FLUID BUSINESS THE MAGAZINE FOR BUSINESS OWNERS Winter 2020 Winter 19/20
Weather the Storm WINTER IS COMING FOR YOUR BUSINESS
HOW A CRM SYSTEM CAN BOOST YOUR SALES
IMPROVE YOUR TEAMS PERFORMANCE
HOW TO GET READY & BEAT THE CHILL
KICK START YOUR BUSINESS IN 2020
WITH THIS ONE SIMPLE IDEA
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Weather the Storm 04 05
The Fluid Book Club
14
Literary inspiration from the Fluid Business
Find out if a CRM system is worth the time and
Coaches
effort for your business
Coaches Q&A The coaches share their expert knowledge by
16
Should I Retreat When The Market Slows Down?
18
The Best Interview Question To Ask
Be A Better You Why Your Marketing Message Should be
20
simple practise
Why The Follow Up Is So Important
Keeping Up The Cashflow Sufficient funds are a vital part of business
22
Your Circle Of Influence Manage your concerns by bringing them into your
success
12
How A Daily Huddle Helps Your Team Raise engagement levels on a daily basis with this
Simple
10
Be A Better You Why You Should Fail Fast
Or is there opportunity to be had?
08
Winter Is Coming For Your Business How to prepare yourself for an economic downturn
answering our question of the issue!
06
Do You Need A CRM System?
circle of influence
Marketing Strategies for an Economic Downturn Four outstanding ideas to help keep the sales coming in
24
10 Ways to Defeat a Downturn
27
Surprising Stats
And how to fix it
A fun look at business related numbers
Welcome from... NATALIE HARIRAM Managing Director, Fluid Business Group
Although it's nearly the end of January I think there is still just about time for me to wish you all a Happy & Prosperous New Year!
Despite many business owners feeling optimistic now that Brexit is making some progress there will be times when circumstances outside your control will have a massive impact on your business - this issue is dedicated to helping business owners weather the storm and come out the other side ready to grow.
2020 is certainly shaping up to be a challenging time but we firmly believe that there are many things you can do to ensure your business is in as good a state as possible to weather any storms ahead.
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FBM Winter 2020
The Fluid Business Book Club Looking for some literary inspiration?
This issues top picks from the coaches
Ray
7 Habits of Highly Effective People Steven R Covey
Andy
The Coaching Habit Michael Bungay Stanier
A brilliant book but not for everyone. For me, it's on my regular re-read list. Every read gives some more insights. If you haven't read it yet give it a try
The Tipping Point Malcolm Gladwell
A 'how-to' manual that genuinely makes a difference to managers and teams.
Fantatical Prospecting Jeb Blount
An easy read highlighting the magic moment when an output trend moves
This book clearly explains the why
from steady to a step increase. It
and how behind the most important
also covers 6 degrees of separation;
activity in sales and business
the importance of connectors and
development prospecting.
much much more.
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FBM Winter 2020
Peter
The Jelly Effect Andy Bounds Like throwing jelly at a wall, poor communication never sticks and when times are tough you need to ensure your message is crystal clear
Blitzscaling Reid Hoffman Blitzscaling is the process of massive growth in an uncertain environment. Learn to think in an unconventional way & turn business models on their head.
Coaches Q&A How do you bounce back from adversity? Ray Moore - Founder & Managing Coach We all deal with pressure in different ways but ultimately, you must look after yourself so that you can look after others.
So, take time to sharpen your saw and ensure you are emotionally strong
to
fight
(see
my
book
recommendation
7
Habits
of
Highly
Effective People).
Be open and discuss the issues with energy giving people. Do not be an island or spend time pity partying with energy vampires.
Finally, be prepared to take the learnings and change.
Peter Boolkah - Business Coach Whatever your initial reaction, the challenge is to turn a negative experience into a productive one—that is, to counter adversity with resilience.
Mental resilience is what's going to get you through the tough times and out the other side.
It can be hard to muster this resilience for many reasons: Fear, anger, and confusion can paralyse us after a severe setback and turning to the wrong people for advise can also hinder our progress.
Andy Sleet - Business Coach For me this is about accepting where you are, what's happened and then making up your mind that you're going to deal with it.
I really believe in mind over matter - keeping a positive attitude at all times will pay dividends in the long run.
Don't wallow in the situation you're in - that's defeatist. Pick yourself up and decide you're going to move on.
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FBMÂ Winter 2020
Should I Retreat When The Market SlowsByDown? Andy Sleet Whether we like it or not, we have to accept that
Many such businesses cut their team to the bone
many businesses have recently put the brakes on
(only retaining those they absolutely need) which
their
means
spending
due
to
the
uncertainty
of
the
that
they
have
time
Brexit, Christmas, General Election, or any other
they're more likely to start missing deadlines.
it
is
quite
paralysing
for
and
spend
communicating
event,
customers
to
general market place. Whether it is the dreaded
random
with
less
as
a
on
result
many
businesses as they just want these type of things
These pared down teams can often be so hungry
out of the way before they decide if they spend
to jump on any new leads that existing customers
money or not.
feel neglected and not as important as they felt before.
