A new consideration to business planning

One thing that has been noticed by me is that entrepreneurs and SMEs are working hard at just trying to open and keep their doors open. They need help accessing funds and sometimes need more access to much-needed markets due to poor connections through gatekeepers. 

There are some who make money while others, the majority, struggle. What is lacking across all those plains is enough guidance on how not only to make money but also how to keep more of what is made. 

In many instances, some try to employ rules of governance as if they are dealing with employees rather than business developers; however small they may be. The end result is that many don't know or understand the rules within which they must/can operate so that they are more profitable and efficient in their daily dealings. 

Apart from consultations and training, there is a growing need for business advisory services. Accountants may think that certain things fall into the realm of attorneys and vice-versa; and this is only when the prospect actually works with either of them. This is particularly common with issues pertaining to incorporations and related matters. There are too many poorly structured entities from the get-go. Unfortunately, this is only recognized when the entity is seeking funding.  

Business planning needs to start before the business even gets up and going. There are a number of issues to be addressed with reference to the type of structure you are going to use and why. Too often the answer to questions asked is that they were told to do so, but they never understood why? 

A good business advisory service will have a battery of other professionals with who they function so that the client benefits from the expertise for their required levels. This can range from rudimentary to those who have significant wealth. 

E.g. I tend to work with a battery of legal professionals since the law is a vast area, and one cannot be everything to all people. Those I use for incorporations are different from those I would work with for real property deals, and would be different from those who deal with international trade law. 

For a long time, the shoestring budget has been touted as a method of starting a business. However, it gained such a reputation that the ongoing trend is to underfund startups and expansions within this sector. Businesses need access to funding and to technical assistance to help them get structured correctly; this increases their chances of survival. 

Not enough businesses have plans in place for what they should do with the funds that come in as revenue so that they can keep more of what they make and then move to be not only a business owner but enter the realm of investment if they so choose. 

Given the contributions that SMEs through entrepreneurs make to economies, it's time for them to have a bit more respect given to them. They create substantial employment, make significant contributions to the GDPs of countries, yet they are marginalized by many in terms of access to finance, little to no incentives, and taxes at levels that make absolutely no sense. 

Too many people, in government who plan for the SMEs don't have a full understanding of business. E,g, An entity moving from just a few thousand dollars to five figures within a short time doesn't mean that you extrapolate the information and say that they are making money and therefore pull the plug on them. They haven't even reached breakeven and are therefore unable to meet such onerous demands of the tariff structures imposed on them. In many instances, the owners haven't even been able to pay themselves yet since they are pouring back the revenues into the entity without personal remuneration. Yes, the struggle is real. 

All the money that you make is not yours to keep. Plan to keep most of what you make legally of course, but it's a process that requires careful planning. 

There are a number of moving parts to consider when you're getting into business that must be included in your planning. Look us up via our website: www.bladesandbladesconsultancy.com make contact and let's discuss how you can plan your future sensibly when we make an appointment. 

Happy Independence Barbados, we wish you the best as you consider your planning for your entity going forward for the years to come. 

iLuv WoRk

There's something about work that excites and intrigues me; especially when it is exciting work. Sometimes when groups of us discuss business, invariably someone would ask, "What makes you want to get out of bed every morning?"

On the surface, it seems like a relatively easy question to address until you really look a little deeper. Many people go through life unhappy and unfulfilled since they never took the time to question themselves in this manner.

Here are ten (10) reasons why I love work:

1. I love the challenges that are presented to me daily within various situations, especially when I'm able to solve what others couldn't. 
2. The money isn't bad either, I can live if I plan carefully. 
3. It's my contribution to poverty alleviation, since I help others empower themselves economically and see them get on purpose about their lives. 
4. It's enjoyable to see people develop an idea and have it emerge into a thriving business from which they can support themselves and others. 
5. It's gratifying to negotiate successful deals for business ventures. 
6. Giving back through charitable serving is always a plus. 
7. It's great to be able to use technology to speed up the processes with which solutions can be provided.
8. Work is not limited to current geographic location. 
9. Effective planning within your work can make it easier to realize accomplishment. 
10. Helping businesses make profits so that they can successfully help more people through the expansion of their operations. 

Some rough circumstances I've seen

It's been a while since I've last had the opportunity to post an article and not without reason. Some of the situations that I'm seeing in the business arena are giving me cause for concern. Without going into details here are a few:

• A business owes some money to the government which is less than what the government owes them. Having applied for funding, they need to get clearance certificates so that they can access the funding. It doesn't help that a new revenue authority has been formed by the government so that the difficulty in obtaining a clearance certificate is intensified. The delay's are costing the business daily both in terms of financial opportunity and credibility. 
• The youth are encouraged to get into entrepreneurship. The jump through all the required hoops and then when they now have a project that's ready for funding, it seems that the funding sources dry up or are unwilling to assist unless there is security in place. These young entrepreneurs are unable to navigate the systems despite the training to get the requirements met for the security. The result, frustrated entrepreneurs that can't find work nor generate employment with their projects; some of which had even won prizes in competitions. 
• Businessmen are always told by financial institutions that they need to have business plans to obtain funding. They then take ill-affordable funds to have these said plans prepared by professionals often securing the necessary talent to give their business structure. The local entities then want to under-fund them or decline them all together. In instances where FDI [foreign direct investment] is available, the business is frustrated with the process since the red tape of compliance seems formidable to them. Where can one truly get support for their business' development?

It is fortunate that for some who seek professional help they are able to get by the hurdles albeit with effort. However, what about those who don't have the access either by choice or who are just unaware; shouldn't they have an opportunity to eek out a livelihood as well? Let's hope for solutions within the coming weeks and months that would mean a better work environment that creates employment and generates economic activity is forthcoming. 

Did you know? Our key asset is regional thinking.

For all the talk about hard and tough economic times, I still don't think we've learnt to think things through. Never mind our population has a high percentage of literacy, what are we doing to capture it? If I look at the answer, absolutely nothing.

I remember the days when we were students, our lecturers gave us projects which when we did the research and provided answers, we would never really see our projects again. It was those days when the lecturers were smart. We would get a grade and they would get paid, since the projects we received were real world.

Universities now have loads of computers and smart devices that can easily access the internet via the various hotspots on the campuses. Why aren't our economic challenges given as projects and the grades given are for solutions to real world problems. It would be a perfect match since students rather than just bragging of the level at which they got their various certifications can also speak about projects they actually did and their outcomes. Employers would then be happy to know they are hiring the best minds.

Emphasis would change from whether a candidate has the experience or not, to what their participation was in various solutions to challenges that society faces. Here are some examples of results from such exercises.

• The Caribbean enjoys the highest arrival of tourists due to their innovative programs for wooing customers to its shores. Our research shows we know what they want and how we can deliver it to them customized to their needs.
• The Barbadian [place your country here] were able to avert massive layoffs due to workplace innovations that the students researched and institutes
• The labour force expands not via the provision of jobs, but through the creation of needed businesses our future has evolved into a new era. 
• Local business examined and implemented cross border entry strategies that facilitated expansion of various categories of start up enterprises just over eighteen (18) months old. 
• Richard Branson recognizes the Caribbean as the worlds leading source of entrepreneurial enterprises. 
• Caribbean small businesses use OM to tighten their costs and revenue structures. 
• Customer service is not lip service in the Caribbean, they have taken practical steps to hone their skills as the worlds leaders in customer service excellence. 
• The Caribbean has solved airlift challenges; reducing inter islands travel costs and enhanced profitability for the carriers

Are you beginning to get the idea? Case studies can be real. Instead of a grade, be paid with tangible workable recognition that enhances your post student opportunities.