Cash flow- Cash is King
This is one of the the concepts that beginners get wrong. They think of of profits that is if I buy something for a pound and sell it for two pounds then have made 100% profit.
Therefore if I sell one million of them I have made a million. What could be easier.? I have been asked by people how much profit I make on things I have never been asked about how much money I have actually made.Their idea of profits seems to be unconnected with anything else. They will point to one item or one piece of work and say. How much profit did you make on that?
They obvious have no idea that it is entirely lined ot your productivity over year and one ite i isolation mean nothing. each year as the year progresses you can only guess on previous performance.
They understand that you can sell and not get paid but they do not think about not getting paid quickly enough. Dragons Den on television show up how people think in business particularly when they are beginners.
They are focusing on the idea and manufacturing the idea. They then want more money to building more of them or the more savvy how to market it.
Selling and marketing seems to be an after thought. They know they have to do it but it seems to comes a long way after the idea and the maing of the product. They sometimes seems to think that they cannot proceed any further util they have a warehouse full of these products of a container load at the depot.
You can spot immediately when the pitch is going well usually the presenter will say something like I have sold a hundred of these units in the last year and I now have an order for 10,000 from Marks and Spencer or Tesco. It then dawns on the panel that ! These things can be sold " These things can be sold before they have been manufactured because we have an advance order.
They then know that the money they put in will not be wasted on marketing a product that has not been proven. It has been proven all they need is to build more of them to order.The cash flow is then a good prospect.
The biggest problem most self employed people have is setting aside enough money for their taxes both income and vat. It is easy to finance the business by putting off paying the tax to the last moment or at all.
Each day first thing in the morning I check my cash flow. i look at both my business and personal account to see my current balances.I know how my bills are going as they are paid on a regular basis so my balances are a good indication as to how healthy the business is.
I have overdraft limits on all my accounts and my credit card so between the three of them I have a considerable amount of credit available. The idea is always to be in the black but I have the back up if I hit a tough patch. If I am constantly things are not going in the red which has not happened I will know well. I will be able to use the credit facilities in the short term and then have time to reorganise affairs to get back into a positive cash flow
In my office I have traditionally just used bills delivered and paid for as an indication how well I am going. This is a reflection of the health of the business. If the bills are delivered then I am busy . If they are paid for then the cash is flowing in.
The only other indication which can easily be hidden is work in progress. WIP is the best place to look for increasing profits. if you are holding too much unbilled work you are eating into your profits.
If you squeeze you WIP it is a great p[lace to crease profits. It is work you have for clients who ware ready willing and able to pay you. Your job is to finish the job and bill them.
I now take money on account of costs and bill them regularly before doing any more work. It means that the clients feel happier because they know how things are going and they do not have a large bill to deal with at the end of the transaction.
Complaints can arise out of billing procedures and the amount of the bill. if they have been billed as they go along and they have paid you have cut down the potential area of complaint considerably. All you then have to do is a good job.
I had someone ask me the other day about a tenanted property Do you think we should consdier putting the rent up every year. I said I think about it every day.
It is the same with cash flow You have to be thinking about it and acting upon it every day all day
Tuesday, 13 March 2007
Clear, hold and dominate
Business lessons from Jungle Warfare Experiences and Encounters by JP Cross
Clear, hold and dominate
The British in Malaya and then Borneo beat the communist insurgents by adopting completely different tactics to the Americans in Vietnam.
In conventional warfare the combatants use roads, railways ,water and air by contrast guerrilla warfare roads ,railways and rivers are the ambushers' paradise. Troops who only move secretly, mostly in small groups only arriving at the precise moment of battle cannot be ambushed.
The Gurkhas in Borneo were able to out guerrilla the guerrillas as they were well trained infantrymen. The Americans had a policy of search and destroy. They would do this then go back to their base. The Gurkha technique was to Clear Hold and dominate.
The Gurkhas would live in the jungle for weeks by winning the hearts and minds of the people and planting agents in the villages known to be unfriendly. The Gurkha carried his base on his back, and it consisted of a featherweight plastic sheet, a sackful of rice and a pocketful of ammunition.
The jungle belonged to him: he owned it, controlled it and dominated it by day and night for nights on end.
They dominated the jungle by ambush which is one of the most powerful weapons of both the guerrilla and the Gurkha. It is fighting from ground of one's own choosing and it depends on complete surprise. The enemy must be unaware that he walking into a trap.
The objective was to dominate the jungle week in week out day and night unlike the Americans in Vietnam. The sure way to beat a guerrilla is to operate more quietly, smoke less and talk less to possible enemy agents before an operation.
The Americans were too technologically tied. In Malaya and Borneo the enemy were equally as formidable as Vietnam. There is no other way to win wars at the ground level Sweat still saves blood.
