Hopefully at some point or the other the business is going to reach a particular size that it outgrows the founder. Now, what to do? Restrict business and control every single aspect of the business or expand, but how? Interns are more often than not found to be excellent answers to this question.

Interns are often seen as cheap labour. The real reason a fair few businesses are taking on interns is that they want to build a legacy, simply because they think beyond the day of tomorrow. It’s because the only way forward is growth. To do this efficiently and effectively interns can be a real catalyst for your business.

Imagine that you are able to put 30-40% of your daily work in the hands of others, while knowing that they do exactly what you have asked them to do, by working to your standard. With enthusiasm and passion, while adding their own innovative touch and passion. Interns can make this happen.

The transfer of knowledge from the owner/manager to the intern is going to take time and energy, from both sides. Therefore putting in an intern too late into the business is proving to be catastrophic. Don’t start recruiting when you need the person on the work floor; plan ahead.

Having suggested it and guided several businesses through the process of taking on one or several interns, the following pattern proves to be pretty effective:

• recruit an intern that doesn’t just want to do the job, someone that is hungry to learn is far easier to train than anyone else
• give the intern a reasonable amount of responsibility from day one, this will make them feel valued and challenged
• as part of their internship, ask of the intern to write up procedures and manuals of all processes that they are working on
• expose the intern to various parts of the business, not only the mundane jobs but actually take them into those important meetings; even if only to observe

Ensuring all of the above is taken into account while the intern is functioning in your business is an investment. This will ‘mould’ the intern to be a person that fits into your business, while fully understanding the impact and repercussion of their work in the company.

Having followed these easy steps and guidelines, the majority of business owners will be offering their intern a job; either on a full- or part-time basis. The interns is perfectly suited to progress through the organisation and while the intern is creating manuals and processes for the organisation, he/she prepares the journey for the next intern and next stage of expansion.

As you can see, growing a business is more than gathering more leads and increasing conversion factors.

Narrow and deep is common in an expert, it’s pretty much what defines them. As a result the expert is not able to cover the full spectrum of their industry. Just as you can’t expect a painter and decorator to have outstanding carpentry skills, the same is in the professional services. A tax accountant has a different skill set compared to a finance director.

The way to overcome these differences is by working together, collaboration. Not only by collaborating within the individual specialist in the same area, more specifically it is with the specialist that offer complementary skills and services. These are traditionally lawyers and accountants, just as sales and marketing tend to work pretty close together.

Like most things, it is worth re-assessing once in awhile. How about sales gets to sit down with the accountant and so does marketing… Yes, scary thought! It would have it’s advantages. For instance the accounts can be set up in such a way that they are optimal for measuring the effectiveness of both sales and marketing processes, as can the accountant ensure the appropriate controls are implemented in these processes. Boring you say, well if it makes you efficient; read money; a fair few people tend to pay more attention.

Knowing when processes are working correctly, be it from an operational, sales, marketing or accounting perspective is hugely important. The best analogy for an effective business is a drinks vending machine. Why? Because it has ‘pretty’ and effective sales on the outside and an effective process on the inside.

The vending machine is checking you don’t pay with fake coins and that you pay the right amount. Following you being able to choose the preferred flavour, which is stored at the required temperature. Just as there is a mechanism, ie. process, that allows the selected can to be distributed from the ‘storage area’ to the ‘collection point’ at the front of the machine. Let’s not forget this also needs to happen in such a manner that the can doesn’t get too much shaking and knocking about to prevent it from fizzing while opening up. These are several processes serving one objective, get a cold drink when the correct amount is paid. The majority of customers do not care how, they are mainly concerned that the processes are working. Just as in your business. The collaboration between the different areas and parts of the business is largely underestimated and causes leakage.

Prevent leakage by getting systems in place, controls and most of all; get collaboration between the different parts, departments and specialisms.

Imagine a restaurant in an underground tunnel, as was recently done in Amsterdam, the Netherlands. Or a shop that sells only headphones. They can be highly specialised or very special by the location in which they are placed. A tunnel as mentioned before, a restaurant in a shop, you name it and if there is a will there always seems to be a way.

There are more than one reason to run a pop up. Not only can they be profitable, because of their attraction, due to being in unusual places, they also can be utilised as a proof of concept.

All the possible preparation can be made when launching a business. The biggest test is actually running it. So why not test it out? Just like you tend to take the car that you are tempted to buy for a drive, prior to buying it. This also tends to happen in retail, through pop-up stores.

Being temporary and usually on a small scale, pop-ups tend to be used as mini laboratoriums. Testing the market, finding the answers to: “Is my consumer out there?” and “Are they willing to pay specific amounts?” Can be basic questions, that allow business owners and managers to make informed decisions.

