On June 3rd New Mindset is providing sales and marketing advice and support to businesses at Surrey Heath Borough Council and Surrey Chambers of Commerce "Credit Crunch Bite Back meeting for businesses in Surrey Heath".
Just turn up for an informal no obligiation discussion with one of our highly experienced business advisors. Of if you have specific time you want to book a session call Andy on 01276 537 282 or alternatively email andy.hamer@new-mindset.com.
Details below detailing times and location for the event:
Meeting Date
Wednesday 3rd June 8.30 - 1.00pm
Venue
Camberley Theatre
Knoll Road
Camberley
Surrey
GU15 3SY
Register online to attend The Credit Crunch Bite Back Meeting - 3rd June 2009
http://www.surreyheath.gov.uk/business/biteback/
Wednesday, 27 May 2009
Tuesday, 26 May 2009
Invest in training arm your business for growth
In our zeal to inform you about our new extensive experience based one-on-one seminar and workshop programme we forgot to mentioned we offer a FREE half day business review.
Our business review enable us to customise your sessions reflecting the real world your business operates in - its markets, its customers and not forgetting your competitors, ensuring you extract the maximum benefit in the minimum time enabling you to implement practical solutions that work in your specific business.
Develop your People. Turn good managers into really effective managers. In all of our programmes we focus on practical ways of improving personal and business performance.
Workshops and Seminars. These offer a refreshing change from courses. Our workshops are customised around themes related directly to the day to day issues that face your business.
Current Seminar and Workshop Programme:
Sales Strategy Workshop – 2 Days
Business Strategy Workshop – 2 Days
Business Start-up Workshop – 2 Days
International Business Development Seminar – 2 Days
International Business Strategy Workshop – 2 Days
Sales Training Seminar – 2 Days
Sales Strategy Workshop – 2 Days
Small Business Owner Workshop – 2 Days
Understanding Marketing Seminar – 2 Days
Understanding Market Research & Analysis Seminar – 2 Days
New Product Development & Marketing Strategy Workshop – 2 Days
Business Owner Succession Planning & Exit Strategy Workshop – 1 Day
Account Management Seminar – 2 Days
Business Development Seminar – 2 Days
Marketing Your Business Seminar – 2 Days
Pricing Principals Seminar – 1 Day
Brand Building Seminar – 1 Day
If you don’t find listed above a seminar or workshop on a subject you have interest in Call 01276 537 282 or email andy.hamer@new-mindset.com.
We are happy to discuss your specific requirements deliver fully customised content and course duration.
Remember you can use TrainToGains Leadership and Management Grant to fund the seminar and workshop costs.
Train now to be prepared for growth, its the best investment you will make this year.
Our business review enable us to customise your sessions reflecting the real world your business operates in - its markets, its customers and not forgetting your competitors, ensuring you extract the maximum benefit in the minimum time enabling you to implement practical solutions that work in your specific business.
Develop your People. Turn good managers into really effective managers. In all of our programmes we focus on practical ways of improving personal and business performance.
Workshops and Seminars. These offer a refreshing change from courses. Our workshops are customised around themes related directly to the day to day issues that face your business.
Current Seminar and Workshop Programme:
Sales Strategy Workshop – 2 Days
Business Strategy Workshop – 2 Days
Business Start-up Workshop – 2 Days
International Business Development Seminar – 2 Days
International Business Strategy Workshop – 2 Days
Sales Training Seminar – 2 Days
Sales Strategy Workshop – 2 Days
Small Business Owner Workshop – 2 Days
Understanding Marketing Seminar – 2 Days
Understanding Market Research & Analysis Seminar – 2 Days
New Product Development & Marketing Strategy Workshop – 2 Days
Business Owner Succession Planning & Exit Strategy Workshop – 1 Day
Account Management Seminar – 2 Days
Business Development Seminar – 2 Days
Marketing Your Business Seminar – 2 Days
Pricing Principals Seminar – 1 Day
Brand Building Seminar – 1 Day
If you don’t find listed above a seminar or workshop on a subject you have interest in Call 01276 537 282 or email andy.hamer@new-mindset.com.
We are happy to discuss your specific requirements deliver fully customised content and course duration.
Remember you can use TrainToGains Leadership and Management Grant to fund the seminar and workshop costs.
Train now to be prepared for growth, its the best investment you will make this year.
Thursday, 21 May 2009
Prime Minister Encourages Exports – “Export tips in no particular order”
We live in global market place foreign competitors enter the home market so let’s see if we can take advantage of the trend generating export sales.
Sounds simple! The reality can be quite different more importantly if it’s not done correctly quite easily a potential opportunity turns sour and hits your profitability the opposite of what was intended.
Let’s consider how export opportunities arise:
Scenario One
Your Company has been approached by a potential overseas buyer or agent who’s interested in your products.
Scenario Two
We want to increase the turnover the business because our home market is highly competitive or your market share can’t increase so let’s see what opportunities are to export our products or services
Nothing wrong with a business taking advantage of either scenario but you have to be sure it’s the right thing to do and that you have the necessary skills and resources to analysis the opportunity to make sure that it’s the right business strategy for your company.
