and statements by email and save money on paper, envelopes, ink cartridges, postage and time to print, fold, insert and post the documents
Instead of sending individual invoices for every order, consider switching to monthly consolidated invoices to your clients
Switch to sending your correspondence by 2nd class: Second class items posted on a Friday will arrive at the same time as the First class items posted on a Monday
Don't send out single sheets of paper in C4 envelopes: these will cost your business up to 38% more than a letter (DL envelope)
Ensure that your staff switches all unnecessary equipment off when unused: this will save your organisation money on energy bills
If you have commercial premises, consider investing in technology that will not only compliment you existing Heating & Colling system, but will save you substantial amount of money on energy bills, maintenance and prolong the life of your assets (check out http://www.mowjo-e.com/, or better still, get in touch with them!)
Talk to your bank: if your business does not borrow or does not breach its facilities/covenants, your pricing levels may be overlooked by your bank. Consider meeting with your Bank Manager to review your arrangements and price plan
Consider company credit/charge cards for you and your staff: this will reduce the number of cheques issued and improve your cashflow with an interest-free period of up to 45 days! You can easily monitor expenses and reduce your administration burden of petty cash
Switch your customers from paying by Standing Orders to Direct Debits: there are number of benefits to be had from this. Firstly, your customers will have a peace of mind by being protected under the Direct Debit Guarantee Scheme; secondly, you will save money on administrative costs of your Accounts Department checking each line of the bank statement to see who hasn't paid; and thirdly, you can save on bank charges per transaction received, which is normally a fraction of the cost of a transaction received by a SO
Avoid calling 118 (Directory Enquiries) and 0870/0845 etc. numbers. The same information is available online and it's FREE! If you are unable to find a required number on the Internet and must use Directory Enquiries, do not accept an offer to be put through by an operator - you will be charged up to 50 times more per minute than if you dialed a number yourself (http://www.saynoto0870.com/)

Of course, the above list is not exhaustive and there are plenty of other means and strategies to reduce costs in your organisation. However, it's a start! So, good luck and do drop me a line if you'd like to learn more on how your business can save and make money!

The Value of Time

2010-09-24T14:52:00.001+01:00

I would like to start by apologising for not writing for a while. The last year has been quite busy and challenging, as most Business Owners, no doubt, have found out.

I shan’t go into detail of how busy I have been and what I have been up to (everyone talks about how busy they are and everyone, who is subjected to listening to them, rolls their eyes and flick the switch to the “off” position)... I’d just like to post these links for you to view at your leisure:

https://sites.google.com/site/businesssuccesstalks/
http://www.atg-training.co.uk/business/business-success-seminar.html
http://www.cathy-rhodes.co.uk/bb

In the past year, I have met quite a number of Business Owners, who, first, were complaining about the recession and how difficult it was to get by and business was slow and that nobody was buying; and then, once they got tired of complaining and loss of business (those that were lucky to survive), decided to get busy and get some business.

Well... I think what they meant by “business” was “busy-ness”... I have been watching their progress with great curiosity and here are some of my observations.

During my numerous conversations, as a Business Advisor, vast majority of business owners acknowledged their need for help with various aspects of their businesses. What they all said was that they needed more business and customers to sustain and grow their respective businesses. So, what have they done differently and how did they go about it?

Here is just one example. You be the judge.

I have been asked to meet with someone (let’s call him Mr Smith) who was starting a business in the leisure industry with a good prospect of reaching Turn Over in excess of £250K in the first year of trading. Mr Smith had negotiated a great deal to take over an existing site at a bargain price and wanted to turn it around and make his first million in the first 3 years. Ambitious? Perhaps... I arranged to meet with Mr Smith at his site to see for myself what potential was there. To my surprise, the location was great with all the facilities pretty much ready to use right away. All that he needed to do with the premises was update the tired look of the premises and bring some 21st century technology in to make it more appealing and improve functionality. He then told me his grand plan and how quickly he wanted to move and build his venture. I suggested that he started at the beginning and looked at putting some structures and systems in place before he could start promoting his business and got the place full with customers. Mr Smith categorically told me that he had it all planned already and that he would hire staff to take care of all aspects of the business... He also told me that he had a couple of businesses in the past and had all the experience that he needed. Somehow, I couldn’t help but feel that Mr Smith was trying to run before he could walk. There was something in his story that didn’t quite make sense and as it was getting late by that stage, I suggested that we adjourned the meeting and agreed to get together and continue our conversation another time.

In between the meetings I decided to do a little research about Mr Smith. Having visited his new business, I had no doubt that with the right approach he could make it work very well. I just had my reservations about his ability to do so. And there it was... Mr Smith did have a couple of businesses... failed businesses. He was declared bankrupt not once, but twice. There was also some negative press about his involvement in other businesses and that he left on not so friendly terms. All that it told me was that Mr Smith was ambitious, but was perhaps too strong-headed and possibly didn’t learn his lessons and was going to make yet another mistake.

