Business Support

Branson: “Entrepreneurs can change the world” & SCALE DOESN’T MATTER

Richard Branson (RB) gives us a clear message as entrepreneurs i.e.
Entrepreneurs CAN make a difference, and scale doesn’t matter (see RB video below).

Think realistically and creatively. The entrepreneurial spirit can truly make a difference. Branson has launched ‘Virgin Unite’ to underpin this, and he says “working together we can change the world.”

However, all entrepreneurs need business support. A good way for entrepreneurs, owner managers or small and medium sized enterprises (SMEs) senior managers is to employ the services of a business consultant mentor.

There are a number of options. The Department for Business Enterprise and Reform (BERR) is trying to simplfy its business support schemes from 3000 to a mere 100. This is a good initiative, but using a business support professional, usuing a free online resouce like Business Service Finder is still likely to save time, and money, and deliver better financial performance & improved productivity.

Businesses Looking At Their Motoring Budgets

The motoring scene is changing as much for businesses than for the general motorists with new road tax changes to be applied in April, the recent scare in fuel rises than have now declined back to normal, plus the resalable value of any vehicle bought has new criteria to consider.

The car market is at its lowest peak for decades with new car sales nearly 50% in January; however this is challenged by the steady demand of used small economical cars, which have a history of lower deprecation.  The message seems to be that the modern family still needs a car, but is prepared to live with a smaller cheaper version, that will hold its value. As most new cars depreciate the minute you drive it from the forecourt, most savvy buyers are opting for nearly new instead.

This has a knock on affect within the business sector. As the company cars that businesses may have bought before, may now have a far higher depreciation value, add this to the higher road tax premiums and the volatility of the fuel market, it is not surprising that business are reviewing their vehicle budgets and processes and asking is their a better way during this credit crisis. Poor cash flow and a lack of confidence of being paid from customers also means businesses want to keep that money in the bank.

The response has been an increase in business car lease quotes. Although many businesses have gone down the business lease option for a while now, many others have refrained, assuming that it would be cheaper to buy themselves and maintain themselves. But now, with a need to keep cash in the bank to cover unforeseen circumstances, many companies are looking to calculate monthly payments, rather than a buying outright.
The added benefit is the new eco friendly vehicles that are appearing on car lease companies lists. One example is the Blue Motion range from Volkswagen, which is completely design to reduce Co2 emissions and give excellent fuel economy. The savings can add up to thousands a pounds per year when calculated and in some circumstances the savings could match the cost to the car lease contract.

The short term benefit for those who currently own their vehicles is that and money raised from selling their existing vehicles, goes straight to the bottom line.

Entrepreneurial Advice from Dell

Michael Dell of Dell Corporation - gives good advice - be prepared to experiment, and make mistakes.

This is code for being preapred to spend money and to lose money, and no to get stuck on one thing. If it’s not working, change it until it does. Much of which SME Management is not prepared to do in the UK SME sector. Parts of this reluctance is to do with lack of having access to the right management expertise which is exactly why and where Business Service Finder - a new online resource - comes in. For example: Imagine you run a small business t/o £1m and you need to improve productvity of the business and the return on investment (working capital employed). As an owner manager you probably have the technical expertise concerning for the sector, but you need a performance management consultant - a business specialist - to help you introduce new measures. This is precisely where Busienss Serevrice Finder becomes invaluable.

Branding & Marketing (from Branson’s perspective)

Being a great marketer and promoter. Fun should always be a part of it, according to the successful British marketer Richard Branson - the creator of the immesnely strong Virgin Brand.

Losing my virginity is Branson’s autobiography.

Branson’s says that in business it is one long struggle and only one word matters : “To survive”.

Many businesses do not survive. Business owners need business support - it is best to use a professional business consultant from a reliable source.

Nevertheless “Make business and life fun.”

So much of life is spent at work. Make sure that people have a good time. If possible, have a director of fun.

Business Scams

The UK Office of Fair Trading has a new website dedicated to raising awareness on scams in business. This is helpful, but falls far too short.

The truth is legitimate business can just as much a commercial minefield as any scam, instead of instant financial loss with no opportunity to reimbursement, instead you may have years of losses or poor performance by using an inefficient supplier or promoting the wrong products and services.

Few managers will admit such failings, but most manager experience them. These ’sagas’ of poor performance are traditionally covered up by a ‘blame’ or ’scapegoat’ culture which acts as a convenient smokescreen diverting the audit and responsibility to others.

External advice is a great way to avoid such errors, but where can SME owner managers and senior business managers find such expertise? One such resource is Business Service Finder - a new online resource to request advice and assistance from business support professionals.

Responsibility for the Global Credit Crunch & its impact on UK SMEs

Times Online Money suggests 10 people most responsible for the Global credit crunch. It is an interesting question, and a vague time line appears in the listing suggesting a ‘house of cards’ effect or Gladwell’s ‘tipping point’.

What lessons are there for UK small and medium sized enterprises (SMEs)?

Lots of obvious ones, of course, but always well worth reminding ourselves:

• Do not rely heavily on borrowings, and banks
• Cash management - tight fiscal controls (credit control)
• Efficiencies
• Productive staff - HR management (induction & exit strategies)
• Strong business network and supply chain links
• Strong business support (expertise available, as and when needed)

What action can SMEs take now?

Improve anything on the above list. Business support is one of the MOST important. An external perspective, and outside ‘input’, can significantly help protect SME management from the ‘delusional management thinking’ so prevalent in the 10 characters in the Times Online list.

You may ask the question: “If these giants of commerce and government were deluded, how can we -SME business managers avoid making similar mistakes?”

The answer is to try and avoid thinking you know it all, or the macro environment doesn’t affect you. Most savvy business support professionals are sufficiently down-to-earth to put you straight, but where do you go to find them?

Business Service Finder is a new kind of online resource to help SME management find the right kind of help as and when they need it. What is the right kind of help for their business? Access to the best SME advice, by top experienced professionals, at the most market competitive rates, in the shortest time scales in a simple process.