Keep warm by being active how to prune effectively.

Take a look out of the window.
Stark isn’t it; nothing growing, everything hunkering down and waiting for a downturn in temperature. You have two options to wrap up warm and sit by the fire or get active, get the blood running and keep really warm. I know which option I prefer so let’s get busy on the business for the coming spring – if the Arabs can have one so can we... it's just a turning point when things can only get better.
Pruning is a great way to ensure healthy growth.(Heads of Government may disagree)
It's always tough to decide which branches to trim right back to the earth to ensure their success in the next season. But in business we need to be just as tough there are clients who suck the very life out of you and your business – we all know who they are and have put up with them.
Some behave like spoilt children, demanding and complaining and even tantrums and blaming others. Unfortunately, they are using up resources that could be better used elsewhere.
This is known as "Lost Opportunity Costs" and raises the question every time we engage with these people “whatever else am I missing out on while I am being sucked dry by these clients” if the answer is “loads” then you know what to do if the answer is more worryingly “I don’t know” then you need some help identifying opportunities. I am not saying the pruning process is because they are bad people or run bad businesses it's just that it is a toxic relationship and to ensure that you both survive it is time to cut free.

If we keep in mind that we need to culture unfair advantage in everything we do then a great clearout will ensure that you maintain your unfair advantage by only keeping those who have good balanced relationships with your company.

Pruning Season

It's the season where, as all good gardeners know, you need to get rid of the dead wood so that next years growth will be better and stronger.
In business it's no different:
Take a good look at your client base and ask yourself which 20% are using up 80% of your resources and delivering so little to your bottom line?
Don't get me wrong, this has nothing to do with whether or not they are really nice people or they add to you turnover figures - its just that they are abusing the relationship and that is not very healthy.
You need to take this time to either get them back on track or dump them over the side.
If you need to know how this can be done wait until the next installment...

Where do we want to be?

We have all heard the basic stuff about planning there are so many from quotes from Alice in Wonderland meeting the Chesire Cat through to the quippy "you don't plan to fail you fail to plan" the problem with them all is that they are all correct!
So let's start with the end.
You have, with a bit of luck, 10 - 20 years of self-employment and you have decide, not right now but eventually, if you want a larger company with employees or a smaller one that outsourced every non core element. It's quite important to know where your risk profile sits and by this I mean at what point do you seriously lose sleep and eventually your sanity? To work this out we need to have dream not a fixed in one point dream but a flexible creative point which allows you to feel what success can be.

Travelling to Belgrade

Surrounded by slightly dubious opportunities to rid myself of my hard earned is always going to be a nightmare for me as I know I have a very low ability to avoid the emotional purchase.
Sitting in Terminal 4 shopping centre waiting to leave is a bit of a temptation too far.
I very nearly tried to talk myself into boondoggling my cash into Dixons for electrical goods and the duty free for booze and perfumes.
Sense has returned and I have kept the seal on my wallet intact.
I am flying off to Belgrade and was informed Monday that my flight two days later was going to be delayed and by how many hours - now that is some foresight an airline called JAT can tell me the future when others can't even get the weather right. Now is this a Balkan type of insight given Vlad the impaler's special skills is impressive. Let's hope the pilot knows where we are going as well as that would be a bonus.

New Enterprise Allowance - use it or lose it the new deal-ish

A new scheme to encourage self-employmant is arriving in Jobcentres across the country on the 1st of August 2011. With little more than a week to go it’s not yet clear whether all Jobcentres will be ready. But, after earlier pilots and trials, the New Enterprise Allowance is scheduled to go live across the UK from the start of next month – making it available to qualifying unemployed job seekers.

Jobcentre Plus is in charge of the scheme because it is only open to people who have been claiming Jobseeker’s Allowance (JSA) for more than six months. NEA gives people who have been unemployed financial support for their early months of self-employment, access to a start-up loan, and advice and guidance from an expert business mentor.

That at least is the theory. But if you look in detail at what’s on offer it is hard to see much incentive to come off benefit and embark on the scheme – even if you are intent on starting a business.

What you get:

The NEA weekly allowance, worth £65 for the first 13 weeks, then payable for a further 13 weeks at £33. You can also get a start-up loan of £1,000 to help with start up costs, but this of course has to be paid back. Depending on your household circumstances, which takes into account the income of anyone you live with, you might also be able to open a claim with HMRC for working tax credit.