So what’s the secret to exporting that’s not easy to answer in one sentence because it’s actually quite a complex issue? If there is a secret it’s too really understand what you letting your business in for and making sure that you fully appreciate the commitment that’s need to make successful. It could be that exporting is not for your company but make that choice by developing knowledge. Here are the issues you need to consider the list is not exhaustive:
Market Opportunity:
How large is the opportunity in units and revenue terms?
What’s the local pricing for my product or service?
What profit levels can be expected?
What’s and who are the competition?
What support is required by local customers?
Do we need have our own people operating in the market?
Could we employ a local agent or distributor?
How do we find a local agent and distributor that we can trust?
What are the support requirements?
Legal Requirements:
Do we need to setup a local company?
What are the local ownership requirements?
Are there any local law on guarantees requirements?
Any need for special insurance?
Are their local legal standards and regulations that our product service needs to meet?
Do are products need to be tested to certify regulatory compliance? How much does it cost and how long does it take?
Do we have to translate all our documentation into local language?
What’s our legal standing in the local market if we need to take legal action?
Getting Paid:
Do we need a local bank account?
Can we repatriate my revenues?
Are there any restrictions on transferring money out of the country?
Are we going to receive payment in local currency or Pounds?
How are we going to cope with currency fluctuations?
What guarantee that we will be paid?
Are there any statuary payment terms in the country?
Who pays for the delivery of the product or services (FOB, CIF etc)?
Do we need a Letter of Credit?
Do we need and can we obtain export guarantee payment insurance?
Will my agent buy off me and stock for sales to local customers?
Case Studies:
These case studies are all large international corporations with the resources available to ensure they didn’t make unnecessary mistakes that would jeopardise their businesses.
(1)Detergent manufacturer try to sell its washing liquid in the UK, it was called “Piss”, obviously meant something quite different in their home language. The product was withdrawn!
(2)Global car manufacturer came up with an “Spanish sounding ” name for one its new cars and launched it to Spanish speaking markets – it translated into something quite offense. The car was renamed at great cost all the TV, press adverting and brochures had to be scrapped and it damaged the brand for years.
(3)Specialised computer hardware and solutions developer of cross border logistics software thought that the European Single Market border arrangements where the same as for NAFTA which they are not. The company was about to sign a lease and invest in manufacturing these systems in Europe before they decided to double check their assumptions which saved them 10’s millions of dollars.
(4)Global telecoms operator expanding internationally wanted to bid for the second cellular network in Germany and didn’t know that Denmark was not part of the Germany.
(5)Global telecoms operator trying to expand in Spain sent a Spanish speaking manager to Spain once a month believing that this was adequate commitment to develop business but didn’t understand the cultural business differences between Spain and their home country.
(6)International business wanted to expand in South East Asia sent a high level executive on a 2 weeks business trip with meetings arranged in the morning and afternoon with local senior management. After 10 days they had only seen one customer. They didn’t understand that time and meetings have different meaning in these markets.
Bottom line seek advice when considering exporting you could lose more than your “shirt” if you get it wrong!! New Mindset can you help you contact Andy for more details either call 01276 537 282 or email andy@andyhamer.com
Sounds simple! The reality can be quite different more importantly if it’s not done correctly quite easily a potential opportunity turns sour and hits your profitability the opposite of what was intended.
Let’s consider how export opportunities arise:
Scenario One
Your Company has been approached by a potential overseas buyer or agent who’s interested in your products.
Scenario Two
We want to increase the turnover the business because our home market is highly competitive or your market share can’t increase so let’s see what opportunities are to export our products or services
Nothing wrong with a business taking advantage of either scenario but you have to be sure it’s the right thing to do and that you have the necessary skills and resources to analysis the opportunity to make sure that it’s the right business strategy for your company.
So what’s the secret to exporting that’s not easy to answer in one sentence because it’s actually quite a complex issue? If there is a secret it’s too really understand what you letting your business in for and making sure that you fully appreciate the commitment that’s need to make successful. It could be that exporting is not for your company but make that choice by developing knowledge. Here are the issues you need to consider the list is not exhaustive:
Market Opportunity:
How large is the opportunity in units and revenue terms?
What’s the local pricing for my product or service?
What profit levels can be expected?
What’s and who are the competition?
What support is required by local customers?
Do we need have our own people operating in the market?
Could we employ a local agent or distributor?
How do we find a local agent and distributor that we can trust?
What are the support requirements?
Legal Requirements:
Do we need to setup a local company?
What are the local ownership requirements?
Are there any local law on guarantees requirements?
Any need for special insurance?
Are their local legal standards and regulations that our product service needs to meet?
Do are products need to be tested to certify regulatory compliance? How much does it cost and how long does it take?
Do we have to translate all our documentation into local language?
What’s our legal standing in the local market if we need to take legal action?
Getting Paid:
Do we need a local bank account?
Can we repatriate my revenues?
Are there any restrictions on transferring money out of the country?
Are we going to receive payment in local currency or Pounds?
How are we going to cope with currency fluctuations?
What guarantee that we will be paid?
Are there any statuary payment terms in the country?
Who pays for the delivery of the product or services (FOB, CIF etc)?
Do we need a Letter of Credit?