In London, a very positive and active pop-up enabler is active, they’re called We Are Pop-Up. Enabling business owners and budding entrepreneurs to use their services to  find a place to trial their business ideas. And a lot of the times these businesses turn out to be viable business concepts. If you are looking of getting a new concept launched on the market We Are Pop-Up is a great place to start and give you a proof of concept.

Don’t hesitate and have a look at their website, let us know what you think

Getting in shape can mean more than a routine, it’s a constant measuring and adjustment. In business this is the same. Whether it is starting out or continuing a business, accelerating growth or revitalising the business. In all these cases it is the routine of repetition, measuring and the right adjustments that will make the difference between moving forward rather than backwards.

In your business you are; and if not it is elementary; that you know your goals. The objectives put in place to get to these goals are rarely one off events, most of the time getting something done means aligning to the goal, put a process in place, measure your performance and adjust to remain on target. Sounds simple isn’t it?

To achieve any type of movement towards the goal, tracking is important, this is not only keeping your accounts up-to-date. It is more, it is measuring: project progress, the effectiveness of marketing campaigns as well as the effectiveness of the sales process, to name a few of the processes.

Where processes become effective is where they are tested! Not meaning designing, checking if it works and fix the broken bits and put it in to practice. It is where there is a constant measuring and adjustment. Continuous measurement of all processes and the adjustment enables the growth and evolving of the business.

When a plane flies from London to New York, it only remains pointed at New York for 2% of the journey! It is suggested that your business is aligned to it’s goals more than this. However, in the airline industry this is considered an effective process. Planes make it from London to New York, on time and in a safe manner, on a regular daily basis. A business that has got it’s processes in place is McDonald’s; this does not mean McDonald’s is a good or bad place to have your meal. It is the fact that McDonald’s has a documented process for every part and element of their business. Be it the temperature and exact time the fries are fried at in the fryer, the time and manner in which a visitor to their restaurant is greeted as is the temperature and time a bun is in the oven, back at the bakery.

Not only does McDonald’s document their procedures, these are checked and audited on a frequent basis. All to ensure consistency, if desired measurements are not being met and reach a certain parameter or frequency an adjustment is required. This has allowed McDonald’s to run one of the most efficient businesses in the world. These procedures, as McDonald’s and many other business have are known as turnkey models. A book that is documenting turnkey models and the theory and workings behind it very well is ‘The E Myth’ by Michael Gerber.

When you feel the need to look at your business and are considering putting processes and procedures in place, an accountant can often give you helpful advice, feel free to contact us if you would like to discuss what you are thinking of doing.

Like most of us, small and medium business owners, would love to know what tomorrow is going to look like. To have the assurance of that the phone is going to ring and that your favourite clients are going to convert from pipeline to paying ones. These in turn will warrant a certain level of profitability; assuming that is how the business has been set-up.

The reason most doors have a window in them is for the simple reason, so we can see what’s behind the door; before we open it. But why is this? Why open a door if you know what’s behind? To experience or engage with what’s on the other side will most likely be one of the answers. By looking through the window we are preparing ourselves for what is about to come, good or bad. It might proof to be a window of opportunity!

Bracing for the storm outside, putting our sunglasses on to protect ourselves against the bright light; this is all done thanks to a quick peek through the window. It is true that we might be able to anticipate how we might feel on the other side, having been forewarned. Taking lessons from past experiences and applying these, knowing that if it looks to be really hot that an extra layer is simple not necessary. The same applies to implementing and using a good business forecasting plan. It will prove, if used correctly, to be a window to what is to come.

“A winning effort begins with preparation.” Joe Gibbs

Admittedly, looking through the window is not the same as being on the other side of the door. Being forewarned, both about good as well as about bad times to come, has prepared lots of businesses. Having a forecasting plan will not only allow you to control your cashflow effectively, it can simply prepare all areas of the business. This will obviously vary from business to business, from having the correct staffing levels and stock for retailers to pre-booking freelancers and possibly facilities and working space for an on-line development agency.

All of this planning is helping the business from multiple angles, not only is there the avoidance of over ordering and underutilisation of resources; think of the benefits to the engaged stakeholders. How often has moral on a project or in a business not ground to halt, not because of a lack of resources or the willingness of stakeholders to engage, simple the feeling of not been engaged. People very quickly seem to be able to work with the end in mind and use a forecast as a simple tool to aid the business during the various phases of a product/service life cycle.

As highlighted above, forecasting is not just a financial tool, it has many uses throughout different businesses; if you would like to discuss how forecasting can benefit you and your business, just drop us a line. Either way, your feedback and input is always appreciated.

Numerous attempts, that is what a lot of us have been doing to get somewhere. Be it in business or private life and ranging from relationships to getting enough money in the bank.