What you lose:

Jobseekers Allowance. You must close your claim to JSA in order to get the New Enterprise Allowance weekly payments and loan. Jobseekers Allowance is currently worth £67.50 per week, or £105.95 for a couple. This goes on indefinitely as long as you are available for work and comply with some other conditions. In fact these conditions permit you to work up to 16 hours a week on a business and keep your JSA claim open, as long as you declare your hours and earnings.

On the face of it then there doesn’t seem to be much incentive to close down a JSA claim and take the risk of going on New Enterprise Allowance. In a mere three months you could be worse off and owing money. And after six months the allowance ceases entirely.

If you expect your business to take off slowly this doesn’t look like an attractive option – remaining on JSA but keeping below the 16 hours limit would be safer financially. The New Enterprise Allowance only looks attractive to people who have a venture they are sure they can get into profit quickly. Within six months you would need to be making enough profit to allow you to take an income from the business above your current benefit level. Realistically this isn’t going to be the case for an enormous number of people.

But let’s wait for all the details to emerge and the public response before condemming the scheme. The idea of using self-employment to get people off benefit is not the problem – PRIME itself believes in it. But the money to make it a practical proposition for a whole lot more people is lacking from this scheme. The New Enterprise Allowance is unlikely to make much dent on the unemployment figures, which is what it was set up to do.

Year 5 business be damned

Okay you have promises from contacts orders are being processed and you will have the money by the end of the week phew but until then how will you live a quick glance into the wallet and we are into breaking the rules we have maxed out the overdraft which is guaranteed by the family home and now the drastic plastic is flexed. Spending only until the end of the month then it will be paid back. Then watching the local news you see the directors of your new client being escorted by the local constabulary into the back of a Black Maria they have been arrested for fraud!!
So sitting there with your head in your hands crying out that "Its just not fair" and do you know what? It isn't!
Where does this leave you now?

This is Just a story but it explains why most small businesses fail in year five; the money has run out, the family has run out, and the orders haven't come in. So what can you do to stop this happening to you?

80% Towards Insolvency

Year Four, don't let the family find out!
This year it’s the kid’s college fund that takes a battering and low and behold they don't really need a substandard degree. They can always do better if they take an apprenticeship or they could take out a Student Loan and eventually pay it off just before you retire if you can afford it. This is a delicate time if the partner finds out it could be curtains for your ambitions so best just keep at it and ignore the lack of business as it is starting to come in dribs and drabs but not enough to feed a hungry caterpillar. Kid’s money's all gone so we're focused onto Year 5

Year Three of the "planned" collapse...

We will be getting a bit of work in now; but for the old wage earner it seems that running a business and paying professionals to get going leaves you with less than the minimum wage. Which if you think about it, is only legal if you own and run a business.
You look back at your acquaintances who think you are having the time of your life playing golf or playing with the kids whenever you want - a real life of ease. In reality you sweat yourself awake for long periods in the cold grey night worrying if you should tell your partner that we are moving to a much much smaller place. However; on the good side those big orders promised are just around the corner, the redundancy money is a small stain left in the bank account, but then you could borrow from the savings and holiday fund as long as you put it back when that big order comes in. Who is lying to who here?
But like all things when it comes down to it that big order coming good was more hope than judgment and it you've just heard that it went elsewhere to someone who has a minimum of three years accounts; which you so obviously don't.
One small mercy is that you have not earned enough to pay any tax and the accountant informs you that you should be able to carry over this years loses to next year when you will make a profit. Anyway you loaned the company your money and now you are the largest creditor so if it goes down it now takes you with it...

Taking in the air

Year 2 Survive the first year.
Survival seems likely, as the usual stage in that first year is that you survive on your redundancy payout and live a frugal life but, you have not established yourself yet, people still don't who you are and will be missing out on business that would have been yours in normal circumstances. These are not normal circumstances. Regardless of the fact that 51% of the business registered in companies house (and these are only the limited liability ones) are SME's and the 90% of those have a turnover less than £50K per year; starting your own business is NOT a normal thing to do in the UK, most individuals work for someone else and that matters. Now we will probably reach the end of the year and have to do a set of accounts which will mark a steady downhill slide into the Tax and red tape abyss which constrains and bleeds most small businesses to death.

