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Welcome to our first Newsletter of 2012.
This month we've included a range of excellent articles from our members, with valuable advice about developing and making the most of your business. Plus Book Reviews and Star Blogs. I hope you enjoy reading them!
Although our feature this month has been on General Business matters, a theme has emerged - getting value from your business in 2012.
That includes better use of finance, better use of time, and ensuring you serve and add value to your customers at
all times, if you want to keep them in the present economic climate, and survive in business.
A business owner, whether a sole trader or ltd company, can easily spend 20 - 30% of their time on non-billable activities, such as book keeping, accounts, staff management, supplier liaison, and others.
How much time did you spend completing tax returns this month?
Larger businesses have this problem too - but they engage administrative staff to ensure it is done, because they want to be fully focussed on customer-related, and preferably chargeable work. Getting value from your business in 2012 means ensuring you are making the best possible use of your time and resources - and, if needs be, making use of other specialist businesses to help you achieve that objective.
This is a primary objective of Your London Business - to link business owners who can provide support to each other through our Suppliers Directory, Members Offers, and Request-a-Quote features - available online to our members. So whether you use the YLB resources, or your own existing contacts, its worth considering how partnerships and collaboration can help your business in 2012.
Your London Business can help you by offering use of our own hosted promotional solutions, using our new low cost Business Membership, from just £90 per year to host and run your own Promotional Programmes - for any type of business. You can also Advertise on Your London Business, both on our site and in this monthly news magazine, with prices starting at just £50 per month. To speak to us about hosting your 2012 campaigns and site advertising, call us on 0845 345 7039.
Our articles, blogs, videos, and podcasts all come from member contributions, and we thank them for their support.
If you are a non-member reading this and want to gain full benefit from Your London Business - then you can Signup online today.
You can also follow YLB on Twitter, Facebook, and Linkedin where we have our own dedicated sites - and ofcourse you can share YLB postings on your own accounts on these networks. We also have our own Podcast Site where you can listen to chats with real live business guests.
Note - Some of the features in this newsletter may not work fully within your email client. In this case you can view as a Webpage using the link at the top.
George Montgomery, Editor
Your London Business News
www.yourlondonbusiness.co.uk
Tel: 0845 345 7039
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 General Business Feature |
Are You Guilty of Business Procrastination ? Six days into 2012 and most New Years' resolutions are already consigned to the recycle bin! All is not lost - this is a good time to focus on some more realistic considerations, ones which could make a positive difference to you in 2012.
Alliotts has created a list of ten essential questions to ask yourself NOW............
Personal Finances: Am I spending too much, could I be saving more?
The first and most important step is to assess your income and your outgoings and identify where there is any shortfall or surplus. To get a more realistic reading, try looking ahead at income and expenditure over a 6-9 month period to take into account special events and holidays.
Loans & Mortgages: Do I have the best loans for my needs?
Look at what you are paying and then see if there is the opportunity to change lenders to cut costs. Also consider paying a higher than necessary monthly instalment on your mortgage to reduce the repayment term.The other big question is to fix or not to fix, but unfortunately no one can answer that one.
Pension: How much income will I need in retirement and how will I achieve it?
With many new flexible products coming to the market you should review your pension regularly to ensure that your current provision will be adequate to meet your needs and that your existing schemes are performing as well as the best.
Insurance: Have I got the right cover for my needs?
Consider if you have adequate cover to meet your needs and those of your dependents. Shop around for your car, house and travel insurance and ensure that you are not paying for policy overlap.
Investments: Have I made the most of my savings?
It is essential to ensure that your deposits are working as hard as possible for you and that your portfolio is invested wisely. Check that you have maximised your annual tax free saving allowance before 5 April as you cannot back date it.
Tax Return: Do I leave my tax return to the last minute?
It’s a job that most people dread, so this year consider getting all of your papers together in April/May so that you can get your return dealt with as painlessly as possible, especially as HMRC issue fines if you are late
Income Tax Planning: Am I maximising the tax allowances available?
Have you arranged your assets in the most tax efficient manner, bearing in mind that spouses each have their own tax free personal allowances? Careful asset allocation can save tax.
Will: Do I have one, can I remember what’s in it?
If you do not have a will you are leaving your dependants with a major problem. If you do have a will it should be reviewed at the time of any major life change (birth, death, divorce) and at least once every five years.
