Key issues in running your business Directors’ Briefing

Directors’ Briefing
Strategy
Key issues in
running your
business
Getting bogged down in working in your
business instead of on it is a classic mistake.
But business owners must remain focussed
on key issues that ultimately determine
success or failure.
This briefing covers:
•
•
•
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Your permanent priorities.
Improving efficiency.
Strategic planning.
Getting help and advice.
1 Your permanent priorities
You must keep constant track of five key areas
if your business is to succeed.
1.1Concentrate on attracting and keeping
customers.
• Cash flow forecasting can enable you
to identify future funding needs – while
ensuring your business doesn’t run out of
cash.
1.3Make sure your employees are performing
effectively and are overcoming any
problems.
• Start by recruiting the right people.
• Set a good example, lead and motivate
your team. Maintain good communication
at all times.
• Monitor employee performance with regular
reviews. Find out how you can help them
to be more productive. Give them the tools
and training they need to succeed.
Discuss and resolve any problems and
frustrations - otherwise employees will
move elsewhere.
• Continually improve your understanding of
customers and what they require from your
products and services. Continuing to meet
their needs is essential if customers are to
remain loyal to your business.
• Good communication is essential, while
continuing to engage customers by
promoting your business.
1.2Monitor your cash flow closely.
• Cash flow is the balance of money flowing
into and out of your business. Keeping a
careful eye on your cash flow via forecasts
can enable you to avoid serious problems
long before they arrive.
• Send your invoices out promptly and chase
money you are owed as soon as payment
is due.
England
Reviewed 01/10/15
Directors’ Briefing
1.4Develop your selling skills.
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• Make sure that you and employees who
deal with customers, have the training,
skills and information required to sell.
2.6Make sure you comply with the Data
Protection Act if you process information
about other people for business purposes.
1.5Keep tight control over your costs at all
times.
• All personal information held on computers
or in manual records is covered by the Act.
• Don’t buy things unless there is a sound
business reason. Negotiate best prices
with your suppliers. Remove waste and
inefficiency from all areas of your business.
• Revisit your prices regularly to see whether
you can increase them, especially if you are
faced with rising costs.
2.7Major problems with your premises can be
disruptive and costly.
2 Minimise risks
• Secure your premises.
• Failing to act when a lease is due to expire
and being caught out by large increases in
rent and rates are common problems.
• Create a pleasant and comfortable yet
productive working environment.
2.8Negotiate solutions to disputes.
Your business will inevitably face a range
of potential risks, but with planning and
good management, you can reduce them
significantly.
Put contingency plans in place to help you
cope if things go wrong.
2.1Protect yourself by taking out insurance in
areas where you are at risk.
2.2Seek to build customer loyalty to reduce
the risk of losing important revenue.
• Diversify your customer base to avoid over
reliance on one or more customers.
2.3Always control your cash flow (see 1.2).
• If cash flow problems look likely, take
positive steps to avoid them. Seek
professional advice if necessary.
2.4Treat your employees well to minimise risk
of their leaving.
• Offer competitive wages and a pleasant
and rewarding working environment (see
1.3).
• Share knowledge and skills to avoid relying
too heavily on one key employee.
• Create fair employment policies and treat
employees fairly and in accordance with
their legal rights.
2.5Make sure your computers and any data
stored are secure.
• Make regular back-ups so you can restore
data if your system crashes.
• Seek professional advice from a
• Deal with minor issues before they can
become more serious problems.
• Use informal meetings first to try to sort
out problems, but don’t avoid more formal
action where required.
• Seek sound professional legal advice if your
business is faced with legal action.
2.9Get advice if you plan to trade
internationally, because it can involve
entirely different challenges and risks.
• Speak to your local UK Trade & Investment
adviser (www.uktiofficefinder.ukti.gov.uk).
• Visit the Export Britain website (www.
exportbritain.org.uk).
• Find experts, resources and answers to
your questions on the Open to Export
website (www.opentoexport.com). See 6.
3 Improve efficiency
Investing time and money in training and more
effective tools and systems can pay long-term
dividends.
3.1Invest in technological solutions to
maximise your business efficiency.
3.2Save time and money by making best use
of latest communications and information
technology.
3.3Where possible, establish routines to avoid
wasting time solving the same problem
repeatedly.
• Develop and implement more effective
policies and working methods.
Directors’ Briefing
• Store information systematically, so that it is
easy to find and use.