On the agreed day, I arrived at a place of my meeting with Mr Smith 10 minutes early. I saw him having a meeting with someone and politely acknowledged him and the person he was with and took a seat in his view but away so that I did not disturb them. My frustration grew as half hour later Mr Smith was still nowhere close to finishing his first appointment and kept me waiting. I politely interrupted him and asked if we should reschedule. He offered a vague apology for overrunning and insisted that we kept our meeting. Eventually, over an hour later, we did get together. Without further apology Mr Smith went on to explain the nature of his earlier meeting, which had no relevance to what we were about to discuss. Did he value my time? No. But I thought I would allow him to continue as I saw it was important to him and it might also give me an opportunity to learn more about Mr Smith.

When we did get to the point, I asked Mr Smith about how he was planning on making his new venture work. Having done a little bit of research, I wanted to see whether he would talk about his past experiences and whether he acknowledged his failures and what lessons he learnt. He replied that he had no specific plans but imagined that with the right staff the business would take off and be on the right track. He said he had done it before and it had worked... I asked him again how he planned on getting the right people, what and how they would do it and how he saw his role. He was quick to say that he just wanted to be the boss and staff should know what they were supposed to be doing, but asked what I thought. Seeing that Mr Smith had no desire of drawing on his past experiences (or learning from the past mistakes), I suggested that it would take more than just hiring people to do the job. It would involve much more to make the business work. I got back to our first discussion and stressed the importance of structuring and systemising the business before anything else could happen. He needed to lay the foundations of the business in order to be able to build on them as otherwise the business would struggle to survive and succeed. Mr Smith nodded along and asked if I would work for him. Well... I invested over 16 years of my life in learning and accumulating my experience in business development to get me to the point where I am now. I was prepared to work with Mr Smith on his business, but not in his business. Plus, having observed Mr Smith over a couple of meetings, would I want to work for him if I were looking for a job? Needless to say, Mr Smith wasn’t happy about that arrangement. After all, he had a plan of hiring staff that would do what I was proposing.

So, nearly a year has passed and I still closely watch Mr Smith’s business. It has picked up and is getting busier, which is a good thing as the business appears to be making money. At what cost though? He hired some staff, as he planned. Although, he seems to have failed to go the right way about it. No contracts of employment, no staff book, no job descriptions... Staff work overtime and are asked to do other work additionally as things are done at the last minute and without sufficient preparation. And, more importantly, delayed, and in some cases no payment to staff for the work that they have done. Result: extremely low morale and thoroughly dissatisfied employees. At least one of the former employees is reported to be taking Mr Smith to the Employment Tribunal and a few others are considering resigning. To top things up, some of the suppliers to Mr Smith’s business are also considering court action as they also didn’t get paid. Some of Mr Smith’s customers left unhappy about the service they received and thought that facilities were advertised to appear better than they actually were.

Would Mr Smith be in that situation if he listened to the advice? Will Mr Smith’s business succeed?... Time will tell. Provided that Mr Smith uses the time wisely and values it by listening to people that know what they are talking about as well as valuing their time, expertise and skills and trusting to do the right job, he may yet stand a chance of turning things around.

What do you think?

The Infinite Group & ATG Training join forces to expand their offering to businesses

2010-09-15T13:27:00.000+01:00

The Infinite Group and ATG Training in Buckinghamshire have joined forces in providing support to businesses through a series Business Breakthrough seminars and workshops designed to accelerate growth and maximise value.

ATG Training (www.atg-training.co.uk), established in 1967, is a leading national provider and one of the largest independent training organisations in the country that has been delivering a wide range of programmes to business owners and their staff for over 40 years.

The Infinite Group (www.the-infinite-group.com) is one of the fastest growing organisations that specialise in strategic business development with focus on supporting businesses in three ways:

Organic Growth - normally assisting business owners to double or treble the size of their organisations

Franchising - helping successful businesses lever their knoweledge, technology and expertise and create world class franchises

Exit planning - getting a business ready for sale for its owner(s) to maximise its value and allow for a seamless transition over to new ownership either by acqusition or Management Buy Out

The two organisations will jointly strengthen their propositions to businesses that are actively looking for strategies to grow and expand.

For more information on Business Courses, please contact:

ATG Training:
Tel: 01296-737815
Email: info@atg-training.co.uk

The Infinite Group:
Alex Parkov
Tel.: 01908-769010
Email: alex.parkov@the-infinite-group.com

Cathy Rhodes
Tel.: 01280-815122
Email: cathy.rhodes@the-infinite-group.com

The Language of Sales: Will Your Customers Keep Buying From You?

2010-04-01T17:11:00.000+01:00

Despite a shift in customer attitudes and behaviours, companies are still "talking down" to their clientele by telling them what to do in the hope to persuade them to buy their services or products.

When it comes to sales, those days are long gone. All it takes is a subtle change in your marketing language to produce noticeable results. A change in customer attitudes over the past couple of decades means that they have switched from needing external direction to deciding for themselves whether to buy or not to buy. They compare offers to each other in search for a better deal. In other words, they've gone from "compliant" to "decisive" — they no longer want to be told what to do and they are in control. But while many companies understand this shift on an intuitive level, they have yet to adopt the right language and approach with their customers.