Inheritance Tax Planning: Do I want to leave my money to the taxman?
April 5th is the deadline for making annual (tax exempt) gifts. There are also longer term factors to take into account. Consider discussing with other family members how IHT can be reduced.
Seek Professional Advice: Can I really afford not to ?
Sudheer Gupta, Partner, Alliots Chartered Accountants
Alliots Chartered Accountants, business advisors and tax specialists based in London, Guildford and Harrow.
Tel: 0207 240 9971
www.alliots.com
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Support to Grow Your Business If you are a fast growing sole trader and have reached the point where you can’t cope on your own any more, here are a few pointers to help you define the type of support your business needs:
Contractor or employee?
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Contractor
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Employee
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Use a contractor/freelancer if your business is seasonal or you do not have regular demand for your products or services
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Hire an employee if you need to inject specific additional skills into your business that will be required on a consistent and regular basis
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Make sure you check out the quality of the contractor/freelancer’s products or services and take up references
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Before you start your recruitment process, carry out an analysis of the type of work/contribution to your business your potential employee will be required to deliver
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Ensure you reach clear and mutually beneficial arrangements as to the way you will work together, i.e. work assignments, delivery requirements, confidentiality, payment terms and frequency, etc.
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Ask yourself which part of the work you currently do you are prepared to delegate and what type of person you could work with
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Protect yourself with a well drafted freelance agreement
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With the above information prepare a person specification and a job description
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Already have one or a few employees?
If you do but are not sure if you are managing them correctly, bear in mind that:
- All employees must have been issued with a contract of employment within the first eight weeks of employment regardless of company size. Failing to do so can lead to compensation payments of up to 4 weeks’ salary
- Having a disciplinary and a grievance procedure is a legal requirement
- Having an Employee Handbook is helpful both for employers and employees as it guides you on the way to manage your staff whilst it gives your employees a clear understanding of what is expected of them
- Job descriptions that truly reflect the tasks employees are required to perform lead to effective and engaged employees that understand the expectations of their jobs.
- Employers can use the job description to manage performance and also as a basis to carry out periodical appraisals
- Regular and positive communication and feedback sessions with employees will lead to having committed and dedicated employees
Mirtha Medina, HR Help 4 Business
Professional Human Resources management support and advice for SME's guiding you on people management best practice, employment law compliance, employment documentation, performance management and conflict resolution.
Tel: 020 8948 1692
www.hrhelp4business.co.uk
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Why Board Meetings Are a Waste of Time
I have written in the past few weeks about the
problem with board meetings and the
problem with sales meetings. It was suggested to me that it might be helpful if I explained what are the particular issues with a dysfunctional company board and how a well run company board would operate. In this article I intend to concentrate on dysfunctional boards or boards in crisis.
So lets remind ourselves what issues should be addressed at board meetings? They’re the meetings that set the direction for the company, confirm policy, and direct the business response to unforeseen events, either external like for example a significant change in market conditions, or the arrival of a new or stronger competitor. The unforeseen events maybe internal like the loss of key staff or a major issue with sales or production. To get the best out of these meetings they should be held regularly and it should involve a review of the company’s performance.
So, if that's what a Board meeting should cover what do we typically see in a dysfunctional or crisis board.
Number 1 is not understanding the importance of a board meeting. As individuals and owners we tend work and think at an operational or detail level and it takes some effort and often some training to start to look at strategic and policy issues at a high level. Because operational issues tend to be more immediate and therefore urgent they get in the way of longer term but no less important considerations.
Number 2 is where day-to-day operations dominate meetings. This is the most common situation and is a result of the first symptom. Typically the meeting will have no agenda and the participants will have made little or no preparation, consequently what gets discussed is what is on peoples minds at the time (management issues).
Number 3 is not having external advisers. In order to understand and address strategic issues, and probably any issue, it is beneficial to get external advice from people who are not intimately involved in the business. These people can be Non-Executive Directors or external advisers. This separation gives them the ability to make key insights about the business and its relative performance that would not be possible from internal managers and directors, who often "cant sees the woods for the trees".