Do we need and can we obtain export guarantee payment insurance?
Will my agent buy off me and stock for sales to local customers?
Case Studies:
These case studies are all large international corporations with the resources available to ensure they didn’t make unnecessary mistakes that would jeopardise their businesses.
(1)Detergent manufacturer try to sell its washing liquid in the UK, it was called “Piss”, obviously meant something quite different in their home language. The product was withdrawn!
(2)Global car manufacturer came up with an “Spanish sounding ” name for one its new cars and launched it to Spanish speaking markets – it translated into something quite offense. The car was renamed at great cost all the TV, press adverting and brochures had to be scrapped and it damaged the brand for years.
(3)Specialised computer hardware and solutions developer of cross border logistics software thought that the European Single Market border arrangements where the same as for NAFTA which they are not. The company was about to sign a lease and invest in manufacturing these systems in Europe before they decided to double check their assumptions which saved them 10’s millions of dollars.
(4)Global telecoms operator expanding internationally wanted to bid for the second cellular network in Germany and didn’t know that Denmark was not part of the Germany.
(5)Global telecoms operator trying to expand in Spain sent a Spanish speaking manager to Spain once a month believing that this was adequate commitment to develop business but didn’t understand the cultural business differences between Spain and their home country.
(6)International business wanted to expand in South East Asia sent a high level executive on a 2 weeks business trip with meetings arranged in the morning and afternoon with local senior management. After 10 days they had only seen one customer. They didn’t understand that time and meetings have different meaning in these markets.
Bottom line seek advice when considering exporting you could lose more than your “shirt” if you get it wrong!! New Mindset can you help you contact Andy for more details either call 01276 537 282 or email andy@andyhamer.com
Thursday, 14 May 2009
Nearly 90% of business failures are caused by poor, ineffective, or incompetent management! Why?
Most owners when their business fails blame amongst the following: the market “it wasn’t ready” the customer “they won’t pay” the product “it didn’t have the right features” the staff “they weren’t motivated” the government “they don’t support small businesses” ……
If you take a look at these issues what is central to each elements – “the owner” aren’t you the one that’s supposed to be managing the business and have an eye of each of these elements making sure that each of these issues is evaluated and appropriate action taken. Or I am mistaken!
Most owners take their widget into business not themselves, they entirely widget orientated and what they don’t know about their widget is as we say in the UK “is not worth writing on the back of a fag packet”. Unfortunately in many cases this orientation is inward not outward looking so the owners doesn’t necessary appreciate the widgets dynamics and interaction with external influences mentioned above. I can hear you saying Andy don’t be silly of course they do they are risking their capital and maybe even the banks so they must know. The plain fact is they don’t and the question is why don’t they?
In many cases they owner has been part of another organisation which produces the widget believing they can do it better tend to be technicians not having a background in business. It’s not like being an engineer when you have to be qualified so how difficult can it be!
They bounce the idea amongst their friends, friends and acquaintances for advice on whether it’s a good idea to go into business and they want to be supportive by saying yes.
Can you see a trend developing to explain why when a business fails they blame all the outside elements because they haven’t engaged with the market to confirm what the market wanted in terms of making sure that there is sufficient volumes where available for viable business at the price you had to sell it with the features the customers wanted and was available from where you customers wanted to buy it.
It’s really misunderstanding marketing that kills a business along with not having sufficient business skills to enable you to complete the necessary research to evaluate and confirm a market exists for your widget and maintaining an update understanding of the what the market wants.
You won’t sell anything, well that’s not entirely true almost giving it away will generate some sales, if you don’t what the market wants and you won’t understand the market by asking your friends, family and acquaintances.
Bottom line if you know what your customer’s wants and needs are that need to satisfy and you know what price they are willing to pay and where they want to buy from you on your way to being successful.
New Mindset can help you answer these questions to make sure that your products and services are what the market wants.
So give Andy a call on 01276 537 282 or email andy.hamer@new-mindset.com for your FREE ½ day consultation.
If you take a look at these issues what is central to each elements – “the owner” aren’t you the one that’s supposed to be managing the business and have an eye of each of these elements making sure that each of these issues is evaluated and appropriate action taken. Or I am mistaken!
Most owners take their widget into business not themselves, they entirely widget orientated and what they don’t know about their widget is as we say in the UK “is not worth writing on the back of a fag packet”. Unfortunately in many cases this orientation is inward not outward looking so the owners doesn’t necessary appreciate the widgets dynamics and interaction with external influences mentioned above. I can hear you saying Andy don’t be silly of course they do they are risking their capital and maybe even the banks so they must know. The plain fact is they don’t and the question is why don’t they?
In many cases they owner has been part of another organisation which produces the widget believing they can do it better tend to be technicians not having a background in business. It’s not like being an engineer when you have to be qualified so how difficult can it be!
They bounce the idea amongst their friends, friends and acquaintances for advice on whether it’s a good idea to go into business and they want to be supportive by saying yes.
Can you see a trend developing to explain why when a business fails they blame all the outside elements because they haven’t engaged with the market to confirm what the market wanted in terms of making sure that there is sufficient volumes where available for viable business at the price you had to sell it with the features the customers wanted and was available from where you customers wanted to buy it.
