Setting up your own business is anything but easy, the hours are long, everything takes longer than you thought, and hoped, and things can get frustrating.

But once you overcome this the important thing to remember is that rewards make everything worthwhile.

The hours you put in and the money you earn is for yourself and not someone else who is reaping the rewards.

But how do you make the dream a reality?

Talk it over

The best way to get ideas out of your head and into an organised plan is to talk about it. Use your family and friends as an initial sounding board before taking the ideas in a more organised fashion to a business advisor.

Take your time

Although the passion and drive or maybe necessity is important, it is vital not to get carried away. For a business to be successful it takes time, not only to plan but also to become established and make money. To make sure everything goes to plan you have to make sure you understand the plan. Know the industry, research your competition, understand your customers and most importantly have trust and belief in your product or service.

Know your limitations

In an ideal world we would all be able to do everything and not need any help from people who could prove costly. But the reality is that we can’t. There’s a reason why people pay web designers, accountants and PR and marketing executives and it’s not because they like spending money. It’s because they have to if they want to do a job properly. We can all set up a basic website, do our accounts and plan pr campaigns but how well is another question.  It is important to do things right and look professional, especially when starting up because first impressions count.

If a designer / developer does your website then going forward it will be easy to maintain, while getting your books and databases set up at the beginning will save time in the long term.

Spend your money wisely

If you do go down the route of spending money on web design, make sure you know what you want, which will ultimately save time and money.

Once you have your website don’t ruin all the hard work by then writing the content yourself, unless you know what you’re doing. If you don’t then make sure you run everything through spell-check, get other people to check your content and understand key words and meta tags or no one will find your website.

Free advertising is one of the best ways to keep your set up budgets low, use Facebook, Twitter, Free Index and forums to get your business name out there.

Free software downloads are also a good way to keep costs down, at least in the beginning.  Take advantage of the free trial to sample the programme to make sure it’s exactly what you want before splashing out.

Now I’m not going to sit up here on my lofty pedestal of presenting success waving down at you! Because I also enjoy sharing my enthusiasm, coaching and supporting people, helping to build their confidence and providing training and tips to help everyone become a more confident and articulate speaker. Whether you’re an entrepreneur, business owner, manager or team leader, effective communication skills should be part of your personal effectiveness armoury.

Don’t we all want to make a difference?

Many roles in today’s business world require people to present and speak publicly. If we contribute to a discussion, whether in the board room or a quick team meeting, don’t we want people to listen and recognise our contribution? Don’t we want to deliver the message confidently, clearly and concisely with impact? Engaging the audience, being credible, influencing people and achieving results?

So it’s more than presenting. Maybe you are representing an idea, your team, organisation or business. If we’re presenting an important pitch to get new business, presenting a bid for funding, often your presentation can be the first time the audience has come into contact with your business or brand; it’s a great marketing opportunity and one you want to get right. I understand that some people get nervous; fear of presenting can cause immense stress. I enjoy supporting and working with these people, building their confidence helping them to work through their nerves. The nerves may never disappear but they can be controlled.

Presenters beware!

However, there’s something quite bizarre about presenting and public speaking; what I call the illusion of the presenter gene. We all want to avoid becoming the ’there’s nothing you can teach me’ kind of entrepreneur, leader or manager. Sadly, I’ve seen and met many business owners and managers who assume that their hard work and the knowledge and experience they’ve acquired, combined with the position they’ve achieved, instantly makes them naturally engaging, enthusiastic, informative and interesting speakers. Not so! Few of us sat behind the wheel of a car for our first driving lesson and instantly qualified to race in Formula 1. I’m sure few athletes will turn up to the London Olympics next year without continually training and honing their skills.

So why, pray tell, do some people think that anyone can present and that they would be the last people to need any training or coaching to support them? Yes, some people are naturally gifted presenters, confident and relaxed. Even if you enjoy talking to people, as a presenter or speaker you have to continually review whether you are delivering your message successfully, influencing others and achieving your outcome. You must honestly ask yourself; am I a speaker with credibility?

Where’s a good starting point?

As a manager, leader or entrepreneur you owe it to yourself to be an articulate, relaxed and credible speaker or presenter. Effective presenting, public speaking and communication skills can enhance your reputation enabling you to demonstrate and convey your knowledge and skills.