Organisations that invest in research to understand exactly what makes a customer buy have had great success. They use the information to create their branding, design advertising campaigns and to train their staff on the exact language to use (or avoid) with customers — and they reap astonishing results.

So, what could businesses do differently to influence their customer decisions?

Rethink your message: how you address your customers will affect your sales. Some companies are still touting themselves as "the best" or "the right choice". These firms essentially tell customers what to think and what to do, which is no longer an effective strategy.
Put yourself in your customers' shoes: notice how you react when told what to do. What's your response when you're presented with claims that don't "hold water"? Don't you trust those organisation that keep on insisting how much they care about you through their TV adverts? How would you like to be approached instead and what message would strike accord with you?
Review your language: apart from checking your spelling and grammar (and I've seen a few corporate blunders), review your marketing materials and look for examples of commanding and suggestive language.
Fine-tune your sales approach
Invest in staff training: once you have streamlined your language and your message, invest in staff training to ensure that you manage customer expectations versus your promise to them.
Test and measure: listen to your salespeople as they talk to customers. Do they make suggestions or assertions? There is a big difference between "This is what I think is best for you" and "Here's what I would suggest/recommend for you to consider." The first is a statement and implies a command to the customer, whilst the second is a suggestion to consider.

Of course, customers' attitudes are constantly changing in many ways and the change from being told what to buy to being offered a suggestion or consideration is just one of them. It is still a call to action but in the way where customers come to a decision themselves (with your help). And even if you only address this one change, your customers will notice and appreciate the difference in your approach.

Alex Parkov
Business Advisor
The Infinite Group

http://www.alexparkov.co.uk/
info@AlexParkov.co.uk

Selecting the right Franchise Development Consultant

2009-11-27T15:17:00.001Z

All businesses must continue to grow in order to stay in the game as otherwise they run a risk of stagnating and, eventually, ceasing trading. Those businesses that survive the start-up period inevitably arrive at the point where they need to get to the next level in their life cycle.

As one of growth strategies, franchising allows smaller companies to effectively compete with larger businesses. Franchising provides businesses with the ability to gain market share by increasing their points of distribution. Franchises are generally able to grow and expand their businesses faster than conventional businesses and franchise expansion requires minimal capital as the initial investment at the unit level is covered by franchisees. Franchise brand’s growth is not limited to one or two locations; franchising offers the opportunity to have multiple units throughout the country and the world. Usually, the success of a business depends upon its location and/or the staff. The fundamental principal for the success of a franchise is its ability to replicate its success.

Many business owners make countless regrettable decisions along the way. The decision of expanding a business through franchising is never an easy one and requires careful analysis and assessment of the business and its potential, thorough research and planning. Business owners could achieve the lifestyle they desire in much shorter timeframe whilst retaining that unique feel in their business as it grows and expands nation- and worldwide.

Developing a successful concept and business model is one thing, but franchising a business, developing a much larger network can be a daunting and complex process. Building a franchise is like constructing a building – get the foundation wrong and the results could be disastrous. Understanding franchising in all its aspects is essential before committing resources to its development. Taking professional advice can save a considerable amount of headache, time and money through the various stages of franchise development. An independent third party advisor who has many years of experience can bring great benefits to any individual or company considering franchising.

Selecting the right Franchise Development Consultant for your business should be no different to a selection process of any other supplier. A couple of other things to consider are:

Experience: a good and established franchise specialist would have not only an in-depth knowledge of the franchise industry, but also a great deal of experience in developing businesses and should be able to demonstrate a comprehensively professional approach to advising their clients. After all, apart from working on taking your business to franchise, the core business needs to be developed in parallel with the franchise in order to minimise risks and ensure success.
Continuity: consider whether your adviser is a stand-alone consultant or a part of a larger organisation or network. Businesses that use services of Business Advisers who are a part of larger networks are more secure in thought that their businesses are well looked after.

At The Infinite Group we operate as a team of quality business advisors who assist business owners of all backgrounds and industries to get the most out of their business. We work with franchisors and help them expand nationally and internationally. The Infinite Group have an extensive international business network and have assisted businesses in over 23 countries.

One thing we’ve learned over the years is that a step-by-step approach is vital. We’ve devised a simple and yet extremely effective method of taking a business to franchise. Your franchise is unique; however the foundations for success are rooted in a common process. Whether you have an existing system or are just starting out, there are certain areas that need to be covered.

If you would like to find out more, then contact Alex Parkov for a NO OBLIGATION CONSULTATION.

Alex Parkov

Business Advisor

The Infinite Group

e: alex.parkov@the-infinite-group.com

p: +44 (0) 7983 387 323

To Franchise or not to Franchise?

2009-10-06T11:12:00.001+01:00

People often approach The Infinite Group requesting advice to help their business grow, a great strength of ours is helping clients to produce Franchise systems that work and can be delivered internationally.