As a general rule, this means that as there is less money being spent, most businesses are retreating
We
all
know
and cutting costs to ensure that they survive until
thought 'they just don't seem to care about me any
the spending starts again.
more'? I'm sure if I asked the supplier they would robustly
But is this a blessing in disguise for the more forward thinking and progressive companies?
this
defend
feeling.
the
fact
How
often
that
have
they
do
you
care,
however it's not so much about whether or not you actually care, it's more about how your customer actually perceives how much you care.
I think so, let me explain. When
so
many
focus
tends
to
companies be
are
retreating,
concentrated
on
their
'internal'
factors within their own business, i.e. where can I
Here's where the opportunity lies for the forward thinking,
progressive
business
owners
amongst
you.
make cuts?, how can I save money?, where can I stop spending money?
Firstly I'd like to explain why the opportunity exists. Let's
look
the
may
customers. Let's look at why this is.
nationally or even internationally.
FBM Winter 2020
and
for
at
how
market
the main people that lose out are their current
miles
look
your
customers will travel to use your service, for some it few
we'll
of
their 'external' focus is not so sharp. In this scenario
a
this
size
place.
be
do
potential
This means that whilst their major focus is 'internal'
06|
To
at
others
it
far
your
may
be
What we'll do now is look at how much money
Let's use the figure of 5% to demonstrate the
is spent on the type of product or service that
point and update the pie chart example.
Your Market Share 5%
you provide within this range. This is how far your customers will travel to use your product / service
Your business is located here
Your Potential 95%
This is the size of your potential market
To do this we need to look at multiple factors
This shows that there is 95% of the current
like;
market
being
serviced
by
your
How many competitors do you have?
competitors. This means that 95% of potential
How big are these competitors in
customers may not be feel like they are being
comparison to your business?
looked after by their current suppliers and as a
What is their turnover?
result may be tempted to look elsewhere for a
Armed with this information we should be able to
currently
have
a
stab
at
what
the
size
of
solution.
the How can we take advantage of this if we are
potential market is.
making It's not imperative to do this 100% accurately
cuts
in
things
like
marketing
and
customer care?
but a rough idea should be good enough. This can
now
be
looked
at
in
terms
of
what
This
is
the
time
when
we
should
look
very
percentage of that market place we have as
carefully at the marketplace and make plans
our current share.
to target potential customers to let them know we are here and ready to help them.
When this is done properly in the SME market arena the general outcome I find, with almost
In summary, it's possibly the worst decision we
every client, is that their market share pales
can make if our whole focus is internal. We
into
need to have a very forward thinking outlook
insignificance.
Invariably
fraction of one percent.
the
share
is
a
and maintain the external focus to thrive.
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FBM Winter 2020
Be a Better You Why Your Marketing Message Should Be Simple Your
customers
do
not
want
to
burn
a
lot
of
Imagine
a
brand we
that
says
exchange'.
'trust
What
is
does
the
calories in order to understand what you offer.
commodity
that
What do we mean by that?
mean? How are you going to solve my problem? How are you going to make my life better?
Thinking and processing information requires an incredible expense of calories. You have to burn a lot of calories to think and process information.
How are you going make me money? How are you going save me money?
None of that is explained. You need to explain that very, very clearly so they don't have to burn
That's
why
message
creating
where
a
people
very don't
clear have
marketing to
think
to
any calories to understand what it is that you offer.
realise what you offer actually works better than if
Clarify your message and more customers will place orders
you get cute or clever.
Why The Follow Up Is So Important A follow up is something you do after you talk to somebody about a product or you have a meeting. And
we
think
you'll
agree
if
you've
ever
had
a
meeting with somebody and they don't follow up
Create a follow up routine, a sort of checklist, that you go through to make through to make sure that you are securing that customer.
pretty quickly it's likely you won't do business with
It needs a deadline within three days of meeting
them.
with somebody to follow up. Do not fire off an There's a number of reasons for this but the main
or
send
one is that our minds quickly move on to something
proposal.
else.
In order to get that sale you've got to be a
you've actually thought through this a little bit. If
little like a kite string on a kite - you need to bring
you're actually trying to change the direction of
the person back closer to that deal before their
a
mind starts wandering and they go elsewhere.
matches in both design and thought, the degree
Do
company,
a
something
follow
up
with that
with
a tells
a
professional the
person
proposal
that
to which you want them to put effort into this. The
other
reason
that
you
want
to
follow
up
promptly is it tells them that you care about them
You want to make sure the customer realises
and you aren't too busy. A quick follow up, lets
that they are getting your full attention and a
customers know you are actually on it.
follow up is a great way to do that.