What is the common distraction, you ask? From speaking to clients, friends and family, the distractions are called voices. Be it voices from real people, the voices in your head, the voices that you interpret or perceive; they all distract. Worse of all, they stop you from getting things done or pushing through.

Having been there myself; yes, I have voices in my head; I can tell you there is nothing worse than thinking you can do it by yourself. Not because you’re to small, not able to do it or not having the willpower. It’s the accountability that you get when you’re not on your own that keeps you going. Not because you do it for someone else, no.

Earlier I read an article called ’6 Things That Can Ruin Your Business’. It mentions a few of the voices that can distract. Great, so now we know what they are and where we can find them. Though you’re still on your own, waiting for a miracle. I’d say stop waiting, if you don’t go and find it, it won’t come to you. I am lucky that a good friend of mine is a coach and he’s awesome in what he does. His name is Elliot Kay and goes by the name of The Coach with the Hat.

Having worked with him for a couple of months now, I can see the difference to myself and my business. Elliot is not a miracle healer and certainly hasn’t got a magic pill. When it comes to it, he’s had a few reasons to give up himself. I’d say have a look at his website, click the banner and see what he’s all about and hear what others who came along too have got to say about him.

When you’re free coming weekend, I’d like to invite you to come along. It’s a two day experiential workshop, no endless note taking and no action. There’s no reason why you can’t put into practice what you learn, right there and then.

Don’t do it for me, do it for yourself, your family, friends or your business; whatever drives you. Nail that WHY and take action, the time is NOW.

It’s that time of the year, at the end of this week it will be the end of another tax year. Now I don’t know if it was a good or a bad one for you, fact is a lot of people get themselves unnecessarily stressed.

With a new tax year starting every 6th April, there is not only a pattern, there is also a lack of discipline and commitment attached to it. Large parts of the UK tax paying part of society are still scared and scarred of the Self Assessment filed last January. Now here’s a question: ‘How about less stress, more time to pay and do two tax returns in one year?’

No catch, just a catch-up, I can assure you. Assuming you have done your last Self Assessment last January, ahead of the 31st January deadline; you saved yourself the £100 default fine. To answer the aforementioned question, here’s a proposition: With the tax year finishing 5th April, how about filing your return by the end of June?

Let me give you some reasoning behind the above ‘madness’. The tax year finishing 5th April 2013, needs to be declared through Self Assessment in paper form by 31st October 2013 or if you submit online, as the majority will do, by 31st January 2014. There is nothing stopping you to file it before this day. And there is good reason to file earlier.

First there is the sense of having it out of the way, this creates a natural sense of achievement and peace of mind. By 30th June 2013 you should have had all information and statements regarding additional earnings, be it pensions, ISAs, etc. So no reason you can’t get going. A solid second reason for filing early is because I encourage business owners, startups and entrepreneurs to get in to the following annual work flow:

• April-June -> Self Assessment
• July-August -> Brainstorm ideas/plans 2014
• September-October -> Strategize ideas and plans 2014
• November-December -> Plan and prepare implementations for 2014
• January-March -> Operational implementation and ongoing evaluation

Last but not least, as a third encouragement and reason to file ahead, you give yourself more time to pay. The payment deadlines stay the same, irrespective whether you file early or on time. This means that 50% of the money owed to HMRC needs to be paid by 31st January 2014 and the final 50% by 30th June 2014. You guessed it, more than a year away. So what is stopping you from setting up a regular transfer to your savings account and have the money ready and waiting to get the payment made in time without stressing about the cash flow.

Though the above is not a rule, it’s an interpretation of existing rules and regulation. By using the given deadlines as the boundaries of your playing field, you are still giving yourself plenty of space to play. So why not enjoy the game? Get ahead of the competition, not only by getting ahead with your planning, by making your cash flow work for you and your business.

Want to know more and see how Double Seven Square Accountancy is able to help you get more out of your numbers? Why not book yourself a free 30 minutes advice session? Not only can you see us face-to-face, if you’re not able to make it offline, let’s do it online.

So click the link and book your session.

]]> http://www.doublesevensquare.com/the-end-or-the-beginning-of-something-new/feed/ 3 http://www.doublesevensquare.com/tackle-the-storm-head-on/ http://www.doublesevensquare.com/tackle-the-storm-head-on/#comments Mon, 01 Apr 2013 08:12:29 +0000 Jeroen Geut http://www.doublesevensquare.com/?p=209 Continue reading →]]> The world around us is ever evolving, for everyone. Be it a change in law, the implications of Daylight Saving Time or the start of a new tax year which brings us new regulations and/or a change to existing rules.