It’s really misunderstanding marketing that kills a business along with not having sufficient business skills to enable you to complete the necessary research to evaluate and confirm a market exists for your widget and maintaining an update understanding of the what the market wants.
You won’t sell anything, well that’s not entirely true almost giving it away will generate some sales, if you don’t what the market wants and you won’t understand the market by asking your friends, family and acquaintances.
Bottom line if you know what your customer’s wants and needs are that need to satisfy and you know what price they are willing to pay and where they want to buy from you on your way to being successful.
New Mindset can help you answer these questions to make sure that your products and services are what the market wants.
So give Andy a call on 01276 537 282 or email andy.hamer@new-mindset.com for your FREE ½ day consultation.
Monday, 11 May 2009
Gut feelings are not good enough -Do your research
It doesn’t surprise that SMEs don’t invest in market research it’s not cheap but it does surprise me when large corporates who really should know better don’t.
It’s true that market research only really tells us about the present which in some cases is what we want to know about. But even when you are asking respondents about the future there views are abiut the future are interwoven with what they know and experience in the present.
However, any independent view of the future its better than running any business on gut feelings.
Ask any business owner or CEO whether they paid for a survey when they bought their last house to make sure it was a sound investment or when buying a new car they didn’t look through the car “mags” to see what the experts where saying. The answer to both questions we will more or less a resounding YES. When you ask about market research their answer will be we are experts and we know everything about our customers and markets so we don’t need market research its an unnecessary expense.
Why oh why do they risk their business or capital failing to complete the same due diligence with their business!
Why because you might miss something or because independent market researchers don’t play politics, don’t have an agenda, they don’t have company inertia and they don’t simply say yes to their boss! Plus they are more aware of external influences from new entrants and other new technologies that might impact your business.
You owe it your family if you are a SME owner and you owe to your shareholders if you are corporate to get it right – why because being wrong and ill informed can mean more than just wasting money it can mean bankruptcy!
Want to know more about the benefits of market research when investing in new products, entering new markets and going international then give New Mindset a call 01276 537 282 or email andy.hamer@new-mindset.com.
Delivering business growth and profitability
It’s true that market research only really tells us about the present which in some cases is what we want to know about. But even when you are asking respondents about the future there views are abiut the future are interwoven with what they know and experience in the present.
However, any independent view of the future its better than running any business on gut feelings.
Ask any business owner or CEO whether they paid for a survey when they bought their last house to make sure it was a sound investment or when buying a new car they didn’t look through the car “mags” to see what the experts where saying. The answer to both questions we will more or less a resounding YES. When you ask about market research their answer will be we are experts and we know everything about our customers and markets so we don’t need market research its an unnecessary expense.
Why oh why do they risk their business or capital failing to complete the same due diligence with their business!
Why because you might miss something or because independent market researchers don’t play politics, don’t have an agenda, they don’t have company inertia and they don’t simply say yes to their boss! Plus they are more aware of external influences from new entrants and other new technologies that might impact your business.
You owe it your family if you are a SME owner and you owe to your shareholders if you are corporate to get it right – why because being wrong and ill informed can mean more than just wasting money it can mean bankruptcy!
Want to know more about the benefits of market research when investing in new products, entering new markets and going international then give New Mindset a call 01276 537 282 or email andy.hamer@new-mindset.com.
Delivering business growth and profitability
Saturday, 9 May 2009
Understanding Marketing - Its importance to small businesses!
Many small businesses don’t understand marketing and just how an important it is to the success and profitability of their business.
Marketing is one element of a three element model that defines business which needs to be in balance for a business to be successful.
Finance = Marketing + Operations.
Too be blunt without marketing your business won’t attract customers and your business doesn’t generate any cash to fund it.
Most small businesses consider marketing just as advertising, publicity, exhibitions, brochure, website etc.
Marketing ensures that your business provides customers with products that they need and want, at a price they will buy them at and at the right place to buy them from. The four elements are:
Marketing = Product + Price + Place (Sales/Distribution)+ Promotion AKA the four "P"s
Promotion is only one of the four elements and it can’t be said that promotion is the most important because you have to identify your target customer for your product which will allow you to identify and establish:
What product requirements need to be fulfilled?
What’s the right price level?
Where the target customer will buy the product?
Without correctly indentify and establishing the above then No amount of promotion will make the target customer buy your products.
It’s essential conduct research to confirm each element without which your business will fail to reach its true potential.
Your business will grow profitably, if each marketing element is correctly aligned.
New Mindset can help you to ensure each marketing element is optimised to drive your business forward.
Call Andy on 01276 537 282 or email andy.hamer@new-mindset.com
Marketing is one element of a three element model that defines business which needs to be in balance for a business to be successful.
Finance = Marketing + Operations.
Too be blunt without marketing your business won’t attract customers and your business doesn’t generate any cash to fund it.
Most small businesses consider marketing just as advertising, publicity, exhibitions, brochure, website etc.
Marketing ensures that your business provides customers with products that they need and want, at a price they will buy them at and at the right place to buy them from. The four elements are:
Marketing = Product + Price + Place (Sales/Distribution)+ Promotion AKA the four "P"s
Promotion is only one of the four elements and it can’t be said that promotion is the most important because you have to identify your target customer for your product which will allow you to identify and establish:
What product requirements need to be fulfilled?
