Action is defined as "the process of doing something in order to achieve a purpose" (according to the Encarta English Dictionary).

So logically, you need to know why you're doing something in order to make the action worthwhile. That's what strategy is all about.

But you need to convert your strategy into practical actions that you can focus on. Most business plans end up in a drawer, never to see the light of day! It’s usually because they aren’t translated into “things to do”. So, spend half an hour listing down just 3 things you need to achieve in the next month in order to develop your business. Make the targets achievable, measurable and timely. Now allocate time in your diary, using our suggested Outlook system, and review them weekly.

Click here to download our FREE Excel template to monitor your actions (and let us know how useful it's been).

Get Ready for Success in 2010!

Christmas is coming, and with it we can look back on the year we've had and look forward to a more prosperous New Year.

It's such an important time of year for all of us, not less so for our businesses. When things start to quieten down a little we can spend the vital time we need on assessing our performance for 2009 and planning how we are going to make next year even more successful.

What better way to start than by taking a day out of your Christmas calendar to attend our new workshop "Making Growth Happen" at Thorpe Park. For just £295 + VAT you will have the chance to work ON your business and FOCUS on SUCCESS.

The day will cover:

• Time Management (because without time you can't focus on growth)
  Corporate Structure (you need people to work with you on the journey)
  The Real Picture (understanding your financial performance, your market place, competitors and clients)
  Sales Growth (looking at the obvious gaps in your client sales history)
  Your Vision (clarifying what your successful tomorrow looks like)
  Road Map (how you are going to get from Today to Tomorrow)
  

We don't expect you to sit there and listen to us all day. The day is packed with fun filled, thought provoking activities aimed at inspiring you to focus on making growth happen. It's on 10th December 2009 and starts at 9.30am - lunch, refreshments and lots of practical advice is included.

For more details see http://makinggrowthhappen2010.eventbrite.com/

I sent out a question recently on LinkedIn and had an extremely interesting response.  I have met so many companies recently looking to the future - which is great!  And they're powering ahead writing strategies & mission statements in order to realise their "vision".

But they're not spending any time in finding out where they are now!  And whether their vision for the future is feasible.  When you ask for directions in Google you have to type in where you are now and where you want to be.  You wouldn't build a wall without laying the foundations first.  And it's so important to apply the same principles to growing your business.  You have to understand your financial performance before you decide on the best strategy for your business.

I'll give you an example.  I worked for a printing company, where the CEO was convinced that the best way to improve the profitability of the business was to amalgamate 2 manufacturing sites into one.  He spent hours convincing the board that this was the right move for the business.  And they went for it.  Then they asked for the financials.  They said different.  But they went ahead with it anyway.  The result?  It ended up costing millions and could have led to the demise of the whole group - if it hadn't have been saved by a major turnaround programme.

Having vision is vital, I agree.  But ideas have to be supported by fact first.

If you need someone to review your finances and provide you with the real picture of where your business currently stands, then give Collaborative a call.  That's what they do best.

This is the first in a series of articles about finding alternative ways to solve business problem - solutions which ultimately drive better profits.

Over the next few months we’re going to look at a few scenarios which challenge the way we tackle common business problems. This month it’s all about cash management and accounting. It’s not a sexy topic by any means but I think you’ll find these alternatives rather refreshing.

Let’s consider Joe Smith (original name!). He owns a graphic design company. The business has enjoyed steady growth over the past few years, and he now turns over £150k per year. He has found it a challenge to stay on top of his credit control whilst managing this business, so he places his debts with a debt factoring company.

Debt factoring enables him to concentrate on his business while someone else puts the cash into his account so he’s quite happy with the arrangement. And he tries to include it in his pricing structure anyway.

As part of his determination to improve his time management he also employed the services of a self employed book keeper, and at the end of the year passes the file across to his accountant. They take care of his statutory obligations.

It has now come to a point where Joe wants to take his business to the next level. So he works with a marketing company to devise a strategy for the next year. All he needs to do now is find the money to fund it!

As part of the process he looks at how much it costs him to manage his finances. The debt factoring typically costs 10% of the turnover, so that’s £2k a month. His book keeper charges him £200 and the accountant takes another £500 a month. That totals over £30,000 a year. Yes, you read it right - £30k a year.

If Joe could just reduce that by £10k he could fund his marketing plan for the next 12 months. If only he could find a solution that worked, and kept his business in a strong financial position.

So Joe looked into outsourcing his accounting function. The outsourcing company offered to take on his sales invoicing function, and would perform the credit control for him. They could process the book keeping and employed qualified accountants who could take care of the statutory obligations. And the cost would be 2/3 of the existing cost.

This is just one alternative solution to financial management. The decision of whether or not to even consider an outsourced accounts department needs to be taken with care. But it could be a very viable solution which not only reduces your costs, but provides you with tailored information which can help you improve the profitability of your business.

We have listed a number of considerations you need to bear in mind if you’re thinking of reducing your costs and employing the services of an outsourced accounts department.

· Look into the experience of the outsource supplier. Do they hold credible accounting qualifications? How long have they been in the business of managing corporate finance? Are they recommended?

· Consider the potential cash flow issues. If you have an existing debt factoring arrangement, it can take quite a few months to get used to an irregular cash flow. Make sure that’s something you can manage, and make sure the company you employ can help you manage that process efficiently.

· Find out how long you will be tied into the arrangement. Is there a minimum period involved?

· How will the handover be dealt with? Who will liase with your existing customers and suppliers to ensure the transition is seamless and doesn’t interfere with your day to day business?

· What Added Value services do they provide? For example, can they help with strategic planning or funding?

· Have a think about the kind of monthly information you can get from them to help you manage the growth process. Do they analyse sales by customer and product, for example, or provide Key Performance Indicators to keep you on track?

There are so many different ways in which business problems can be resolved. So ask yourself....Is there a better way? Don’t delay – it could revolutionise the way you do business.

A Sales Tip.  Concentrate on your existing customers for more sales.  Use the grid below to analyse what you sell to whom.  Then sell the gaps!  It's a tried and tested system - it works!