So think about the following:

• Be yourself, be authentic whether your audience knows you or not. An audience can easily detect artifice.
• Be formal or informal as the occasion merits, if you are unsure; ask!
• Plan properly, know your subject and think of the structure of your presentation; marrying your subject knowledge to your message and desired outcome, always be mindful of how you can engage your audience.
• Keep the needs of your audience in mind including opportunities for questions, length of whole presentation, bite size junks and the venue.
• Delivery; stand up or sit down? I always stand when presenting whether to a small group or large audience, it helps me get into the zone. Some presenters sit when delivering to a small group; think what the occasion merits, the outcome you are seeking and the expectation of the audience.
• Focus on me not the slide! Visual aids are important to illustrate and enhance your message. Tens of slides packed full of information will draw attention away from the presenter; keep slides simple – numbers, photos and bullet points.

One more thing

And as I say to all presenters; just go out there and enjoy it! Oh and don’t forget to breathe!

Timing is key

When considering hiring staff you must firstly look at what stage your business is at. For example, if your business has only recently started up then you will need to keep an eye on your working capital / cash flow, as you will have so many other outgoings to cover. Consequently, you may not be in a position to hire a large group of staff. It would be more strategic to see what areas of the business require new staff the most, and allocate a couple of new staff to start out with. Obviously if you urgently require a new staff member (e.g, to cover maternity leave), or maybe even a specialist employee such as an IT technician, then exceptions can be made. If your business is well established and you are looking to restructure / expand, then you may be faced with different questions. For example, would it be more cost effective and time efficient to recruit internally in this case? Will new / additional staff aid the growth of the company?

Additional factors

Whatever position your business is in, you must always consider the financial factors involved with hiring new staff. This does not just include the additional wages to be paid; you must also review the cost for the recruitment and selection process. For example, where are you going to advertise, and how much will this cost?

You must also review the position that you wish to recruit for and measure it up against the incoming applicants. It is important that you select the best person possible for the post, both in terms of what they can bring to the role and also their potential to grow personally and professionally.

Where can I find staff?

You may wish to seek the assistance of an employment agency when it comes to the hiring process. You will find plenty of them online! You could also seek advice from an experienced HR or recruitment consultant. Both of these sources will be able to advise you on where you will most likely find the right applicants for your business.

A Final Thought

Essentially, if you hire the right people into the right roles at the right time your staff can represent a source of competitive advantage for your business. As well as effective recruitment, selection, and resourcing, you must also ensure that you retain your existing staff through effective talent management.

If you have any tips on the hiring process, or where to find excellent staff, please let us know!

A couple of years ago I began mentoring a business owner and we met on a Thursday morning after the previous evening’s episode. Inevitably, each meeting began with the usual question, ‘Well, did you see it last night?’ My mentee enjoyed making observations about each episode, demonstrating an awareness of how team members worked together or didn’t; how the Project Manager engaged the team, or didn’t; the lack of planning for the task and too often how the Project Manager should have stepped in and regained control of the task.

OK, we may enjoy being armchair business critics but these discussions got me thinking about the importance of reflection and consideration. There are times, if we’re honest, when maybe we don’t take the time we know we should to reflect on our personal effectiveness. Do we pause for professional refection on our leadership and management styles? Are we continually asking ourselves the right questions? Are we effectively engaging our people? Have we translated our vision for the business into a strategy and plan? Perhaps most significantly; have we communicated this, empowering our teams by giving them a sense of direction and momentum towards achieving the business’s future goals?

I’ve got a business to run!

Day to day, we’ve all got to be go getters, entrepreneurs, innovators and motivators. We’ve got to spot new business opportunities, gaps in the market, have our competitors on our radar to be aware of what they are doing and understand the financial health of the business. To list a few of our roles! It’s not always easy to continually cultivate a high level of self awareness and keep our fingers on the pulse of our businesses but it’s exactly what’s required, even more so in current economic climate.