Whilst, per capita of population, the UK remains very under franchised, no one should be under any illusions that the process of Franchising a business normally isn’t quick and requires a large investment of time (and hence money) by the business owners to get to market. The other area to be aware of is that despite the passion that business owners have for their own business, if it doesn’t make enough money in the first place then it will never work as a Franchise.

Business owners also often expect to be able to avoid the requirement to sell the franchises themselves. Be under no illusion; long and hard experience has shown that successful franchise systems rely on the business owners being very committed to the sales process and ensuring that the right people (‘winners’) are recruited to fill the first few places. Future sales are always reliant on the first ones through the door.

There are always horror stories circulating about franchises not working. Like life, we tend to remember the bad stories more than the positive ones but still the statistics show that where roughly 85% of new businesses fail in the first year, the inverse is true of franchisees. Indeed these figures are exactly reflected in the longer term 5 year figures too. The upfront cost of the knowhow or the ‘system’ fades into oblivion in light of this statistic alone.

In economically challenged times, franchisee sales tend to increase. The common denominator for a prospect looking to buy a franchise is always life-change. This is often coupled with a general dissatisfaction at their employers and of course, severance payments can lead to rich opportunities for the franchisor.

The key element for any business looking to franchise is: can everyone make some money? If the answer is no, then it is doomed before the outset. Additionally and often omitted is the importance of the franchisor being properly rewarded.

So, to answer the question: It’s a fantastic way to build a business leveraging other people’s money to build your company and brand but tread lightly and don’t take your eye off the cash ball.

If you want to learn more about how to franchise a business and whether your business can be franchised, contact Alex Parkov.

Alex Parkov
Business Advisor
The Infinite Group

Email: info@AlexParkov.co.uk
Web: http://www.alexparkov.co.uk/

So, the Tax Man does have a sense of humour...

2009-09-03T11:00:00.000+01:00

Who said that Tax people don't have a sense of humour? This is a reply received from HM Revenue and Customs. The Guardian had to ask for permission to print it.

Dear Mr ,

I am writing to you to express our thanks for your more than prompt reply to our latest communication, and also to answer some of the points you raise. I will address them, as ever, in order.

Firstly, I must take issue with your description of our last as a "begging letter". It might perhaps more properly be referred to as a "tax demand". This is how we at the Inland Revenue have always, for reasons of accuracy, traditionally referred to such documents.

Secondly, your frustration at our adding to the "endless stream of crapulent whining and panhandling vomited daily through the letterbox on to the doormat" has been noted. However, whilst I have naturally not seen the other letters to which you refer I would cautiously suggest that their being from "pauper councils, Lombardy pirate banking houses and pissant gas-mongerers" might indicate that your decision to "file them next to the toilet in case of emergencies" is at best a little ill-advised. In common with my own organisation, it is unlikely that the senders of these letters do see you as a "lackwit bumpkin" or, come to that, a "sodding charity". More likely they see you as a citizen of Great Britain, with a responsibility to contribute to the upkeep of the nation as a whole.

Which brings me to my next point. Whilst there may be some spirit of truth in your assertion that the taxes you pay "go to shore up the canker-blighted, toppling folly that is the Public Services", a moment's rudimentary calculation ought to disabuse you of the notion that the government in any way expects you to "stump up for the whole damned party" yourself. The estimates you provide for the Chancellor's disbursement of the funds levied by taxation, whilst colourful, are, in fairness, a little off the mark. Less than you seem to imagine is pent on "junkets for Bunterish lickspittles" and "dancing whores" whilst far more than you have accounted for is allocated to, for example, "that box-ticking facade of a university system."

A couple of technical points arising from direct queries:

The reason we don't simply write "Muggins"on the envelope has to do with the vagaries of the postal system;
You can rest assured that "sucking the very marrow of those with nothing else to give" has never been considered as a practice because even if the Personal Allowance didn't render it irrelevant, the sheer medical logistics involved would make it financially unviable.

I trust this has helped. In the meantime, whilst I would not in any way wish to influence your decision one way or the other, I ought to point out that even if you did choose to "give the whole foul jamboree up and go and live in India" you would still owe us the money.

Please send it to us by Friday.

Yours sincerely,

H J Lee

Customer Relations

HM Revenue and Customs

Know The Value of Your Business

2009-08-25T20:26:00.003+01:00

We, as well as our businesses, are all different. We are at different points of our lives and our respective businesses are at different stages of business life cycle. We all, however, have one thing in common. At some stage of our lives we will look to retire. Some of us will retire sooner than others, of course depending on how well the business is doing as well as how long we intend to stay in business, what we want to do with it and, if we sell it, how much we will get for it.

Look ahead to the time when you are planning to retire. What would you do? How much would you like to retire on? What would be your ideal lifestyle?

But firstly, what is the purpose of YOUR BUSINESS? If you only see it as a job and all you look forward to is a nice little bungalow in Great Yarmouth, then I suggest you click on the red cross at the top right-hand corner of your screen.