Patience, patience ,patience and yet more patience is the secret of success.
Clear, hold and dominate
The British in Malaya and then Borneo beat the communist insurgents by adopting completely different tactics to the Americans in Vietnam.
In conventional warfare the combatants use roads, railways ,water and air by contrast guerrilla warfare roads ,railways and rivers are the ambushers' paradise. Troops who only move secretly, mostly in small groups only arriving at the precise moment of battle cannot be ambushed.
The Gurkhas in Borneo were able to out guerrilla the guerrillas as they were well trained infantrymen. The Americans had a policy of search and destroy. They would do this then go back to their base. The Gurkha technique was to Clear Hold and dominate.
The Gurkhas would live in the jungle for weeks by winning the hearts and minds of the people and planting agents in the villages known to be unfriendly. The Gurkha carried his base on his back, and it consisted of a featherweight plastic sheet, a sackful of rice and a pocketful of ammunition.
The jungle belonged to him: he owned it, controlled it and dominated it by day and night for nights on end.
They dominated the jungle by ambush which is one of the most powerful weapons of both the guerrilla and the Gurkha. It is fighting from ground of one's own choosing and it depends on complete surprise. The enemy must be unaware that he walking into a trap.
The objective was to dominate the jungle week in week out day and night unlike the Americans in Vietnam. The sure way to beat a guerrilla is to operate more quietly, smoke less and talk less to possible enemy agents before an operation.
The Americans were too technologically tied. In Malaya and Borneo the enemy were equally as formidable as Vietnam. There is no other way to win wars at the ground level Sweat still saves blood.
Patience, patience ,patience and yet more patience is the secret of success.
Friday, 9 March 2007
DO NOT Become Emotionally involved- its only business
DO NOT Become Emotionally involved- its only business
One of the most difficult aspects of business is not becoming emotionally involved.
It starts from the clients or contacts being unreasonable. This can reflect in a couple of ways.
The most common is when you ask them to do something they want to question it. It is easy to think that what they are doing is questioning your judgement when all they want is further reassurance.
Most people have a vague understanding of what is going on and they feel powerless when they have to do things that they do not understand. Because a lot of people now have some education and some have a lot they think that all situations can be understood and reasoned through.
They do not want to take advice that they do not understand. as a result they become difficult and demand their rights. Their rights usually consist of questions why things are the way they are.
It takes a lot of patience when you have to keep explaining to these people what is going on. Particularly when they speak to you and they ask for the same explain again. They do not want to understand the problem they want to reiterate their view of the problem and particularly that they are being hard done by.
I find clients pick on the least important part of the transaction to become embroiled in.
Throughout all of this I have to remain detached as otherwise the stress becomes too great. One of my secretaries was riling on about what people had done. I reminded her not to be emotionally involved as it is not worth it. The clients are paying us to do a job not make ourselves ill worrying about things we cannot change.
Amateurism
I now regard it as a mark of amateurism if someone who I regard as a professional in their job or line of business spend too long getting embroiled in insignificant detail.
They are not stopped form asking such questions or making such remarks but they should just do it in passing and not make it a cornerstone of what is going on. A lot of transaction falter over a few hundred pounds when they are spending hundred of thousand on the deal. They then take a position and mention principles.
One of the most difficult aspects of business is not becoming emotionally involved.
It starts from the clients or contacts being unreasonable. This can reflect in a couple of ways.
The most common is when you ask them to do something they want to question it. It is easy to think that what they are doing is questioning your judgement when all they want is further reassurance.
Most people have a vague understanding of what is going on and they feel powerless when they have to do things that they do not understand. Because a lot of people now have some education and some have a lot they think that all situations can be understood and reasoned through.
They do not want to take advice that they do not understand. as a result they become difficult and demand their rights. Their rights usually consist of questions why things are the way they are.
It takes a lot of patience when you have to keep explaining to these people what is going on. Particularly when they speak to you and they ask for the same explain again. They do not want to understand the problem they want to reiterate their view of the problem and particularly that they are being hard done by.
I find clients pick on the least important part of the transaction to become embroiled in.
Throughout all of this I have to remain detached as otherwise the stress becomes too great. One of my secretaries was riling on about what people had done. I reminded her not to be emotionally involved as it is not worth it. The clients are paying us to do a job not make ourselves ill worrying about things we cannot change.
Amateurism
I now regard it as a mark of amateurism if someone who I regard as a professional in their job or line of business spend too long getting embroiled in insignificant detail.
They are not stopped form asking such questions or making such remarks but they should just do it in passing and not make it a cornerstone of what is going on. A lot of transaction falter over a few hundred pounds when they are spending hundred of thousand on the deal. They then take a position and mention principles.