For a small business here’s your starter of 5:

• You’re an entrepreneur and a leader: Ask yourself why are we here? What is this business about, how has it evolved? What do we do well? Where’s the pride in the products or services we provide? What makes us, us? Where are we in the market place? How do we compare to our competitors? Can your people answer these questions? More than once I’ve been contracted to work on specific projects in some businesses, sometimes for as long as six months. After completing my project, even after six months, I can leave without a real understanding of what the business is about, why it exists and its future direction. Sadly, I often find the staff also don’t know.
• Learn to love strategy: A strategic action plan (emphasis on action) can be one side of A4, whatever works for your business. It’s important to map out the business’s future direction, communicate and keep communicating this to your people and go for it! When you need to revisit it, then revisit but keep communicating. And don’t lose touch with your business plan!
• Seek expertise and share your expertise: there may not be much funding around at the moment but there can be free business support and business health checks. Sometimes it can be really useful to get an independent view of your business. Also get networking, meet up with other business owners and managers and perhaps use social media.
• Be your biggest critic but a constructive one: you’ve worked hard to set up, develop and grow your business, so you want to get your people to ‘buy into’ your business and get the best out of everyone. Examine your leadership style do you engage and empower people? Be a great talent spotter, see below!
• Is there a better way? Continue to be curious; we don’t know the answers to all of the questions. Maybe there are times when we don’t know the right questions to ask! So encourage ideas from everyone. Not only is it a great tool to engage people but often people at different levels can have a more immediate grasp of challenges and areas of potential improvement. These people could be future managers, team leaders and product and service improvers. But don’t fall into the ideas black hole! If people can make time to submit ideas then you should make time to provide feedback.

Be passionate!

And remember be passionate about your business with your people and your customers. Enthusiasm can be infectious. After all, at the end of the day, business can be about people. We all want to enjoy our work and we all like to do business with people we like.

If you are literally only just setting up your business, then how will paying out for a premise affect your cash flow? You must make sure that acquiring a premise is the right choice for your business, and of course, at the right time.

The Typical Process

Firstly, it would be a good idea to shop around for your premises. Look for advertisements in local newspapers. The Internet will have some good leads also, especially if you are planning on relocating. Bear in mind the location of the premises; will you be able to reach your target customers here? Will suppliers be able to get to you easily?

You will also need to assess how you are going to pay for the premises. Renting may be the more attractive option for you if you are only just setting up your business, as purchasing a premise outright can create a substantial impact on your working capital if you are a start-up business. However, if you are in a fortunate position to be able to pay the full amount for your premises then this can present some benefits. For example, you will have more control over the premise and may save money in the long-term.

You should consult your local bank too to see what financial assistance they have in place for this type of payment. The local government may also have some grants / bursaries available.

You will also need to look into licensing for your premises. This is especially applicable if you plan to sell licensable products / services. Your licence should be kept up to date and should be displayed at the premises.

Online Businesses

If you are currently running as an online / virtual business it is important that transferring the business to a physical premise is the way forward for your particular venture. For example, will moving into a premise allow the business to expand further in the near future? Are you planning on taking on more employees, in which case a premise would allow more effective monitoring of day-to-day activities?

Another key factor in your decision may the type of online business you are running, and whether it can be effectively converted. This may depend on the type of products / services you are working with.

A Final Thought

Whether you are a start-up business, a virtual business or a multinational business, taking on a new premise requires carefully considered decisions and must be done at the right time with financial aspects and future opportunities taken into account.

If you have any ideas or tips regarding where to look for premises opportunities, or anything else related to today’s article, please let us know!

Such a crucial document; arguably the lifeblood and backbone of any business. Whatever it’s called not only should you have one but you should make sure it’s up to date! If you’re thinking about starting a business; if you’re a new business; if you’re expanding your business; how can you get the best from you and your business, if you haven’t defined a starting point? Located an end point? Shaped the direction you and your business are going and how you are going to get there and check if you’re on course?

Ok here’s how it is. Any opportunity I get I beat the drum, wave the flag and sing from the rooftops for business planning. Thankfully the business plan is alive, kicking and current in many small businesses. Sadly, this isn’t always the case. So many times I talk to business owners when they’ve sought help and when I say, ‘Ok let’s take a look at your business plan’… The silence descends, the tumble weeds roll through the room and yes I can often hear a far off bell tolling! You’ve guessed it’s one of two answers; ‘No business plan,’ or ‘Yep I did pull a plan together but I’m not too sure now where…’

All of us are different. Some people enjoy business planning but I’ll be honest when I’m supporting people to develop their business ideas and plan their business strategy there’s no better way to see a room of eyes glaze over than when you mention the words business plan. But it really doesn’t have to be like this.