Number 4 is hearsay management. This is a situation where the business owner/ CEO makes decisions based on their gut instinct or impulse and without proper evidence. In these situations boards are often seen as a hindrance because board meetings are a forum where members can question and review key decisions. This type of situation is often coupled with Number 5 where the CEO/MD has a low opinion of the management team and doesn't see great value in their input or they don't want to be challenged. I have found this later situation common in family run businesses where the control is kept within the family irrespective of capability and the unwanted scrutiny of a board meeting is something to avoid.
Number 6 the festering issue/disruptive director. These two often go hand in hand and the disruptive director is often a result of a long running un-addressed issue where he or they consider that a poor or no decision has been taken on a subject of great importance to them and despite numerous attempts the problem is either ignored or avoided leaving a disgruntled board member. The result is that they will go to great lengths to try to raise the issue whilst everyone else will do their best to avoid it, as a result issue and those connected issues are not properly discussed and frequently board meetings are delayed or cancelled as part of the avoidance process.
Whilst there are many issues surrounding board meetings don't let this list put you off. Many companies have a well functioning board and if you do suffer from these common problems its fairly straight forward to deal with them.
Laurence Ainsworth, Exigent Consulting
Laurence Ainsworth founded Exigent Consulting in 2002 and since then has performed a number of successful turnaround assignments and has worked with numerous companies to develop and implement successful growth strategies. He is skilled at working with, and getting the most from, owner managers.
Tel: 01795 841091
www.exigent-uk.com
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About Us
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Your London Business is a friendly network for business owners and entrepreneurs, covering the Greater London area. Whether your business is located in London, or outside London - we can help you market and promote your business to the London Business Market by using the extensive facilities in our network..
If you are actively involved in owning or running a business, considering starting a business, or developing your business ideas, then this is the network for you.
The opinions expressed in published articles are those of the individual authors and not of Your London Business. |
To discuss your next promotional campaign call 0845 345 7039
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Book Reviews
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Double-dip recession, austerity measures and Euro meltdown - how’s that for getting into a positive mood to start off 2012?!
Fact is, 2012 will be hard for many business owners. For others, this will be a great year, maybe their best yet. The first thing you can do to make sure you’ll be in the later category is to start value your time. No, really. “Counter-intuitive?”, you say.
Yes, in the way that valuing your time means that you’ll be looking at hiring.
For many businesses, recession means getting rid of everyone they can. Unfortunately, this does not improve the situation. What happens if you’re a big business and cut in the sales team, or marketing, or admin? Apart from leaving the people who are left scared of losing the job (nothing like that to boost work morale!), you have fewer people helping you get your message out and taking care of the day-to-day operations.
So what is the situation for the small businesses? Whatever the economic situation in the UK will look like this year and the coming ones, valuing your time is one of the main things that will help you succeed. If you’re selling your time, you need to start valuing it. If times get tougher, then you can’t afford to spend your time on things that don’t have a high impact on your business. For example, if you’re a consultant, you need to spend your time consulting with clients and getting new clients. Spending hours to research your competitors is a waste of time for you, so let someone else do that.
Many small businesses and self-employed people have accountants to handle bookkeeping, tax returns and similar. That’s all well and good, but it’s not enough. What about the time you spend on administrative tasks? Many small tasks quickly add up and they do not only occupy your time, but take away your focus and energy as well. Value your time enough to know when it’s time to hire someone else to do it.
When I say hiring, we’re not necessarily talking full-time employees. For many businesses, finding a good virtual assistant is enough for freeing up lots of time. By employing someone else to do things that you could do yourself but are better off not doing, you free up more time you can spend on building your business and choosing the right business strategies.
It's always a good idea to keep your business lean and look for ways to cut your costs. However, even though the news may be pumping out stories about the UK's bad economy that doesn't mean you should shy away from outsourcing. Sure, you could do it yourself - but can you really afford to?
If the spending cuts mean people are more cautious to invest, it may take longer and require more effort to sign up a new client. This makes it even more important that you spend your time reaching out to new prospects, rather than doing office admin work just because it needs to get done.
Although a tough economic climate sees many businesses firing rather than hiring, getting someone else to handle what is non-essential for you to do personally will help you be successful.
Isabelle Fredborg, Solopreneur's Toolbox
Solopreneur's Toolbox helps self-employed consultants, coaches, freelancers and other service providers to build better businesses.
Tel: 07553 648206
www.solopreneurstoolbox.com
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