What’s the right price level?
Where the target customer will buy the product?
Without correctly indentify and establishing the above then No amount of promotion will make the target customer buy your products.
It’s essential conduct research to confirm each element without which your business will fail to reach its true potential.
Your business will grow profitably, if each marketing element is correctly aligned.
New Mindset can help you to ensure each marketing element is optimised to drive your business forward.
Call Andy on 01276 537 282 or email andy.hamer@new-mindset.com
Do you know which customers deliver your profits?
It’s all about profitability. Two business facts that you mightn’t not believe or even agree with, however, if you looked objectively at your customers you will agree.
20% of your customers produce 80% of your profits!
If take the time to analysis and indentify which customers these are you could potentially dramatically increase your profitably.
The trick is to focus your resources and time on those customers you make the most profit on. Why bother wasting your valuable resources on those you don’t make money out of!
Identify why those customers are profitable armed with this information, you can use the resources and time you saved from those you didn’t make money out of, finding more customers like them further increasing your profitability.
50% of your customers you don’t make any profit on their sales!
I know it seems harsh to fire some of your customers but if you don’t make any money out of them they are costing you money and your profitable customers are paying for it!
Before firing these unprofitable customers it’s a good idea to identify why the reasons they are unprofitable. Your cost of sale might be too high for their sales volume and they way to make them profitable could be to set a minimum order value or volume or you might need to set up other sales channel such as telesales or internet ordering rather than face to face selling.
If you still can’t make them profitable then write them a nice letter telling them that they have been great customers but you can no longer afford to economically support them even suggesting an alternative supplier.
New Mindset can help you to identify your profitable customers to increase your profits.
Call Andy on 01276 537 282 or email andy.hamer@new-mindset.com
20% of your customers produce 80% of your profits!
If take the time to analysis and indentify which customers these are you could potentially dramatically increase your profitably.
The trick is to focus your resources and time on those customers you make the most profit on. Why bother wasting your valuable resources on those you don’t make money out of!
Identify why those customers are profitable armed with this information, you can use the resources and time you saved from those you didn’t make money out of, finding more customers like them further increasing your profitability.
50% of your customers you don’t make any profit on their sales!
I know it seems harsh to fire some of your customers but if you don’t make any money out of them they are costing you money and your profitable customers are paying for it!
Before firing these unprofitable customers it’s a good idea to identify why the reasons they are unprofitable. Your cost of sale might be too high for their sales volume and they way to make them profitable could be to set a minimum order value or volume or you might need to set up other sales channel such as telesales or internet ordering rather than face to face selling.
If you still can’t make them profitable then write them a nice letter telling them that they have been great customers but you can no longer afford to economically support them even suggesting an alternative supplier.
New Mindset can help you to identify your profitable customers to increase your profits.
Call Andy on 01276 537 282 or email andy.hamer@new-mindset.com
Dramatically increase your profitability through improving your salespipeline performance
Your sales pipeline consists of prospects who show an interest in your product who agree to have a meeting with you who place on order. Simple!
Prospects > Interest > Meetings> Orders X Average Order Value
Let’s puts some numbers in:
How many meetings do you need to attend to obtain say 100 orders with an average order value £1,000?
Let’s say 10.
How many people have to show an interest in your product for you to get 10 of them to agree to a meeting?
Let’s say 100.
How many people do you have to contact to get a 100 interested?
Let’s say 1,000
1,000 Prospects > 100 Interested > 10 Meetings > 100 Orders x £1,000 average order = £100,000 in revenues
What would happen if we increased each one of these elements by 10%?
1,100 Prospects > 121 Interested > 13 Meetings > 143 Orders x £1,000 average order = £143,000 in revenues
43% increase in revenues!
What would happen if we increased the average order value by 10%?
Your revenues would increase to £157,000
57% increase in revenues!
New Mindset can help you figure out how to improve each of your element of sales pipeline call Andy 01276 537 282 or email andy.hamer@new-mindset.com
Prospects > Interest > Meetings> Orders X Average Order Value
Let’s puts some numbers in:
How many meetings do you need to attend to obtain say 100 orders with an average order value £1,000?
Let’s say 10.
How many people have to show an interest in your product for you to get 10 of them to agree to a meeting?
Let’s say 100.
How many people do you have to contact to get a 100 interested?
Let’s say 1,000
1,000 Prospects > 100 Interested > 10 Meetings > 100 Orders x £1,000 average order = £100,000 in revenues
What would happen if we increased each one of these elements by 10%?
1,100 Prospects > 121 Interested > 13 Meetings > 143 Orders x £1,000 average order = £143,000 in revenues
43% increase in revenues!
What would happen if we increased the average order value by 10%?
Your revenues would increase to £157,000
57% increase in revenues!
New Mindset can help you figure out how to improve each of your element of sales pipeline call Andy 01276 537 282 or email andy.hamer@new-mindset.com
Friday, 8 May 2009
Leadership & Management Grant Confirmed within 15 minutes!!