In a world that is subject to these everlasting changes it can be hard for entrepreneurs and business people alike to keep their focus. Just look at the picture below, it show the impact of Daylight Saving Time. Blue bits change the clocks at some stage. Red bits never do and the rest did – but don’t now!

Admittedly a great reason to get confused and to start complaining. You might be asking yourself: ‘How do you keep your head about the parapet?’. The picture above shows the answer! By identifying the distractions, irregularities and other variables you are able to stay on course.

Just as a ship is constantly changing it’s course ever so slightly, adjusting to the currents, waves and wind. A strong manager and business person is taking all this in his/her stride. No point moaning about the level of taxation or the lack of government incentives. To succeed you would need to put your all into it, all the time.

A tax update is all good and well from your accountant, though we rather mention what’s coming up for our clients as soon as we are aware of it and when it’s relevant to them. Just as we will mention how it can be useful or what precautions need to be made.

We’d love to hear from you how you monitor the changes in your environment and how you pro-actively stay on top of these.

With the recent news about Thomas Cook, surrounding their internals issues of securing a healthy level of working capital, there is clearly a need for advance planning and thinking outside the proverbial box.

It would be fair to say that most businesses would regard a company such as Thomas Cook as a successful business. Given it’s size and reported profits (£319.4m for 2010), the sizable cashflow the business was able to work with (£299.4m for 2010) and a strongly recognised brand; it may be a little of a surprise to some that Thomas Cook has approached their banks.

The fact that the company has issued three profit warnings to it’s shareholders over the last year; resulting in, it’s now former, chief executive Manny Fontenla-Novoa leaving the company in August; with no successor  been announced and a company in turmoil, this would make anyone nervous. If in trouble take a breath, grab the bull by the horns and re-asses the (strategic)direction. This is the same for small and medium sized businesses; often these scenarios happen in owner-based companies, as a result of a serious illness or the unfortunate instance of the owner passing. Though these are the facts of life, they are rarely reviewed in a critical review of the business. In these cases, having a plan of action, has proven time and again to be a lifeline for the company. The survival of many companies has been down to the preparation for the unexpected.

Given that the outlook in the retail sector in the UK is not particularly lifting everyone’s Christmas spirit; it would not be much of a surprise that the travel market in not particularly booming in the current market. Not only is cashflow paramount to the survival of a business, it is also it’s adaptability to the changes within the market that will not only assure client/customers; it will also ensure that the right margins will be hit. There are many stories of companies that have had fantastic ideas with a solid cashflow behind them, where the market is so fluctuating that the agility to these changes is paramount to the success of the business. We see the same in the smaller businesses, just because something has always been done in a certain way, doesn’t mean it is either right or the best way of doing things. Being inventive will not only get your marketing exciting as they will be able to swing a different angle on things, it will also enable you to approach different markets and most of all: stand out from the competition for the right reasons. What is even better is if all heads in the business are pointing the same direction, not only the daily management and marketing, by including finance in the equation forecasts can be amended and cashflows be manipulated to ensure a successful exercise.

Collaborating, not competing, within the business, however big or small, is proving to be key to survival.

On the eve of Global Entrepreneurs Week (GEW), I thought I would let you know how Global Entrepreneurs Week fits in with our business.

The diary is bursting at the seams, or should that be, it is full of multi-colour double booked events where we mingle with likeminded. But what is GEW really about? What makes a company and entrepreneurial business, what makes it useful for other entrepreneurs?

By being an accounting provider, where the coaching and supporting of the client-base is an essential part of the business model, by being proactive and engaged with our clients. We feel that their growth and profitability is a testament of our hard work. They reward us for it, but nothing is better than to see a company flourish and be adaptable.

In the current climate, it is not just passion that drives your business; it’s the ability to be adaptable. What is your latest adaptation? Even if the idea is not your own, use a unique approach or adaptation to make sure your customer/client is happy. By being consistent, unique, ideally personable and genuine you will be able to build a base for your clients that they can rely on.

We often get the question what makes us a different accountant to someone’s business. We’ve even been asked by other accountants why they should keep in contact with us. Let me try and explain it with the following example:

Just like accountants, there are a lot of car mechanics. They all have their specific field of expertise; if you look at Kwik Fit they are very good and quick at changing your exhaust and tires, just as some accountants are able to transact your VAT very quick. We are a bit like engine tuners, if you’re going to drive from London to Manchester we’ll make sure you get the most out of your petrol. That means checking the aerodynamics, the tire pressure, the correct injection volume and timing; all this will get the most out of your engine. We might even be able to help you install a turbo on your engine.

In case you feel that one of your cylinders is misfiring or just would like to have a chat to see if you could benefit from a change of oil; don’t hesitate, if you do so it might be too late.

Wishing you all a very good GEW and let us know how you’d got on.