If You make the calls you get the business- If you take the calls you get the business
Selling to your existing customers- Make the calls
An estate agent who mainly dealt in higher priced properties took on a new negotiator.
They had never bothered to market themselves as lower priced property sellers. They only had sixteen properties on the books but had a lot more people looking for properties.There other work was commercial properties. Country houses and commercial properties has kudos in the estate agency world as it makes you appear clever and exclusive.
The partner concerned could not be bothered or was not interested in lower priced properties because the fees meant he had to do a lot more work for his money.
They decided to take on a negotiator who had worked in the mass market. I said she will be able to double that number of properties in no time
Incredulously I was asked she how would do that. I said "Answer the phone." I was told we answer the phone already. What I meant was use every opportunity of people phoning you to take on more business.
When someone rings you about anything to do with your business it is an opportunity to hook a client. They have people looking for properties so you the opportunity of keeping in touch with them and updating their requirements.
I today heard the negotiator's first task was to ring all existing applicants to see if they were still interested. The clincher was to ask them if they were selling a property and how that was going. She took on three new properties in a week. That is significant proportion when you only have 16 properties to deal with.
I would think at that rate she will have easily doubled the number of properties on the books in about right weeks. so in two months business would have doubled.
One member of the firm said disparagingly that's not really this firms style by which she meant looking for business. I presume it will be there style to go out of business for lack of business or to spend the profits when they come rolling in.
In the last couple of years we have bought 30 properties. We told all the estate agents what we were doing. Most of them totally ignored us even when we have bought properties from them.
One particular agent starting doing business with us and supplied us with exactly what we wanted. I went to their office and asked why they were so successful.
He pointed to his cards with client's details on. I just phone everyone from those cards.
The moral is
If you make the calls you get the business
If you take the calls you get the business
An estate agent who mainly dealt in higher priced properties took on a new negotiator.
They had never bothered to market themselves as lower priced property sellers. They only had sixteen properties on the books but had a lot more people looking for properties.There other work was commercial properties. Country houses and commercial properties has kudos in the estate agency world as it makes you appear clever and exclusive.
The partner concerned could not be bothered or was not interested in lower priced properties because the fees meant he had to do a lot more work for his money.
They decided to take on a negotiator who had worked in the mass market. I said she will be able to double that number of properties in no time
Incredulously I was asked she how would do that. I said "Answer the phone." I was told we answer the phone already. What I meant was use every opportunity of people phoning you to take on more business.
When someone rings you about anything to do with your business it is an opportunity to hook a client. They have people looking for properties so you the opportunity of keeping in touch with them and updating their requirements.
I today heard the negotiator's first task was to ring all existing applicants to see if they were still interested. The clincher was to ask them if they were selling a property and how that was going. She took on three new properties in a week. That is significant proportion when you only have 16 properties to deal with.
I would think at that rate she will have easily doubled the number of properties on the books in about right weeks. so in two months business would have doubled.
One member of the firm said disparagingly that's not really this firms style by which she meant looking for business. I presume it will be there style to go out of business for lack of business or to spend the profits when they come rolling in.
In the last couple of years we have bought 30 properties. We told all the estate agents what we were doing. Most of them totally ignored us even when we have bought properties from them.
One particular agent starting doing business with us and supplied us with exactly what we wanted. I went to their office and asked why they were so successful.
He pointed to his cards with client's details on. I just phone everyone from those cards.
The moral is
If you make the calls you get the business
If you take the calls you get the business
Wednesday, 7 March 2007
Do it every day
Your to to do list will tell you what you should be doing every day. The hard part is doing it every day.
Most of the work is dull and routine a bit like exercising and dieting you know it will work but you have still got to do it.
Opening the post is a vital and routine activity in my office. It dictates the urgent things of that day. I am always there unless I have been called away that minute. I open it, I then find the files, then I read it. I don't read it as I go along because you are then reading it twice.
You take possession of it and dictate a reply that day if possible. I see people read it commnet on it, take it to their room and no doubt go through the same process again.
How is that possible if you are that busy,handle each piece of paper once preferably but not too many times. Rereading it does not progress matters and you will only get paid for reading it once.
My first partner had a lax attitude to the work. His working day was
10.00 Arrive at work
12.30 Go to lunch for a couple of hours
15.00 Maybe come back after a few drinks
Spend the afternoon not in fit state to work. He would do this a few days and then stay later until seven o'clock once a week to catch up on all the work he had not done during the week
He would loudly boast that he had to stay in the office until seven just to keep up with the work
If anyone came to the office unannoounced he would would do his best not to see them unless they were his mates and he would promptly go to lunch with them for a few hours.