SMEs provide upwards of 60% of the employment opportunities in the UK. However, according to a recent survey carried out by the British Chambers of Commence they are poorly trained and underskilled compared with the corporate sector, consequently they underperform, don't deliver the revenues or profits and don't reach their true potential.
The UK Government has recognised the urgent need to upskill the UK worksforce to secure and ensure the future economic viability of the UK economy and minimise unemployment and is making vital investment in training and education.
SMEs constantly complain that there is no Government support ie financial support to help them survive the current economic downturn. This is not entirely true as the Government and the EU provide funding in many parts of the UK with the general exception of most of the South East. However, funds are available it may not be much but if used properly it can be very effective.
The Government through the Learning Skills Council and its TraintoGain organisation are funding "Leadership and Managment Development" through grants that contribute £1,000 with the businesses providing £500 in matched funding. This specific grant is available to all businessess with 4/5 employees upto 250 employees.
One of clients received verbal confirmation within 15 minutes of Business Link coming to see our client to review their requirements and eligibility. To fair they had taken advantage of our FREE half day business consultation during which we clearly identified what needs the client's business had.
So why are SMEs not beating down the door to grab this funding while its available? It's there! They paid their taxes! Its their money! Its a not brainer! Grap it Now!
If you want to know how New Mindset can support your business to reach its true potential either email andy.hamer@new-mindet.com or call 01276 537 282.
The UK Government has recognised the urgent need to upskill the UK worksforce to secure and ensure the future economic viability of the UK economy and minimise unemployment and is making vital investment in training and education.
SMEs constantly complain that there is no Government support ie financial support to help them survive the current economic downturn. This is not entirely true as the Government and the EU provide funding in many parts of the UK with the general exception of most of the South East. However, funds are available it may not be much but if used properly it can be very effective.
The Government through the Learning Skills Council and its TraintoGain organisation are funding "Leadership and Managment Development" through grants that contribute £1,000 with the businesses providing £500 in matched funding. This specific grant is available to all businessess with 4/5 employees upto 250 employees.
One of clients received verbal confirmation within 15 minutes of Business Link coming to see our client to review their requirements and eligibility. To fair they had taken advantage of our FREE half day business consultation during which we clearly identified what needs the client's business had.
So why are SMEs not beating down the door to grab this funding while its available? It's there! They paid their taxes! Its their money! Its a not brainer! Grap it Now!
If you want to know how New Mindset can support your business to reach its true potential either email andy.hamer@new-mindet.com or call 01276 537 282.
Business Planning – An essential ingredient for success
Overview
Business planning is all about planning for the future - where you are going. But this can’t be done without also knowing the current situation. The answer to this comes from a PEST and SWOT analysis.
SWOT analyses are undertaken by businesses at the start of planning - to identify organizational strengths, weaknesses, opportunities and threats. They should not be seen as a process in isolation - and it is important that decisions are taken based on the findings. A SWOT starts with an external analysis of the business environment, often called a PEST analysis, and then looks at the organisation’s internal strengths and weaknesses, relative to internal factors such prior performance and also to external factors, which may have been highlighted in the PEST analysis.
The final stage is to combine the analyses to look at opportunities and threats facing the
organisation and to draw up plans to take advantage of the opportunities and to counter the threats.
PEST
A PEST analysis (also sometimes called a STEP or STEEP analysis) looks at the external business environment. PEST stands for Political, Economic, Socio-cultural and Technological. (Technological factors in this case, include ecological aspects - the second E in STEEP). The analysis examines the impact of each of these factors (and their interplay with each other) on the business. The results can then be used to take advantage of opportunities and to make contingency plans for threats.
Political
(When examining political factors, you need to look at any political changes that could effect your
business.)
What laws are being drafted
What global changes ocurring
What employee legislation
Data protection
Health & Safety
Environmental policy
How might political party impact on business
Economic
Factors generally affecting customers preparedness and ability to spend and where)
Interest rates
Exchange rates
International economic stability
Inflation
Debt & Saving
Growth viz recession
Debt viz saving
Stock market volatility
Price of resources
General business confidence
Factors affecting individual industries – Migration of manuf to Asia, Costs of labour in UK
Socio-Cultural
(the elements that build society.
Social factors influence people’s choices and include the beliefs, values and attitudes of society and how these affect spending behaviour.)
Consumer attitudes to product
Role of women
Attitudes to health
Attitudes to age
Office working viz home working
Technological
(Advances in technology can have a major impact on business success - with companies that fail to keep up often going out of business.)
Availability of substitutes
Advances in computers
Internet
For each heading, think of every factor that could possibly have an impact on your business. Think laterally - just because something seems unlikely does not mean that it will not have an influence in the future. Having compiled a list of key factors, think of inter-relationships between factors. For example, the rise of the Internet (technological factors) is likely to influence consumer purchasing (social factors) - while an awareness of prices in other markets through electronic commerce may lead to a narrowing of cross-border price differences (economic).
The final stage in a PEST analysis is to prepare contingency plans to prepare for any threats identified. - If there are factors that lead to business opportunities, then include these in your planning. For example, your target customer group may be growing faster than other sectors. This is an opportunity to increase production to take advantage of more potential customers.