FBM FBM Summer Winter 2018 2020
06 | 08|
Keeping UpBy RayThe Cashflow Moore Taken from 'Can Your Business Step Up To The Growth Challenge'
There are hundreds of sayings, some cheesy, some
During a period of growth, it can too easily be
clever,
consumed. Frankly, it’s a lack of cash flow (not
about
money
and
its
importance
but
it
really is a vital element of any successful business.
profits) that can kill a business. Building longterm sustainable cash flow is one of the vital
It’s the lifeblood of any enterprise and one I’m sure
ingredients in taking your business up the Levels.
you feel you have the greatest understanding of –
To
money. You’ve seen your business make a healthy
financial information and all the elements of your
profit
business that will enable you to adapt when it
last
year
so,
of
course,
you
know
what’s
going on, where the money is going and where it’s
achieve
this,
you
must
invest
in
proper
needs to.
coming from, right? There’s that word again – investment – and I can Well, it would be great if this was actually the
imagine
case, but incredibly this is an area in which many
what it’s going to cost you! Well, let me answer
business owners just don’t have their fingers on
that. What it will cost is probably a bit of a dip in
the pulse. Many have no system of producing or
profits to begin with but what it will bring is long-
analysing monthly accounts and the health of the
term sustainable wealth. Remember, you
business is largely judged by the current bank
have
balance or level of surplus.
period of growth so the expenditure has to be
to
once
set
again
out
the
you’re
stall
trying
before
to
calculate
you
enter
a
made up front. The return on that investment will We know already that maintaining a surplus
come
alone is not enough to keep the money aspect
barrier.
of your business in balance.
FBM Winter 2020
10
when
you
break
through
that
Level
3
Let’s look at what else you need to be thinking of
–
your
physical
machinery
and
assets
such
infrastructure
as
as
property,
well
as
Key Questions To Ask Yourself & Boost Cashflow
the
less tangible assets such as your brand and
What
marketing.
support the business?
To enable you to switch from focusing on the
Do
short
bank
manages accounts and reviews them on at
balance) to a more long-term financial focus
least a monthly basis? Or do you rely on an
(sustainable cash flow), you are very likely to
accountant to give you the news every six
need to improve on the financial information
months or so?
term
(the
here
and
now
of
the
financial
you
have
structures
a
are
system
in
in
place
place
to
that
you have available. That might mean boosting your team by employing a financial expert or
Are your management information systems
training
up
strong enough to identify the facts so that
almost
definitely
an
existing need
employee an
but
it
will
investment
in
infrastructure too, perhaps involving a whole new
IT
system
to
produce
the
reports
decisions
can
be
made
on
those
rather
than opinions?
you
need. It may seem like a big cost, but think
Do you understand what is going on in all
about it. If the result is that you now have
the different areas of the business?
detailed information that allows you to make the
best
financial
decisions,
then
that
Have you achieved clarity about what has happened within your business in the past?
investment will soon prove worthwhile.
an
Have you identified clear trends so that you
investment rather than simply a cost is what
can have confidence in the future of your
will enable your business to achieve a passive
business?
Learning
income
to
that
see
all
secures
expenditure
everyone’s
as
future
and
keeps the cash flow… well, flowing!
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FBM Winter 2020
Marketing Strategies for an Economic Downturn There have been many reports on the state of
Don’t Arbitrarily Cut Your Marketing Budget
the UK economy and differing predictions as to how the trading environment will look in 2020.
Marketing is typically one of the first places business
Even
if
doesn’t
these matter
predictions —
the
are
good
off,
times
it
really
can’t
last
owners
are
some point in your business’ lifespan.
short term.
It's critical to focus on profitable effectiveness
Ultimately
the
– rather
downturn
weaker
economic
“growth”.
principle
of
After
all,
opportunity
the cost
cut
when
slashing the marketing budget in a downturn will
empty
to
looking to trim costs. It’s well documented that
forever, so it's likely you’ll face a downturn at
than
tempted
only
help
defend
brand
profits
will
and
in
emerge
far
less
the
very
from
the
profitable.
Building and maintaining a brand, as well as
mandates that one pound spent on one thing
customer
cannot be spent on another.
and trust is one of the best ways to reduce risk during
Recessions
have
a
nasty
habit
of
destroying
unprepared or ill-equipped businesses. In the
service,
economic
that
consumers
downturns. This
recognise
is
why,
in
each recession cycle, companies with a strong brand presence have come out on top.
last one, more than 400,000 small businesses went
bankrupt
or
permanently
closed. If
you
Cutting
the
marketing
budget
during
a
want to prevent your business from suffering the
recession is a gut reaction many inexperienced
same
recession
business owners (and even experienced ones!)
marketing strategy now — not when the stocks
make. If your competitors are cutting budgets,
dip, not when a recession is formally announced
you’ll see an even greater long-term return on
— now. That way, you’re ready for pivots and
your marketing investments.
fate,
you
need
to
craft
a
budget shifts when the market slides. Instead
of
objectively
12 |
FBM Winter 2020
making look
at
deep where
reactionary you’re
cuts,
spending
money and what kind of return you’re getting.
Understand Your Customers Behaviour
Focus On Existing Customers
The
Regardless
success
of
your
recession
marketing
strategy will hinge on this because it's vital you
biggest
understand
your
potential
both
customers
downturn. them
how
your
will
existing
behave
and
during
a
People change as the world around
changes.