Organise your time
Allocate a set time for all activities you
need to carry out. Create a to-do list, stay
focussed and try to avoid getting distracted
by minor issues. A typical schedule might
include:
A Daily tasks.
• Check your appointments and any
correspondence.
• Delegate jobs and brief employees.
• Set aside uninterrupted time for dealing
with urgent tasks, and important weekly
and longer-term tasks.
B Weekly tasks.
• Check your bank balance and projected
cashflow position.
• Review the effectiveness of your
marketing.
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• Manage your time efficiently, and help
employees to do so.
3.4Invest in developing your employees’ skills
so they can become more productive.
4 Strategic planning
It is easy to get bogged down focusing on
the short term, so you must make time for
‘big picture’ strategic activities that enable
your business to grow and become more
successful.
4.1Work towards long-term goals.
• Focus on key factors that will determine the
long-term success of your business.
• Create systems and work with indicators
that enable you to assess and improve
the overall health and performance of your
business.
4.2Use a forward-looking business plan to set
out how you will achieve your objectives.
• Review and update your business plan
regularly.
C Monthly tasks.
4.3Keep moving ahead.
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•
•
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Review monthly business performance.
Modify your business plan and budgets.
Review major strategic activities.
Pay payroll and PAYE.
D Quarterly tasks.
• Hold employee performance appraisals.
• Review overall staffing and HR issues.
• Analyse value provided by your major
suppliers.
• Complete your online VAT return and
pay VAT if you’re VAT registered.
E Annual tasks.
• Perform a SWOT analysis for your
business.
• Have your annual accounts prepared.
• Consider whether you need to hold a
company annual general meeting.
• Review your personal pension
arrangements.
• Renew insurance and other important
annual contracts.
• Review the effectiveness of your major
company policies.
• Review the suitability of your premises.
If rented, make sure you know when the
lease will expire (see 2.7).
4.4Continually monitor key external factors that
can affect your business.
• Keep a close eye on your competitors and
stay close to your customers so you can
continue to serve their needs.
4.5Plan for your own long-term security. Seek
professional advice on financial issues,
including pensions.
4.6Don’t become distracted or neglect
your core work when buying or selling a
business.
5 Comply with legislation
Legal problems can tie up critical resources
and take up your time. And if your business is
found to have broken the law, it can prove very
expensive – while your reputation can also be
irreparably damaged.
5.1Find out about legislation that applies to
your business.
• Ask your advisers for tailored advice (see
6.2).
Directors’ Briefing
5.2Comply with all employment legislation
– particularly when you hire or dismiss
someone.
5.3Provide a safe working environment.
• If you have five or more employees, you
must have a written health and safety policy.
5.4Fulfil your duties as a director.
• Otherwise you could become personally
liable if your company gets into financial
difficulties.
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6.4Access external skills to cover your
weaknesses.
Expert
contributors
• Budget permitting, employ a freelance,
contractor or consultant if you don’t want
to or cannot afford to take on staff or
develop in-house skills.
• An experienced non-executive director can
provide a regular, impartial assessment on
your business.
• Also look online for other free and reliable
sources of advice about how to manage
a business or manage key small-business
challenges.
This briefing was
written by the editorial
team at Atom
Content Marketing.
5.5Keep accurate financial records and
prepare proper accounts.
• Not having good financial systems in place
can prove disastrous. Having access to
accurate, up-to-date financial records and
accounts can enable you to better manage
and develop your business.
5.6Make sure you meet your tax liabilities.
5.7Stay on the right side of IT law.
• Make sure you know how the law applies
to doing business online if that’s how you
trade.
6 Get help and advice
6.1Business support organisations can offer
independent advice, information and
services to help small businesses.
• Advice may be free or subsidised.
6.2Work with good professional advisers.
• Use an accountant who understands your
type of business.
• Where necessary, use a solicitor with
experience of advising small businesses.
Find a solicitor on the Law Society website
www.lawsociety.org.uk/find-a-solicitor.
6.3Find out what help can be offered by your
trade association and local Chamber of
Commerce.
• Search the Trade Association Forum’s
directory of UK trade associations at www.taforum.org/members.
• Contact the British Chambers of
Commerce (020 7654 5800 or www.
britishchambers.org.uk).
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is for general guidance
only. The publisher, expert
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disclaim all liability for
any errors or omissions.
Consult your local business
support organisation or your
professional adviser for help
and advice.