Enthusiasm

Year 1;
Okay so you think that you are really going to be the owner of a great business, making lots of money and giving you the life you that you have always desired. If you work hard and keep going there is a chance, a small chance that this may happen, but in the great scheme of things it is unlikely.

Most businesses fail in the first five years; in fact out of the 10 business that start up today in ten years there will only be one left. Now all ten companies start out wanting to be still around in the future and all ten invest the same amount of energy and money into their ventures with a view to being there. In the unlikely event that two survive it will not be through skill and knowledge but more like luck that keeps them there.
So let's refocus our aims a bit closer to home this is not taking the long view but something like one year as most people who usually don't know what they want for lunch the same day may not be able to cope with? I ask the question where is your one year plan if you don't have a ten year plan?

The first step towards the edge...

An explanation in general terms as to what Unfair Advantage is and what it is not why it is not Strategic Advantage or Critical Advantage or in fact Competitive Advantage why it is more powerful than all of these and why is costs so much less and makes so much more

Introduction

Most business fail in the first five years so let’s take a look at the way this might happen before we look at ways to stop it

Daniel Priestley

Last night I took a colleague to listen to a free seminar delivered by Daniel Priestley in Oxford. He is very inspiring and delivers a logical and sometimes scary view of the revolution that is happening all around us. Social Media and what used to be called Web2.0 is going to change the world and has already done so. Riots using blackberry messenger and twitter news coverage!
Collaboration and partnerships are the only way out of this so let's get together and create unfair advantage so we can all grow into the business people we wanted to be Unfair or what?

Waiting for enterprise to get going.

This is it then, the launch of the Local Enterprise Partnership in Southampton for the whole Solent region. WOW only hang on - the is no enterprise and no partnership so it's just local then. Well not even that really as the board members source stuff elsewhere. Pointless maybe useless undoubtedly.

Unfair What?

Take the idea that your offering is not particularly different to your competitors and that some of them are actually better at than you. Shocking eh? But realistically this is normal and what makes you different is YOU. The difficulty here is that this fact alone is not enough and if you rely on it you will almost certainly starve or get a job!

The Big What?

Where to start then?
Care Homes costs to keep one dementia patient for one week is approx £480 not bad considering the professional care and knowledge that all homes come under the remit of the Care Quality Commission oh yes. So why have the majority of local authorities set their rates at about £100 less than the cost?
Homes will close people will be left on their own in their own homes where the domicillary care is so short they can decide to eat or be clean but not both. The way we treat our vulnerable is a direct reflection on the sort of society we are. In this case we would be penny pinching bastards whose only concern is not to leave their children in debt. Hold on my parents generation left us in debt their parents left them in debt and so on. So let's be kind sell the children for medical experiments and euthanise the old folk.
It's the only kind thing to do.
Big Society or Big Balls Up -you decide!

Finally landed - mentally

After struggling through the week trying not take a nap while driving as the other drivers appear to have panic.
Meetings again with lots of really great clients. Confidence levels are again taking a dive as uncertainty raises it's ugly head. If we ran our businesses back tracking and uturning as much as those in charge of failing to give us all the confidence we so desperately need. No more real change in Schools - no real change in the NHS - no change in their best mates winning more and more contracts. Tender if you like but it won't get you anywhere.
I was explaining to a good client the theory of "unfair advantage" this is why parents pay grossly overpriced fees to schools that teach no better or no worse than ordinary everyday comprehensive state provided education that is free to all who require it.
If the client does not get unfair advantage what is the point of spending the extra money. Eton can claim unfair advantage just take a look at todays cabinet ministers now that's worth the money that is...

Making it work properly. Job for Thursday.

Deciding what is important and what is superfluous can be difficult we all get sidetracked into doing the things we enjoy before tackling the more fundamental aspects if our businesses I would much prefer to spend time in front of potential clients than the laptop doing accounting but exactly how much damage am I doing to the end game?
The problem is that unless I can identify where the damage is I can't deal with it. Mapping the process goes a long way to identifying the gaps usually not skill gaps but attitude gaps or should I say head gaps.
I believe that ALL businesses should have at least one process map for each function. Not only does it make it easier to replace people who have left it can really help advisors to get to the problem areas quickly and more cost effectively (cheaper). So think on and plan stuff graphically (draw a nice picture of what you do why you do it and what you expect from it afterwards. There are loads of freeware stuff to aid you in this activity.