Needles to say I don't think he is in business today and has had quite a few run ins with the authtorities. Usually he has been lack in sticking to the rules to hide his clients under hand tactics or acting for more than one person in breach of conflict of interest rules. He would do this to keep the fees cheap and not have any outside interference.
The moral is Do all the routine stuff every day whether your like it or not.
Most of the work is dull and routine a bit like exercising and dieting you know it will work but you have still got to do it.
Opening the post is a vital and routine activity in my office. It dictates the urgent things of that day. I am always there unless I have been called away that minute. I open it, I then find the files, then I read it. I don't read it as I go along because you are then reading it twice.
You take possession of it and dictate a reply that day if possible. I see people read it commnet on it, take it to their room and no doubt go through the same process again.
How is that possible if you are that busy,handle each piece of paper once preferably but not too many times. Rereading it does not progress matters and you will only get paid for reading it once.
My first partner had a lax attitude to the work. His working day was
10.00 Arrive at work
12.30 Go to lunch for a couple of hours
15.00 Maybe come back after a few drinks
Spend the afternoon not in fit state to work. He would do this a few days and then stay later until seven o'clock once a week to catch up on all the work he had not done during the week
He would loudly boast that he had to stay in the office until seven just to keep up with the work
If anyone came to the office unannoounced he would would do his best not to see them unless they were his mates and he would promptly go to lunch with them for a few hours.
Needles to say I don't think he is in business today and has had quite a few run ins with the authtorities. Usually he has been lack in sticking to the rules to hide his clients under hand tactics or acting for more than one person in breach of conflict of interest rules. He would do this to keep the fees cheap and not have any outside interference.
The moral is Do all the routine stuff every day whether your like it or not.
You are not obliged to be nice-continued
The favour I was asked to do was give her husband a reference.
It was to confirm the period that he had been self employed. I have no idea why she though I could do this. She gave me no information and it was not something I had any knowledge of.She was obviously desperate and my name came up.
What normally happens is that they give me instructions and I repeat whatever my client tells me. This fools the unwary as the client has pulled a fast one. They have tried to legitimise their assertions by getting me to put in a solicitirs letter.
I declined to do it because it is an accountant's quesiotn. I can only assume that they either had not done their accounts and paid their taxes or they had not paid their accountant.
They cast around for some poor mug who they could use and it happened to be me. Also whatever they paid me for such a letter would be cheaper then paying their acocuntantor their taxes. Also no doubt they wanted a free letter for old time's sake.
If people who I have not heard from for a long time contact me on a personal level it is usually because: 1 They want a free favour (not they have given me any) 2 They have taken their work elsehwere and are now asking me questions about what went on before.
On both occasions they do not expect me to bill them. The think my time and expertise is free.
I liked the quote in Inherit the Wind about journalism it is to
Comfort the afflicted and afflict the comfortable.
My variation of that is Comfort the afflicted and bill them and Afflict the Comfortable and bill them
The moral is don't upset those who can do you favours.
It was to confirm the period that he had been self employed. I have no idea why she though I could do this. She gave me no information and it was not something I had any knowledge of.She was obviously desperate and my name came up.
What normally happens is that they give me instructions and I repeat whatever my client tells me. This fools the unwary as the client has pulled a fast one. They have tried to legitimise their assertions by getting me to put in a solicitirs letter.
I declined to do it because it is an accountant's quesiotn. I can only assume that they either had not done their accounts and paid their taxes or they had not paid their accountant.
They cast around for some poor mug who they could use and it happened to be me. Also whatever they paid me for such a letter would be cheaper then paying their acocuntantor their taxes. Also no doubt they wanted a free letter for old time's sake.
If people who I have not heard from for a long time contact me on a personal level it is usually because: 1 They want a free favour (not they have given me any) 2 They have taken their work elsehwere and are now asking me questions about what went on before.
On both occasions they do not expect me to bill them. The think my time and expertise is free.
I liked the quote in Inherit the Wind about journalism it is to
Comfort the afflicted and afflict the comfortable.
My variation of that is Comfort the afflicted and bill them and Afflict the Comfortable and bill them
The moral is don't upset those who can do you favours.
Monday, 5 March 2007
You are not obliged to be nice
I am frequently amazed that people I meet are in business. They do not seem to display and of the business like attributes.
I think maybe they are in a business that cannot fail or they have found a formula that works for them. A couple of years ago I met someone locally at a luncheon club.
I had no particular view of her but she was introduced to the club via someone who was noted for being bombastic and was generally thought of as a bit of a buffoon.
She was running some sort of telephone martketing organsiation in a little office. She was also selling things on the side such as ink cartidges and party gifts.
She was there for a while and seemed to have different people in her office on the few occasions I went there. She then approached me although I did not encourage it to do some work for her.
