Why do I have a business and does it serve me and others?

 If you have stopped by because of the title then you too may be wondering, where is he going with this. There are many people who are getting into the businesses but they never ask the really defining questions that may bring clarity. 

If I had to be really direct then we can examine, did you seek God about what to do, or just consult yourself on what you believed you like doing? Many of us do the latter and then pray that God blesses our efforts to help us succeed. We get it backwards. 

Here are some questions you need to consider before you get into business. They may help you redefine your business if you're already in business. 

1. Why should one get into business? [Gen 2:15]
2. What should that business be about? [Gen 2:16]
3. Is it in alignment with our core values? [Gen 2:17]
4. How can it be made sustainable? [Gen 2:18]

These can be answered in your time through your own investigation. I have put some passages beside each question as points of reference which through your own investigation will reveal to you more information about the business you are seeking to invest in as well as if it would be blessed and sustainable. 

You are given the scope of your business and the possibility of success should you act based on the information that you have. Will you have challenges? Yes. However, you will have divine guidance since you first committed your plans to the Lord. [Prov 16:3 & Psalms 20:4] 

Do we really give creative thought as to what, who, why, where, when,  and how we really serve by being in business? It seems sometimes like we get into business without that clarity which then leads us into the avenues of fear, stress and panic when we don't have sufficient information. Shouldn't business be easier? I think so. 

Ensure that you take every step to be clear about your business. That clarity should cover every element of your business so that you make mistakes on paper rather than with paper. 

Get a business team together one thing is certain. You can't think of everything. You don't know everything. There are organizations that can provide you and your entity with technical assistance. These programs can provide consultations, training, webinars and seminars. 

The help will permit you to access funding, growth, and revamp operations.  Consider who really owns your business and perhaps that will help you with your approach to the business entrusted to you. 

Who do SMEs really help?

Ever so often we need to take stock of what we do. We often hear of the benefits of SMEs being touted online, but I really need to beg an answer to this question. Who is really benefitting as a result of what has been dubbed entrepreneurship? 

At the micro level, it is a way of helping people develop gainful self-employment, which enables governments to boast about how many jobs were created. However, for those who work within the sector and are observant, it is hard to recognize that the technical assistance entities need to be more holistic in their approaches to SMEs. 

The result is that many entities open and operate as SMEs throughout their entire existence growing to a certain level and no further. The majority function as trading as/general partnerships and those who incorporate are unaware of their strategy for doing so. They also don't have an exit plan that would enable the business to survive beyond their lifetime. 

Too many entities are dependent on the most expensive way of raising capital which is through the banking system and few, if any, really look towards creating equity finance opportunities where investors can participate meaningfully. 

Still others are not up on the information required for good governance and in some cases where to turn to find it. Many entities cannot hire the talent they need on a full time basis and many are concerned that they cannot afford the fees of outsourcing. 

Trainnig should be on-going and many your entrepreneurs fine the pressure of down time being adequate for them to participate in such continuing education. Therefore they drop behind. It is for that reason that those of us who do train must keep updated with technology so as to better provide solutions. 

So does having a SME really help? The answer is really up to those who have benefitted and continue to benefit. 

We need to do better for our entrepreneurs as running a business has a lot of moving parts, and we don't learn them all in business school. 

Keep checking back for more posts or recap some of the older ones on this site. 

Have a great week ahead. 

 

Crisis mode

 I was recently chatting with a colleague and as we spoke some similarities in the issues we came across were common between our entities. We are finding that clients are staggering within the business environment. The pressures are quite great for many and many are finding the conditions to be overwhelming. 

Well...someone's got to handle it. We can't all run the opposite direction. 

• Indecision
• Lack of discipline
• Poor budgeting 
• Inadequate planning
• Disorganizeed 
• Insufficient preparation
• Fear of failure 
• Not enough knowledge 
• Inexperience 
• No team 
• Weak systems 
• Limited access to financial information, funding, and technical assistance 
• Undesirable people skills

These are all reasons that businesses experience challenges and these listed are from within. They don't really include factors beyond the skills and abilities of the business that impact externally. 

