6 ways to manage a rapidly growing business

Many small business owners seek to grow their business more quickly and achieve increased profits while other businesses are already growing rapidly and want to manage and control that growth. Here are my six top tips for managing a rapidly growing business:

1. If you look after people, they look after you – This is true for both staff and customers.  Happy, motivated staff is the biggest asset in any company and especially one that is growing rapidly. If your staff are passionate and care about what they do, then your customers will be looked after properly and stay loyal to your services.

2. Delegation is key – Rapidly growing businesses need constant direction to keep on track and to make sure that the original ethos and values you set out with don’t get lost.  Delegate tasks that can be managed by others so that you free up your time to stand at the helm and direct.

3. Be more selective with clients – Learn to turn away business that that you feel does not reflect your brand values, or price!

4. Increase your prices – in regular intervals.  Be brave!  Value your worth.

5. Watch your cash flow – Poor cash flow management is the main reason many new businesses (and established ones) fail. It seems obvious, but if you are offering better credit terms to your clients than you get with your suppliers, your cash will dry up leaving you with no contingency should a client fail to pay or you need to increase an order with a supplier.  Ideally strive to keep at least 3 months operating costs in cash (and move it to a savings account).

6. Bang a big drum – Shout to all about your success. Let everyone know, competitors and customers alike how well things are going.  Customers like to know that they are dealing with stable and successful companies. 

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An affordable alternative investment idea: ART

Art and other forms of alternative investment have soared in popularity in recent years.

Dismal savings rates have prompted many investors to consider diversifying their portfolios by adding more esoteric ways of generating returns, such as contemporary art, wine and antiques.

Several schemes exist to make these investments more affordable, so they are accessible to those on relatively modest incomes.

Nearly £24m worth of contemporary art and crafts has been bought over the past nine years through Own Art, a government-backed initiative that offers interest-free loans to fund purchases.

Assets such as art and antiques are liable to capital gains tax (CGT) when sold only if valued at more than £6,000.

Note of caution:  These assets are unregulated, illiquid and can be expensive, with potentially volatile performance, and they may produce no income.

Contemporary Art

Own Art enables buyers to spread the cost of their purchases over 10 months interest-free. The cost of the loan is subsidised by the scheme’s funders — Arts Council England, Creative Scotland and the Arts Council of Northern Ireland.

The minimum loan is £100 and the maximum is £2,000. If the item costs more, an Own Art loan can be used as a part-payment. To find participating galleries go to ownart.org.uk

The Affordable Art Fair takes place in Battersea Park from October 24 to 27 affordableartfair.co.uk 

Wishing you a creative and successful week! 

The Agile Non-Exec

https://twitter.com/AgileNonExec

Should you pay interns?

This has been in the news again recently, so I thought it would be worthy to comment on. Let's start with the legal position.

If you are exclusively providing training only, and not asking your intern to work on company business, there is no obligation to pay a salary (although covering travel expenses is a nice touch).

However, if any of their work is put to use, whether sold to client, or for the general benefit of your business - then you have an obligation to pay a salary. This is the question I recommend you ask yourself, on appointing an intern or work experience placement.

If you have established a salary is due, and you are based in a city, say London. I would recommend you consider a 'living wage' rather than a 'minimum wage'. The difference is small, but makes a significant statement. You could include this in your marketing, or in conversation.

Most creatives understand it's really hard to get started, so this approach really makes a statement, it also encourages social mobility. You would not wish to exclude fantastic talent, if their family could not afford a placement with you?

 Have a great week folks. @AgileNonExec (Twitter)

A useful link from the other side of the fence: http://www.internaware.org/

So you have a great idea - time for a SWOT analysis!

SWOT - stands for: Strengths, Weaknesses, Opportunities, Threats! How to approach each section: Some suggestions. 1. What are my Strengths What can I do better than anyone else? What resources do I have? What's my unique selling point? 2. Weaknesses What should I avoid? Where do I lack skills? What might hinder my sucess? 3. Opportunities Does my idea tap into any trends? Are there any emerging technologies that could help my idea? Has there been anything in the news related to my idea? 4. Threats Who's my competition? Does changing technology affect my idea? Good luck - and would love to hear your feedback on your business plans!! The Agile Non-Exec

The Agile Non-Exec

What are Non-Executive Director services?

To bring an independent judgment to bear on issues of strategy, performance and resources including key appointments and standards of conduct.

To bring a degree of objectivity to the board's deliberations, and play a valuable role in monitoring executive management.

It is important to note that they can also make a valuable contribution to private companies. Indeed, there are a growing number of private companies, including relatively small ones that are now actively searching for the ‘right’ non-executive director.

Non-executive directors are expected to focus on board matters and not stray into ‘executive direction,’ thus providing an independent view of the company that is removed from day-to-day running. Non-executive directors, then, are appointed to bring to the board:

• Independence;

• Impartiality;

• Wide experience;

• Special knowledge;

• Personal qualities;

Chairmen and chief executives should use their nonexecutive directors to provide general counsel – and a different perspective – on matters of concern. They should also seek their guidance on particular issues before they are raised at board meetings. Indeed, some of the main specialist roles of a non-executive director will be carried out in a board sub-committee, especially in listed companies. The key responsibilities of nonexecutive directors can be said to include the following:

• Strategic direction

As an ‘outsider,’ the non-executive director may have a clearer or wider view of external factors affecting the company and its business environment than the executive directors. The normal role of the nonexecutive director in strategy formation is therefore to provide a creative and informed contribution and to act as a constructive critic in looking at the objectives and plans devised by the chief executive and his or her executive team;

• Monitoring performance

Non-executive directors should take responsibility for monitoring the performance of executive management, especially with regard to the progress made towards achieving the determined company strategy and objectives. They are also responsible for determining appropriate levels of remuneration of executive directors, and have a prime role in appointing, and where necessary removing, executive directors and in succession planning;

• Communication

The company and board's effectiveness can benefit from outside contacts and opinions. An important function for non-executive directors, therefore, can be to help connect the business and board with networks of potentially useful people and organisations. In some cases, the non-executive director will be called upon to represent the company externally;

• Risk

Non-executive directors should satisfy themselves on the integrity of financial information and that financial controls and systems of risk management are robust and defensible.