What
your
target
of
asset
existing
your
industry,
during
a
customer
your
brand’s
recession base.
will
Even
be
during
normal trading conditions it is so much cheaper to keep a customer than convert a new one.
audience
needs in one decade may not be the same in
Make
the next one. Prevent sales disaster by really
focused
diving into your target audience and finding out
customers. This bedrock of customers will repay
their motivations and behaviour trends during
you
an economic downturn.
reviews, especially if you can use analytics and data
Consumers
of
any
product
or
service
will
sure on
in
your your
the
to
marketing most
form
show
valuable,
of
how
strategies
are
happy,
loyal
recommendations
you’re
and
benefitting
their
company during tough times.
prioritise purchase decisions by sorting products
Boost Conversion Rates Tweaking and Repeating
and services into one of four categories:
Essentials
are
necessary
for
survival
are
indulgences
You can’t force people to alter their spending
whose
immediate
purchase is considered justifiable.
Postponables
are
needed
or
Testing,
or
perceived as central to well-being.
Treats
by
habits. The best you can do is to figure out the formula that nudges them further and further
desired
items
along the buyer’s journey.
whose purchase can be reasonably put off.
Expendables are
perceived as unnecessary or
unjustifiable.
The
only
efforts,
way
to
do
tweaking
this
your
is
by
tracking
campaigns,
your
changing
your strategy when necessary, and repeating The
trick
to
downturn
successful
lies
in
advertising
consumer
during
psychology
a
the process.
and
emotion. A recession is a testing time for most
Tracking
consumers,
of
granular information about the performance of
surface
each of your marketing strategies allows you to
fear,
worry,
there’s and
often
stress
an
undercurrent
beneath
the
and
capturing
which alters normal buying patterns. By tapping
see
into
competitors don't.
and
appealing
to
the
emotional
side
of
opportunities
and
more
accurate
problem
and
areas
your
your customers you have a better chance of connecting with and persuading them that your
It's essential to test new new strategies and
product
evaluate old ones. Once you’ve got your results,
or
category.
service
remains
in
the
Essential
repeat
the
process.
What
you’re
doing
is
refining your recession marketing strategy and distilling
it
performing you
need
to
only
include
campaigns. to
drop
the
Sometimes
everything
and
very
best-
you’ll
find
pivot—and
that’s okay. The business owners and marketing managers that thrive in recessions are the ones who are adaptive and able to change easily.
FBM Winter 2020
13 |
Do You Need A CRM System? It's the start of a new calendar year and the time
What can a CRM System do for my business?
that so many businesses will be looking ahead and planning what they want to achieve next.
I
think
here
the
question
should
be
switched
around and be phrased more along the lines of Maybe there will a New Year's Resolution or two
'What do you want a CRM system to do for your
mixed in with that and we all know the potential
business?' as modern systems can help in so many
pitfalls
ways.
there!
With
Brexit
now
well
and
truly
underway it's be more important than ever that we look
after
our
current
customers
and,
The classic definition of a CRM System is:
simultaneously, apply the same care to the new
A technology for managing all your company’s
leads that come into our business.
relationships and interactions with customers and potential customers.
Anyone
that
has
ever
had
to
do
outbound
The goal is simple: Improve business relationships.
telephone sales to get leads will know how hard it is and how precious each one is, so they deserve
A CRM system helps companies stay connected
to be looked after and handled very carefully.
to customers, streamline processes, and improve profitability. When people talk about CRM, they
I'm
amazed
at
how
many
companies
I
start
are usually referring to a CRM system, a tool that
working with either have no formal system at all or
helps
at
management, productivity, and more.
best
note
an
antiquated
approach
that
spreadsheet
even
they
or
admit
is
'post-it'
with
contact
management,
sales
totally
inadequate for the job.
A
CRM
solution
helps
you
focus
on
your
organisation’s relationships with individual people I hear horror stories of how many thousands of
— including customers, service users, colleagues,
pounds of potential sales are lost because leads
or
are forgotten or not followed up.
them.
14 |
FBM Winter 2020
suppliers
—
throughout
your
lifecycle
with
This can include finding new customers, winning their
business,
and
providing
support
I've heard they're a waste of time
and
additional services throughout the relationship.
Many business owners have horror stories of CRM systems that have been expensive and 'haven't
My belief is that this is the first essential part in
worked'.
providing
early
the
management
business
information
leader to
make
with fact
the based
This
was
interactions
different
systems
my
experience
-
got
I
my
claiming
too
way
that
with
my
through
they
were
5 all
business decisions. Here are a few of the major
useless.
It was then that I came to understand
features that a CRM System can provide
what the common denominator was in all these experiences....... ME.
Contact & account management
I tried to implement them all myself learning how
Quote and Order management
to configure them and making an extremely bad
Opportunity Management
job of it.
Sales Process Automation
Subsequently I now have a CRM system
that was set up and configured by an expert to
Campaign Management
meet
Customer Segmentation
my
business
needs.
Yes,
it
seemed
expensive but it was up and running in less than
Call Centre Automation
two weeks and started delivering benefits from
Service Automation
the start.
Task Management
The payback on the implementation
costs was less than 2 months.
Which CRM system is best for my business?
