Quite simply it can be the difference between success and failure for your business.
I am often amazed at some "entrepreneurs" who go into business with the hope and the expectation that everything will be OK but without a plan to back it up. They work so hard - often to the detriment of their family relationships but they end up going nowhere - and often backwards. What a shame as a GOOD FINANCE DIRECTOR could help enormously.
So what does a GOOD FINANCE DIRECTOR help you do? Here are 5 things to look out for.
1. Plan for profitable growth of your business (whatever your business horizons a Good FD should be able to help you see this and visualise it)
2. Set Key Performance Indicators around your profitable growth - this allows you the entrepreneur to not have to worry about all the nitty gritty but to easily pick up when things are wrong. KPI's buy you time to make more money.
3. Make sure the day to day / month to month stuff is right. This is helping you to control your business - you can't rely on your accountant to get this right as they are often wrong! You need control to grow. Without control which you can't take informed decisions.
4. Manage your service providers - what entrepreneur wants to deal with bankers/lawyers/accountants etc - quite simply they are often very dull and get in the way of you making money
5. Help you realise your dreams - At a strategic level it is all about you - the shareholder - a good FD should understand what you are trying to achieve and interact with you that facilitates this. This may be an exit in 5 years or the creation of more income or a legacy.
If you don't have an FD or your one is under performing then please give me a call on 07771 672673 and lets get your business moving in the right direction.
Monday, 1 November 2010
Monday, 16 August 2010
Difficult times for Horse Racing
It really is a difficult time for the Racing industry at present as last Fridays edition of the Racing Post explains.
Everyone is struggling from Racehorse Trainers/Owners/Bookmakers/Racecourse Managers even the Stud farms. The economic climate is really taking its toll with the Levy board reducing the amount it pays out by 25% this year with perhaps further cuts to come.
Racing for Change is an interesting body but is it really addressing the key issues for the industry? I fear not. Certainly there is a brand issue but the heart of the problem I believe lies in the Financial Operations of Racehorse Trainers themselves.
A less vibrant economy means fewer owners with less money to spend on quality horses. It means in effect that the Racehorse Trainer ends up operating a hotel without fully paying customers. Commercially minded landlords and HMRC pile on the pressure until perhaps the trainer comes under intolerable strain. It is exactly in these scenarios that a trainer may be exposed to the more undesirable elements in our wonderful sport.
My view is that if you help Racehorse Trainers create a more stable financial platform upon which to perform then you lead to an increase in the credibility of racing as a whole. This is the brand issue that Racing needs to address. Those trainers that act in a Financially responsible manner in relation to their business deserve huge credit. Owners should bear this in mind when selecting their trainer.
Now if only there was a standard that Owners and Punters could rely upon .... and what if those trainers were incentivised to take up that standard.....surely that would lead to an uptick in betting turnover.....and everyone would benefit....now there is a thought...
Everyone is struggling from Racehorse Trainers/Owners/Bookmakers/Racecourse Managers even the Stud farms. The economic climate is really taking its toll with the Levy board reducing the amount it pays out by 25% this year with perhaps further cuts to come.
Racing for Change is an interesting body but is it really addressing the key issues for the industry? I fear not. Certainly there is a brand issue but the heart of the problem I believe lies in the Financial Operations of Racehorse Trainers themselves.
A less vibrant economy means fewer owners with less money to spend on quality horses. It means in effect that the Racehorse Trainer ends up operating a hotel without fully paying customers. Commercially minded landlords and HMRC pile on the pressure until perhaps the trainer comes under intolerable strain. It is exactly in these scenarios that a trainer may be exposed to the more undesirable elements in our wonderful sport.
My view is that if you help Racehorse Trainers create a more stable financial platform upon which to perform then you lead to an increase in the credibility of racing as a whole. This is the brand issue that Racing needs to address. Those trainers that act in a Financially responsible manner in relation to their business deserve huge credit. Owners should bear this in mind when selecting their trainer.
Now if only there was a standard that Owners and Punters could rely upon .... and what if those trainers were incentivised to take up that standard.....surely that would lead to an uptick in betting turnover.....and everyone would benefit....now there is a thought...
Friday, 16 July 2010
Resellers feeling the pinch
An IT resellers life is a simple one in a way....
SELL SELL SELL .... I hear you say
I'm afraid its true - box shifting leads to a life of continual selling without the building of a residual income stream into the business (perhaps via a robustly set up services operation). If the selling stops so does the business.
BUT I'M HAPPY SELLING....I hear you say....
That's great but what happens when you lose your enthusiasm in your late 40's for the game. What have you built that you can sell. Have you got a team around you that is "buyable"? What about the brand? Have you got an income stream?
The worst thing that can happen is you don't plan and you don't engage with a decent FD at an early stage. Let them take the pain of the day to day and help steer you to a better future.
SELL SELL SELL .... I hear you say
I'm afraid its true - box shifting leads to a life of continual selling without the building of a residual income stream into the business (perhaps via a robustly set up services operation). If the selling stops so does the business.
BUT I'M HAPPY SELLING....I hear you say....
That's great but what happens when you lose your enthusiasm in your late 40's for the game. What have you built that you can sell. Have you got a team around you that is "buyable"? What about the brand? Have you got an income stream?
