Fortunately, it isn’t. This is because it is after-tax cash. Yet many businesses consider that the most prominent role of an accountant is to work out ways to minimise and preferably eliminate their tax bills rather than show them how to increase profits. I have sat in meetings where the business advisor has taken calls asking for the lowest price that guarantees the lowest tax bill and been bewildered when hearing a price quoted followed by an argument as to why it isn’t less. I would therefore like to hear from more of the following: However, I will start by first giving you an insight into the type of clients we work with:
Which of the above four are you? The accountants we have partnered with have learned to do this and it pays Let’s now unpick them: Client 1 We all love these guys. They are open minded, appreciate continual advisory and brokerage service, are determined to succeed, soak up the knowledge and advice and pay handsomely because they implement your advice, see the effects, and request for your service more. Client 2 The bedrock of practice income. They are solid, dependable, not too ambitious but quick to seek and act on advice to keep things afloat. They pay well and are consistent and not too hot on business growth plans. Client 3 These business owners work incredibly hard and not always well, resulting in a hand to mouth existence. Yet some have great potential and with nurturing and suggestions for business improvement can improve and grow their business. Hence turning into a winner and paying you back for the low cost fees you charged when things were tough. Such business owners sometimes only find ways to move their business forward through a venture capitalist. Client 4 Lifestylers. They have a basic business that makes ends meet and is predicated on not spending anything that doesn’t give an instant return on investment (ROI) They want your services for next to nothing and have no loyalty or appreciation for your value. With the breaking down of the above, have a look at your client data list and allocate one of the four categories to each and then calculate the revenue from each group and the time/resource input for each. I’ll bet all your ROI is from category (1) and (2) whilst (3) is your investment for the future and (4) is losing you money with no returns and will remain the same so long as they are not interested in long term routes to improve profitability. You need to help category 4 turn into a category 3 client. We offer that support. If you don’t, then thy could become a challenge to your practice even though they produce revenue in the long run. Now, back to the aggressive phone call the business advisor has just taken. He now categorises the client. If he perceives him to fall into (1), (2) or (3), he will book a compulsory meeting to discuss exactly how they will help them to achieve business goals which are aligned to their personal goals. He may say the exact pricing is impossible until it is agreed on what needs to be done, and the outcome he has in mind. If he hears (4) he politely explains that they don’t provide such service because it aims to only work with motivated business owners to whom it can add value and improve its business modelling. When they finally meet the prospect they will carry out a full business assessment through way of a thorough business health check and match this against the business owner’s ambitions and present him or her with a full array of integrated services which also align every aspect of the business to the owner’s goals. The business advisor will portray the business as a long-term business partner working together to get results from as many or as few of the services as they decide to purchase. To embark on the above may appear intimidating and therefore may need some encouragement. The result being, a section of clients disappearing as they are unwilling to pay the increased fees for the added value, which will serve as an excellent ROI, such as helping them get more customers, increased business performance etc. This in turn will enhance profitability. If you feel you may fall into one of the above categories or need assistance or business advice relating to any aspect of your business or business idea, get in touch with us today. Please feel free to call and speak to an RBSS Business Advisor on 0333 355 1696, drop us an email, or use the form below. We provide real business solutions for start-ups and existing micro and small businesses. I am often assured that a professional business, such as a consulting firm has a business plan and when I ask to see it, it often isn’t a business plan. Instead, it’s an income and expense budget with a cashflow forecast. In other words, it is what banks ask for when considering a loan application, such as Start-up loans for access to finance and something small businesses ask their accountant to prepare, for no other reason than for a loan application. Often when I ask the business owner which actions are aligned with the business plan to achieve the forecast numbers, I usually get a shrug of the shoulders, a weak smile and a; “It’s just the arithmetic of the number of clients I think I’ll provide a service for throughout the year”. So, what should a business plan actually be? Well, before answering that, consider this: You have a sole trader client who is a self-employed plumber. In presenting last year’s accounts and tax return, he says to you, ‘I need help to grow my business by getting more customers’. He would therefore be expecting help in certain areas, such as; on how to improve business performance by putting business development plans in place. You probably wouldn’t recommend a business or marketing plan because you don’t have either of these yourself. And if otherwise, it wouldn’t be the right place to begin anyway. And because you were unable to help him, he falls prey to a more costly marketing consultant or you lose him to a more forthcoming competitor. However, if your business already had a good business plan it would have identified your plumber’s problem and how to deal with it profitably. You would have the right suggestions for business improvement and therefore strategies to improve business performance which will address the cause of his lack of customers and cash flow. Back to the business plan. What should it look like if you are to help your plumber client put some business growth plans in place via a business plan? VISION A sentence that states 5-10 years from now; what status your business looks to achieving to make it stand out. An example would be; “the biggest/most profitable small local business solutions advisor” MISSION STATEMENT A sentence that states what your business does, who for and to what standards. For example; “we help small businesses to solve problems and grow” OBJECTIVES Six statements of which must be measurable and achievable to fulfil the Mission Statement and keep moving towards the Vision:
