Blog

Posted on

Stop! Don’t buy that book!

Like most authors I’m delighted when people buy my books (list and links below) but less pleased when they sit on the buyer’s shelf gathering dust.

I’m as guilty of this as the next person with over 100 unread books (fiction as well as business) on my bookshelves and Kindle. Or perhaps I’m worse than most?

Unread books are just a waste of money. Better to read one book a year and implement any useful actions than to spend on unread books that can not possible generate any benefit. It’s why we make it a condition of all our coaching and courses that the client spends at least half a day per week working through any agreed actions.

It’s not even a time thing as I read pretty quickly and can finish a 200 page book in a couple of hours. So, my resolution is to stop wasting time on Netflix and to read AND IMPLEMENT at least one book a month. Will you join me? And what will be the first book on your list?

If it’s one of mine the links are here:

For accountants and bookkeepers:
The Numbers Business: how to grow a successful cloud accountancy practice

Changing the Numbers: how to deliver advisory services for maximum success

For any type of business:
Growing by Numbers: how to scale up your small business with confidence

Posted on

Making Tax Digital for landlords

Landlords with rental income over £10,000pa, ie charging rent of just £834 per month, will have to join MTD ITSA (Making Tax Digital Income Tax Self Assessment). This means that they will need to keep digital records and submit quarterly reports to HMRC from April 2024.

Speaking to friends on both the accountant and HMRC side of the project there is no sense that this date will move so I’ve been looking for some software to help landlord clients to comply with these new requirements without costing a fortune. I have a couple of possibilities that I will be reporting on over the next couple of months. I’ll be sharing the articles on social media but, if you miss them, then please do get in touch for the links.

Posted on

I’m worried about increasing my prices in case I lose clients

It’s a common fear but your existing clients will be less price sensitive if you are doing a good job.

Have a look at this example (numbers rounded for simplicity) of how many clients you can afford to lose without impacting your profit:

Before
• You have 100 clients paying £1,000 each so turnover of £100,000
• You make 50% margin so profit of £50,000

After
• Della comes along and tells you to increase your prices (see the last two weeks for how and why you should do this) by 10%
• You now have 100 clients paying £1,100 each so turnover of £110,000
• Your margin is now 54.5% so profit of £60,000 ie a gain of £10,000 because all your pricing increase is profit

But
• Some of your clients aren’t happy and 10% decide to leave
• You now have 90 clients paying £1,100 each so turnover has fallen slightly to £99,000
• But your 54.5% margin means that you are still making profit of around £54,000 so you are earning £4,000 more for only 90% of the work. Possible even less work because the price sensitive clients are usually those who are most demanding and often a pain to deal with.

In fact
• In this example you can afford to lose up to 16% of your clients and still make slightly more profit
• 84 clients paying £1,100 gives turnover of £92,400 and profit of £50,400 ie £400 more than at the start but for 84% of the work

Posted on

How to increase your prices

Last week I talked about WHY you need to increase your prices but, less talked about is HOW you go about doing it.

It’s a lot easier to talk about in theory than it is to do in practice.

  1. Work out what your prices should be. If you need to provide quotes then work out what your method of calculations will be.
  2. Recalculate up to date prices for all your clients.
  3. Consider using pricing software which provides confidence to both buyer and seller that this is the right price.
  4. Start by increasing prices for new clients
  5. Email/write to all clients with the new price. If you have not done regular price increases before then you may need to explain that this is due to catching up an several years and reassure them that you will not leave it so long in future. Keep your explanations brief.
  6. Telephone any clients who need extra TLC or if a change in scope means that the increase needs further explanation
  7. Resist discounting. You worked out your prices in (1) above.
  8. Practice telling client your new prices. If you’re an introvert who hates role play then just rehearse in front of a mirror:

“Our new prices are …”

“We do not offer discounts”

Also prepare responses to any other potential objections so that you don’t need to think on your feet quite so much.

Posted on

Why you need to increase your prices

A lot of business owners avoid increasing their prices, either because they’re worried about losing clients or because they don’t know how to go about it. Even when they know that they need to increase their prices it is too easy to procrastinate (I’m the queen of procrastination, I have all the excuses)

I’ll cover the ‘how’ in separate tips but today I want to talk about why.

We all started our business for a reason which broadly come into one of three areas:
• Profitability
• Build something valuable to sell at retirement
• Better work – life balance

All of these will benefit from having better prices allowing you to earn more money, increase the value of your business, or to earn more in limited time.

But the real benefit to our clients is that we will have time to provide a quality service. To do things properly and not cut corners. And to run a business that will still be around to help them in future years.

When we provide a quality service our clients benefit, they stay with us, and they refer other people to us. It’s a virtuous circle because everybody wins.

To create the business you want you need to charge the right prices.

Posted on

Have you got the right priorities?

I’m the first person to remind you that you need to work ON your business as well as IN it and I will only take on coaching clients who agree to commit half a day per week to working on their business, but I’m a business owner too and I know how hard that can be to make the time.

We’re always torn between things that earn money now and things that will earn money later such as marketing and business improvements. Not to mention that we’d like to spend some time on the things we enjoy.

