Snow is wonderful if it arrives overnight, you aren’t going out that day and it disappears within 24 hours. Snow isn’t the only disruption to business, though; insurance typically covers flood, fire and theft but there are many other things that will also stop you working as you would wish. What have you already got in place to help to overcome these difficulties?

It is said about 90% of businesses that suffer a major fire or flood do not reopen. Everyone knows you need to back up your computer and keep that copy at another location but how many of us do that? Less than half of small businesses, I suspect. Far fewer have anything else in place in case things go wrong.

A good contingency plan need not run to several volumes gathering dust on the shelf but should be a short, focussed, practical review. You need to consider what would happen if you were not able to work from your present location;

• Would an office be available? Kitchen table?
• Is a computer available? With the right programmes loaded?
• Is your backup up to date? Safe from corruption?
• Would you have details of orders placed both with you and with your suppliers?
• If you have employees, where would they go? Could they work from home?
• Tools and equipment you need are essential. Where could you buy/borrow/hire replacements?
• What about stock? How quickly can this be replaced? Would you lose customers because of the delay?  How can you avoid that?
• What about the bank? Can you chase money due in? Will they give you an overdraft or are you fully extended at present?

Contingency plans are only as good as the thinking behind them. BP found that out when they cut corners and submitted an old plan for their operations in The Gulf of Mexico using one from Alaska. Not only were they caught out when it didn’t work when there was a problem but it was clear to all what they had done as the plan referred to cold water mammals such as walruses. No-one at any stage had given the document a reality check.

A written plan is good but you may well find that just thinking through what you would do and talking to others will be sufficient. Is there a supplier who would be happy for you to use his/her office for a few days? Does the business have a cash buffer for problems? Where can you find equipment?

All of these things will help if you should have a problem; they won’t make the problem go away but they will certainly help to keep your business functioning whatever may befall.

For now, just enjoy the snow when it returns!

 
This year, do you have a plan? Don’t forget;

• Businesses are likely to close on Thursday 23rd (but when will you close?)
• Most businesses open again on Tuesday 4th (and you?)
• That’s 7 days work lost for most businesses!
• How well will you/your team work during the last week before Christmas or the first week in January?

The way to cope is to plan now. There are people who need chasing for money already owed and you need to ensure that is received within the next few days. Work out what is due between now and 3rd January and contact these people to arrange for payment by 22nd December so that you can, and should, chase on that day if the money has not been received. If they have received goods/services for payment on a date when you and they are closed, they need to pay earlier to meet their commitment to you.

Some firms pay their staff early. If you have in the past, either make sure there is money available at the right time or tell people in advance that they need to wait.

Plan the work you have to do to ensure it is completed early and delivered ahead of schedule; you know Christmas is coming so it is no excuse for late delivery. Perhaps deliver this job in person and give a little thank you. It doesn’t have to be expensive or alcoholic but just saying that you have valued the working relationship during 2010 is powerful.

When January arrives, be prepared for others to delay payment because they have not been as proactive as you. It is professional to chase in a positive and timely manner, not desperate. You may know that you need the money but that isn’t relevant to your customers; they have had the goods/services and after the payment date you are asking for your money so be firm.

May I wish you a very enjoyable Christmas and a happy, prosperous and healthy New Year.

Julie Leigh: 01202 768574

As variable as cups of coffee can be, so business advisers offer a variable approach and it is essential that you choose the right adviser for you

At White Egret Limited, we offer a free cup of coffee (or tea) and an hour of our time to sit down with you and talk about your business, its strengths and challenges. We look at the issues that concern you today. Whilst we will discuss ways we can help in the future, this session is free and without obligation and will give you help and support.

Whether you are a new business just beginning to trade from a spare room or a long established company looking to streamline during the present difficult climate or moving forward so fast you can’t keep up, we can help.

These are a few of the testimonials you will find on LinkedIn:

Paul. Julie is a font of knowledge, a mix of experience and creativity ensures solutions that she then helps us execute.

Barbara. Julie is one of the true “Ladies” in business. Her ability to listen, problem solve, network and deliver a plan that can achieve high results is her forte.
 