Can we ever be prepared for the unforeseen? 

As we know, it is virtually unrealistic to expect one person to be on the ball with every aspect of the business. It is for this reason that business functions best when there's a team involved, but you must be selective. 

Who we have on the team is important to the success(es) that the business is likely to encounter. All of these areas can be delved into further should you decide to book a planning session should you need help in these areas. Should we not have the talent in-house, we can connect you with those in our network who have those competencies. Either way, there's always a solution. 

Check back often for updates and read/reread our articles based on your business needs. Have a phenomenal day! 

Understanding business numbers

 

Across the globe, many have found numbers to be intimidating. I used to think that numbers communicated quite clearly everything except emotion until I saw someone win the lottery or get a fine. 

In business, there's a requirement to have the entity's performance represented in numerical reports called financials. Despite this, the full potential of the information the numbers represent is seldom communicated in whole or understood by the reader. 

This may be one of the reasons why businesses grow to a certain performance level and then stagnate - neither growing nor declining. 

The numbers are able to describe matters pertaining to the following areas:

• The asset base and the level of liabilities
• The profitability of the entity
• Cash flow 
• The earnings per share 
• Share value 
• Units in production 
• Internal cost controls 
• Ratio analysis
• Cost-Volume-Profit Analysis 
• Forecasting methods
• Operations budgeting 
• Cash management 
• Capital budgeting 
• Tax planning

The bulk of these elements seldom forms a part of the discussion at yearly AGMs/management meetings if they are held. 

In short, we leave money on the table, even when professionals are paid to guide us through the process. These numbers can and should be used as a means for setting goals and then reviewing to see how close we have come to realising them. 

It is time to stop playing business and get the necessary professionals on your team to help you navigate what you don't know. No one knows everything. Some of the best use of the business' resources is to invest in the use of professionals to which you have access to enable you to make and save your business' money. Too many people are seeking to do business on the cheap, which isn't budgeting by any stretch of the imagination. 

If you don't understand some of the areas listed above, then please seek out your professionals to enable you to obtain clarity. Learn how to make the numbers of your business work for your benefit. 

The importance of business plans [10 reasons]

 The debate continues about whether or not business plans are necessary. Some say they are not needed, yet in today's world, the functionality of the business plan cannot be eradicated. They have been used for various purposes; govern operations and funding are two of the main areas. 

The process allows the business owner to critically think about their business and then along with the writer/preparer of the document develop a document which cements these plans. 

If we were to look at 10 reasons for a business plan and the processes required well the following should help to make it clear. 

1. Good business plans are NOT cheap. You have to research the information that goes into the business plan and it needs to be current; not over a decade old. This was seen in many instances where people opted for cheaper plans and they didn't realize their objective and the client then had to seek additional help. Accessing the up-to-date information to go into the plan is expensive, they are prepared through studies done by individuals and institutions who fill that role. 
2. You can get technical assistance for preparing a business plan; some even provide total/partial funding to assist you in getting this process completed.
3. You need to work with your team to get a solid business plan done - Yes, your team should comprise an accountant, legal, financial advisor, operations, marketing, and your business advisory support. These are broad headings since your team may be larger when you drill down. 
4. Proper business structure - too many people are forming businesses without using the correct structure for their operation. Your business structure is key to your success, especially if you operate under the broad categories of for-profit/not-for-profit. 
5. The business plans, especially those seeking funding, will be scrutinized heavily by financiers. Don't try to sell heat with your financials, they will be converted using ratio analysis to see a more realistic picture than the currency's initial stories. 
6. Use assumptions that make sense. Telling someone that the market is a certain large size and that you can control 1% of that market as a segment is not as easy as one would initially think. You end up shooting yourself and your business in both legs when you cannot deliver. Your credibility is then shot and it seems like you are not competent to run such an operation. 
7. Understand money follows management. This is not a cliche. Have a solid management team in your planning complete with what their required roles entail. 
8. Due diligence will be done. Are you statutorily compliant? Is your reputation for treating staff well sound, do you pay your bills on time; these and others are questions that will be asked and answered. 
9. Is your business well thought out? 
10. Not all the money you pay for the business plan is for the vendor to keep, they have resources they have to pay for as well to ensure you get the best results for your plan. 