I'm worried that my team won't use it There are so many different systems that offer such a wide range of functionality that it can become a bit confusing deciding which will best suit your business.
This is a thorny issue that I'll have to address head on with you. You are the leader of your business and understand exactly what is needed to run a proper business, we cannot compromise on client
The first thing to do is to decide on the outcomes you want from the system and my suggestion is to think at least 5 years into the future. Too many businesses implement a system which is fit for purpose today because it's cheap and then find they have a harder job changing it down the line when it's no longer fit for purpose.
satisfaction otherwise our clients will vote with their feet. It is therefore not acceptable for anyone in the business
to
ignore
or
not
embrace
it.
CRM
adherence must become the law in your company otherwise
your
customers
customers
leaving
you
to
will go
suffer.
68%
elsewhere
do
of so
through 'perceived indifference'.
Here's a list of possible considerations although the list is by no means exhaustive What are the growth plans for my business? What will the business
look
different
like
products
in or
5
years
time?
markets
/
Selling
what
tech
on
line
Will the system deliver a benefit to the business?
/
changes
affect me Where am I missing opportunities in my sales process and
Almost definitely, 96% of businesses started fail within
10
years
of
their
conception.
There
are
what would help me prevent this
many contributing facts to this statistic however a
What do I want in the way of reports?
major
What information is key for me to see on my dashboard?
factor
is
the
lack
of
care
with
the
customers and leads.
What are my business processes and how do I want the business to work? Where will I need to access the data? mobile, office,
If you're interested in a CRM system or to understand if your current one is optimised to suit
Who will need to use the system?
your business get in touch with by emailing Andysleet@fluidbusiness.co.uk
15|
FBM Winter 2020
Winter Is Coming For Your Business. Are You Prepared? By Peter Boolkah
In this article, I will explain the term ‘economic
have experienced since The Great Depression.
winter’, cover how it can affect your business
The GFC was an economic winter and it was a
and how you can best prepare.
global phenomenon. Many businesses failed and the ones that survived hung on by the skin of their
Firstly, to illustrate what I mean by the phrase
teeth.
‘winter is coming’, I am going to use a seasonal
Predicting the Next Big Freeze
farming analogy:
In 2009, we entered a spring. We started the road Spring:
During
spring,
farmers
and things start to grow.
sow
the
seeds
to recovery; businesses began to take off again
Without seeds there
and the economy started to improve. That spring,
can never be any crops.
however, was eleven years ago and experts today will argue that we are now, as a season, in late
Summer: Summer is when things start to take
autumn. If you look at the economy, business has
off;
been buoyant; a lot of companies are the best
their
crop
is
nice
and
healthy
and
everything blooms.
they've
ever
been,
and
markets
were
at
their
peak. Interest rates are at near lowest levels ever Autumn: Autumn is when the crop is harvested,
and because of that, people and businesses are
and farmers can reap what they have sown.
borrowing up to their eyeballs. The problem with that, is at some stage interest rates are always
Winter: Winter is a bleak and nothing grows. To survive
it,
farmers
need
to
have
going to rise.
harvested
enough crop in autumn to get them through the
Autumn is the beginning of the ‘cooling off’ period
season.
and in the UK, this is already being reflected in the property market. We have seen some decreases in
An Economic Winter
property
Think back to 2007 and 2008, when we had The
indication that we're heading towards a winter.
Great
Also
Financial
Crisis.
This
was
probably
the
worst hit to businesses that people alive today
16 |
FBM Winter 2020
with
Brexit,
valuations,
the
both
whole
business
has taken a knock.
which
is
ongoing and
often
an
debacle
consumer
early
that
is
confidence
The Seasons in Business Terms
Tips to survive
Economic Spring
One
As
a
business
owner,
when
you’re
out
there
in
thing
I
always
suggest
to
the
business
owners I work with is to keep 10% of your turnover
spring, you need a lot of capital in your business
available
in
liquid
cash
in
the
bank.
Doing
so
because this is when you're experiencing growth.
affords you the flexibility to make sure that you are able to hire people etc and you have the
Economic Summer This
growth
which
is
is
cash to get you through.
further
when
expenditure.
compounded
you
You're
are
at
growing
in
summer,
your
maximum
The second thing I always recommend is to start
fast
and
looking at your balance sheet. If you needed to,
are
extremely busy. That growth costs a lot of money
could
you
as you’ll need to hire people, buy products and
balance sheet today? So many business owners I
invest in equipment to keep up with demand.
come across put all of their profit back into their business.
access
Investing
the
in
cash
your
tied
up
business
is
in
your
a
good
Economic Autumn
thing to do, however, I've come across businesses
In autumn, business should be quite stable. There
that
up
in
will be growth, but not to at the level that you will
machinery and stock. In an economic winter, a
£4
have
million
seen
in
the
previous
seasons.