John. There are times when encouragement is needed to “keep going” but also a breath of realism to take stock and refresh. Julie has the wisdom and wealth of skill to know when either or both is required…. and I would say the courage to say STOP when that is necessary.

Debbie. Julie has helped us raise our sights from the pile of paper on our desks to an overall strategy – I can’t recommend her highly enough! 

Whatever is keeping you awake at night, pick up the phone or drop an e-mail and arrange a cup of coffee and a chat now.

Contact Julie on 01202 768574 or email julie.leigh@whiteegret.co.uk

Firstly, take a long hard look at how the account is being run. Is the balance always within the overdraft limit or in credit? Have items been returned unpaid? Are there regular sums of money being deposited? Does the business run a savings account for larger outgoings such as rent and VAT? All are indicators the bank will consider when assessing any application.

Secondly, consider how much you will need. A new piece of equipment may cost £25,000 but will you need to buy a training package, too? Will you need to stop work for a period whilst it is installed? Will you need to take on extra or more experienced staff at extra cost? What will the error rate be in the beginning whilst everyone is getting used to the new equipment? Will you need increased stock of raw materials and of finished goods?

Next, be realistic about the advantages. It is not enough to say that it was nearly worn out, it was a bargain or you like the new model (however true that may be) From a business perspective, you need to justify the purchase in terms of producing the same amount at lower cost, producing a larger amount at lower unit cost, moving into a new area of the market etc.

Also, ask their advice. The best outcome may be a package that involves loan, overdraft, credit card etc. They talk to businesses every day and will be able to give you a recommendation as to the way they can accommodate what you need within their system to mutual benefit.

Lastly, talk about security. Banks never lend against the security; they always expect the business to be able to cover the debt or they will say no. Most of the time, they will ask for a director’s guarantee when lending to a limited company. Again, they expect the business to pay but they do want the directors to be focussed on working with the bank if things go wrong.

Banks do want to lend; that’s how they make their money. By asking in the right way, you greatly enhance your chances of being successful. If you would like some advice, why not ask for a free hour or a “Fledgling” session to talk things through.

Call 01202 768574 or e-mail julie.leigh@whiteegret.co.uk

The recession may or may not be over but there will still be a major impact on jobs over the next year or two. Each business needs to review carefully and ensure the company is running profitably even if that means reducing the size of the workforce to preserve the jobs of those who remain.

We have heard of some major redundancies recently and these are likely to continue. For a small business, it is often harder to consider reducing the number of staff as these are people who have worked loyally in the business, sometimes for many years, and they have become friends. The business owner needs to consider:

• For your business, can you undertake the work you are doing with fewer people?
• Is this likely to continue or will workload increase/decrease this year?
• Can you obtain extra work and if so how?
• If you arranged for some training, would you be able to undertake more work and/or more lucrative work?
• If you have one or more employee too many, are you prepared to risk the jobs of every employee by continuing to employ him or her?
• HR advice is available free of charge from ACAS and their website www.acas.gov.uk is very helpful but often it helps to talk one to one to ensure you get it right
• Is now the right time to introduce a new product range or service because there are some very experienced people looking for the right job

In 2010, all companies can look to the future and can find positive ways forward but they need to do so with their eyes open. What they actually need to do varies significantly one to another but talking things through with someone else is invaluable; it really helps the owner to see more clearly.

Free advice is available from White Egret Limited. We are pleased to offer a free initial session to talk about the general issues facing the business and to see in what ways we can help and assist. There is no obligation on either side but we are always happy to chat; call or e-mail today.

Julie Leigh julie.leigh@whiteegret.co.uk  01202 768574  07940 983132

Little Egret

The Little Egret (Egretta garzetta) is a small white bird, similar to a heron, with snowy white plumage. Standing just over half a metre high, the adult can have a wingspan of more than a metre. It has long black legs with yellow feet and a sharp black bill. It is mainly silent but can produce a harsh alarm call when disturbed.

It enjoys a diet of fish, amphibians, worms and insects and can be seen at the water’s edge fishing for food throughout the day or roosting in low trees at night.