Also, consider getting your business model worked out. This enables you to enhance your performance within a competitive market. To get more information and access to resources, contact bladesandbladesconsultancy.com and learn what you need to do. We have teams that can help you. 

The roughness of life and business

 If there's one thing that this pandemic taught us, it is that life can be quite rough. Prior to it, we may have been shielded from the ravages of the world's pressures. Our seeming insulation from the challenges in the news was something that was sorrowful, but didn't really impact us directly - so we sympathized. 

Well along came COVID and give us a fresh perspective, where we were rapidly moved from sympathy to empathy. The reality of the tragedies came quite close to home and NOW we're directly impacted.

The thing is, the impact was so comprehensive it was felt in all aspects of our lives - personally and professionally; physically and emotionally; let's not forget financially, even as we struggled with the nuances of adapting to new measures that impacted us operationally. 

There are lots of people hurting, and though we try to mask it. Thinking it's the business of no one else, the reality is that it impacts those around us, even if they only observe. It so happened that the various elements of our lives have collided and the results are tragic. It doesn't matter if you're in school or working, if you're retired or haven't even entered school yet; everyone was impacted in some way. 

Society says we should keep looking forward, keep moving forward. It says we can do nothing about the past; however somewhere there's a niggling thought from the recesses of one's past that seems haunting. It creates doubts, harnesses fears and uncertainty, simmers the spirit in a way that timidity can bubble to the surface leaving you off balanced and out of sorts. 

Grief has been a key element - loss of relationships through break ups, displacement, death; often without any closure and with a sudden happening that no one was prepared for. One moment someone's there and the next, sometimes in the same day, they're gone. Our coping mechanisms have been taxed at a new level, and one realizes that they can be lonely in a room full of people since no one takes the time to understand their perspective. 

Business, schools, home life, and social interactions have all gone topsy-turvy and  everyone is now in an unfamiliar ground where tensions are riding high and frustrations are rampant. 

We now as a people have to interact within an environment where the people are going to display new and unfamiliar behaviours that we are not accustomed to and will never become used to since they will change rapidly with each hour that ticks by. 

There will be a need for entities to revise their interactions with those they seek to serve. Areas of address will include: 

• Customer interactions
• Operational functionality - there has been significant disruption which has impacted supply chains significantly directly impacting the ability of needs being met adequately.
• Marketing methods and means - there's a need to reintroduce the social in media used to communicate by companies e.g. too many are using this as a go to without first finding out if their public is used to / competent in accessing social media and online platforms. This is so especially for the elderly and some younger people. 
• With the gap in schooling, consideration will have to be taken to using more verbal social media since the reading/comprehension skills of many users has diminished significantly. 
• Financial integrations and programs including banking, insurance, financial transaction documentations and tools
• Legal considerations including contractual obligations, intellectual property, real property, etc. 
• Taxation programs and privileges
• Environmental aspects where the entities need to be more aware of what's going on and the impact on the public. Are the offerings in alignment with the value systems of the public. There's a need to identify where the public is placing their emphasis on as it relates to value. 
• Competency is going to be a key factor going forward since service levels are being frustrated by the lack of delivery on the part of many organizations

Is the roughness real or perceived? You be the judge of that. However, you should note that it is best to consider the impact of one's actions / inaction and how they will be interpreted by those you are seeking to serve. 

If we take enough time to observe we can see the differences pre / post pandemic. The question is are we willing to make the adjustments and if so how willing are we to invest in the future of our people. 

The Lessons - The Test

Over the last year, we have been subjected to tests of our preparation more than ever in this segment of the globe where we live. Sure we've seen all kinds of things on the news and various other programs, but nothing is quite like when it comes to your own doorstep.

