Archive for August, 2007

Cash vs. profit

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Business Link
on 21 August, 2007
in Finance
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The ideal position for any business is to be profitable and cash generative. But it’s much harder to survive without cash than profit.

That said, profitability is a measure of success. Profit - from Latin meaning ‘to make progress’ - reflects development, increased wealth and status. Profit is a want, cash is a need.

A business that isn’t profitable can survive for long periods of time with adequate cash flow. Some business owners are content simply paying the bills and taking a healthy salary. Profit isn’t necessarily an objective.

Even if profit is an objective, insufficient cash flow stumps growth and undermines a business’s ability to survive. In addition, a cash generative business has increased potential to be profitable because the disciplines necessary to ensure healthy cash flow will invariably promote profitability.

Cash is needed not only for survival but for growth upon which to build profitability - which may be your ultimate want - so cash flow is critical whatever your objectives.

Download guide - Cashflow management: the basics

Top tips - how to get into the media

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Business Link
on 21 August, 2007
in Top Tips
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Regional newspapers value good quality business news. The effective use of public relations will enable you to raise the profile of your business and build a strong relationship with journalists.

Public Relations “…can be a vital and dynamic element of company’s overall marketing plan,” explains Ian Robins, Business Link’s Marketing Manager.  “Unlike advertising, where coverage or space is paid for, PR is a way of gaining positive publicity through editorial exposure. PR isn’t just for big companies using national newspapers or television.  Even the smallest business can use publicity opportunities to catch the eye of its local audience”. 

Talking to Business Link, local business editors explain how best to get your company’s news and achievements into the media:

 “We’re interested in the small start ups, we’re interested in the SMEs.  Every business has a story to tell”.
 Rob Buckland, Western Daily Press
 
 “Our role is to act as a catalyst to drive business, because that’s our livelihood. We don’t have a paper otherwise.”
 Ian Mean, Gloucestershire Media.

Download top tips

Listen to the full interviews : www.businesslinksw.co.uk/podcasts

For more information on writing press releases - or to view a sample press release - read the guide PR: The basics

Getting things done (GTD method)

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Business Link
on 21 August, 2007
in IT & eBusiness
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Getting things done (GTD) is a work-life management method that stresses the importance of collecting, recording and systematically organising tasks and commitments.

GTD is based on a five-step plan: collect, process, organise, review, do.

First, you need to collect your thoughts, ideas, and anything you need to act on. You can use any collection method you choose, such as a notebook, electronic organiser or computer program. Next, process these items deciding what, if anything, these tasks require you to do. Then, organise and review your collection of tasks regularly to ensure your GTD system remains up to date, adding new items as you go. Your mind will then be free to concentrate on ‘doing’, without the clutter of remembering tasks in your head.

The concept of listing tasks is nothing new. GTD is different because it advocates using different ‘perspectives’ when approaching tasks.

To gain perspective and control, GTD suggests several different ways of sorting your tasks and commitments. If you have many tasks spanning several projects, the ‘next action’ list shows only the next task for each project - a useful perspective when managing several projects concurrently. If you need to concentrate on one project, the ‘project’ list groups tasks by project name. Many more perspectives exist, including the ‘waiting for’ list, which highlights tasks awaiting an external event to occur before you can progress, and the ‘someday/maybe’ list of non urgent tasks.

Viewing tasks from different perspectives is made easier with specialist software. GTD programs let you enter task information into a database, which can be filtered and viewed by perspective, at the click of a button. Another level of control - context - lists tasks by nature, such as email, call, meeting or shopping. So when heading out for the day, you can print a list of ‘meetings’ and ‘shopping’. Ideal if your meetings are in town and you want to pick up your shopping on the way home.

GTD is designed for work-life management, not just work. For business owners - where the lines between work and life are often blurred - GTD could be the time management method of choice.

More info: The Business Link guide Computer Software: the basics offers advice on identifying the business benefits of new software.

Is email stressing you out?

Published
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Business Link
on 21 August, 2007
in IT & eBusiness
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Research undertaken by Glasgow University found that 34 per cent of those surveyed admitted to feeling stressed by the number of emails they receive. In addition, 28 per cent were ‘driven’ to check their email too often because of a perceived pressure to respond quickly.

Though not definitive, the survey suggests email stress may be a negative side effect of the digital age. This situation may worsen too, as more workers are equipped with laptops, smart phones and mobile web connections - making email harder to ignore.