If, by contrast, you aspire to a yacht and a villa on the French Riviera and consider your business to be the principle contributor to your pension pot, then read on. This article is for you!

Previously people paid into a pension fund from the ages of 20 to 65, and average life expectancy was 70, so 45 years' contributions had to pay for 5 years retirement (on average). Now, few people pay more than (say) ages 25 - 55 in contributions (everyone has ambitions to retire early) but are living to nearer 85: 30 years contributions for 30 years of retirement - just will not compute.

If you are a Sole Trader, the only value in your business is your customer base, maybe some stock and some goodwill. However, given that your customers are likely to be your customers because of you and the service you provide to them, then I'd guess a bungalow in Yarmouth it will be as you are unlikely to get a huge sum of money for that. As one of my friends says, "In pension terms, a phrase 'diddly squat' springs to mind".

However, if you have staff to help you deliver products or services, then there is a good chance you could build something of real and substantial value.

I like watching Dragons' Den (if you haven't watched it, I suggest you tune in). It is great to see so many entrepreneurs trying to expand their businesses. However, how many times are they asked about how much their business is worth and what they estimate it to be in 1, 2, 3... 5 years' time? More importantly, how many of those business people can give an accurate valuation and reasons for it? It is amazing how many people under, but more often overestimate the value of their business! You would have thought that after years of this programme being on air, people would have learnt and got their businesses valued professionally if they can't do it themselves (which they clearly can't).

Let me ask you this:

• Do you know how much your house is worth right now and why?
• Now, do you know how much your business is worth right now to a willing buyer in a commercial and competitive market? What do you base this on?

Now, ask yourself: is this going to be enough to retire on and how long will you last on that money?

The good old times when it wasn't unusual to receive offers of 10 times or more the value of your business are gone. Business owners would be lucky to get 3-5 times now (if at all). This depends on what you project your business earnings to be in the next 2-3 years (assuming you have those projections and can justify them in some way, shape or form). It also depends on the sector you are in, current market sentiment and succession management.

If your business heavily depends on you, then it is worth next to nothing. However, if it operates efficiently without the business owner needing to be in it, the value could be 8 times more!Operational independence is the key to that. How do you achieve it? There are a number of areas to consider and I will be happy to talk to you about that when you contact me.

Assuming that your business is growing, profitable and sustainable. At what stage would you want to exit and why? What price would you accept for it and is it realistic? In order to answer that question, you would need to weigh your expectations against the market reality.

Use an expert to assist you with such BUSINESS VALUATION so that you know what you could get for it. Equally, you would rely on a valuation when you look to attract investors. If you are looking to acquire a business, you would want it valued to ensure that the asking price is fair.

Contact me to learn more and to discuss your EXIT STRATEGY PLANS.

Alex Parkov
Business Advisor
E: info@AlexParkov.co.uk
W: http://www.alexparkov.co.uk

Death By PowerPoint No More

2009-08-14T15:10:00.000+01:00

Due to the nature of my business I attend a lot of presentations as well as see quite a volume of proposals created in PowerPoint. I must say that I remember only a couple amongst them all. Why? I asked myself that question a number of times and I think I found the reasons:

Presentations were packed with information and my concentration switched from listening to the presenters to reading the information off the screen. Sometimes if there was too much information and the presenter flew through the points and I didn't manage to get through reading it all (and not concentrating on what they were saying) I was lost by slide 2 or 3
Some presentations were inconsistent in images or graphics and animations used
Vast majority of presentations were bland with no images or graphics to stand out and accent the information I was being given
Some presenters were reading from the screen. They might as well not have bothered gathering the crowd and should have just emailed their presentations instead

I realise that we don't always have the time or sometimes the skill to create a visually pleasing presentation. However, visual aid when presenting (especially when it is a sales pitch) is one of the key points in either winning or losing a sale. Why? This is because:

40% of people are VISUAL: they absorb information visually
Only 20% are AUDITORY: they absorb information by listening
And final 40% of people are KINESTHETIC: they absorb information through feeling, trying and doing something themselves

Of course, if you are presenting to a large audience, it is not always possible to get people to feel or do something. However, you still have 60% of your audience that you can get your message across to!

If you feel that your presentations need a "face lift", or you lack in time, or perhaps don't know how to create a PowerPoint presentation, or just simply don't want to do it yourself, then contact us at info@AlexParkov.co.uk or by calling +44 7983 387323. We love PowerPoint! We CAN HELP YOU achieve the most powerful, effective, persuasive and professional presentations.

We also offer training sessions on HOW TO PRESENT EFFECTIVELY so that your message have the maximum impact on your audience.

Don't lose your audience. Captivate them!

Business: Can't Grow OR Won't Grow?