Global pandemic, volcanic activity, hurricanes, flooding, massive death tolls; they all seemed to be happening all at once. This is like bad news on steroids. Sure we've had situations before, but they seem to pale in comparison to what we're experiencing and perhaps, what we are yet to experience. 

For some reason, though we have advanced in our "standards for living" we still seem to have at the same time regressed. What do I mean?

• Fibre optics promising greater speeds, yet we can't keep them powered when the electricity goes off like we did with the old copper technology. 
• When electricity goes, so does communications, water, ability to process payments, and perhaps some other things that are not readily coming to mind. 
• There are more formally educated people and less thinkers that actually come up with sound solutions. 
• There are too many hauling around cliches like "you have to spend money to make money", and other such like fancy sayings with unsatisfactory results.  
• Too many people think that you must have origins within a metropolitan country to truly make it big and successful. 

One of the things that defeats us as a people is our lack of discipline. The willingness to stay the course doing seemingly mundane things. We want to be creative and complicate things. Yet those who keep it simple are the ones who tend to do way better. 

Why is it that when we are put to the test we choke. 

We need to be prepared so that we can function under pressure. Like clean ups and restorations. They can take a toll on the crews. Long hours, demanding timelines, with entire groups of people awaiting the positive outcomes; we need to really know our work so that we can function flawlessly under pressure. 

Life will test us! The thing is, how will we cope? 

Financial Institutions and SMEs

Many SMEs are noted for taking short cuts and often get seemingly reluctant help from institutions which are supposed to cater to them. Many SMEs do not have proper systems in place resulting in poorly kept financial records, poorly documented operations, zero succession planning, market definition is non-existent in that their client is someone who spent money with them rather than them being clear about who they are serving.

Despite these aforementioned characteristics, I still work with them to give them a fighting chance for success. This exposure has given me some measure of a perspective of their frustrations as SMEs trying to do the right thing in the realm of business.

Have you noticed the following as well:

1. When SMEs have to seek aid made available to them, they have to wade through tons of bureaucratic documentation to access the said aid, and after the frustrating process find that there is often one or two areas which exempt them from ever realizing the aid. 
2. So they need funding, instead of doing their own plans, they hire the services of a professional/series of professionals to help them obtain the financial assistance; often using funds they can ill afford. These institutions then tell them that they will issue them less funds that they have sought, though they have the supporting collateral, and they can always reapply later for any additional amounts which will require additional fees on the part of the SME. Makes one wonder why it was necessary to get the assistance of the professionals in the first place. 
3. Lots of entities are set up to provide technical assistance for SMEs but few are set up to offer the money needed and determined by the technical assistance paid for to help them realize their goals and objectives. 

I'm sure that I can go on with a longer list but will stop here on this occasion. The question is:

• Are we really willing and able to do all that we can to assist SMEs or is it really just rhetoric? 

Your views and feedback are welcomed. 

Entrepreneurship - Too Simplified?!?! Not for everyone.

Sure...anyone can register a business! Great...now what?

The media is touting entrepreneurship as the remedy for just about everything - wealth creation, the solution to this recession and the list goes on.

Recently I read a series of articles, and what came across to me is that this seems too simple. Take for instance this extract:

"What if we were to understand that people are a nation's greatest asset and were to go out in joy not only developing our people to the fullest but instilling in them the confidence to quit their current employer and develop their own start-up, spin-out, and scale-up enterprise and become their own boss hence gaining control of their own destiny?"

Which appeared in [WEALTH DISTRIBUTION - BASIL SPRINGER COLUMN WHICH APPEARED IN THE BARBADOS ADVOCATE'S BUSINESS MONDAY ON AUGUST 5, 2013]

Is it really this simple?

My mind went on to extrapolate this base information, and the result was chaos. All Chiefs no Indians. Is this really what is required when building a productive society in which entrepreneurship is expected to thrive? Somehow, I do not think so.