I’ve written before about my default diary which includes time for marketing and my own business and personal development. I then allocate particular tasks to those slots. But if you truly want to improve your business then you need to learn to delegate and think systematically.

I love lazy marketing when I use one piece of content in different ways. I also know that my strength is in writing/recording the content and then my wonderful VA tidies it up and distributes it across multiple channels. Whether you’re reading this in our Top Tips e-news or a blog or on social media then she is the one who has put it there (with the help of some software).

My job is to prioritise getting the content out each and every week. When I tried to do the whole job myself it took four times as long so I only got around to it about once a month, maybe less.

Look at everything you do, maybe keep a rough timesheet for a week or month, then go through the list with a highlighter to see what could be delegated to the right person. Then find that right person.

Your priority should be the things that only YOU can do.

If you’re an accountant, you can find somebody else to do the accounts themselves and some of the marketing (I write a monthly content pack for accountants who don’t want to do it themselves) so that you can focus on being the face of your business. If you’d rather be the one doing the accounts, then find somebody else to manage your business. Don’t think that you have to be the MD just because you’re the majority shareholder.

To create the business you want you need to be clear on your priorities.

Posted on

Do you set boundaries?

I work with a lot of people who are overwhelmed in their business as they have bitten off more than they can chew. When we start working together it soon becomes clear that they need to improve how they set boundaries.

Here are a few ideas I often use:


• Practise saying “no” in front of a mirror. It makes it easier to say to a real person.
• Practise saying “no” without feeling the need to offer an explanation.
• Practise saying “no” with a polite smile
• Be clear on what you are willing to do for your clients. Your engagement letter should act as a reminder to you as well as to them of what you are contracted to do.
• When a client asks for something extra tell them “yes we’d love to help you with that and it will cost £X” (fixed fee or per hour)
• Do not discount your fees. You are not a charity. If people are struggling then reduce the scope so they do more for themselves eg we provide basic bookkeeping training videos if the owner is capable of doing this themselves
• Do not provide extended credit. You are not a bank.
• Set appointments in your diary to make time to do something for yourself
• Ring up an old friend and arrange to meet for lunch or an enjoyable activity. It will get you out of the office. If you’d prefer to be alone then book a facial or a massage or plan a bike ride with a nice cake stop.
• Set an alarm for when you intend to finish your working day and then leave your laptop on your desk when you close your office door
• Stop reading this and practise saying “no”

Posted on

Do you carry a condom on a first date?

I don’t know about you but I use social media for networking rather than selling. Like face to face networking I like to take my time to get to know somebody and find out what interests we have in common, exchange a little bit of information about our respective businesses, and to see whether we actually like each other. I’ll then arrange to meet for a coffee if they’re nearby or if we’re going to be at the same business event.

The other form of networking I’ve been doing recently is internet dating and, rightly or wrongly, I follow the same sort of format. I get to know somebody online before meeting up to see whether we get along in real life.

But both forms of networking have pushy people.

Linked In has the annoying people who connect with you only to try and sell you something, or to persuade you to give up your valuable time for a “free” software demo (hint: my time is a limited resource so it has a value). The online dating arena is full of people wanting to promote their “assets” by sending photos or wanting sex before you’ve even met for that first coffee.

Whether in business or dating, timing is everything. Please take your time to get to know people and don’t assume that people want to see the whole package before they have got to know you. A good relationship is worth investing a bit of time up front.

Posted on

How welcoming is your business?

I’m on holiday and the town I’m staying in has all sorts of churches in the centre. But the thing that strikes me is how uninviting some of them are. I’m sure these churches would probably say that they want to welcome and encourage outsiders to come inside but that’s not the message they’re putting across.

One has a sign ‘Consecrated ground – no dogs’ which is short and to the point. Could this have been worded in a gentler way? And how many people know what consecrated means anyway?

One has a sign ‘John 3:16’ which is just a mystery to everybody apart from the initiated. Could this have been written in plain English without code or jargon?

As an accountant we’re often guilty of making people feel excluded through our use of jargon and poor communication skills. Have a look at your own business with the eyes of an outsider and see how you could be more inclusive and welcome in people who want to know more.

And don’t forget to book your holiday if you haven’t yet done so.

Posted on

Do you invest in yourself?

Several years ago I started speaking to promote my old accountancy business, Hudson Accountants. Like most people I hate public speaking but I went to a school that taught this useful business skill and, by about the third event, I felt reasonably comfortable.

Until I joined the Professional Speaking Association!

Being an occasional speaker is very different from being a professional speaker and so I felt that I needed to relearn my craft. Fortunately the PSA is really good for helping speakers to speak more and speak better and I am now a full member, a former Regional President, and I’ve been invited to speak at one of their national conferences for the second time.

Usually I speak to accountants and business owners who are more interested in my content than the way I deliver it. At the PSA my peers will (kindly) analyse the way I deliver my expertise too. It can be quite scary but I know that, if I’m brave enough to ask for feedback, they will be very helpful.

How do you make sure that you’re always getting better at what you do?

PS. If you’re new to speaking then I recommend joining your local Toastmasters or ask me about individual speaker coaches.

Proudly powered by WordPress