Every business needs to make sales. From responding to leads to actively selling, you must ensure you have the right person in place to secure those essential business wins. LGBA’s international business development expert Lesley Rubenstein outlines the top traits you should look for when hiring for this crucial business role. Trait One - Outgoing Personality – on and off the phone. Having an outgoing personality is probably the no. 1 trait required to be a great business developer. No shrinking violets need apply! Why? Think about it! You will need to contact businesses you may never have been in contact with before, either on behalf of your own company, or someone else’s. You have very little time to convince that business to spend time with you to determine why they should do business with you. Basically, you need to excel at sales pitches – but what are you selling? This is a bit different from selling a product per se – it’s more about why the business you are contacting … [Read more...]
Are you ready to put your STAMP on 2020?
Strategy Targets Accounts Marketing People However you voted in December, and whatever your preferred outcome, we know the UK will be leaving the EU on 31st January. The clock starts on the transition period… but don’t worry, this is not a Brexit rant! The start of every New Year is the perfect time to restock your thought-bank, recharge your batteries and do some planning. Here’s how you can put your STAMP on your business in 2020 by focusing on these 5 important areas: Strategy Most small businesses do not have an up-to-date business plan, which means they tend to focus only on shorter-term outcomes. And as the Cheshire Cat in Alice’s Adventures in Wonderland once said, “If you don’t know where you are going, any road can take you there.” The classic result is an initial feeling that you are responding to the market and widening the range of services you provide, but this soon develops into a business spread so wide that it’s impossible for potential customers to define what … [Read more...]
Is your brand positioning clear enough?
Do you truly know how your customers perceive your brand? When running a business, it can be all too easy to get caught up in day-to-day operations and to lose sight of what your customer is thinking. Unfortunately, if you’re not actively working to shape and communicate your brand position, the customer will simply make his or her own decision as to what you stand for. If your brand positioning is not clear, your business will suffer from some or all of the following issues. You try to sell to everyone, and end up attracting no one in particular Customers don’t understand the problem you’re solving or the want you are meeting Unique features of your product or service will not be realised or understood Benefits you offer in comparison to other competitors will not stand out Reasons to believe in your brand are not crystal clear As an example, a crack garden landscaping team may do a great job on the ground, but their website and marketing material undersells their particular … [Read more...]
Is your business stuck at a crossroads? Time for a strategic review.
Many businesses reach a stage when they are at a crossroads about the direction to take next or are “stuck” without a clear strategy. It may be a crisis point or it could be an opportunity to take a different path. Directors may no longer be aligned with the planned company direction, and this can cause friction. Rather than putting off hard decisions, it makes sense to face up to the challenges and opportunities, have a strategy review and then put an implementation plan in place. Reasons for a strategic crossroads could include: Change in market dynamics that impact growth or profit potential.Increased competition forcing new approaches.Loss of important customers or contracts.New product or service opportunities possibly requiring research and development.Recognition that the business is too reliant on a small number of key customers.Macroeconomic/political changes such as Brexit.Divergence of what Directors want from the business.Planning for exit / opportunities to … [Read more...]
The Cost of Poor Strategy Execution – Can you afford it?
I am often asked by clients what is the real cost of executing a strategy badly? In this short article, I will provide some highlights and lookouts on the implications of executing strategies poorly. Good v Bad Strategy Execution Planning Every business needs a plan or strategy whether you’re a global corporate or a £2m turnover single entity business. When we talk about strategy planning and execution, we are specifically referring to how a set of strategic objectives will be achieved. Strategy execution defines the overall approach and plans required to efficiently achieve the outcome. What then makes a good strategy execution plan versus a poor one? A good strategy execution plan should be logically coherent, easy to understand and as simple as possible; it traceably aligns all activity to the company vision and objectives whilst providing visibility, purpose and clarity to the relevant stakeholders involved in execution of their tasks and responsibilities. We sometimes … [Read more...]
