Category Archive: Pricing
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Tough Times checklist
Comments Off on Tough Times checklistWith 2018 set to be another challenging year, here is our checklist for helping you to review your business to ensure it’s as strong as possible, especially from a cash flow perspective:
- Put extra effort into making sure your relationships with your better customers are solid.
- Review and flow chart the main processes in your business (e.g. sales processing, order fulfilment, shipping etc) and challenge their efficiencies.
- Encourage team members to suggest ways to streamline and simplify the processes (e.g. sit down and brainstorm about productivity, outsourcing and cost reduction).
- Review your budgets and set realistic and achievable targets. Use ‘bottom up’ budgeting where everyone in the office gives input on areas over which they have control – target a 10% cost saving.
- Review your realistic staffing needs over the next 12 months.
- Pull everyone together and explain the business strategy and get their buy-in.
- Get your members of staff involved in a discussion of likely trading conditions and get their input on reducing costs and maintaining revenues.
- Review your list of products and services and eliminate those that are unprofitable or not core products/services.
- If appropriate, review banking facilities and discuss future needs. If you are going to require additional funding ask for it at least 3 months before you need it.
- Establish your key performance indicators (KPI’s) and measure them on a weekly basis e.g.
- Sales leads generated
- Sales fulfilled
- Cash balance
- Stock turnover
- Debtor days
- Gross profit
- Net profit
- Get rid of won’t pay customers.
- Review debtors list and chase up overdue invoices. Offer existing debtors extended payment terms and/or discounts. Assign responsibility to one individual for invoicing and collections.
- Make sure your terms of business contain explicit payment terms.
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Try our 15 point check list to get your business into shape for 2016
Comments Off on Try our 15 point check list to get your business into shape for 2016Business confidence is now generally high and we have finally climbed out of the recession. Britain’s GDP is now a few per cent above where we were in 2008 before the crash, which cut over 6% from the UK’s output. However, there is still plenty of uncertainty out there (look at China for a start) and the last thing any business should do is get complacent. Here is our checklist for helping you to review your business to ensure it’s as strong as possible going into next year, especially from a cash flow perspective:
- Review your budgets and set realistic and achievable targets.
- Get rid of won’t pay customers.
- Review your debtors list and chase up overdue invoices.
- Make sure your terms of business contain explicit payment terms.
- Assign responsibility to one individual for invoicing and collections.
- If appropriate, review banking facilities and discuss future needs. If you are going to require additional funding ask for it at least 3 months before you need it!
- Put extra effort into making sure your relationships with your better customers are solid.
- Review and flow chart the main processes in your business (e.g. sales processing, order fulfilment, shipping etc) and challenge their efficiencies.
- Encourage team members to suggest ways to streamline and simplify processes (e.g. sit down and brainstorm about productivity, outsourcing and cost reduction by using tools pay stubs).
- Use ‘bottom up’ budgeting where everyone in the office gives input on areas over which they have control – target a 10% cost saving.
- Review your staffing needs over the next 12 months and deal with weak or unnecessary individuals.
- Get your members of staff involved in a discussion of likely trading conditions and get their input on reducing costs and maintaining revenues.
- Review your list of products and services and eliminate those that are unprofitable or not core products/services.
- Establish your key performance indicators (KPI’s) and measure them on a regular basis e.g.
- Sales Leads generated
- Orders supplied/fulfilled
- Cash balance
- Stock Turnover
- Debtor Days
- Gross Profit
- Net Profit
- Pull everyone together and explain the business strategy and get their buy-in.