Autumn
is
have
as
much
balance
as
sheet
is
£4
million
worth
tied
nothing;
if
you
about reserving some capital and building money
can't access the money quickly, it’s of little use.
within the business. You need to build what I call a
Also, if you’re in a situation where you need to sell
‘fortress balance sheet’; a balance sheet that can
off
survive winter.
balance sheet will never generate
Economic Winter
To put it simply, if you need cash to continue to
Many
companies
make
a
loss
in
an
economic
winter. In this season, the banks will not lend you
stock/machinery
in
a
hurry,
a
£4
million
£4 million.
trade and everything on your balance sheet is tied up, then you’re going out of business.
money are easily as the other seasons. If you don't have the capital reserves behind you, it's going to
Winter is Coming for Your Business.
kill your company. Are you ready? Interestingly, there
that
there
are
are
still
a
lot
of
struggling
businesses
to
recover
out from
How many of you reading this are balance sheet rich and cash flow poor?
2009. They made it through the Great Financial
What do you need to do to change your liquidity?
Crisis but they haven’t managed to rebuild their
What's your strategy going forwards to make sure
capital
that when winter comes, you are protected?
reserves.
They're
still
trying
to
work
themselves out of a hole, which is a dangerous position to be in. What do you think will happen to
If you cannot answers these questions or find your
those
answers to be weak you need to act now.
companies
when
the
next
winter
This time, they won’t survive.
comes?
Ignoring such a situation could see your business being buried.
Could your business survive an economic winter? Winter
does
not
pass
overnight. On
average,
recessions tend to last anything between 12 and 18 months. Could your business survive that long, in the wilderness?
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FBM Winter 2020
Be a Better YOU Why You Should Fail Fast We all know that failure is a part of business. It's a
Call them and say, 'Hey, I totally let you down
part of life. But when you do fail do you think to
and
yourself 'Oh, this is exciting'? You don't, and we
Here's what I have learned. I hope you can learn
think the reason you don't is because you don't
something too'.
I'm
so
sorry.
It's
a
learning
curve
for
me.
believe it. But failure is really good. But make sure you move on and do it quickly. Do Now you don't want to aim to fail, but when it
not fall apart when you fail. It is a part of figuring
happens, you actually want to embrace it. Failure
things out.
is how you figure out what not to do.
You can't fall apart every time you fail, you have to just say to yourself 'That didn't work, I need to
You were not born a successful person. You were born a person who could figure things out.
do it this way'. And when you actually fall down and wallow in And really where you're tempted to fall apart is
pity at your failure, you stop doing the thing you
when
were born to do, which is to figure things out.
there's
relationships
involved,
you
let
somebody down or you frustrated a team. You need
to
learn
to
mitigate
that
as
quickly
as
possible.
Always ask what you can learn from a failure and then take action on that learning as fast as possible.
The Best Interview Question To Ask We're actually talking about the question that you
and find the specific characteristics in a person.
would ask somebody who is applying to work for you.
Asking for stories relating to your company values can
tell
you
very
quickly
if
they
do
live
those
And there's lots of those questions that you want
values and also that if you choose to hire them
to ask that, that really tell you whether or not that
they
person is qualified for this position or not.
have and you'll know that you're hiring someone
know
what
kind
of
company
culture
you
that has a good chance of fitting in.
One question that a lot of people don't ask but that is actually very important is to ask for stories from that person about how they have lived out your company values. Obviously to do this well you've got to know what your company values are and then you need to try
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FBM Winter 2020
The interviewee knows what kind of behaviours they need in order to work in your business.
So before bringing somebody on to your team find out if they will be able to live out your values.
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FBMÂ Winter 2020
How a Daily Huddle Improves Team Performance By Peter Boolkah In
tough
times
it's
even
more
important
to
Those
niggly
The huddle must always be conducted standing up,
a
great
daily
a
to ensure that people don’t get too comfortable
business. All too often we talk ‘at’ each other
(which can prolong the meeting) and are able to
and consider that to be communication. To a
get straight back to work afterwards.
degree,
I
guess
it
is,
but
it’s
perhaps
in
is
biggest
The Productivity-Power of the Daily Huddle important
huddle
the
opportunity to deal with them as they arise.
so
the
be
feel valued.
is
and
can
killer
communication
teams
problems
ensure your team are throughly engaged and
Effective
of
little
not
as
What is discussed at a Daily Huddle?
purposeful as it should and could be.
The Daily Huddle should only take 5 to 15 minutes
What is a Daily Huddle?
out of your day, depending on the size of the team.
A Daily Huddle is part of the ‘meeting rhythm’
Smaller
mentioned in the book "Scaling Up" by Verne
around the huddle but as a company grows, they
Harnish and it’s all about communication and
tend
quick synchronisation.
sometimes
companies
to
be
may
run
have
the
whole
departmentally
inter-departmentally
if
there
team
and is
a
crossover between team roles. It’s about getting everybody on the same page and
ensuring
that
members
of
your
team
let
‘What’s Up?’
each other know what they’re up to. The huddle
The first thing you need to focus on in the huddle is
is also about healing relationships.
everybody’s
‘what’s
up’
or
‘what
is
everybody
working on’? When people in a company don’t Have you ever been part of a team where the
communicate properly there is a danger that work
relationships within are quite fractious? A team
will be duplicated; this is inefficient and can be
that has fragmented into smaller groups and as
embarrassing if it involves your customers.
a result, tiny issues don’t get dealt with until they escalate into bigger problems.