Essential steps when acquiring a new business 1
Part 1 - What is your strategic reasoning for acquiring a business? Why you want to buy a business, where to search and what to look out for. To start with, it helps to be clear about why you are buying. Acquirers can have diverse motivations: a carefully thought out strategyopportunistic e.g. see a competitor of a failing business is up for sale a belief that, by acquiring, you will be able to generate a value significantly greater and faster than the alternative of continuing organic growth. Often, the expected benefits will include one or more from: geographic expansioncustomer basecustomer spread, i.e. for a manufacturer a number of blue-chip customers, such that there is no undue reliance on a small number of customerscontract durationsrepeat business patternsskill-setstechnologyintellectual property rightsdepth and quality of managementuniqueness and competitiveness of products and servicesscalability of products and/or servicesmarket position and brandsystems and … [Read more...]
Top Tips for Foreign Nationals Setting Up Business in the UK
In December 2018 Forbes Magazine placed the UK as number 1 in its list of Best Countries for Business. There is no doubt that the UK offers tremendous opportunities for businesses to be set up and to thrive. However the fact that this is so well recognised means that it is also probably the most competitive country on earth for businesses. You need to make sure that all aspects of your UK operation are run to the highest professional standards in order to succeed. The aim of this article is to give you some tips as to how to setup a company in the UK. Visa. If you do not already have the right to live and run a business here you will need a Tier 1 Entrepreneur Visa. For this you will need to invest a minimum of £200,000 in your new business and employ yourself and take on at least two members of staff in the first two years. Business Idea. You need to start with an idea of what product or service you want to sell. The first step is to think who … [Read more...]
Why appoint a Virtual Non-Executive Director or Strategic Advisor?
If you run a business that has strategic challenges to address, or if you are looking to raise it to the next level, where can you turn for advice? The answer may be appointing a Non-Executive Director or Strategic Advisor. Even very successful businesses can benefit from an external independent view to help make better strategic choices and challenge established thinking. What can a Virtual Non-Executive Director do for your business? Every business has a different mix of challenges and opportunities at a given point in time and often the owners or management feel their business is unique and difficult for an “outsider” to understand. To an extent that may be true, however, a VNED’s experience of the dynamics of multiple businesses and transferable knowledge of best practice from other markets is proven to bring significant benefits to management decision making. Our Home Counties and London Group Business Advisors have developed a Virtual Non-Executive … [Read more...]
The Value of MEASUREMENT
Knowing what to measure and how to measure it can make running your business easier. To make better decisions you need to gather the relevant data and format it into a report showing the essential information. Your decision makers can then be taught how to use that report to make sensible decisions or to recognise that they need additional information or instructions from you. For Measuring your Cash Flow you need to know: Who your debtors are, how much they owe you and when they are likely to pay. Who your creditors are, how much you owe them and when you need to pay them. What your regular outgoings are (rents, rates, salaries etc). Only when you have gathered the data can you then make a reasonably accurate Cash Flow Forecast. This will enable you to make decisions about who to chase for cash and who to pay in order to manage the cash in your business. When making a decision on buying a piece of Capital Equipment you … [Read more...]
How to Stretch for Success – Business Lessons from our 3 x Ben Nevis Bike Challenge
Some businesses move from year to year making small adjustments but never stretch themselves for the big achievements. Other more ambitious businesses, and their leaders, try to find a way to achieve leaps forward that at first sight look too hard or possibly foolhardy. Some succeed and others fail. Without setting ambitious goals, taking calculated risks, implementing careful strategic planning and proactive problem solving along the way, the big leaps are rarely made. I would like to draw an analogy with a group of middle aged mountain bikers that I ride with most weekends, typically covering 12-15 miles on local technical trails. There was a collective desire for a more challenging project to stretch us. Various options for a suitable longer trek were discussed at “team meetings” - aka post-ride drinks at the pub. This compares with business strategy meetings where ideas are floated, discussed, filtered, and prioritised. In January 2018 the … [Read more...]
Brexit – Let’s face it!