Holiday or Run Away

Well I am sat here on the plane on my way to a all expenses paid medical conference to Malta for a client. This is the sort of work I could so with more of. For a minute I had  a dejavu moment and nearly got on the plane to Dubai.  But then I might just be leaving the UK for a better life without the incessant whining of Dr Cable (everything we do was due to the last lot) and his cronies who are extra annoying this morning in their irritating well we listened and funnily enough Joe public didn't want their health service dismantled in the same way the lot before the last lot sold off the railways/gas/BT/mining industry/steel industry in fact all industry of any note leaving a nation of very very poor homeowners or very very rich council executives. No I'm just off for work and a few days jolly to lower the blood pressure. I have to stop now before my blood pressure makes my head blow up. 

Paul (Haley).

 

From my phone. 

All these holidays cripple the mind

Well here we are half way through this years bank holiday craziness.
Some of us are still working although I don't think anyone who loves what they do will consider it work. The sharp intake of breath around me when I set off this morning only goes to prove that the work ethic is straining a bit in good old blighty. Its probably straining everywhere now that we have the concentration ability of my cat Millie who spends twenty minutes chasing shadows and leaves that are about to attack her then falls asleep for the next hour before claiming it was a power nap just to get the energy to fall asleep properly later.
For anyone who works for themselves or runs a company that relies on them, knows that holidays are just the time the workers have off. To me holidays are a pain in the schedule as I lose rhythm and it is that much harder to get back up to speed. It also makes me the worst person in the world to spend a vacation with; constantly irritable and moving around.
Next time I am going to take a break by staying at work when everyone else is off - rest enough I think...

Been Thinking

You know we have all been encouraged to think Niche what's yours?
Mine is getting people to think clearly and understand where they are in relation to their dreams. Just thought I would jot that down.

Paul (Haley).

Travelling light.

Sitting by the dock of the bay

Okay okay so it shows either my age or excellent taste in music.
Contemplation is what it is all about.
I am reading "become a key person of influence" by Daniel Priestley and it's good. A beer a chicken salad and a book. As I keep saying to my esteemed clients get your mind right and work at getting things in order and worry less. The money will come in.
Tools you need for success:
1 resilience
2 resistance
3 reconstruction
4 redoubtability (not really a word but...)
5 redundancy

Now get off your butt and just do it if you can't talk to me.

Kind Regards,
Paul Haley.

On the move.

Focus on activity

Here we go again. The number of times that we are going through the same treacle. Marching up and down without ever knowing where we are going. Its like jogging through the fog at any time something can come up and smack you in the face. Who would do that? Why would we then not slow down and take a large intake of breath and just look around. We seem to slow up take stock and then critically look at those who are leading us about by the nose. Do they really know where they want us to be?
There are times when I really believe that they are a lot happier when we all have jute hoods over our heads that way the only thing we can see are our feet. We can shuffle neatly over the cliff edge like lemmings were thought to do. Unfortunately the press, rich govenment ministers and the banks would rather we didn't question where we are going and are treating us as if we don't know well enough when we are being wrongly advised.
The coalition government is very much like the old board of Equitable Life promising so much and delivering absolutely nothing but pain.

Welcome Back

Iv'e been keeping my head down and holding my breath hoping that the coalition gets it nearly right unfortunately it is really getting it so wrong if I hold my breath any longer I will die a painful and untimely death.
I was hoping that some of the money handed over to the Irish and the Railway companies would actually come to some of us who know how to grow businesses and to make sure that we grow the economy and not destroy it and bring us all down into penury.
For God sake stop blaming someone else if I hear "the last lot left us in hell of a mess" I will have to slice off my own ears. Yes yes it was someone elses fault but deal with it life is someone elses fault.
Also why is this rush to pay off the debt so our Children don't have to be saddled with debt I believe that Tony Blair paid the last cheque to the Americans for the second world war loans so thanks Dad for saddling me with debt and thanks to the Bankers who also should find a proper job and stop stealing from me they are not the Government who are allowed to steal from me by law in fact it would be a dereliction of duty not to steal from me.