She then came across as rude, domineering and opinionated.We finished the job and fortunately no more work came our way.
She moved out of the area and set up this business of ink cartidges somewhere else. My staff had told me that she had been rude to them,This surprised me as she had come to us and we had not courted her work.
She was also in a people person business being in marketing and even on one occasion she had asked me where I got my ink cartridges. I sidestepped the question.
The other day she rang me and wanted a favour from me even though I had not heard from her in over two years. She then told me her business had failed.
I was not surprised.
I think maybe they are in a business that cannot fail or they have found a formula that works for them. A couple of years ago I met someone locally at a luncheon club.
I had no particular view of her but she was introduced to the club via someone who was noted for being bombastic and was generally thought of as a bit of a buffoon.
She was running some sort of telephone martketing organsiation in a little office. She was also selling things on the side such as ink cartidges and party gifts.
She was there for a while and seemed to have different people in her office on the few occasions I went there. She then approached me although I did not encourage it to do some work for her.
She then came across as rude, domineering and opinionated.We finished the job and fortunately no more work came our way.
She moved out of the area and set up this business of ink cartidges somewhere else. My staff had told me that she had been rude to them,This surprised me as she had come to us and we had not courted her work.
She was also in a people person business being in marketing and even on one occasion she had asked me where I got my ink cartridges. I sidestepped the question.
The other day she rang me and wanted a favour from me even though I had not heard from her in over two years. She then told me her business had failed.
I was not surprised.
Sunday, 4 March 2007
The 100 Greatest Ideas for Building the Business of Your Dreams
The 100 Greatest Ideas for Building the Business of Your Dreams by Ken Langdon 2000 Capstone Publishing Ltd pp 159