The worst thing that can happen is you don't plan and you don't engage with a decent FD at an early stage. Let them take the pain of the day to day and help steer you to a better future.
Wednesday, 16 June 2010
Marketing Agencies taking a hammering
This is the toughest time I have ever seen to be operating in the Marketing sector. The issues are twofold:
Well it's time for this sector to wake up and smell the coffee. I'm afraid its adapt or die....
- Marketing budgets continue to be slashed across all business sectors leading to fewer jobs at lower margins.
- In the UK we have sent an unbelievable amount of people to media college who now can't find jobs - so what do they do - they seed pod and start up in their own bedrooms. The effect a dramatic undercutting of jobs for traditional agencies who still have to bear the overheads
Well it's time for this sector to wake up and smell the coffee. I'm afraid its adapt or die....
Sunday, 16 May 2010
Aligning employees interests with a share scheme
“The use of employee share schemes is soaring, especially among smaller private companies”, says Alex Warren.
Employee share schemes are already commonplace in UK quoted companies. These often take the form of share options or awards of shares which are released to employees over time on the achievement of performance targets. Now, however, smaller companies are using specially designed schemes, such as the government sponsored Enterprise Management Incentive, to help them get through tough times. These schemes not only provide effective incentives for staff members but also offer the potential to save large amounts of tax and conserve cash.
Employee share schemes are already commonplace in UK quoted companies. These often take the form of share options or awards of shares which are released to employees over time on the achievement of performance targets. Now, however, smaller companies are using specially designed schemes, such as the government sponsored Enterprise Management Incentive, to help them get through tough times. These schemes not only provide effective incentives for staff members but also offer the potential to save large amounts of tax and conserve cash.
Sunday, 23 August 2009
Why every business should have a Part Time FD!!
It seems to me that business owners often think that their high street accountant is a business guru of some description who should be trusted with their most sensitive financial information and knows how to run a fantastic business.
The reality is that high street accountants are often average business men that "fell" into the profession after realising that there was little hope for them out in the real commercial world. These guys have never run "real businesses" and that is the issue. Don't get me wrong there are some good ones out there - but how often do they ever given great quality commercial advice? The point is that other than a bit of taxation structuring (and most of them are not very good at that!) it is a compliance service and a compliance service only that they should be used for.
To get quality Finance input - i.e. to make you more profit and get more cash in your bank - every business needs a quality go to person as their FD. A quality FD will more than pay for himself by helping steer the MD along the route of quality profitable business (i.e. making more Gross Profit!) and keeping Overheads down (the difference between Gross Profit and Net Profit!)
So if you are sitting there and you don't know the difference between Gross Profit and Net Profit and worse still your accountant hasn't explained this to you then be scared....be very scared... and then pick up the phone and call Yellow Brick Road (08447 706320).
Quality FD skill is available at a fraction of the cost of full time resource so why not bring one into your business for one day a month to see what they can do for you! www.yellowbrickroadconsulting.co.uk
The reality is that high street accountants are often average business men that "fell" into the profession after realising that there was little hope for them out in the real commercial world. These guys have never run "real businesses" and that is the issue. Don't get me wrong there are some good ones out there - but how often do they ever given great quality commercial advice? The point is that other than a bit of taxation structuring (and most of them are not very good at that!) it is a compliance service and a compliance service only that they should be used for.
To get quality Finance input - i.e. to make you more profit and get more cash in your bank - every business needs a quality go to person as their FD. A quality FD will more than pay for himself by helping steer the MD along the route of quality profitable business (i.e. making more Gross Profit!) and keeping Overheads down (the difference between Gross Profit and Net Profit!)
So if you are sitting there and you don't know the difference between Gross Profit and Net Profit and worse still your accountant hasn't explained this to you then be scared....be very scared... and then pick up the phone and call Yellow Brick Road (08447 706320).
Quality FD skill is available at a fraction of the cost of full time resource so why not bring one into your business for one day a month to see what they can do for you! www.yellowbrickroadconsulting.co.uk
Monday, 20 July 2009
A bit of market research....feel free to join in! (July 09)
Dear blog reader
Your very kind help is requested to complete the piece of research attached on the following link. I would not normally send a mass e-mail for this type of thing but having read the content I believe it could lead to an additional work stream for blog readers (always welcome I hear you say!). My client has specifically asked that I obtain the views of blog readers given their unique and distinct position in the market place.
There is also a chance of winning the charity draw of GBP 50 which can be donated to the winners designated charity!
http://www.keysurvey.co.uk/survey/265743/15fe/
Should take a maximum of 3 minutes!
Many Thanks
Alex
Your very kind help is requested to complete the piece of research attached on the following link. I would not normally send a mass e-mail for this type of thing but having read the content I believe it could lead to an additional work stream for blog readers (always welcome I hear you say!). My client has specifically asked that I obtain the views of blog readers given their unique and distinct position in the market place.
There is also a chance of winning the charity draw of GBP 50 which can be donated to the winners designated charity!
http://www.keysurvey.co.uk/survey/265743/15fe/
Should take a maximum of 3 minutes!
Many Thanks
Alex
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