Yes the human resources are important, but we must be mindful of what they want. Not everyone is geared or have the desire to be an entrepreneur. I have met many people who desired to have their own business. Upon a more in-depth series of meetings, it was found that they really should not embark on the enterprise as they were ill prepared for the challenges of running a business.

Here's why:

• They lacked capital / access to capital
• They lacked knowledge of the elements of operations required to run their type of entity
• They did not know who their competition was in the market they wanted to operate within 
• They lacked the dexterity, discipline, and tenacity to find out / to do certain things
• They quickly found out that more than a big dream was required
• Business needs people in order to function, it is not what you know, but also who you know and how useful they can be in helping you realize your potential achievements 
• Planning is a skill. It requires being able to develop and systematically layout steps necessary to reaching your objective. It is not a collection of wishes
• It may mean sharing ownership of your business to truly advance it to realize its potential 

Here's another article that you can read about entrepreneurs who turned their passions into the livelihood. They short stories of what they did to become successful does not mean they did so without challenge. It meant that they considered and worked on the aforementioned why's as well as others that are not on this incomplete list. 

That being said, are we in the right environment for entrepreneurship? Our governments have to be careful about the climate they create that would support entrepreneurship. One that's too heavy on taxes and too light on incentives can create a sluggish environment for business start ups and expansions. There needs to be the right mix that enables business development while government realizes their revenue needs. 

In closing, let's stop making entrepreneurship seem more simple than it really is. It does not mean that we don't simplify the processes, but we must be realistic in our observations about the area of business development. 

Richie B. works as a business consultant & trainer, since 1995 operating from Barbados, West Indies. He's practical in his applications and offers sound information which can be quickly acted upon. Richie operates in the Caribbean region predominantly and via the internet offers solutions to some North American entities. 

Starting a business....are you serious?

Entrepreneurship is a word that's touted about a lot these days. Everyone seems to want to begin a business of their own, and who can blame them. There are certainly better educated, greater connected, and have more resources. However, you can imagine the questions that come to mind when we look at todays businesses. Let's look at a few.

• Why do so many of them fail?
• Do we really know why we want to be in business?
• Have you thought out the process well?

Let's stop at these three. Since these alone can take quite a bit of time. Let's look at them succinctly.

Businesses fail due to:

• Being under capitalized
• Poor operating systems 
• Weak marketing & sales 
• Poor accounting & cashflow management
• Weaknesses in human resources - training deficiencies
• Lack of discipline and planning
• This list is not exhausted

We want to be in business for a variety of reason

• Some don't want to work for someone else
• Others just want to be their own boss
• There are still others who just want to be creative and can't be bothered with much else
• Many want to make money that they can spend as they wish
• They saw someone do it and it looked easy
• Many don't like their current bosses 
• Some want to genuinely make a difference in the lives of others with their product / service
• The reasons are endless 

We thought

• This would be a walk in the park
• This much strategy was not required
• We could do it ourselves without much expenses or help as we know our field
• Why did we leave our jobs, we had it made when we got our payment from where we were employed (and, we didn't have to work as hard)
• We didn't want this much work, just more money. 
• We didn't have a vacation since leaving our last jobs and we don't have money to go on vacations either 
• If I had only known better, I wouldn't have left 
• Well, we're too committed to turn back now. 
• If I could do this all over again, I would do this so much differently

Business is never easy. As one friend put it, you have money problems either-way - too little / too much. There are many who believe that they wouldn't mind having too much money. It is often heard said, I know exactly what I would do with that money if I had it. 

So are you serious about starting a business? If not, please don't. It would be more trouble than profit. However, if you are, then you need to make contact with someone like me in your area. There are plenty great consulting resources out there, and they are some that aren't so great. You must do your due diligence. 

So starting and expanding a business, especially when you are serious can be quite rewarding. Surround yourselves with others who have achieved some of the things you desire - learn from them taking the good and leaving the bad behind. Yes you'll find many have flaws that make it difficult to work with them. Be prepared to endure, so that you can enjoy.