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FBM Winter2020
At the end of the working day, it’s great practise
Solving the Stuck
to write down your ‘what’s up’ for the following
The third thing that Daily Huddle’s are invaluable
day. Everybody should know at that stage what
for, is knowing when your team members are stuck
their priorities are going to be, and this practice
with a task.
ensures that you are ready to go the following morning.
When you bring out the ‘stucks’ in a huddle, you often find that another team member has got a
A Metric Update
solution to the problem or if they haven’t, they
The second thing that you need to do at the Daily
know somebody else that has.
Huddle is to have a metric update. This is where you will discuss where you are against your short-
It’s
all
term priorities and KPI’s.
going
about to
getting
hold
you
the
stuff
back,
out
dealing
there with
that’s it
and
moving forward. As well as being an acronym for key performance indicator,
KPI’s
are
also
about
keeping
people
It’s that simple!
informed. They can tell you if you’re on target and if you’re going to make it. If you’re not, they let
A
you know in good time, so that you can change
keep
course
targets.
or
do
things
differently
to
get
back
on
quick-fire, your
5
– 15-minute
team
on
meeting
track
to
which
achieving
will their
track before it’s too late.
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FBM Winter 2020
Your Circle Of Influence by Ray Moore
For most business owners it is so easy to get caught
aware of the things we can and cannot impact (our
up in the daily grind and then have no time to look
Circle of Concern) and concentrate on those that
at
we
the
business
from
the
outside.
Without
this
reflection it is so, so easy to get caught up in the
can
proactively
influence
(our
Circle
of
Influence).
repetitive daily doing, banging our heads against the same brick wall without getting the appropriate
If we plotted all our concerns in the area bounded
level of results.
by
these
two
concentric
circles
(see
diagram
below) it would become clear which issues were Albert
Einstein is
widely
credited
with
saying,
outside
our
Circle
of
Influence. These
are
our
“The definition of insanity is doing the same thing
distractions and sappers of energy unless we can
over
bring them within our Circle of Influence or expand
and
over
again,
but
expecting
different
results.”
it to incorporate them.
It’s only when we stop banging our head against that brick wall that we notice it has given us a headache! To get rid of the headache, we must
Concern
focus on what needs to change so that we can move forward again.
Influence Businesses
operate
within
an
environment
influenced by many factors which can distract and impact us personally and commercially. It is human to worry but the key is to take time to become
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FBM Winter 2020
Stephen R Covey’s concept of The Circle of Influence and the Circle of Concern; from ‘7 Habits of Highly Effective People’
Our Circle of Concern
15-year-old, Greta Thunberg, to bring the dangers
Contains all those issues and worries that in the
of climate change to the global audience. She did
cold
not allow her age or location to stop or deter her.
light
business
of that
pending
day
we
may
have
be
government
the
no
control
general
legislation
over.
In
economy;
and
policy;
technology change; competitor activity……
Within
a
year
she
has
expanded
her
Circle
of
Influence to bring focus and attention to the public and political leaders globally. These are two great
The list is endless and over the last three years the
examples of what can be achieved when we focus
spectre of Brexit has been and continues to be a
on expanding our Circle of Influence.
major distraction. In business it is so easy to worry and focus on those
Our Circle of Influence
things
Contains all those issues and worries that we can
considering what we can do to increase our Circle
impact
of
of Influence. Don’t allow them to become excuses
experience;
to avoid the important things that we either don’t
either
example
it
directly
may
be
or
indirectly.
our
customer
As
way
marketing; investment; production etc.
outside
our
area
of
influence
without
know how to deal with or perhaps just don’t want to face.
The
key
is
to
expand
our
Circle
of
Influence
to
encompass all those items in our Circle of Concern.
Where is your focus? How much time is focused
Let’s look at this by way of two examples;
inside or outside your Circle of Influence?
1.
Band Aid (1984)
The
plight
of
Take time to list out all those concerns that are
starving
children
in
Ethiopia
was
currently
holding
you
back
and
shine
a
light
on
certainly in Bob Geldof’s Circle of Concern but as a
them. Which important areas are currently outside
pop artist not within his Circle of Influence until he
your area of influence and what strategic changes
decided to raise money using his contacts in pop
could you proactively make to bring them within
music.
your
The
rest
is
history
but
without
that
desire
and
circle of
influence or
can you expand your
Circle of Influence to incorporate them?
passion to expand his Circle of Influence Band Aid and
the
charitable
works
since
would
not
have
If not, then let them go!
happened. Like Bob Geldof who can you enrol to generate 2.
Climate Change (2018)
momentum or like Greta Thunberg push the norm
The impact of global warming to our world should
and
not
be within all our Circles of Concern and we can
prejudices.
be
limited
by
past
expectations
or
impact it within our Circle of Influence by recycling, switching to electric cars etc, but it has taken one
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FBM Winter 2020
10Â Ways To Defeat A Downturn During times of economic uncertainty or recession
1.