2009-05-19T15:51:00.000+01:00

Over the past few months when I was talking to numerous people about their strategies during this recession, I was amazed at the number of people saying "business is slow so we need to cut our costs down on staff, training and marketing" or "just sitting tight and see what happens". When I asked someone if they had considered an expansion strategy instead, they just laughed and walked away. We all seem to find an excuse not to do what is required and needed to move our businesses forward and, subsequently, the economy. Of course, it is easier to blame the government, banks, Americans (now that the Cold War is over and we can't really blame the Russians)... But how about taking responsibility for our actions? What's wrong with accepting ownership for our own businesses? Do you think that your bank will do it?

Instead of fighting and pulling together, it seems as though as this country is falling apart. We all seem to have accepted the defeat. COME ON, BRITAIN! Just ask yourself: if we all "sat tight" and did nothing, then who would we do business with? Who would buy our products or services? Who would know about us? We might as well look at that grand idea of Karl Marx and Lenin, called Communism, and consider living for non-profit and just do barter deals. We don't need money, do we?

Well, here's a thought for you to consider. YOU CAN GROW YOUR BUSINESS! How? Well... Read on...

One of the fastest, easiest and safest ways to grow your business (and there are a few) is franchising. Please allow me to demonstrate why:

UK Franchising:

There are currently over 809 franchise systems in the UK, which equates to 84,274 businesses
The franchise industry is now estimated to be worth £12.4 billion
There are an estimated 383,000 people employed by franchises
The vast majority (91%) of franchisees say they are profitable
More American-based franchises are looking to expand into Europe
Franchisors are seeking to grant over 190,000 franchise licences to aspiring business owners across the UK
The number of franchises in the UK has risen by 3% in the past five years

Opportunity:

There are currently over 2.22 million people unemployed in the UK
Average redundancy payout is over £5,000
Redundancies and uncertainty about jobs are making thousands of people to seriously consider investing into a franchise
On average there are 22,000 global searches per month for people looking to buys a franchise
Approximately 2,000 searches were made in the UK during the month of April alone!

So, I hope that you see the potential from the above... If you still can't, YOU NEED TO TALK TO ME! I do not believe that there are no possibilities of growing your business out there and all of the above demonstrates it. If you don't do it, someone else will!

Imagine now, what income opportunity this could generate for you?... Now, have I got your attention?

Contact me if you want to learn more...

Alex Parkov - Business Advisor

07983 387 323

http://www.alexparkov.co.uk/

info@AlexParkov.co.uk

(Sources: BBC News, The Franchise Magazine, Which Franchise?, UK National Statistics, The UK Franchise Directory)

You Are What You Do

2009-04-21T23:05:00.000+01:00

Our lives are getting increasingly busier and more hectic. People in the UK work the longest hours in Europe and we seem to be proud of it! Recession doesn’t help either, does it? It is always one thing after another... Before we hit the Credit Crunch, we were too busy borrowing, expanding, building our businesses and didn’t have for anything else as we were just too hungry for more and more business. Now that we are in recession, we are far too busy saving ourselves and counting pennies. But why? When does it end? When are actually going to enjoy what we have been so busy building? Or does it mean that we are just going to bite our lip, swallow our pride and keep going until retirement? (if we have anything to retire on at all, that is)

Let’s admit it. We, Brits, are far too stubborn when it comes to asking for help. We think we know best. We can’t possibly allow someone else to look after our possessions, families, businesses... We are just not used to getting help. WE DON’T TRUST ANYONE! And when we do get help, we expect it for free (or as good as) with results exceeding our expectations.

Have you ever watched that programme “You Are What you Eat”? Would you agree that the same is true of your business and what you do? People in business sometimes have to “wear too many hats”. We all have to be Finance Directors, Operations Directors, Strategists, Development Directors, look after Sales & Marketing and so much more... It is no wonder that things start to slip at some point: invoices are going out late; some of the bills are overdue; we lose customers because we are too busy chasing customers either for payments or trying to get new ones... Of course we have no time for strategies or planning! How would we? With everything that is on our plates! Yet, we still don’t need help! Amazing, isn’t it?

There is plenty of help out there. Granted, you need to ensure that you get the right level of support and it is worth your time and money. In my mind, any help or advice is worth it! Do you know everything there is to know about business? Do you have time for new ideas and, more importantly, implementing them and know how to? I know I don’t and don’t pretend to either! Being a Business Advisor I don’t have to know everything about everything. I rely on support of my peers, clients and friends. People that surround me. And, yes, I have to ask for help and pay for it too. I appreciate professional advice and help and I need it. There is nothing wrong with that at all! Someone once told me that “it takes a strong person to admit one’s weaknesses”.

· Do what you do to the best of your abilities.
· Get help when it’s needed.
· Be honest, open and transparent in everything you do.

These are the mottos I live and work by. Do you?

If you do need help and advice with your business development and strategies, please get in touch with me. I look forward to hearing from you!

Alex Parkov – Business Advisor & Franchise Specialist
info@AlexParkov.co.uk www.AlexParkov.co.uk

NEW FRANCHISE OPPORTUNITY

2009-04-15T11:27:00.000+01:00

Get everything you need to start your own VA business. Just add ENTHUSIASM!

