In my experience the main reason why small businesses are forced to write a business plan is to secure some funding. However in my time spent advising businesses, what has been clear, is that those who write a business plan for themselves tend to do much better in business. The reason for this is that it provides measurable time-related goals upon which you can gauge the performance of your business.

A more important factor that I have experienced is that having identified in a plan, where your business is today and where you want the business to be in, say two years time, it stipulates creativity. By creativity, I mean the ability to think outside the box, to overcome hurdles and your business brain is always working to see how you can achieve the goals set. If the business plan achieves this much it becomes an invaluable tool.

So, if having a business plan is an important factor in the success of a business, why do so many small businesses fail to prepare one? The easiest answer is that most either think it is a waste of time (pandering to number crunchers) or find it difficult to write one. For those who are in the waste of time camp, ask yourself why a business plan is so important to lenders and financial backers.

I accept that writing a good plan is not easy if you have not prepared one before and unfortunately with so many books and information on the internet it can become confusing and at worse template driven. The impression created by many is that the only thing standing in the way of spectacular success is a glossy plan with meticulous looking spreadsheets and projections. Nothing could be further from the truth. The biggest problem with most business plans is that they concentrate too much on the figures and very little on the business.

My advice on anyone thinking of writing a business plan is to start with your dreams and aspirations, looking at your business on how it can deliver this. This will involve asking hard questions to identifying key areas that you need to perform well to arrive at your destination. The figures (or projections) come afterwards fitting into this model and tells the story of the journey.

How should you then start writing your business plan? Firstly make the commitment to write one within a specific time frame. Secondly set aside some time during the day or week where you can concentrate on writing key headings that you believe are important to the success of your business. Thirdly start writing the areas that you find the simplest to write first. This will boost your confidence and should be the catalyst to finishing the project. If you feel that you are struggling with certain elements, enlist the help of your accountant who should know your business well.

Finally a word of warning, a business plan should not be set in stone but rather treated as a work in progress. You should come to it on a regular basis to amend certain elements, if events have not turned out to be as expected or new opportunities arise, these should be reflected in the business plan.

Ibrahim Aziz Numerion Associates

For Further Help Developing Your Business Plan email Ibrahim.aziz@numerion.co.uk

If you are serious about your business and want to grow, the benefits derived in using an accounting software, in my opinion, outweighs any arguments against its use. Most of the arguments against surround the cost and understanding bookkeeping. Both are invalid in today’s market.

There are so many accounts software on the market today that cost is no longer an important factor and you do not need to be passionate about bookkeeping for it to be used as an important business tool. A small financial investment in an accounts software can lead to considerable time saving in administration and provide essential data for a business on a day to day basis.

The reason for this is that the amount of business intelligences held on an accounting system makes it an important strategic business tool. Some of the benefits include:

• Reduce delay from the time a sale is made and generating an invoice.
• Faster collection of cash by keeping track of receivables and the ability to automate statements and chasers.
• Identifying your best and worst customers or clients in terms of volume and profitability. This enables you to better forecast where your efforts should be directed.
• Tracking payables to better forecast cash requirements and managed more efficiently your working capital.

You will note that I have not listed any accounting related benefits, such as being able to do your VAT Return more accurately or able to reconcile your bank account quicker etc. The overriding argument in favour of using an accounting system as a business tool must be that the business runs more efficiently and provide essential information. This can be the difference between successfully growing your business and finding yourself in financial difficulties.

This is why we always ask new prospective clients how serious there are about their business. If you want to grow your business, it is worthwhile making a small investment in a good accounting software from the outset. With our help in setting it up and teaching you the basics, you will quickly see the benefits.

So how much does an accounting software cost? You could download a basic one from the internet for free or purchase one for less than £50 for a system that provides limited functionality. We do not advocate a particular accounting software, but look at your business and identify key elements that an accounting software needs to do well to help you grow and find the ‘best fit’ in terms of price and functionality.

Unfortunately each accounting software on the market has its strengths and weaknesses and we have not come across one software that fits all. For small businesses the choice is now immense and very confusing. You have Sage, Quickbooks, Office Accounts, MYOB, Mamut, Accountz and Kashflow to name only a selected few. Most of these you can download on a 30 day trial version from their website. However your first port of call should be your accountant for advice, who should be able to give you a choice of at least two or three which should be more appropriate for your business needs for now and the future.

Ibrahim Aziz Numerion Associates

Why not contact us to discuss how we can help you. Mail me at Ibrahim.aziz@numerion.co.uk

Growing your business is hard, but then starting anything is hard, if you do not have an idea where to start. My advice is to just do it. Starting anything is the most difficult thing to do and it is because it is you who have to do it. If you think you cannot do it yourself, then find a business partner or a mentor who shares your belief.

There are plenty of books and resources on the internet on marketing, but none will tell you a step by step guide to growing your business, a fool proof way to obtain new and profitable customers or clients. However you will gain ideas and methods of marketing your business that work, but unless you implement them and persevere, the research will be for nothing. Experience in this area or any other aspect of your business cannot be bought but it needs to be earned by hard work and trying things.

This may seem old fashioned, but all good businesses have been built by leaders who have learnt the hard way from trial and error. Anyone promising you a quick fix solution or something that is too good to be true, the likelihood is that you will be left very disappointed. Before embarking on the journey of starting to build your business, take stock of where you want the business to go and your personal aspiration. As a leader, (even if the business at the present only contains you), the success of the business you set up, rests fairly and squarely on you.

One of the most useful tools that you can develop is a realistic plan with a time line, which will help you focus and overcome inertia. The starting point should be to find yourself a great accountant, who will be willing to take the time to understand your business and provide important input during the year and not just after the horse has bolted. That is, just preparing your year end accounts and tax return.

Growth for the sake of itself is insufficient, as it can suck limited resources. When you are starting out in business, you are the most vulnerable and you have to keep so many balls in the air just to survive. Growth should be planned to ensure that cash resources are not being depleted rapidly. As the popular saying goes ‘turnover is vanity, profit is sanity’. But then, in business you need a good dose of vanity, sanity and luck. Find the right mixture and you will be on your way.

Ibrahim Aziz Numerion Associates

Why not contact us to discuss how we can help you. Mail me at Ibrahim.aziz@numerion.co.uk