Before you can use the results effectively, you should also develop an understanding of your own companies capabilities. This comes from a SWOT analysis.
SWOT Analysis
A SWOT analysis builds on the results of the PEST analysis, which looks at the company’s external environment. Its purpose is to identify company strengths and weaknesses so that strengths can be maintained or increased and weaknesses corrected. A further purpose is to identify opportunities and threats resulting from external factors - especially those that have an impact on the company’s strengths and weaknesses. Company strengths and weaknesses need to be identified in all aspects of the business
•relative to the rest of the market (i.e. compared to competitors)
•relative to previous performance or expected performance
•relative to customer demand (for example all companies in an industry may fail to satisfy a particular customer need. This is a weakness - and the first company to match this customer need will have a strength relative to the other companies in the industry.
It is also important to realise that opportunities arise out of weaknesses. Correcting a weakness presents a marketing opportunity. Similarly, failing to maintain a strength is a threat to the company. A preliminary approach for carrying out a SWOT analysis is to list perceived company strengths, weaknesses, opportunities and threats under each of these headings. Ensure that no weaknesses cancel out company strengths and potential threats to the company strengths or opportunities that could arise out of correcting weaknesses. On the above list, highlight key areas of concern or areas that require action. These become the focus for future planning.
A further approach is to list key aspects in a table - and score them out of 5, where 5 is a major strength and 1 a major weakness. Scoring can be based on the following factors - - relative to the overall industry - relative to major competitors or the next largest competitor - relative to expected performance - relative to previous performance. An item that won on all 4 categories would be a major strength and vice versa for weaknesses. Areas where the company has better performance than competitors, but where performance is below expectations would receive a higher score than where performance has improved but still is weaker than competitors.
Criteria listed in Table 2, represent some of the criteria which should be considered.
This scheme allows the company to identify where it is strongest against competitors – the company’s competitive advantage - and against previous and expected performance. Finally after compiling the list, management should start to consider whether action is needed regarding each identified item. A way forward here is to rank each item on importance to the company. Low performance (i.e. a score of 1 or 2) and high importance should be the major priority. Similarly, high performance (4 or 5 score) and high importance indicates areas where performance needs to be maintained. Conversely, low importance and low performance can be given a lower priority, while low importance items that are viewed as strengths can be ignored. It is better to spend time and money improving or maintaining areas that matter to the company than worrying about perceived strengths that do not add anything worthwhile to the company. This can be summarised as:
1. Low priority - monitor for changes. Focus on only if finances and time allow.
2. Medium priority - focus on after the high priority items have been looked at, or if finances allow.
3. High priority - main focus. Ensure adequate finances to address issues.
Table 2 – Criteria for SWOT Analysis
Marketing Criteria
• Market share and market segments addressed
• Competitive Structure
• Customer base (quality, size, loyalty, etc.)
• Demand forecasts
• Product range and quality
• Services provided
• Distribution capabilities and costs
• Sales effectiveness
• Promotional effectiveness
• Image and reputation
• Pricing options
• Speed to market
• Customer service
• R&D and Innovations / new products
• Marketing skills and experience
• International / export market capabilities
Operational / Manufacturing Criteria
•Production / Manufacturing facilities (age, quality, speed...)
•Economies of scale
•Skills (Employee, technical, etc.)
•Product failure rate
•Flexibility
•Costs
•Supply / raw material availability
Human Resource Criteria
•Employee skills, motivation, dedication and experience
•Employee satisfaction
•Employee costs
•Work environment
•Staff turnover rate
•Management and Organisational Aspects
•Management skills and experience
•Leadership and team skills
•Ability to respond to market change
•Flexibility and adaptability
Financial Criteria
•Cost of capital
•Profitability / Return on investment
•Financial Stability
•Sales / Employee
•Cash availability
The results of this analysis can thus feed into a organizations business plan.
Overview
Business planning is all about planning for the future - where you are going. But this can’t be done without also knowing the current situation. The answer to this comes from a PEST and SWOT analysis.
SWOT analyses are undertaken by businesses at the start of planning - to identify organizational strengths, weaknesses, opportunities and threats. They should not be seen as a process in isolation - and it is important that decisions are taken based on the findings. A SWOT starts with an external analysis of the business environment, often called a PEST analysis, and then looks at the organisation’s internal strengths and weaknesses, relative to internal factors such prior performance and also to external factors, which may have been highlighted in the PEST analysis.
The final stage is to combine the analyses to look at opportunities and threats facing the
organisation and to draw up plans to take advantage of the opportunities and to counter the threats.
PEST
A PEST analysis (also sometimes called a STEP or STEEP analysis) looks at the external business environment. PEST stands for Political, Economic, Socio-cultural and Technological. (Technological factors in this case, include ecological aspects - the second E in STEEP). The analysis examines the impact of each of these factors (and their interplay with each other) on the business. The results can then be used to take advantage of opportunities and to make contingency plans for threats.
Political
(When examining political factors, you need to look at any political changes that could effect your
business.)