Keep listening to noise on the rails

the government is doing even the coalition as they like to call themselves seems less sure of themselves now that they cannot keep on blaming the last lot all the time about the state of the world financial situation as its getting boring now.
It's time move on and focus on what can be done to ensure that enough business is ocming in for everyone. Watch this space.

Changes and then more changes

I was going to start this narrative with another question but instead I'll start with an observation. Most humans hate change... not just fundamental mind numbing panicing forced eviction change but even the smallest of changes like moving furniture or losing a usual parking space. Minor stuff and no more than irritating really. So when huge uncompromising change comes along most people just freeze or burst into tears why is that? Change is as important in our lives as food or water. Our ancestors had the unenviable task of dealing with unknown changes every day. Now we know that the sun comes up every day and warms through (sometimes) so we can get on with doing stuff. I am against doing the same stuff today as I did yesterday as it's so mind numbingly boring it encourages self harm. I want something new every day and like some other people I know if it isn't a bit risky then I ask myself how do I make it so. Behind every change forced upon us by incompetent public school boys playing at running a government there is an opportunity to be found. So when I see change it fills me with energy and enthusiasm for the next great idea to come along. So don't just sit there change something, Moving the furniture about does not count...

Where is everyone going today?

Oh what a mess, the government are going to give all the NHS money to those at the "coal face" that could mean the patients or the doctors I believe that they mean the doctors which is a major worry as the last time I visited a doctor they had trouble remembering what day it was. Doctors are very good at what they do or should I say some of them are very good at what they do but the are NOT business people. They have been spoon fed money and respect for so many years they have forgotten what you have to do to earn a living I can see this one being a major disaster a sop to the so called liberals who no longer exist.
Business Link are being disbanded so where can companies now go for sub-standard advice and lack of ability now maybe they should merge doctors surgeries with business link offices and we can all avoid them whenever required.

Making my way back to you...

I have been working non stop recently dealing with the issues that come up in companies because they forgot to do their planning.
If all else fails planning should be a daily activity whether that is in the bath or during breakfast. If you do not plan your growth someone else will be planning your demise. A client had a phone call today asking if she had made arrangements for her own funeral. Well that would be forward planning to absolutely no effect whatsoever. Never plan your way to a quick end. I reckon that we should have no idea when we are going to die so planning for it strategically is a bit of cheek.
Take this on board as I read hundreds of business plans every year and most drive me to the point of suicide by page four so keep everyone including yourself interested and change your plan as often as you change your shirt. I was going to say underwear but then I know how grubby some business people have become.

Book reading time

I have been laid up with kidney stones, now thankfully removed, but during my moment of recouperation I have read the first few chapters of The E Myth revisited by Michael Gerberand. I heartily recommend it to anyone even considering setting up any type of business venture its so real its scary. Once you get over the americanisms and the jovial chumminess the facts speak for themselves. Get it and read it!!

Unfortuately read

I have just waded my way through the first part of The Black Swan. I have given up reading the rest as the style of the writer is painfull at best and self indulgent at worst. I found myself seriously considering suicide as the better option after page 150. Any author that decides to use the initial letters of his name as a reference to themselves is deluded in the extreme. I am sure that he has been lucky in the past probably from the left field or black swan area but as I trudged through the treacle that passes as interesting writing I wondered what on earth roasted black swan tasted like.
Won't bother with the rest of the book as it is handy for keeping the toilet door closed.

Making the right choices

Waiting for change
In the last few hours, in between bouts of melancholic writhing, I have has the opportunity to reflect about the forthcoming UK elections. All the rhetoric and hot air on who has business support over which policies and who doesn't is a major slight of hand. Government of types shapes and sizes is generally loathed by business. We don't care who delivers the bad news but we want someone to stop the pain first then have the balls to do what's right not what is popular. I have rarely been popular but often right and do you know if we expect change then are we not the stupid proletariat!
Is it not better to know where our leaders are going to mess up than to fall for false promises that in our hearts we know can't actually happen. Floating voters are what's in it for me people and need their minds made up for them. Stop pandering to the mindless and focus on society. I know who I am definitely not going to vote for!

Sent from my BlackBerry® wireless device