July 20, 2018

How time passes. Can’t believe I’m 15!

Open and honest note from my experiences.

This month is 15 years since I started Wellington Consulting. When I started I had been made redundant twice and decided to take my fate into my own hands and so the company was born.

Unlike many start-up businesses, I had the advantage of understanding the relationship between sales revenue and costs; the importance of cash flow; and the time it takes to generate income from a standstill. But knowing and applying is not the same thing!

When I started, much of my work was larger, on-going work for other businesses, but wanting to help struggling businesses and getting paid by them caused more than a few sleepless nights. This does not mean I avoid helping struggling businesses, but I do make sure that I also work with successful and growing businesses to protect cash flow and my own business.

Nowadays, I make sure I get paid even if it takes a while to turn a business around, so it is not as though the successful clients are subsidising the messy ones. My aim is to turn these ones around so that they too become successful and are less dependent on me for the day to day issues.

I am sometimes asked what sectors I deal with and my answer must be a wide variety, from heavy engineering to children’s play centre; from retail to consultant; from construction to homeopathy. I am lucky to have this diverse range of industry sectors to add variety to my work and also give me a broader view of life.

One of the biggest factors that has helped my business is knowing when to ask for help.

Although I can do a broad range of tasks within the business, I have, through networking, met people who can do some of these better and faster, because they have the skills and enjoy doing it. I am therefor happy to outsource some tasks as this frees me up to do what I enjoy while knowing it is done and done better than I could do. This even applies to cleaning the house. If I can free up 2 hours a week and earn more in those two hours than I am paying someone else, why wouldn’t I do what I enjoy and have a net income as a result. If you look upon it like that it would be madness not to.

For many business people, this is the view of book-keeping and accounts. In order to delegate well, you need to understand what is involved and the expected outcome. It is the task you are outsourcing, not the responsibility. Learn about the task so you can decide whether you enjoy it, how you can help someone you might engage to do it so you can achieve the best outcome for you and the business.

Remember a business is about its people as much as its products or services, so a big thank you to clients and suppliers alike who have helped me enjoy my business ad make it successful.

Do you want to increase your profits?

Wellington Consulting, accountant, business coach, herefordshire, monmouthshire

Wellington Consulting – helping you leap ahead in 2018

 

I assume the answer is yes, so the question is how? Well, to start with do you know what your profits were for 2017?

Now that 2017 is finished, do you know what your profits were for the calendar year? If your accounts year end is March, you may tell me that you know what that figure was, but we are nearly round to March again, so what is your year to date figure?

Business is ongoing, so your record keeping and review of your figures should be as well. Without this, how do you know if you are covering costs, if you are able to offer a discount, or need to raise your prices?

To increase your profits, you must know where you are starting from. Note, I have not said increase sales, like most other people you hear, because at the end of the day it is what you have left after costs that really matters. If you start getting more sales by selling at a loss, you have achieved increased sales, but you end up with less in your pocket for more ‘work’, so looking at costs is also important. Even, simply, cutting costs can improve your profits.

You probably have plans for 2018, have you discussed them with anyone else and had them validated? Who is going to make sure you stay on track? That is what working with a business coach can give you. Someone to help you clarify what you want to achieve and work with you to make sure you do achieve it.

Some coaches have ‘proven systems’, but this relies on you having the plans that fit their system. My approach is that each business owner is an individual, so listening and working with them is what is important. Understanding that ‘life’ can sometimes get in the way, but helping you keep focus so you can strike the right balance to still achieve what you want from your business.

If you want to know more about working with a business coach to improve your profits, give me a call or drop me a lime when it would be good to call you.

May I wish you a Happy and Profitable New Year