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
Megan Best   megan.best@whiteegret.co.uk   01202 768574  07825 647345

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.

Little Egret

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 or Megan on 01202 768574 or e-mail us at julie.leigh@whiteegret.co.uk or megan.best@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
Megan Best  megan.best@whiteegret.co.uk   01202 768574  07825 647345

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!

There are many examples of sales staff who give such large discounts to achieve their targets that the business they write isn’t profitable. Turnover is vanity.

Profit is more important. Whilst not as easy to monitor, it is essential to the future of the business. Not only discounts but overheads are pivotal; if overtime has to be paid to achieve a deadline, the price needs to reflect this. It would be better, in almost every case, not to write the business than to do so at a loss. One helpful way to look at this is to calculate the breakeven point for the business based on latest costs and to ensure each day week or month exceeds that figure. To have a future, a business needs to ensure it focuses on profit. Profit is sanity.

Even if a business is growing, the need to manage the money in the bank is paramount. Often, an increasing turnover puts pressure on a business which needs to buy in supplies and pay wages before being paid itself. More so in a recession! Managing the cash flow of a business may seem like a luxury when time is scarce but can be the key the most important factor in managing success.

Cash flow is always a key focus. If a business cannot pay, no matter how profitable, it will fail. Businesses need to look at:
• How much deposit they can charge before supply
• How they assess each customer to be sure they can pay the full amount due
• What price they charge and how it compares to competitors
• How they can reduce their costs of providing the product or service
• How they can reduce their overhead
• What system is in place to ensure money is received when due
• How they chase overdue funds
• When they put customers on “stop”
• How often they reconcile their bank statement (can be done daily online)
• How they plan ahead for larger bills such as VAT, rent and taxation

Not all of these will apply to any one business but all businesses need to review some of these. It is essential no items are returned unpaid by the bank as this will impact upon the company’s credibility and ability to borrow in the future. Also, the bank charges can be enormous. Hard though it may be to resist, it is better to delay issuing a cheque or making a payment rather than default.

Look at turnover, monitor profit but don’t forget that cash is key.

If your financial management and cash flow is fully under control and all systems are exemplary, focus elsewhere in your business to improve. If not, a little time and energy at this stage can mean the difference between failure and success.

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
Megan Best  megan.best@whiteegret.co.uk           01202 768574  07825 647345

In the 1989/90 recession, many businesses struggled and then thought the worst was past when the government announced the recession formally over but it was 1994 before confidence was back to a normal level and people were trading with confidence as before. During those intervening years, businesses continued to struggle; they suffered bad debts, they had to make people redundant and they went into administration. It is expected the New Year will see the present recession end as defined officially but it will be several years before the good years are back, longer this time if some pundits are right.

For some businesses in the early 1990s, administration was inevitable and often outside their control but for many that was not the case and, if they had looked at the way they ran the business in advance, they may well have survived. In a recession, some businesses thrive because the owners take stock of what is happening and what will happen in the short and medium term and they act to take best advantage of conditions as they will be rather than as they were in the past. They not only survive but thrive.

All businesses should look at the way they manage their workload, their people and their cash flow. The market they focus upon may need to change or they may need to remove or introduce different product lines. Whilst the person who knows the business best is always the business owner, sometimes he or she is too close to review the way forward alone and working with someone with an in-depth knowledge of the business community and the present marketplace can help enormously. Someone to talk to is invaluable. This is where White Egret Limited can help. A free one hour session will enable any business to begin the review process and define what is most important and most urgent for that business.

It is important to define the people who are customers. What are they looking for? What is important to them? What is their budget? What will help them to decide to buy? It may be appropriate to introduce a budget range or focus entirely on the value of the more expensive option. Car manufacturers are great at looking at separate markets and producing very different vehicles for different customers. Vauxhall, for example, are offering cars for less than £8,500 or more than £38,500 and both will have markets. Looking at what you have always done is not always a good benchmark for what should be done in the future. What changes should you make?

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
Megan Best  megan.best@whiteegret.co.uk    01202 768574  07825 647345