Having become a regular visitor to the UK, it is now found all year round and there are now nearly two hundred breeding pairs, mainly in the South of England. Poole Harbour (Brownsea Island) became the home of the first pair known to mate in the UK in 1996 although there are unproven earlier claims.

During the autumn and winter, its numbers grow to over fifteen hundred as individuals arrive from mainland Europe. Locally, it may be seen at Christchurch Harbour, Poole Harbour and Radipole Lakes in Weymouth although more adventurous specimens are being seen further and further inland as each year goes by. Although its preferred habitat is marshland and shallow fresh and coastal waters, it may be also seen on river banks inland.

The Great White Egret (Egretta alba) is an occasional visitor with an average of ten sightings each year. It is a larger bird, of similar size to the grey heron which frequents our waterways, with the adult wingspan being one and a half metres. It has black feet and a yellow beak. It can be seen in any wetland habitat but predominantly in South East and East Anglia. Its diet of fish, insects and frogs, caught by spearing with its long, sharp beak, is similar to that of the Little Egret.

The Spoonbill (Platalea leucorodia) can be seen in coastal areas including, locally, at Arne in Poole Harbour. It is also white although slightly smaller than the Great White Egret and has black legs and bill. In the breeding season, it has yellow on its breast and bill tip. The beak is spatulate, resembling the spoon for which it is named. Its diet is mainly aquatic insects and small fish.

Little Egret

As the Little Egret overcomes the challenges it faces in expanding its territory and flourishing, so White Egret Limited helps businesses to overcome their challenges and flourish.

For a free initial session contact Julie on 01202 768574 or e-mail julie.leigh@whiteegret.co.uk.

We look forward to hearing from you.

An example. A business may sell 20% of its goods on a retail basis with payment at the time of sale. Of the remaining 80%, half (40% of the total) will be paid for next month, most of the rest the following month and the remainder the month after that. In a budget, the total sales will show in the month in which the sales were made. In a cash flow forecast, the sales will show in the month in which the cash is expected to be received. Sales of £10,000 would be shown as follows

With expenses, the same principle applies. When preparing a budget, the amount is shown in the month in which the expense occurs but in a cash flow forecast, it will be entered in the month in which payment is made. With rent, for example, the payment may be made quarterly and entered four times a year on a cash flow forecast. The cost relates to each month of the year so, in a budget which is looking at the profit that has been made that month, a third would be entered in each of the twelve months.

We also need to consider VAT. In a budget, the figures are shown net of VAT as this tax does not affect the profit of the business. In a Cash Flow Forecast, however, we are looking at the effect on the cash in the business so all figures are entered gross, including the VAT paid and received. There will also be a line to show VAT paid (or refunded!)

It helps to write down the assumptions made in this calculation. This is useful in establishing the same pattern in different lines and will help when looking back to see how close to reality the calculation was and in looking forward for the next year.
Preparing budgets and cash flow forecasts can be very powerful in helping a business to move forward. If you would like to see how this may help your business, talk to White Egret Limited now.

Free advice is available from White Egret Limited. We are pleased to offer a free initial session to talk about the general issues facing the business and to see in what ways we can help and assist. There is no obligation on either side but we are always happy to chat; call or e-mail today.

Julie Leigh julie.leigh@whiteegret.co.uk  01202 768574  07940 983132

Henley Business Finance is pleased to be associated with Julie Leigh of White Egret Ltd.  Having known Julie for some time now we feel that we share the same ethical approach to Business advice.  We both believe that the needs and requirements of our Clients are paramount and always come first.  We have both had different, and complimentary, Business experience prior to starting our respective Companies and bring these varied and relevant experiences to bear when advising our Clients.

Henley Business Finance is an Independent Business Finance Broker/Consultant and is dedicated to researching the very best rates and terms for every individual Business Finance requirement. We find that too many Businesses in the UK rely solely on their Banks for their requirements and do not know how or where to find Independent Business Finance advice. In America 80% of Business Finance is source via Business Finance Consultants, in the UK this figure is only 20!