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Funding to support your growth
Comments Off on Funding to support your growthIf you are an SME with a successful business you may need support to drive the next stage of your growth. Running a thriving company can be a real challenge and is sometimes a lonely place to be. In an ideal world you’d have an experienced full-time finance professional (e.g. a Finance Director) on your team but, right now, the cost is probably prohibitive.SouthWestfd is a highly experienced group of finance professionals who have all been finance directors, managing directors and CEOs in a variety of industries. We have helped many companies across the region to set the foundations for successful expansion, putting the right building blocks into place, such as robust cash flow management.For an initial outlay of only £1,500 (+VAT) we can access government funding that would pay for £3,000 of our time (equivalent to 5-6 days support). We will work with you on a flexible basis to help improve your company’s financial performance and support your growth.We will assign one of our Finance Directors to get to know your business and to engage with you and your senior team to:- Help to identify ways of improving profitability
- Help you keep on top of your cashflow
- Support your management of growth and avoidance of growth pitfalls
- Identify key improvements in the financial information you receive
- Challenge you to improve your financial systems and processes
- Assist you to draw out and resolve key financial issues
- Support your financial forecasting and business strategy
- Discuss your working capital needs and options for fund-raising
- Assist you to build relationships and credibility with banks, investors and other funders such as grant providers
- Prepare you for raising of finance, acquisitions and exits
- Help with resolution of difficult and confidential issues
- Act as a sounding board for you and your team
- Help you to ensure that you fulfil your statutory duties to the company
- Cover any issues that you wish to discuss and develop
To qualify, your business must:
- Be registered in the UK and based in England
- Have fewer than 250 employees
- Have turnover of less than £40m
As a follow-on, we also have access to ‘Leadership and Management’ training grants, giving match funding of up to £2,000 per eligible senior manager. These grants could pay for, e.g., general or targeted financial management training, marketing and PR training, HR training and many other topics. Much of the training can be “embedded” within your normal activities to make it very practical and totally relevant to your needs.
To register your interest and find out more, please call us on 01392 432654 or e-mail office@southwestfd.co.uk and we will talk you through the process.
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Budgets: A business straightjacket?
Comments Off on Budgets: A business straightjacket?By Jerry Davison
Budgets are a useful tool in monitoring progress against the achievement of a company’s overall strategy. However, when poorly utilised, they can restrict and stifle the abilities of both managers and staff: acting like a straightjacket, demoralising staff in the constant pursuit of numbers.
To be valuable tools, financial budgets should gain buy-in rather than indifference. Staff must see how the budget relates to the overall strategy and their individual aims and objectives. It also requires financial forecasts to look at the short and long-term, if staff are to engage with the budget and find it useful in quickly and accurately understanding progress.
Unlocking potential with rolling financial forecasts
When developing financial forecasts, there’s an unhelpful tendency to focus on the 12-month block up to the year-end. This is often at odds with project timescales, seasonal sales differences and various other factors.
Equally, for day-to-day management and operations, it’s important that staff have a clear and accurate picture of their current progress and financial flexibility. Fluid financial forecasts, that take account of monitored figures and adapt forecasted figures, provide more accurate and achievable figures – often tuneable to different timeframes.
For rolling financial forecasts to be effective, an accurate and up-to-date monitoring process is needed. This not only needs to include regular (daily or weekly) sales data, but also qualitative information such as feedback from staff on how forecasts might be effected by internal or external factors.
Making monitoring effective
At the core of effective rolling financial forecasts is effective and accurate monitoring.
Reporting templates should work in favour of the staff, capturing the necessary information whilst taking minimal time to complete. They should allow monthly, quarterly or even continual monitoring: and link back to the financial forecast projections for relative periodic adjustments.
Effective reporting templates can be designed in parallel with training staff in their use. This approach ensures the templates benefit from everyone’s knowledge, and everyone has ownership of how their achievements are acknowledged. Whilst some businesses use proprietary or outsourced systems, effective templates can be produced in Microsoft Excel.
Different parts of an organisation will have different reporting and access requirements. Designing different input sheets, tweaked to each element of business, will help streamline the process.
The length of rolling financial forecasts varies. We’ve found that 15-month rolling forecasts are the most popular. At the end of each quarter or month, depending on how often the financial forecast is updated, a fresh 15-month forecast is produced – adjusted using the monitoring data.
Strong companies use business intelligence to underpin decision making: speeding up and honing the accuracy of decisions across an organisation, helping increase profit margins by being more reactive and in the right direction. When designing templates and the overarching financial monitoring systems, you should ensure they can provide:
- Progress reports, tweaked to suit different levels of an organisation. These could simply be a spreadsheet, or template reports dynamically linked to the monitoring database. These may include some basic gap analysis, but this is often included separately within variance reports.
- Variance reports, highlighting where and how figures have differed from forecasts. These help identify areas of strong profit and weak performance. Where weak performance is due to internal rather than external factors, managers should use their diplomacy to support and not bully staff. With care, they are a useful tool. Without, they can set in the toxic ‘us and them’ attitude.
- Ability for relevant staff to identify and incorporate business drivers; create project plans and budgetary forecasts.
- Automation with technology wherever possible, for instance with stock management systems.
Electrician Islington
Electrician Islington offers a comprehensive range of industry recognised electrical services to landlords, estate agents, and other commercial clients. With our team of skilled electricians and commitment to quality, we ensure reliable and efficient solutions for all your electrical needs.
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