Seven Greatest Ideas for taking the Plunge
1 Know that two heads are better than one
2 Choose an arbiter or an assertive mentor
3 Be quite clear what your dream is
4 Know thyself
5 Ease yourself out by MBO
6 Research is not optional
7 Feel free-franchise
Ten Greatest Ideas for Planning Your Business
8 Choose your markets wisely
9 Use the "ideal" technique to understand your customers
10 Know thine enemy
11 Describe and compare the key people
12 Reach your market realistcally
13 Make sure the price is right
14 Picking your spot
15 Add up the equipment and start-up costs
16 Take the banking forms seriously
17 Plan for a lucky break
Six Greatest ideas for becoming a consultant
18 Don't be worse off
19 See your value from your customers' point of view
20 Know which comes first, the product or the customer
21 Start by booking your holidays
22 Don't let people smell fear
23 Go with the flow
Four Greatest Ideas for working from the Office of Your Dreams
24 Allocate enough space in the home
25 Find out what is tax-deductible
26 Don't stint on telephone lines
27 Then get an office
Five greatest Ideas for Financing Your Business
28 Live by the greatest financial mantras
29 What kind of trader are you?
30 Don't assume that fraud cannot happen to you
31 Don't bet the house
32 Give me one firm spot on which to stand....
Four Greatest Ideas for staffing Your Business
33 Grow your own head-hunters
34 Hire the people who fit your dreams
35 Ask the customer
36 Keep people in your wvariable costs
Four Greatest Ideas for Keeping in Touch with Your Market
37 Prospect continuously
38 Size does count
39 Get everyone to talk to customers regularly
40 Speak to the press
Seven Greatest Ideas for Helping a Business Customer to Buy wisely
41 Encourage sensible buying decisions
42 Deliver products on time and within budget
43 Take lost business very seriously
44 Make sure your business processes deliver
45 Who needs trainiang? Your customer needs training
46 Gain a reputation as a solution seller
47 Look back in wonder
Six Greates Ideas for selling big ticket items- Business to Business
48 Sell a solution to a problem or an opportunity
49 Sell high
50 Sell wide
51 Sell the benefits to the right person
52 Qualificiaton is a continous process
53 Use radar to plot your position
Five Greatest Ideas for Managing Your Bank
54 Get the basics right
55 KISS and TICK
56 Keep your cashflow documents up to date
57 Smile until your face aches
58 Go for as much as your can get
Five Greatest Ideas for Running the Board Effectively
59 Keep an honest boardroom
60 Give your non-executive directors huge credence
62 Do regular stakeholder analysis
62 Choose the right accountants
63 Understand your roles and responsiblities
Ten Greatest Ideas for Building the Retail Business of Your Dreams
64 Get your attitude right
65 Exploit people you already know
66 Get the timing right
67 To buy or not to buy
68 Fix your costs and know your costs
69 Treat your customers as what they are - your purpose in life
70 Count your customers
71 Diversify carefully
72 Tick again
73 First run a pilot
Ten Greatest Quick Tips for Building the Dream
74 Don't let today's mail set today's agenda
75 Know your criticial success factors
76 Don't expand too quickly
77 Concentrate on what you are good at''''
78 ... But dont ignore opportunities to reduce risk
79 Sell to your existing customers
80 Don't buy a mobile phone
81 Dont become obsessed with tax saving
82 Don't dream your way into stupid projects
83 Learn from the mistakes of others
Six Greatest Ideas for Building Creative Plans
84 Of course,we will always keep our biggest customers....(not)
85 Use a good plannning process
86 Get the team to toe the line
87 Connnect analysis to objectives tightly
88 Use radar again
89 Keep the documentation brief
Eight Greatest Ideas for Growing By Acquisition
90 Treat big organisations as a collection of individuals
91 Think big, unimaginably big
92 Make sure your people are aiming in the same direction as you
93 Dont economise on tax advice
94 Plan bottom up as well as top down
95 Take care with fair value adjustments
96 Dont bet the firm
97 Buy the underpants of your dreams
Three Greatest Ideas for Building the Empire of Your Dreams
98 Get someone else to do the work
99 Take on extraneous tasks
100 Read a book about it.
Seven Greatest Ideas for taking the Plunge
1 Know that two heads are better than one
2 Choose an arbiter or an assertive mentor
3 Be quite clear what your dream is
4 Know thyself
5 Ease yourself out by MBO
6 Research is not optional
7 Feel free-franchise
Ten Greatest Ideas for Planning Your Business
8 Choose your markets wisely
9 Use the "ideal" technique to understand your customers
10 Know thine enemy
11 Describe and compare the key people
12 Reach your market realistcally
13 Make sure the price is right
14 Picking your spot
15 Add up the equipment and start-up costs
16 Take the banking forms seriously
17 Plan for a lucky break
Six Greatest ideas for becoming a consultant
18 Don't be worse off
19 See your value from your customers' point of view
20 Know which comes first, the product or the customer
21 Start by booking your holidays
22 Don't let people smell fear
23 Go with the flow
Four Greatest Ideas for working from the Office of Your Dreams
24 Allocate enough space in the home
25 Find out what is tax-deductible
26 Don't stint on telephone lines
27 Then get an office
Five greatest Ideas for Financing Your Business
28 Live by the greatest financial mantras
29 What kind of trader are you?
30 Don't assume that fraud cannot happen to you
31 Don't bet the house
32 Give me one firm spot on which to stand....
Four Greatest Ideas for staffing Your Business
33 Grow your own head-hunters
34 Hire the people who fit your dreams
35 Ask the customer
36 Keep people in your wvariable costs
Four Greatest Ideas for Keeping in Touch with Your Market
37 Prospect continuously
38 Size does count
39 Get everyone to talk to customers regularly
40 Speak to the press
Seven Greatest Ideas for Helping a Business Customer to Buy wisely
41 Encourage sensible buying decisions
42 Deliver products on time and within budget
43 Take lost business very seriously
44 Make sure your business processes deliver
45 Who needs trainiang? Your customer needs training
46 Gain a reputation as a solution seller
47 Look back in wonder
Six Greates Ideas for selling big ticket items- Business to Business
48 Sell a solution to a problem or an opportunity
49 Sell high
50 Sell wide
51 Sell the benefits to the right person
52 Qualificiaton is a continous process
53 Use radar to plot your position
Five Greatest Ideas for Managing Your Bank
54 Get the basics right
55 KISS and TICK
56 Keep your cashflow documents up to date
57 Smile until your face aches
58 Go for as much as your can get
Five Greatest Ideas for Running the Board Effectively