What laws are being drafted
What global changes ocurring
What employee legislation
Data protection
Health & Safety
Environmental policy
How might political party impact on business
Economic
Factors generally affecting customers preparedness and ability to spend and where)
Interest rates
Exchange rates
International economic stability
Inflation
Debt & Saving
Growth viz recession
Debt viz saving
Stock market volatility
Price of resources
General business confidence
Factors affecting individual industries – Migration of manuf to Asia, Costs of labour in UK
Socio-Cultural
(the elements that build society.
Social factors influence people’s choices and include the beliefs, values and attitudes of society and how these affect spending behaviour.)
Consumer attitudes to product
Role of women
Attitudes to health
Attitudes to age
Office working viz home working
Technological
(Advances in technology can have a major impact on business success - with companies that fail to keep up often going out of business.)
Availability of substitutes
Advances in computers
Internet
For each heading, think of every factor that could possibly have an impact on your business. Think laterally - just because something seems unlikely does not mean that it will not have an influence in the future. Having compiled a list of key factors, think of inter-relationships between factors. For example, the rise of the Internet (technological factors) is likely to influence consumer purchasing (social factors) - while an awareness of prices in other markets through electronic commerce may lead to a narrowing of cross-border price differences (economic).
The final stage in a PEST analysis is to prepare contingency plans to prepare for any threats identified. - If there are factors that lead to business opportunities, then include these in your planning. For example, your target customer group may be growing faster than other sectors. This is an opportunity to increase production to take advantage of more potential customers.
Before you can use the results effectively, you should also develop an understanding of your own companies capabilities. This comes from a SWOT analysis.
SWOT Analysis
A SWOT analysis builds on the results of the PEST analysis, which looks at the company’s external environment. Its purpose is to identify company strengths and weaknesses so that strengths can be maintained or increased and weaknesses corrected. A further purpose is to identify opportunities and threats resulting from external factors - especially those that have an impact on the company’s strengths and weaknesses. Company strengths and weaknesses need to be identified in all aspects of the business
•relative to the rest of the market (i.e. compared to competitors)
•relative to previous performance or expected performance
•relative to customer demand (for example all companies in an industry may fail to satisfy a particular customer need. This is a weakness - and the first company to match this customer need will have a strength relative to the other companies in the industry.
It is also important to realise that opportunities arise out of weaknesses. Correcting a weakness presents a marketing opportunity. Similarly, failing to maintain a strength is a threat to the company. A preliminary approach for carrying out a SWOT analysis is to list perceived company strengths, weaknesses, opportunities and threats under each of these headings. Ensure that no weaknesses cancel out company strengths and potential threats to the company strengths or opportunities that could arise out of correcting weaknesses. On the above list, highlight key areas of concern or areas that require action. These become the focus for future planning.
A further approach is to list key aspects in a table - and score them out of 5, where 5 is a major strength and 1 a major weakness. Scoring can be based on the following factors - - relative to the overall industry - relative to major competitors or the next largest competitor - relative to expected performance - relative to previous performance. An item that won on all 4 categories would be a major strength and vice versa for weaknesses. Areas where the company has better performance than competitors, but where performance is below expectations would receive a higher score than where performance has improved but still is weaker than competitors.
Criteria listed in Table 2, represent some of the criteria which should be considered.
This scheme allows the company to identify where it is strongest against competitors – the company’s competitive advantage - and against previous and expected performance. Finally after compiling the list, management should start to consider whether action is needed regarding each identified item. A way forward here is to rank each item on importance to the company. Low performance (i.e. a score of 1 or 2) and high importance should be the major priority. Similarly, high performance (4 or 5 score) and high importance indicates areas where performance needs to be maintained. Conversely, low importance and low performance can be given a lower priority, while low importance items that are viewed as strengths can be ignored. It is better to spend time and money improving or maintaining areas that matter to the company than worrying about perceived strengths that do not add anything worthwhile to the company. This can be summarised as:
1. Low priority - monitor for changes. Focus on only if finances and time allow.
2. Medium priority - focus on after the high priority items have been looked at, or if finances allow.
3. High priority - main focus. Ensure adequate finances to address issues.
Table 2 – Criteria for SWOT Analysis
Marketing Criteria
• Market share and market segments addressed
• Competitive Structure
• Customer base (quality, size, loyalty, etc.)
• Demand forecasts
• Product range and quality
• Services provided
• Distribution capabilities and costs
• Sales effectiveness
• Promotional effectiveness
• Image and reputation
• Pricing options
• Speed to market
• Customer service
• R&D and Innovations / new products
• Marketing skills and experience
• International / export market capabilities
Operational / Manufacturing Criteria
•Production / Manufacturing facilities (age, quality, speed...)
•Economies of scale
•Skills (Employee, technical, etc.)
•Product failure rate
•Flexibility
•Costs
•Supply / raw material availability
Human Resource Criteria
•Employee skills, motivation, dedication and experience
•Employee satisfaction
•Employee costs
•Work environment
•Staff turnover rate
•Management and Organisational Aspects
•Management skills and experience
•Leadership and team skills
•Ability to respond to market change
•Flexibility and adaptability
Financial Criteria
•Cost of capital
•Profitability / Return on investment
•Financial Stability
•Sales / Employee
•Cash availability
The results of this analysis can thus feed into a organizations business plan.
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