Loughborough

Discipline

Some business people have their minds so fixed on winning and satisfying today’s customers that they forget the basics. They spend all their time working IN their business and none working ON their business. When this happens, it is very easy to lose sight of some of the basics. Then the back-stop cash management tool is used – you know, the one that starts with a telephone call from the bank to remind you just how much cash there is /is not in your business current account.

Successful Businesses

Success in business is dependent on:

• A clear understanding of your market;
• The ability to delight your customers;
• The energy and enthusiasm to get everything done.

Many businesses still fail however – even though they have these positive attributes in abundance. Their mistake? They allow the small stuff to get overlooked. If the small stuff includes banking the cheques and reconciling the cash-flow, then it very quickly becomes big stuff.

It is essential that every business has a heart-beat. During the course of a month, you should plan a time for every routine task and then stick to it. In some businesses, that might mean reconciling cash on a daily basis and making a trip to the bank. In other businesses, these items are weekly and in others monthly – the important thing is that, whatever your business you establish an appropriate routine and stick to it.

Routine Tasks

If you lack the time or do not have enough people in your business to keep up with your book-keeping, then outsource it. Your accountant will either be able to offer a service or recommend a freelance book-keeper. If your books are always current, you will always know your cash position – which will help you avoid spending the VAT money on something that can wait - just as your return is due.

Monthly Reports

A one person business can benefit from a succinct monthly report. This is something I do myself and often advise others to do. Set down your achievements, failures and plans for next month. It brings focus to your planning and it helps with motivation – when times are tough it really helps if you make yourself go over the last month and remember your triumphs.

Board Meetings

One person can run a successful meeting. The same rules apply as for groups of 2, 3, 4 or more. You need to:

• Schedule a time;
• Plan an agenda;
• Run the meeting to the agenda;
• Write down the key decisions;
• Assign the action items with names and due dates.

Your agenda might include the following items:

• Actions from last meeting – everybody should keep their promises.
• Chief Executive’s report
• Financials
  • Sales
  • Turnover
  • Profit
    • Cost of sales
    • Overheads
  • Cash
  • Debtors
• Forecasts for next month
• Business Improvement Projects
• Strategic Plan progress review
• Any Other Business
• Date of next meeting

# 5 – 8th October 2007

Paul Fileman MIET CEng MCIM
Chartered Marketer
paul.fileman@talktosps.com
Tel:  01509 854447
Mob: 07969 188820
www.talktosps.com