59 Keep an honest boardroom
60 Give your non-executive directors huge credence
62 Do regular stakeholder analysis
62 Choose the right accountants
63 Understand your roles and responsiblities
Ten Greatest Ideas for Building the Retail Business of Your Dreams
64 Get your attitude right
65 Exploit people you already know
66 Get the timing right
67 To buy or not to buy
68 Fix your costs and know your costs
69 Treat your customers as what they are - your purpose in life
70 Count your customers
71 Diversify carefully
72 Tick again
73 First run a pilot
Ten Greatest Quick Tips for Building the Dream
74 Don't let today's mail set today's agenda
75 Know your criticial success factors
76 Don't expand too quickly
77 Concentrate on what you are good at''''
78 ... But dont ignore opportunities to reduce risk
79 Sell to your existing customers
80 Don't buy a mobile phone
81 Dont become obsessed with tax saving
82 Don't dream your way into stupid projects
83 Learn from the mistakes of others
Six Greatest Ideas for Building Creative Plans
84 Of course,we will always keep our biggest customers....(not)
85 Use a good plannning process
86 Get the team to toe the line
87 Connnect analysis to objectives tightly
88 Use radar again
89 Keep the documentation brief
Eight Greatest Ideas for Growing By Acquisition
90 Treat big organisations as a collection of individuals
91 Think big, unimaginably big
92 Make sure your people are aiming in the same direction as you
93 Dont economise on tax advice
94 Plan bottom up as well as top down
95 Take care with fair value adjustments
96 Dont bet the firm
97 Buy the underpants of your dreams
Three Greatest Ideas for Building the Empire of Your Dreams
98 Get someone else to do the work
99 Take on extraneous tasks
100 Read a book about it.
Top Man How Philip Green Built His High Street Empire
By Stewart Lansley and Andy Forrester 2005 Aurum Press Ltd pp 278
I had never heard of Philip Green up until a couple of years ago, not that he is that well known to the general public even now. The most amazing thing about him is how much money he has made in such a short period of time.
They say just over a decade ago he was a rag trader a mere multimillionaire and barely known. He is now worth £4.5 billion and is estimated to be Britain's fifth richest person. He made his first billion in record time and then went on to quadruple his wealth in a few years.
He now owns via a private company Bhs and Burton, Miss Selfridge and Topshop about 2,500 shops in all.
In 2004 he became well known as he tried to take over Marks and Spencer which had been the crown jewels of British retailing but has been languishing for the last few years. It would have cost over £11 billion.
The book explains how he made his money and his drive and determination.
He lives in Monaco and all his wealth is in his wife's name so he pays no taxes on it. He is abrasive, vulgar and uses a lot of expletives. No one would speak about him on the record and the book was unauthorised.
He has had some outrageously expensive birthday bashes where he jets out people to lavish parties.
It was interesting that he had a few friends in his early years that turned out to be less than straight but now the city has taken him to their hearts and they are prepared to lend him money.
Although these books depict sucessful businessmen as being individualists they always get there by having a team of people they use all the time. No one can make it entirely on their own.
His first few business ventures failed owing a lot of money so not everything he touched turned to gold.
He was badly stung in one of his early ventures as he ran a public company and was criticised for running like he owned it entirely.He learnt from that not to go public again.
His technique was to buy things at a good price break them up and sell them off at a profit. He claims he is the greatest retailer ever but his is accused of not being someone who can actually improve the sale figures.
He started buying up part of the Sears group which had been built up by Charles Clore. Clore's formula was taken on by Green "Stablise management, increase margins, increase the profits."
He successfully does this every time. He is accused of not being able to increase sales but the main way that other people did was by reducing prices, reducing margins and selling more to increase turnover but not the profits.
Clore recognised that many firms were grossly undervalued on the stock market.That is they had assets that were more valuable than their stock market listing. As a result he bought up shoe shops such as Freeman Hardy and Willis, Saxone, Dolcis, Manfield, Trueform, Cable & Co, Hush Puppy and others.
Clore bought the business rationalises them and sold off surplus property and became very rich. After Clore died the company stagnated and Green started buying them to do the same again.
He started getting rich backers for his scehmes because they could see that he would make them a lot of money.
Kalashnikow Test
He reckoned that in the 1990s you could go to Oxford Street shops to see how they were getting on " You could walk into a shop with a machine gun fire off a whole clip of ammunition and you wouldn't hit a customer|"
M&S had in 1997 record profits of £1 billion but two years later sales had slipped and profits had halved. In about two years the value of the company had halved. Green started to stalk M&S .Eventually it failed but his banker had pulled out and there had been a barrage of negative press.
He turned his attention to BHs and got it.He reorganised it and it became the basis of his fortune.
He repaid the borrowing in record time.He took on the suppliers and squeezed them Also he cut costs,he improved decision making. This time he kept the company intact. He remortgaged a handful of stores repaid his bankers and made a tidy profit. After that he became a billionaire. He did this in less than a decade. In 2000 he was 216th on the rich list in 2001 he was 159th. Over the next year he overtook Richard Branson.
As a private company he does not have to tell people his profits but he liked to boast about it. He wrung better deals out of supliers and bought direct. He improved the speed of supply as it was fashion industry.
He did a lot of the negotiating himself he sources goods as cheaply as possibe and sells on at the best margin. He buys cheap and sells expensive.
He bought BHs and Arcadia and one of his colleagues Sir David Barclay said Philip only think about the quantum leap what he meant was to only go for very large scale take overs. That is why he went again for M&S and failed again in 2004.
They constantly said they he is a one trick pony in that he can engineer businesses to have a healthy bottom line but not to muster top line growth. They mean he is not able to increase sales.
