Tag: business planning

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Doing business on Deep Space 9 

I’m a bit of a scifi geek and I love the Quark character who owns the bar in Deep Space 9. He has some great business traits. And some bad ones! 

The good news is that Quark tracks his KPIs (on an hourly basis which is probably overkill!).  

In Season 2 Episode 10* Quark has enlisted a musician to draw more visitors to the bar BUT the musician is so good that nobody is actually drinking or buying food. He talks about his indicators which feed into his projections which in turn lead to profits.  

In one of my businesses I track speaking events because the more I speak, the more enquiries I get for coaching and courses. In another I track networking and ‘coffee’ meetings as relationship building leads to more referrals. 

What lead indicators do you track in your business that you know will lead to more profits in time? 

*in case you want an excuse to watch it  

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How I manage to run three businesses (and still sleep 8 hours a night!)

People often ask me how I manage to run three businesses.

It started 15 years ago when I set up Hudson Business Accountants and Advisers to fit around my small children in just 25 hours per week. There was a lot of juggling parenting and business responsibilities to get the balance I wanted. I sold this business for 32% above average as it was set up to run efficiently without me.

Roll forward a few years and those small children have now left home for university and I run three new businesses

  1. Minerva Accountants does what you might expect: accounts, tax, bookkeeping and business (not just tax) advice
  2. Minerva Technology is a small fintech startup
  3. Hudson Business Advice is mainly me speaking, writing, and coaching other accountants and business owners how to run their own business more efficiently and profitably.

So how do I do it?
• I employ people better than me
• I am happy to delegate to these and other experts and subcontractors
• I invest in technology (hence why I had an idea for the tech business!)
• I choose clients that are a good fit for our services and don’t try to service unsuitable clients.

How could you manage your business more efficiently and profitably?

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Should I be a limited company?

There are all sorts of reasons for incorporating and most of these are unchanged but two things have changed or are about to change.

1.Corporation tax increases combined with National Insurance reductions mean that the level and which it is tax efficient to incorporate have increased to around £100k* profits

2.At the moment small companies do not have to publish full accounts at Companies House. In future they will need to show their profit and loss account. This means that sensitive commercial and personal information will be in the public domain. For sole directors their salary will be available for anybody to see.

There may still be reasons, tax and otherwise, why business may choose to trade through a limited company so personal advice is more important than ever.

*This is a guide and the actual level still depends on individual circumstances.

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What is a Clarity review?

We try to encourage all our business clients to have regular Clarity reviews. These can be monthly, quarterly or annually depending on the size of the business.

  1. We connect their Xero or Quickbooks to Clarity HQ software which analyses 7 key indicators that reflect profitability, productivity, and value of the business.
  2. This shows where their business is NOW
  3. We discuss where they want to be on each of the 7 indicators in the next 12 months
  4. We come up with an action plan on how to get there
  5. We have regular check ins to help them work through their actions. This is where Della’s business experience and coaching come in
  6. We celebrate clients getting closer to their goals
  7. We repeat with enhanced goals

It’s all about constantly moving forward

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90 day planning

A lot of businesses don’t bother with a business plan because things change and they’re out of date almost as soon as they are written. 

I sympathise.  

Although I do like to have a 12 month budget to check that I have enough money to pay the team and to reinvest in the business we rely mainly on a 90 day planning cycle. Things are usually fairly predictable for the next 90 days so we get together as a team. It’s the only thing we try to do in person as we all work remotely the rest of the time. 

We loosely follow this agenda: 

  1. Review KPIs for last period
  2. Check actions from the previous meeting
  3. Discuss any issues and solutions
  4. I share my plans to move the business forward for the next 90 days and we all agree what needs to be done step by step, and by whom. 