For example; “All round business/financial advisory services to small/medium businesses”
For example; “Practical solutions at affordable prices for permanent income from every customer”
For example; “Automation everywhere to minimise employment and maximise data”
For example; “A small stable group of experienced people that will exceed planned results”
For example; “a 100% return on total assets” STRATEGIES The approaches I will take to ensure that the objectives are achieved. For example; “Quarterly market intelligence report on competitor activities” ACTION PLANS The detailed steps that named individuals will take by specific dates. For example; “Eric will set up a CRM (Customer Relationship Management) system loaded with prospects and clients by 30 June 2021” BUDGET The expected expenses incurred by implementing the business plan and the revenue receipts as a result. For example; “New costs of £50,000.00 to get total sales to new customers of £240,000.00 for 2021” REVIEW Monthly management accounts showing actuals compared to budget. Weekly/monthly KPI (key performance indicators) report of pre-sale statistics and trends. Meetings to agree to corrective actions and changes. If you are an accountant wanting to grow your business and to understand how to add better value to your clients, then please click here. If you can resonate with any of the above points or need assistance or guidance relating to a new or existing business plan or any other guidance related to your business, get in touch with us today. Please feel free to call and speak to an RBSS Business Advisor on 0333 355 1696. drop us an email, or use the form below. We provide real business solutions for start-ups and existing micro and small businesses. Business Loans Romford | Business Loans Hornchurch | Business Loans Upminster | Business Loans Brentwood
Business Loans Barking | Business Loans Dagenham | Business Loans Ilford Business Loans Stratford | Business Loans London I am struck by how many of the business owners I meet that do not consider this, and when I raise the subject, they usually tell me that they are relying on a private rental property and a modest pension for their retirement with no further access to finance.
They do not see their business as a saleable asset but as a source of cashflow that will have no value when they stop working And so often when I look at the financial structure of their business, its only assets are the debtor book, (some of which isn’t collectible), creditors at about the same value as the debtors, some cash in the bank and equipment and stock which would fetch less than book value if sold off. It’s therefore true, such a business is really not saleable, just something to close down and walk away from; as do 250,000 other UK small businesses owners every year for this very same reason. However, majority could be sold for a six or seven figure sum if managed differently Such an amount would transform the owners’ retirement finances from ‘getting by’ to luxury. Yet I get strong objections to the above proposition such as, “this business is all about me, so it isn’t saleable” I politely disagree with the above and put it to you that any and every business is saleable How? Well, it is instructive to first look at big businesses, which are all about money and return of investment (ROI) to see what they do. The aim is to not to be as ruthless as them but to learn for free what you can adapt. Here is what they do (just in their financial management stream – there are 4 others*):
At face value, much or all of this sounds time-consuming, costly and bureaucratic. To an extent it is. However, big businesses perform the above actions for the very good reason that it works, knowing that time invested in doing this provides a very good payback and ensures their survival. And remember, every big business was once a little one whose founders had the foresight to introduce strong business performance strategies and financial management at an early stage. The average big business sells for 14x pre-tax profits. Yet I have seen small businesses making £50K pa close down for instead of selling as a going concern for £500K+ It may seem that chasing another order or dealing with a customer crisis is a better use of your time. However, it should account for all you do. Appropriate business and financial management would make the orders come in automatically and prevent the customer problem in the first place. Knowledge is power and good financial management and other applicable actions gives you the power to make smart decisions that will build a saleable business worth millions. Most of what I have instanced above are not difficult to implement. And if you find this a challenge, your Business Advisor at RBSS Consulting Ltd, Romford will do it for you, helped by low-cost apps. Please note: not every action mentioned above will apply to your business which is a good reason to call in an experienced and professional Business Advisor for expert guidance. If you can resonate with some of the above points or are in any doubt as to which direction your business is heading in, get in touch with us today and you can be rest assured we will point and lead you in the right direction at RBSS Consulting Ltd. _______________________________________________________________ Your first step is for free and takes 15 minutes by Booking a free assessment here to find out how much your business is worth today, what it should be worth, and the actions needed to get it there. All in a comprehensive report tailored just for you. Another RBSS Consulting Business Consultant service… “Delivering Real Business Solutions” (*The 5 business streams are Marketing; Operations; Systems; People; Finance) Following the Budget 2021 announcement, find out what all small business owners need to know.