He does not seem able to start businesses from scratch like Branson and Stelios and James Dyson he said it is easier to rebuild than build
His skills are in deal making and improving processes
He has yet to demonstrate that he has the most crucial skill that is to increase sales.He still has to make the quantum leap.
I found the book fascinating and I read it in about 24 hours.
It proves that you are better off making deals than thinking up brand new ideas or businesses. He is Britains fifth richest person and he is still being criticised for not being able to increase sales.What more do they want?
I had never heard of Philip Green up until a couple of years ago, not that he is that well known to the general public even now. The most amazing thing about him is how much money he has made in such a short period of time.
They say just over a decade ago he was a rag trader a mere multimillionaire and barely known. He is now worth £4.5 billion and is estimated to be Britain's fifth richest person. He made his first billion in record time and then went on to quadruple his wealth in a few years.
He now owns via a private company Bhs and Burton, Miss Selfridge and Topshop about 2,500 shops in all.
In 2004 he became well known as he tried to take over Marks and Spencer which had been the crown jewels of British retailing but has been languishing for the last few years. It would have cost over £11 billion.
The book explains how he made his money and his drive and determination.
He lives in Monaco and all his wealth is in his wife's name so he pays no taxes on it. He is abrasive, vulgar and uses a lot of expletives. No one would speak about him on the record and the book was unauthorised.
He has had some outrageously expensive birthday bashes where he jets out people to lavish parties.
It was interesting that he had a few friends in his early years that turned out to be less than straight but now the city has taken him to their hearts and they are prepared to lend him money.
Although these books depict sucessful businessmen as being individualists they always get there by having a team of people they use all the time. No one can make it entirely on their own.
His first few business ventures failed owing a lot of money so not everything he touched turned to gold.
He was badly stung in one of his early ventures as he ran a public company and was criticised for running like he owned it entirely.He learnt from that not to go public again.
His technique was to buy things at a good price break them up and sell them off at a profit. He claims he is the greatest retailer ever but his is accused of not being someone who can actually improve the sale figures.
He started buying up part of the Sears group which had been built up by Charles Clore. Clore's formula was taken on by Green "Stablise management, increase margins, increase the profits."
He successfully does this every time. He is accused of not being able to increase sales but the main way that other people did was by reducing prices, reducing margins and selling more to increase turnover but not the profits.
Clore recognised that many firms were grossly undervalued on the stock market.That is they had assets that were more valuable than their stock market listing. As a result he bought up shoe shops such as Freeman Hardy and Willis, Saxone, Dolcis, Manfield, Trueform, Cable & Co, Hush Puppy and others.
Clore bought the business rationalises them and sold off surplus property and became very rich. After Clore died the company stagnated and Green started buying them to do the same again.
He started getting rich backers for his scehmes because they could see that he would make them a lot of money.
Kalashnikow Test
He reckoned that in the 1990s you could go to Oxford Street shops to see how they were getting on " You could walk into a shop with a machine gun fire off a whole clip of ammunition and you wouldn't hit a customer|"
M&S had in 1997 record profits of £1 billion but two years later sales had slipped and profits had halved. In about two years the value of the company had halved. Green started to stalk M&S .Eventually it failed but his banker had pulled out and there had been a barrage of negative press.
He turned his attention to BHs and got it.He reorganised it and it became the basis of his fortune.
He repaid the borrowing in record time.He took on the suppliers and squeezed them Also he cut costs,he improved decision making. This time he kept the company intact. He remortgaged a handful of stores repaid his bankers and made a tidy profit. After that he became a billionaire. He did this in less than a decade. In 2000 he was 216th on the rich list in 2001 he was 159th. Over the next year he overtook Richard Branson.
As a private company he does not have to tell people his profits but he liked to boast about it. He wrung better deals out of supliers and bought direct. He improved the speed of supply as it was fashion industry.
He did a lot of the negotiating himself he sources goods as cheaply as possibe and sells on at the best margin. He buys cheap and sells expensive.
He bought BHs and Arcadia and one of his colleagues Sir David Barclay said Philip only think about the quantum leap what he meant was to only go for very large scale take overs. That is why he went again for M&S and failed again in 2004.
They constantly said they he is a one trick pony in that he can engineer businesses to have a healthy bottom line but not to muster top line growth. They mean he is not able to increase sales.
He does not seem able to start businesses from scratch like Branson and Stelios and James Dyson he said it is easier to rebuild than build
His skills are in deal making and improving processes
He has yet to demonstrate that he has the most crucial skill that is to increase sales.He still has to make the quantum leap.
I found the book fascinating and I read it in about 24 hours.
It proves that you are better off making deals than thinking up brand new ideas or businesses. He is Britains fifth richest person and he is still being criticised for not being able to increase sales.What more do they want?
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