Are you a pro-active person and always on a lookout for new opportunities?
Do you have good organisational skills?
Perhaps you have recently been made redundant?
Are you looking to become secure in your independence from employers?

Find out how becoming a Virtual Assistant can change your life, giving you a better lifestyle and financial freedom, with a business that works around you.

You can use your PA, secretarial, office or admin skills to work with the clients that you choose, at hours to suit you, from your chosen location, in a way that fits in with your life. The financial rewards will all be yours too!

Being a VA has many advantages, so much so, that it is one of the fastest growing professions in the UK and this is simply due, in part, to the increasing demand for the services provided by a VA and the benefits that businesses enjoy when working with a VA.

Personal assistants, secretaries and office administrators are all taking control of their lives and making the move to virtual working as VAs.
Smart-Sec was created and is run by internationally recognised Virtual Assistants who will provide you with the complete business set up and know-how – plus ongoing support to make your business a success. Just add enthusiasm!

Every Smart-Sec license will receive:

Full training, business coaching, equipment, software and systems to ensure all Smart-Sec VAs hit the ground running
Proven business model, backed up with comprehensive manuals, to support you in creating a profitable business
Full marketing and PR support along with everything you need to brand, promote and market your business
Access to a UK and international associate network to maximise your business potential
Fast and efficient set-up that requires minimal ongoing running costs
Choice in the level of ongoing support to suit your business needs

Contact Alex Parkov or Carmen MacDougall to learn more.

Franchise Your Business Seminar

2009-03-03T21:30:00.000Z

DISCOVER WHY 2009 IS THE PERFECT TIME TO FRANCHISE YOUR BUSINESS

Now is a great time to franchise your business. Franchising is a fantastic and increasingly popular way to rapidly expand your business by leveraging other people’s time and money. What is more, the current economic downturn provides a particularly fertile ground for it.

· Redundancies creating a pool of talented, experienced individuals looking for a new opportunity
· A proven business model - 85% of new businesses fail within the first year, yet 85% of franchisees succeed
· Compared to the US & Australia the UK is “under franchised"

At our forthcoming seminar, we will be sharing the secrets to successful franchising to help you build a business that snowballs!

Bookings: Before 20 March: £25 + V.A.T.
After 20 March: £35 + V.A.T.

Recommend someone else for this workshop and get a further 25% OFF per booking!

Contact Alex Parkov to book your place.

LIMITED PLACES ONLY!

Click here to reserve your space today.

Economic Downturn: Your Golden Opportunity

2009-02-23T15:44:00.000Z

· Are you concerned that recession might affect your business?
· Is your business the best kept secret in the world?
· Are you worried about keeping your existing customers and how to get new ones?
· Are you frustrated by working too hard for too few results?

Then join us at our upcoming 1-day Sales & Marketing Development Workshop.

The best specialists from WSI Solutions and The Infinite Group have joined forces to help you and your business through these challenging times.

You will discover:

· Why people buy
· Best ways to promote your business
· How to make a first impression that counts
· Ways to build rapport quickly
· How to identify a need through asking great questions
· Different communicating styles
· Barriers to communication and how to overcome them
· Different styles of business generating activities – and which best suit you!
· Key steps to a successful sales process – before, during and after the call
· Effective ways to close sales
· How to build and maintain your confidence
· How to identify your ideal customer
· How to build a strong referral business

Price: £399 + V.A.T.

Recommend someone else for this workshop and get a further 10% OFF!

SPECIAL OFFER

Existing clients: 20% OFF the marked value
Money back: become a client and get £100 back!

What's included:
· Tea / coffee, biscuits, danish/pastries
· 3-course lunch
· FREE PARKING for the day (Holiday Inn car park, limited spaces, strictly on a first come-first served basis)
· FREE copies of Selling To Win (Richard Denny) worth £9.99 & Moving To E-Business (WSI) worth £9.99
· FREE CONSULTATION with Alex Parkov
· FREE WEBSCAN by Tracy Spence

Does your business qualify for a GOVERNMENT GRANT to help with your training budget?

Contact Alex Parkov (Business Advisor, The Infinite Group) or
Tracy Spence (WSI Internet Marketing Consultant) today to find out more!

LIMITED PLACES ONLY!
Click here to reserve your space today.

Date: 23rd April 2009
Event: Economic Downturn: Your Golden Opportunity
Location: Holiday Inn, Milton Keynes
Time: 8:30 – 16:00 hrs
Speakers: Alex Parkov (Business Advisor): 07983 387 323 / info@AlexParkov.co.uk
Tracy Spence (WSI Internet Marketing Consultant): 01604 518 121 / info@tracyspence.com

Cutting Costs

2009-02-16T11:17:00.000Z

Ever since the start of the Credit Crunch, I’ve noticed that people and businesses alike started to pay more attention to their outgoings. Should they not have been doing it from the outset?

