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. 

Could rabbits save us foreign exchange?

 Rabbit has grown in popularity in various parts of the world where is it welcomed for a variety of reasons. There are so many who find rabbits appealing, some want trinkets [see https://everythingbunnyrabbit.com/]. However, it must be noted with keen interest that for many, rabbit meat is considered a food source. If you need to learn about rearing rabbits there is information that you can consider below: 

Rabbit Consumption

So how popular is rabbit meat? It is heavily consumed in countries like Italy, Spain, France, and China; people in these destinations consume approximately 8kg per person of rabbit meat. 

Among the reasons given is that meat is cheap, healthy, and environmentally friendly. Rabbit is entirely white meat. There are some 89 countries that import rabbit meat and this is their consumption levels that seem quite high, along with the reasons. [https://www.nationmaster.com/nmx/ranking/import-of-rabbit-or-hare-meat-and-offal]

Rabbit Breeds in Barbados

Within Barbados, there are breeds of rabbits that are desired by those who live in the island for a variety of reasons. There are as follows:

• New Zealand White
• New Zealand Red
• The Californian
• The English
• The Flemish Giant
• and The Chinchilla

In terms of meat production, the popularity stays with The Flemish Giant and The New Zealand Red. 

Interested in Cuniculture

Cuniculture is the agricultural practice of breeding and raising domestic rabbits as livestock for their meat. Rabbits may be obtained from the Ministry of Agriculture and Food Safety where you can further get advice on care and maintenance. This information was made available in GIS Barbados which cited Cathy Lashley, October 19, 2021.  

Now that you know that you have access to a readily available resource. It appears to be a low entry point into the market and the product is in high enough demand. Why are we not capitalizing on this opportunity to boost our exports and make the linkages to tourism where we market to some of the same countries that readily include rabbits in their diets? It's an alternative which can be included in our menus, which brings me to the culinary elements. [See https://www.gourmettraveller.com.au/recipes/recipe-collections/rabbit-recipes-15016] 

With the amount of existing and emerging food service entities, why are we not using our culinary creativity? We have award-winning chefs, foodies and some great creative minds within the field of agriculture. We have a hospitality institute and a number of culinary schools; why isn't our creativity shining? 

I hope that you explore the links within this article for thought joggers as to how you can differentiate yourselves within the market. Are there other elements to consider? Yes there are, but we can discuss those when you book an appointment with us. Thanks so much for allowing me to share with you. Have a phenomenal day. Visit us at bladesandbladesconsultancy.com 

A method for reducing business plan costs?!?!

 

This is a new year, and I wish you the very best. 

Getting down to business, how can you get into business in a cost-effective manner. Business plans tend to be expensive, however, did you know that you can use some techniques to reduce the costs to your business and yourselves? 

Though this isn't an advertisement. I can say that we've had to search for methods to get more start-ups going in an affordable manner. There are a number of reasons why this change is necessary. The other approaches to be introduced are allowing for more flexibility and adjustments than a business plan. They, business plans, tend to be more static. 

Information based on research can be adapted more easily. The processes to be used create opportunities for a deeper dive into the business allowing more elements to be customized to suit the requirements of the business more readily. 

I guess by now, you're interested in finding out a bit more about what I'm referencing. Should you be interested then contact us for more information. Visit us at bladesandbladesconsultancy.com and check the contact us section. 

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. 

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.