After the meeting 

  1. My PA, Kate, emails me with a summary and the detailed action lists for each of us
  2. I add my actions to my to do list.
  3. If necessary I allocate slots in my diary.
  4. Kate works through all her actions (much more efficiently than me!) and gently reminds/nags me to get on with mine 

The result is that, over the next 90 days, we make a lot of progress. Even if we don’t quite get around to everything the business has moved forward a lot from last quarter.  

It’s like my running – CONSTANT FORWARD MOTION, no matter how slow. 

If you’d like a copy of our budget workbook you can purchase a copy here [please insert best link] or drop me a line if you’re interested in group or individual coaching to improve your own business.  

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HMRC do not make the law

HMRC do not make the law, they interpret it in the same way that accountants and tax advisers do. If we can’t agree on the interpretation then the courts will decide. HMRC is not the final arbiter. 

HMRC have all sorts of helpful information on their website for the public to read. This means that it is often dumbed down and vital points can be missed in the interest of simplicity. This means that Google and ChatGPT can lead to ‘interesting’ ideas from clients on how they can save tax which ends up with me correcting them by quoting chapter and verse of whichever act is applicable.  

Our clients work hard so we don’t want them to pay any unnecessary taxes but we also want them to sleep at night knowing that they have complied with all laws and regulations. 

Too many accountants just rely on the HMRC website and forget to check the correct sources. Proper CPD is really important to maintain professional standards and to give the best advice. We should be better than Google!  

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Software efficiencies

When you started up your business you probably ran it using a spreadsheet or a Word document. But now you’ve filled your time and you’re trying to grow you need better to software to ensure that everything runs as efficiently as possible. Here are some things that I use in my businesses:

Marketing – I use Active Campaign as both my CRM (customer relationship management system) and to email things like this top tip to our clients and prospects. Active Campaign links to forms on our website and to our scorecards.

Process management – Minerva Accountants has lots of beautifully repeatable processes so we use Bright Manager (formerly Accountancy Manager) to manage those processes, client documents, file client emails (so anybody on the team can see all the communication), and automated reminders. My coaching and consultancy business has fewer repeatable processes but it is much smaller so I manage my to do list on Trello

Cash collections – as far as possible we use recurring monthly invoices on Xero and collect payments through direct debit using Gocardless. Any invoice on Xero is automatically fed to Gocardless and, when payment is made, the receipts are matched to the invoices on Xero. Clients can also pay by card using Stripe which also matches the invoices. These save hours of debt collection time and bookkeeping in a small business.

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New year clear out

You don’t have to wait until the new year to do it (see also Spring cleaning and back to school flurries of activity) but I do like an excuse for a good declutter.

Here are some things you might want to look at:
• Stationery – we run a paperless office and don’t have a printer but it still amazes me how much stationery we have around that might be useful to somebody else
• Poor clients – yes, we have a clear out of these every February after the big tax deadline. You probably have a few clients who could be moved on to make room for more suitable ones
• Inbox – how many emails are you subscribed to that you don’t read. If they’re not useful to you (including this one) then don’t just delete them but unsubscribe
• Wardrobe – not a business one but, unless you already do Project 333 you can probably get at least one bag of clothes and shoes to the charity shop or bin
• Client files – archive any paper or digital files you no longer need

Make space to plan your year with our budget workbook and video.

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Reusing content

Content creation takes both ideas and time so why not make the most of your content and save valuable time by using it in as many ways as possible. For instance, if you are giving a talk you can reuse it as follows:

1. Record it for online use

2. Cut the video into clips for social media

3. Use the audio as a podcast for people to listen to

4. Write it up as several shorter blogs

5. Write it up as an article for your local paper or other publications

6. Use it in your newsletter/e-news

7. Extract quotes for social media

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Collaboration for the win

I’ve been working away in the frozen North aka Manchester. On one of the days I had a break between speaking engagements so I borrowed a desk from another forward thinking accountant, the lovely Stuart Hurst. We exchanged a few ideas on how we could each improve our accountancy businesses and look after our clients better.

Collaboration beats competition every time.

Who do you collaborate with?

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