Starting or growing a business is a significant decision, one that requires careful thought and planning. Knowing if your business is the right fit for you can determine its success and your personal satisfaction. This is paramount, as this will give you the opportunity to venture into a different business or completely different career if you are walking the wrong path. Several factors come into play when assessing the suitability of a business venture, especially when considering how to secure the right financial and strategic support. Let’s dive into the key aspects that can help you determine if your business is truly right for you in five simple steps:

1. Aligning Your Passion with Your Business Plan
Aligning your passion with your business plans is key to long-term success. When you build a business around something you love, it fuels motivation and resilience. Focus on your strengths, stay authentic, and ensure your business solves a real problem. Passion-driven businesses often create stronger connections with customers and lead to sustainable growth. To make informed decisions, you may want to start by consulting a professional business consultant

2. Financial Considerations: Are You Ready?
One of the biggest challenges faced by businesses is accessing adequate funds. Ask yourself: “Where can I raise finance for my business?” There are many options available, from the different start-up loans to equity funding and venture capitalists. Researching your options and engaging with the right business consultants offering advisory and brokerage services can provide guidance on finance availability, business expansion strategies and business growth plans.

For instance, business angels or venture capitalists may offer funding in exchange for equity, while start-up loans provide a more traditional route to help raise money for your business. You can also consider business health checks to ensure that your business is financially viable before committing to the correct funding options.

3. Understanding Performance and Growth Potential
A good way to determine whether your business is right for you is by examining its potential for growth. Business performance strategies are crucial to ensuring sustainable success. Regular evaluations and business health checks will help you assess the current state of your business and identify areas where business improvement strategies are needed and could be put in place.

Some strategies to improve business performance include optimising operations, improving customer service, or creating new revenue streams. If you're wondering how to improve small business performance, consider working with an advisor who can recommend business improvement strategies tailored to your needs. Business consultants can provide recommendations to improve business, focusing on key areas such as how to improve business performance and specific business start-up plans.
 
4. Planning for the Long Term
A strong business growth plan is essential for any venture. Your business start-up plans should include a detailed path for scaling, as well as business investment plans that secure future success. Crafting business development plans that are flexible and adaptable is key to adjusting with market changes.

Additionally, consider business expansion strategies to grow your business and get more customers. Engaging with experts who can help you craft business performance strategies will position you to identify opportunities and leverage them effectively.

​5. Accessing Professional Support
Starting or scaling a business is no easy feat, which is why many entrepreneurs turn to business advisors or brokers for expert guidance. These professionals can assist in securing business loans, navigating equity options, and providing insights on how to improve business performance. If you’re feeling uncertain, an advisor can offer personalised recommendations and business health checks to ensure your venture is on the right track.

Seeking advisory and brokerage services will provide you with clarity on potential risks and opportunities. Whether you need help in raising finance or refining your business start-up plans, expert support is readily available.

Conclusion: Is Your Business the Right Fit?
Knowing whether your business is right for you involves more than just having a good idea. It requires passion, proper financial planning, strategies to improve performance and professional support. By aligning your personal goals with solid business growth plans, ensuring you have access to finance through business loans, equity funding, business angels, friends or family and regularly evaluating your business performance, you will be able to confidently say whether your business is the right one for you.

If you’re ever unsure, remember that there’s always help available, whether you need advice on how to grow your business, support with business expansion strategies or start-up loans to get things moving, all you need is to give us a call today on 0333 355 1696 or send us a message on [email protected].

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To help to get inflation back down; on 3 August 2023, the bank of England raised our interest rate (Bank Rate) by 0.25 percentage points to 5.25%. This is its highest level since February 2008. This has a huge impact on businesses, most especially small businesses which are often dependent on external finance for growth and investment. The increased cost of borrowing therefore makes it more difficult for them to get help to raise finance they need to thrive. Hence, such businesses need to be more proactive and strategic in their financial management to keep afloat. Here are five specific steps and strategies they can implement:

1. Monitor Cash Flow: Many businesses especially small and startup businesses can easily make the mistake of focusing more on getting more customers and lose sight on their cash flow and identifying areas where it can be improved. Implementing efficient bookkeeping and collection processes to reduce outstanding receivables and ensure a steady inflow of cash in paramount. This includes reviewing all existing loans and debt arrangement strategies and monitoring and reducing non-essential expenses without impacting on the quality of services and products.

 

1. Focus on Customer Loyalty: It is easier and more cost-efficient to retain existing customers than to acquire new ones. Hence, prioritize customer service satisfaction and retention. Loyal customers can provide a stable revenue base and act as brand advocates, especially on social media; such as You Tube and Facebook, including word of mouth and therefore reducing the need for costly marketing to new customers.

 

1. Negotiate with Suppliers: This is most effective with long term suppliers. Engage in negotiations with suppliers to secure better terms and a wider time frame in witch to repay and if possible attain credit. This can potentially reduce costs and give the business time to build up profits and also improve cash flow during times of higher interest rates.

 

1. Boost Marketing Efforts: This may sound like a contradiction to point 2, however it’s not. A lot of small businesses claim they don’t have time for social media. Post-covid has proved this area to be the more unavoidable for businesses to attain effective business growth plans. With a large percentage of people working from home, businesses are forced to invest in targeted marketing campaigns to attract new customers and expand the business's reach. This is where Digital marketing, social media, and other cost-effective channels; such as Facebook, you tube, TikTok, LinkedIn etc are of importance. Take them seriously, investigate which is a better channel for your kind of business and take action.

 

1. Seek Professional Advice: Consult with our financial advisors to gain insights into industry-specific strategies and solutions and keep abreast of the changes in the economy. This gives you the opportunity to focus on what matters to you most which is your business. It is our responsibility and role as Business and Financial Advisors to Keep abreast of the economic indicators and interest rate trends as they unfold, monitor the business news, changes and updates from government and banks including the Bank of England to anticipate future changes and how these changes impact on your business, both in the short and long term.

 
 
By implementing the above business improvement strategies and maintaining a proactive approach to financial management, small businesses can rise above the challenges of the rising interest rates and position themselves for long-term success and growth.

If you need help in any of the above pointers or others regarding the rise in interest rates, give us a call today on 0333 355 1696 or send us a message at [email protected].

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:

• Marketing

What I will sell to new customers, in what quantity and when by?
For example; “All round business/financial advisory services to small/medium businesses”

• Operations

What I will supply to customers, in what quantity and in ways that brings them back to do business with us?
For example; “Practical solutions at affordable prices for permanent income from every customer”

• Systems

What I will invest in technology and processes to make the business efficient?
For example; “Automation everywhere to minimise employment and maximise data”

• People

Who I will employ and manage for commitment and productivity?
For example; “A small stable group of experienced people that will exceed planned results”

• Finance

What I will invest in the above to get a high return?
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. 

Following the Budget 2021 announcement, find out what all small business owners need to know.