Evaluate and eliminate excessive debtÂ
it's easy to panic. Panic, which is fear-driven and not based on fact but on emotion, has tremendous power,
the
power
to
change
the
direction
of
business. But do you want to give in to panic, throw
your
hands
in
the
air
and
accept
self-
destruction, actually accelerating it, becoming a
If you took on debt when your revenues were much higher you may not be able to service this debt
debt can be worked out but the key is to be quick and upfront about your challenges in order to
part of the panic, stimulating more?
if your your revenues have dropped. Any
avoid
it
spiralling
out
of
control.
Try
to
deleverage before the downturn really takes hold There's
an
alternative
to
panicking.
We
can
confronting change, and change is an opportunity
Look beyond layoffs
2.
for advances. Now you have the choice to take advantage of change it or allow yourself to be
It's often tempting to look cutting the size of your team
buried by it.
as
a
quick
win
but
this
may
be
counterproductive. Look at how you can use your Most
firms
because
suffer
during
demand
uncertainty
about
(and the
a
recession,
revenue) future
primarily
falls
increases.
and But
research shows that there are ways to mitigate the damage. One key difference demonstrated by successful
firms
contingency
plans
scenarios
allows
is or
preparation. preparing
companies
to
for
teams better and reduce operational overheads before cutting the numbers. Hiring and training staff is expensive and layoffs harm morale at a time when you need teams to be as productive as possible.
Making alternative
recover
3.
Track your finances daily -- and start today
quicker
after a recession.
Install a key performance indicator (KPI) system to track your business and have daily, weekly and
Here are 10 rules of engagement that will help you successfully recast your business and succeed in the new economy:
monthly
financial
reports
issued.
Follow
profitability per job, per week, per client and per product / service. Use these indicators to focus on
your
most
profitable
products
or
services.
Remove anything that does not bring in a profit.
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FBM Winter 2020
Reduce inventories & overheads
Resist profit-eating sales and discounting
4.
7.
Look for items that do not move or turn frequently.
Don't give away your product; instead, compete
That's where your cash is locked up -- in your cost
with
of
niche,
materials,
labour
and
so
on,
waiting
to
be
service,
quality
ensure
your
and USP
uniqueness. is
clear
Create
and
have
a a
turned into cash after it’s sold and the receivables
competitive advantage. The big box stores cannot
collected. Having too much cash invested in stock
compete with you, especially on service. This is
can result in a huge cash drain.
the key small business competitive advantage.
5.
Train and cross-train your staff
If
every
job
or
task
is
learned
by
8.
at
least
one
Expand geographically if possible
Internet
marketing
niche item or service. Find what you do that is
the task can leap in and complete the work. This
unique and promote it everywhere possible.
and
production,
greater
an
expertise
or
a
productivity
remains high despite the absence of a key player. Smoother
create
anywhere,
away, the other person cross-trained to perform
downtime
can
you
especially
disruption,
you
take
additional person, when the primary task holder is
limits
if
can
productivity
9.
Invest in technology
and
happier customers mean a better bottom line.
It’s tempting to think of a recession as a time to batten down the hatches but downturns actually
Review your marketing and reduce spending on traditional media 6.
appear
to
encourage
the
adoption
of
new
technologies. Opportunity cost is lower than it would be in good
Focus on your existing clients first- it's far cheaper
times.
to
company has every incentive to produce as much
ensure
they
remain
loyal
than
to
earn
new
When the economy is in great
shape,
a
customers.
as it can but when fewer people are willing to buy
The internet is your friend! Internet marketing will
what you’re selling, operations need not be kept
save many companies - it's cheaper and quicker
humming at maximum capacity, which frees up
to
operating
promote
yourself
online
than
via
traditional
budget
media outlets. There are many businesses on the
dampening
sales.
internet
technology
costs
making
profitable
hits
out
products, services and entertainment.
of
niche
to
fund
For less,
IT
that in
a
initiatives reason, sense,
without
adopting during
a
recession.
Focus on quality
10.
That’s what wins in the long run. Never forsake quality for speed or cutting costs.
25|
FBM Winter 2020
26|
FBM Winter 2020
Surprising Stats
A fun look at numbers in business 66% of owners personally juggle three or more business areas in their day-to-day, including marketing, sales, and customer service.
Regret
17% of UK SME owners regret taking advice from friends or business gurus.
49.8%
of entrepreneurs rely on word-ofmouth referrals to acquire new customers.
26% of UK SME's would close if a key person became ill or died
47% of UK SME's believe we'll have a cashless society in the next 5 years
Entrepreneurs are twice as likely to suffer from mental health afflictions than the general population
44% of British consumers brought something on their mobile phone in Q1 2019 27 |
FBM Winter 2020
Source: Salesforce blog | Fundera | Drip | Shopify | Hitachi Capital Invoice Finance | Legal & General Business Protection | FSB
30.07% of business owners don’t pay themselves.
BUSINESS COACHING, WORKSHOPS & ONLINE COURSES HELPING BUSINESS OWNERS GROW WITH CONFIDENCE
Build a self-sufficient business & a life you love. fluidbusiness.co.uk