As you would have heard numerous times, we live in a fast moving world especially where business is concerned. New today, obsolete tomorrow. Selling your product/service is more about reaching out to your customers unlike when, it used to be the other way round. This however, could be very challenging when you are stretched and have limited resources or at least not unlimited. There’s a never ending list of tips on what every small business owner should know. However, I’d like to focus on 5 tips which is a good place to start. Please note this is practical advice for real results from feedback from businesses we have worked with.
One of the prominent ways to prevent your business from being stagnant is to stand out from the competition. One of the most common questions business owners need to ask themselves is: ‘Is my business still relevant to the target market I have and am I presenting or packaging it in the best possible way taking in to account the resources available to me?'. One of the catch phrases in businesses today is; beyond expectations or exceeding expectations. The way to achieve the above, would be to look at your business from a constructively critical view. The following 5 tips can help you revive your business:
There are numerous tips on how to succeed in business for start-ups. However this is practical advice for real results from feedback from businesses we have worked with and ours:
1. Business planning 2. Test Marketing 3. Right Finance Every business whether start-up or existing micro, small, medium or large enterprise, needs expert and valuable business advice. That’s where RBSS steps in. We provide a full diagnostic on areas of your business or field you may not have thought about, but are important. A business consultant can also be an excellent sounding board to help get you out of some very tricky situations. Some business solutions are ways to raising finance, business valuation and health checks, business planning , growth strategies, profitability and efficiency strategies, business modelling etc. These services are available to both start-ups and existing businesses.
In this blog I will focus on 4 key areas a consultant can add value to your business. Whilst it is common knowledge and should be the goal of any business to grow and acquire more clients, as they truly say in the business world, it is more cost effective and easier to retain your current clients than to acquire new ones. However, with the stiff competition businesses face today and to help you compete effectively in getting more customers and keeping your existing ones, I’ll be focusing on five tips (not a magic wand) to help you achieve this.
Whether it’s starting a business or running an existing successful business, we could all do with a few pointers every now and then. Here are 5 important business quotes and what you can learn from them:
Undeniably, customers are at the heart of every business and you need to keep on acquiring new ones to keep your business afloat. It doesn’t matter what you do, you may be a consulting firm or a bakery or a real estate agent, your business needs new customers. They not only provide increased access to finance but also help in boosting business growth.
However, it is easier said than done. In the competitive business world of today, you certainly need that extra edge over competitors to be able to draw in new customers. Customers are the heart of all small businesses and without them the business is sure to fail. Therefore, it important that they are treated properly and you strive to build a relationship with them, to ensure you gain a loyal customer.
Is your businesses struggling to be seen? Does it have an active presence on social media, or are you like one of the many business owners who say that they don’t have time to post regularly on social media? Do you know that social media makes a difference? These social media platforms will bring awareness to your business, organically grow your business, and one of them may even make you some extra money! By not doing so you are letting opportunities pass you by.
Business is business and whatever the size of your company there are many principles that apply to all. Look at the following skills that big businesses use that small businesses can use too:
Congratulations, you own your own business. You’ve worked hard to make it sustainable. But what now? You want it to grow and still want to make a profit? So how do you do it successfully, without spending a fortune? Here are some tips to consider about how to grow your business profitably.
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