How can a business plan help?

Starting, running and growing a business is all about risk. Through a well researched and clearly explained plan you can demonstrate how you are minimising the risk. Great for people who may need to see the plan, the banks and potential funders when you find them. But it’s also great for you to capture, frame and validate your business direction.

So what’s included in a typical business plan?

As a minimum, you should include details about yourself and your experience, details about the product or services offered by the business, the key management roles in the business, your idea and the underpinning research / analysis, how you know the market for your business, how you communicate with your customers and the good old financial projections.

The language of the business plan is also important. Language should be positive, demonstrating a belief in the business e.g. ‘the business will’ and ‘research demonstrates’.

Let’s put it simply, if I read a plan here’s a few questions I usually have in mind:

• Is the plan believable and realistic?
• Do I believe the person/business can do this?
• What in essence is the product/service?
• What does it do?
• Will it sell?
• Will there be growth?
• Is it innovative?
• What do the financial projections look like and have they been explained?

If you need to meet the bank manager, find funding or business support a great business plan can also be a great marketing tool, demonstrating your confidence and belief in your business.

Yes, business planning takes time. After they’ve worked hard developing their business plans so many small business owners tell me it’s time well spent; planning really makes them think about their business. The process also challenges them to assess any preconceptions or issues that may develop day today; pausing to stand back is crucial. A business plan isn’t the answer to everything but as the cliché says knowledge is power. So knowing your business inside out and exactly where you want to take it, has to be a good starting point.

Our new blogger, ‘The Business Bard’, will be here to contribute with her views and tips in the world of business. Feel free to leave feedback on her posts through the comments form at the bottom of each of her articles.

Check back tomorrow for the first business article by The Business Bard, titled ‘Show me the Business Plan!‘.

Promote Your Business Through Blogging

Are you a talented writer with experience in business, being self-employed or freelance? No matter what your field, we at PenguinPages would love to have you on board. In return for your hard work, you can promote yourself and your business by having the following on each business article that you write:

• Mini-bio
• Photo / company logo
• Link to your website
• Telephone number
• Email address

Blogging is a great way to promote your expertise and drive traffic to your website, so get in touch today if you’d like to contribute to the PenguinPages business blog!

Smart Inventory Management

Effective stock control and stock management is essential for newly started up businesses, this goes especially for manufacturing firms, retail businesses, and supply firms. A key piece of advice for start-up businesses when it comes to managing inventories is to not bite off more than you can chew. You may be offered bulk buying discounts, but what you need to bear in mind is that you are a brand new business. You should not buy into a large amount of stock just to take advantage of associated discounts. You do not have loyal customers yet, and it is likely that you are going to be facing heavy competition from rival firms.

Basically, if you buy in too much stock then you are going to end up with cash tied up in your inventories, hence less working capital available for a safe cash flow and less cash available to take advantage of last minute investment opportunities. Another downside would be that your stock becomes obsolete or out of date, especially where food stock and fashion clothing are concerned. Finally, storing a large amount of stock for a long period of time means expensive holding costs, which you can really do without at the start-up phase of your business when cash may be tight.

Accurate Accounting & Financial Statements

During the course of the running of your business, you will need to keep your figures, financial position and profitability recorded accurately, so success / failure can be monitored and the appropriate action taken. So if you don’t possess any formal training, qualification or experience of accounting then it might be a good idea to take on a part-time or virtual accountant during the start up phase of the business (cheaper than a full-time accountant), to get things off to a good start. You do not want your accounts and finances getting messed up early on, as this may have a direct negative effect on the accuracy of your figures from then on.