Cash is king, recession or not! When times are hard, the first thing that businesses do is cut their costs. However, there seems to be a trend there on such cuts:

Jobs
Staff training
Marketing

These are not the best places to start with! Instead of going into a panic mode, businesses ought to review their outgoings and how you manage your payments to understand the situation and what it means for their future survival. Look at the spending patterns.

How do you pay your suppliers? Have you got good terms with your landlord and suppliers? Do you still use the old-fashioned cheques and pay on an ad-hoc basis as of when a bill comes through? Do you pay money into your bank account when you get a cheque?

Ask yourself these questions as a starting point. Contact your suppliers to negotiate terms that would not cripple your business in the long run and ensure that you have your cashflow forecasts updated for at least three months ahead in order to show you a full short-term picture.

In order to better understand your position, talk to specialists: Business Advisor, your Accountant, Bank, solicitor for professional advice and guidance.

Alex Parkov – Business Advisor
info@AlexParkov.co.uk
www.AlexParkov.co.uk

Starting Your Business

2009-02-12T11:18:00.000Z

A lot of people will say that starting your own business especially in today’s economic climate is madness. But why? Don’t people need the same services? Do they not need the same products?

Perhaps we have all become more careful with our money and cut down on spending on luxury items and think twice before making a purchase. However we still need to maintain our homes, support our families, have friends and therefore have a social life, etc. Of course, in order to do that we have to work to earn money.

Now that the economy is down and a lot of businesses are downsizing with others disappearing people are worried for their jobs which sometimes creates panic and worry as to what they would do if they were not to work.

But isn’t it now the right time to look at what opportunities are out there? Competition, although still fierce, is nonetheless reducing. One thing that a recession does is filter out those businesses that do not have a plan and strategy in place to cope with difficult and critical situations, businesses that are not flexible enough to adapt and change direction if necessary. This is true of some large businesses, which is where Small and Medium Enterprises (SMEs) have an advantage!

A lot of people I’ve met told me that the reasons they had gone into business were:

Redundancy
Decided that what they were doing for someone they could do for themselves
Wanted to be their own boss
Wanted a change in life-style and couldn’t achieve while being employed

Whatever the reasons for starting a business are, the key to starting a good business is preparation and planning. If you do not have that roadmap, then how do you know which way to go? How do you know that you future business will be a success? How would you develop and grow your business?

FAILING TO PLAN IS PLANNING TO FAIL!

If you are thinking of starting your own business then a lot of work must be done and a lot of points must be considered:

Legal entity: Sole Trader, Partnership or Limited Company?
Start-up capital and where it come from
Sales & Marketing strategy
What equipment is required
Premises
Location
Pricing levels
Suppliers, etc.

Get help and advice from specialists, such as Business Advisors, Accountants, Business Link, banks.

Alex Parkov - Business Advisor
http://www.alexparkov.co.uk/
info@AlexParkov.co.uk

Liquidity in Business – Where to Look For Help

2009-02-06T13:27:00.000Z

We all hear on the news that the banks don’t lend and businesses suffer through lack of that support. But why don’t they lend and where can SMEs go for help when a business has a viable product or service but all that it needs is finance?

Firstly, contrary to what we see and hear in the media, banks still provide lending to businesses. However, their criteria have changed as they had to tighten the rules. For too long did the banks provide finance to businesses that would not be able to afford it or would not qualify for. In addition to that, was it the right type of finance in the first place? But let’s not dwell on things that happened in the past. It’s onwards and upwards, as they say...

One good thing that some banks are doing is actively trying to help businesses by providing information on how to manage your money and trade through the economic downturn. One of such banks is RBS with their Money Sense for Business. Have a look at their latest information page.

If you are looking for finance for your business, firstly, identify what the loan is for. Is it for training? Purchase of assets? Or another type of project in your business? This will provide you with a number of options of what type of finance you would need and where to go for it. There are numerous options out there on the market. If you are not sure what finance to apply for, click here for help and speak to your accountant or another independent specialist / business advisor who will be able to advise and help you.

Once you know what type of finance you require for your business growth and development, be sure to prepare to answer a lot of questions!

Here are some tips to prepare an application for business finance:

Get your Business Plan up-to-date
Clearly state what the finance is for. Outline how this finance (or what it is for) will assist your business
Do your research. Find out who your main competitors are and what makes you stand out from them
Get your financials in order: it is usually a requirement to supply 3 years’ accounts for established businesses.
In some cases lenders would accept Management Accounts
Get your business and personal bank statements for the last 6 months as some lenders will not consider your application without them
Prepare a details cashflow forecast. Remember, you must demonstrate that you can afford this borrowing and it will not drain your business and personal finances

There are also other options for businesses, such as De Minimis Aid, which includes various schemes either provided or supported by the government. These include:

Small Firms Loan Guarantee Scheme (SFLGS): this is where a security is required by a lender, but it is not available from a business or its owner(s). If a business is qualified for such a scheme, the government will underwrite 75% of the loan. You may still have to find the remaining 25% worth of security though
Government grants through Business Link and Local Authorities
Train To Gain

Contact the relevant body to seek further information.