With Brexit dominating headlines, the importance of having the best leadership team, who will be able to derive and implement strategy to steer a company or organisation through change and uncertainty is of paramount importance. Deal or no deal will have a significant impact on our entire economy which executives and managers will have to address. No deal will certainly not mean no action required, in fact it most certainly will mean the opposite. The outcome may be viewed as providing significant opportunity and or challenge which will impact on all sectors of the economy and all commercial functionality whether it be sales, marketing, engineering, research. manufacturing, logistics, IT, human resources, finance or legal. Uncertainty must be addressed and not be allowed as an excuse for inaction; contingency planning is necessary. We are fortunate in having a fabulous pool of talent, skills and experience in the UK; a significant proportion of which is currently … [Read more...]
Five crucial ways to improve your business productivity
You will probably be familiar with the adage: Productivity = Potential – Interference. Many of us are battling daily with interference of one sort or another, both external and internal. Potential is not always something that is easy to quantify, or to realise. Growing a business, finding a market, and bringing in orders takes time and effort, and often a bit of luck. It’s also likely to take some time, so those frustrating interferences are the key focus if you want fast results. Wages & Productivity Superficial measures do not always show the bigger picture – if two businesses are paying different wages, you cannot assume that the lower payer makes cheaper goods, without knowing their productivity. Obviously, if the higher-paying business is more productive than the lower payer, their output might still be cheaper. Higher productivity gives you the means to take better control of your prices and margins, allowing you to undercut competitors without undue pain, or to … [Read more...]
Top 5 Challenges for Fast Growing Companies
If you’ve got a good business idea and the energy to push it forward, it’s not uncommon to achieve 100% year-on-year growth in your first few years of business. However, if your company growth is moving at speed, there are some key challenges you’ll need to get to grips with to keep it from crashing into the barriers. The most important of which is: 1. Decision Making At Speed As you are hit by a rapidly increasing list of questions to answer, it can be tempting to favour making snap decisions from a limited range of choices. On the face of it, it looks like you are moving forward at speed. But quick decision-making may not always get you to your desired result. According to some research in this area by Paul Nutt in his book ‘Why Decisions Fail: Avoiding the Blunders and Traps That Lead to Debacles’ business decisions that are taken off the back of looking at just two options can have more than a 50% failure rate. Counter-intuitively as soon as you start to … [Read more...]
Power up your business with a Virtual Non-Executive Director
The benefits of Non-Executive Directors are well understood by many successful business owners. They bring an independent view and additional experience that enable better decisions to be made by the management board. Our Home Counties and London Group Business Advisors have developed a Virtual Non-Executive Director (VNED) service that offers Managing Directors and business owners the same independent view and advice without the complexity of shareholdings, appointing legal directors and director’s service agreements. Every company is different and yet there are many similar and transferable aspects from other industries and markets. Our experts are able to utilise their broad business experience and extensive network of contacts to support companies to achieve their strategic objectives. An independent view that challenges existing or new strategies can substantially enhance the robustness of a company’s direction. Sometimes difficult decisions are required to deal with … [Read more...]
How SMEs can use Cloud Computing to punch above their weight in business
Having a well thought through business strategy is key to keeping ahead of your competition. Adopting cloud computing as part your strategy, can be an important factor in striving for excellence. Cloud computing can enable SME businesses to compete with larger business globally. It can allow both Start-up and established businesses to scale up with ease. This article will demonstrate some of the opportunities that are available to businesses that adopt cloud computing while considering the potential downsides. What is the cloud and where is it? Cloud computing is an Internet-based computing model that provides shared data and computer processing resources typically on a “pay as you go” model. Up front capital costs are replaced with ongoing variable costs. Unlike traditional local IT, capacity can be rapidly scaled up and down with minimal management resources. Cloud computing enables ubiquitous on-demand access via PCs and mobile devices. Cloud services are … [Read more...]