Realistic Budgets

Budgets are a particularly important financial aspect for a start-up business. As you will have various cash outgoings at this stage, it is crucial that your budgets for different areas of the business are both realistic and abided by as strictly as possible. Depending on the type of business you have set up, budgets will vary according to the level of relevance of each area of the business. For example, the sales budget will be need more attention for some types of business. Overall though, it is essential that you keep track of your cash budget. You must make sure that cash is being allocated in an effective manner, and that the areas of the business requiring more cash are given priority.

A Final Thought

A key idea behind mastering the daily financial activities of your business start-up is, firstly, to keep a thorough and accurate record of all of your finances, figures, and investments. Also, you must take care during the start-up phase of your business in terms of cash allocation. You don’t want to fall behind before you’ve even got started!

If anyone has any other tips for start-up businesses please let us know!

Why Now?

Globalisation, knowledge management, and the increase in the number of people with access to the Internet are just a handful of the reasons for why businesses today need to take into account the impact of online aspects. More and more people are exercising online communication, and this is a key opportunity for businesses to exploit in the name of competitive advantage. Selling or advertising over the Internet allows the business to reach a new audience of potential customers. It also promotes a professional and up-to-date front for the business. Taking advantage of online techniques can save on costs, and create convenience for both the customer and the business. Businesses can set up a website, which establishes an additional communication channel between them and the customer.

Another idea would be to use social networking websites, for example, Facebook, Twitter and LinkedIn to advertise the business and to let customers know the latest deals on offer and the latest news about the business. Business conferences can even be conducted online! Frankly, a business which ignores or refuses to consider introducing online aspects to their business will eventually become obsolete. Businesses today must keep up with customer preferences and expectations, and the Internet is a highly influential factor in this case.

Where Can Online Concepts Be Used?

If you have finished your business plan and are now ready to set up your new business, you may wish to consider the fundamentals of your idea and whether it could be incorporated into a purely online business. For example, would you be able to achieve more sales from your particular product/service by advertising and selling it online as opposed to paying for a physical premises? There is potential to save on overheads here, and also to reach a larger customer base. This concept is just as important as introducing the Internet to an existing business in order to keep up with the times.

Incorporating online opportunities into your business during the initial set-up stages may result in a smoother implementation process. For example, introducing a website to a business which has existed for twenty years without the Internet requires re-training of staff / recruitment of specialists. Whereas bringing a website in as a part of the fundamentals of the business start-up means that the idea can be eased into the business easier.

You Can’t Escape!

In essence, we are living in a society which demands the use of the Internet and online communication in businesses. The concept of social networking is growing to be more and more influential, and the future sees further emergence of online businesses.

What have you found to be the best form of achieving online interest?

People for Management and Leadership

No business will go far without effective management and leadership. In order for a business to survive, run smoothly and be successful, the people involved in the business need to be managed well and provided with efficient leadership where required.

Everything involved with the day-to-day running of the business must be monitored and co-ordinated. As well as the operational side of the business, e.g. production, management must ensure that effective talent management is executed so that people who are particularly valuable to the business are encouraged and retained. This is so that the business may benefit in the long-term from these employees.

The Influence of Human Resources

When we refer to the people involved with the business, obviously employees are a key group here. In general however, we may refer to the various groups of people who have an interest in the business as stakeholders. Looking back to employees, this is obviously a key responsibility of the HR department.

Managing the types of people who enter the business via the recruitment and selection process is very important, as this dictates the ideas and skills which enter the business. Effective internal resourcing is also important, as this is aimed at making sure the right people are in the right place at the right time.

The Consequences of Forgetting the People Involved in the Business

If the people involved with the business are neglected for one reason or another, negative consequences will occur. For example, if management fail to include their staff in vital decision-making for the business, they will in turn feel unvalued and demotivated. Then their performance will suffer as a result of this. We also see here how one group of people involved with the business will affect another.

Demotivated staff displaying poor performance could mean that customers are put off, especially where customer service-orientated businesses are concerned. The business itself ends up losing out as a result of forgetting the various groups of people involved.

A Final Thought

As well as bearing in mind the importance of considering the people involved with the smooth running of the business, it must also be remembered that people can essentially be a source of competitive advantage for the business. This is concerned with the resource-based view of the business (RBV). This is one of the main reasons for why people are of significant importance to any type of company, although obviously more to some than others.

Are there any examples out there of how people have created an impact on your business? Let us know!