In response to the research, Business Link Business Adviser Peter Weeks said “Email is a powerful and convenient tool, but it can disrupt your productivity. That said, don’t blame the technology. You are responsible for how you manage your time.”

Assigning dedicated blocks of time for checking email, or simply closing your email program every so often, can help divert your attention onto more useful pursuits.

As for reducing the pressure to respond, a balancing act is required if you rely on email for generating or retaining business. Related research commissioned by Fasthosts concluded that businesses who fail to respond quickly to customer emails ‘are losing business’ to more responsive competitors.

Internally, you can define email guidelines through email usage policies, or introduce email productivity training to help employees manage things for themselves. When dealing with customers - if you really do feel the pressure - you need to think carefully about how to most effectively manage expectations, without losing business.

Download guide - Introduce an Internet and email policy

Running your business from home

Published
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Business Link
on 21 August, 2007
in Strategy & Operations
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To run a better business from home, do the following:

Cover the basics

  • Carry out a health and safety risk assessment to identify and minimise the risks to you, your employees, visitors or residents.
  • Check with your insurance provider to see if you need extra cover.
  • Make sure the conditions of your mortgage or tenancy agreement allow you to use your home as a business.
  • Consider your income, VAT and Capital gains position, by consulting HM Revenue and Customs and an accountant.
  • Contact the local branch of your Valuation Office Agency (VOA); you may need to pay business rates.
  • If you are unsure about the legal implications of working from home, talk to a solicitor.
  • Before making structural changes to your home, talk to your local planning department.

Read guide - Use your home as a workplace

Be more productive

  • Get fresh, go outside. A shower, clean teeth and brisk walk may do more to freshen you up for the day ahead than anything else.
  • Create a separate workspace. A dedicated workspace helps avoid unwanted distractions. If you live with people, dividing your home and workspace shows respect to their personal needs.
  • Schedule morning meetings. If you have a hard time getting out of bed, schedule morning meetings: the best way to fight the snooze factor.
  • Get some exercise. Evidence suggests exercise increases productivity. If running your business from home means giving up your daily walk to work, regular exercise is equally important for your health too. (Always consult your doctor when starting an exercise regime.)
  • Work sensible hours. The comfort of home may tempt you to work all night or through weekends - but be careful. Your productivity and health will suffer if you work excessive hours, and you could lose friends (or your mind).
  • Ration your friends. To your friends, ‘work from home’ may sound like ‘pop in for a cuppa anytime’. If friends visit too often, limit their visits and explain why. They are your friends, they will understand.

HR focus

Published
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Business Link
on 21 August, 2007
in HR & People Development
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Increases to annual leave entitlement from 1 October 2007

From 1 October 2007 statutory annual leave entitlement will increase from 4 to 4.8 weeks.

The rules apply to all workers currently entitled to statutory annual leave under the Working Time Regulations 1998. There is no qualifying period, so entitlement begins as soon as employees begin work.

For an annual leave year beginning on 1 April 2008, leave entitlement increases by 0.8 weeks, which equates to an extra 4 days for employees working 5 days a week (part time calculated on a pro rata basis). If your annual leave year starts on any other date (including a date before 1 October 2007) you must calculate entitlement proportionately.

From 1 April 2009 entitlement will be further increased to 5.6 times the total number of days in an employees’ working week, capped at a maximum of 28 days. as an increase of 1.6 weeks per year above current entitlement, this represents an extra 8 days leave for employees working a 5 day week.

Bank and public holidays can be counted in the total annual leave entitlement.

Employers affected by the increases should act now - introducing full additional leave entitlement in anticipation of the 1 April 2009 changes, or phasing in a two-stage increase starting on 1 October 2007.

More detail on the regulation changes
Interactive tool - Calculate your current and new holiday entitlement
Read guide - know how much holiday to give your staff 

Writing a person specification and job description

You are not obliged to write a person specification or job description, so you should think of doing them as an opportunity, not a chore.

When recruiting, person specifications and job descriptions help create relevant job ads, brief employment agencies, shortlist candidates and direct interviews. In short, they are handy wish lists of who and what you need.

Beyond the recruitment process, writing down what is (and by omission what is not) required from an employee sets boundaries and maintains focus on key responsibilities. A motivated employee may in time want more from their job. By reviewing the person specification and job description regularly, you can fill skills gaps and identify areas to increase responsibility.

You don’t have to, so if you do, make it worth your while. Learn how to write a good person specification and job description, and use them as working resources to assist the recruitment and ongoing management of employees.

More information on writing a person specification and job description