Exit strategy and planning – Getting the most for your company when you decide to sell – Part 3
Part 3: Enabling issues which should be in place before a sale These issues will not necessarily provide a premium valuation, but the absence of them could lead to some discount in the valuation or might hold up a sale. • Shareholders agreement regulating the rights of all shareholders and ensuring that minorities can be included Key staff and directors service contracts ensuring that the management and technical know-how won’t walk out the door as soon as a sale is made Share incentive schemes locking in key personnel Employee contracts, handbook and policies ensuring all employment law and regulatory compliance issues are up to date • Supplier Contracts are in date and valid; beware “change of control clauses” which could very well reduce value or lead to specific warranties • Customer Contracts are in date and valid; beware “change of control clauses” which could very well reduce value or lead to specific warranties IPR, patents, trademarks, copyright, … [Read more...]
Exit strategy and planning – Getting the most for your company when you decide to sell – Part 2
Part 2: Getting to the highest valuation Valuation The valuation of your company is not a science, but is driven by market forces and your ability to present your business as a significant investment opportunity. To some extent this depends upon the buyer, but it also depends upon the wider economic environment, the state of your own market sector, as well as the state of your business. There are a number of principles that can be applied to valuing your business: • Earning Multiples – Normally based on historic and possibly forward projections for earnings, measured before depreciation, interest and tax, but adjusted for “average Directors” drawings. The range for this earning multiple can vary from less than 4 to greater than 10 and is dependent on many factors, some of which are mentioned below. • Net Asset Value – The book value of the company as declared in the balance sheet. In many cases owners may expect to achieve a premium when using this approach to … [Read more...]
Exit strategy and planning – Getting the most for your company when you decide to sell – Part 1
Part 1: Why planning is vital and the route to exit Exit planning is perhaps the most difficult yet most important period in the life cycle of Small Medium Enterprises (SMEs). It is an event that probably only happens once, yet has a profound effect upon the future life, particularly in retirement, of the owners. Research clearly shows that many owner managers fail to achieve full or fair value for their business during the exit process. The key reasons for this failure are: Unrealistic value expectations and timescales Poor preparation within the business prior to the sale Unwillingness to use professional advisors Inadequate resources allied to the exit process Planning for your exit strategy Planning a strategy to maximize the value of your business on sale requires careful advance planning. You should start considering the issues several years before you plan to sell. The actual exit process will take 6 to 12 months and may require varying degrees of … [Read more...]
Beware of the Mile Wide Trap
If your turnover has stalled after a period of rapid growth, you may have fallen into the Mile Wide Trap. Consider the case of Kim (not her real name) who runs a public relations firm. Kim studied marketing at school and went on to work for a big advertising agency where she spent ten years learning a variety of marketing disciplines, from public relations to advertising to direct marketing and social media. Then Kim decided to leave her job to start a public relations firm. Given her depth of experience and connections, she quickly landed tractor giant John Deere as a client, and was asked to handle their regional dealer events. She hired some helpers and her start-up agency quickly began to grow. Kim did a great job with the dealer events, so John Deere asked her to handle their annual sales conference. Again she delivered with style and creativity. Impressed by Kim’s innovative approach to the event, John Deere asked her to handle some of the creative for their next advertising … [Read more...]
Growth Vouchers – A New Scheme Offering Subsidised Advice to SMEs
This new scheme launched by the Government at the end of January is a £30 million fund that will enable qualifying small businesses to access expert business advice through an online Marketplace. Suitably qualified Business Advisors are registered on the Marketplace and you can choose one that is local to you, has the right expertise and has the experience. Growth Vouchers are worth up to £2000 but you will need to match fund this. You can of course spend more if required but the maximum provided by Government will be £2000. The funding is aimed at SMEs obtaining advice in five categories: managing cashflow, late payments, and negotiating finance; developing skills and taking on staff; improving leadership and management; marketing, attracting, and keeping customers; and making the most of digital technology. Vouchers can be obtained through a Government website and will be randomly issued to eligible companies. For further information and to see if you are eligible go … [Read more...]
