Which of these business topics affects you?

I have listed below some of the issues and topics that have been discussed at various events of The Business Exposure Group.

They all attracted considerable comment and the discussions around the table resulted in a wide range of advice being offered from the participating guests.

The result being a wide range of advice from different viewpoints and great value taken from the discussion by many of the participants.

- Securing business with competing customers, without prejudicing the relationships
- Ensuring bigger customers are handled appropriately
- The need to revitalise staff meetings
- Techniques for getting access to decision makers
- Maximising the opportunities of Trade Exhibitions
- Overcoming the issues of good delegation
- The use of referrals and testimonials to secure new business
- The relevance of a mobile app to engage with your customers
- Marketing away from your immediate locality

If you would like to be invited to one of the Business Exposure Group discussion at venues across Yorkshire and in Manchester, please contact us.

Our details are on the contact page on this site and also on the website which is to be found at www.business-exposure-group.co.uk

Bank funding and banking relationships may soon be put even further at risk…

Bank funding could upset your relationship with your bank

Whether or not as a business you’ve previously enjoyed a rewarding relationship with your bank, things have changed as a result of a set of international banking regulations known as Basel III.

Basel III is a series of reform measures, developed by the Basel Committee on Banking Supervision, which are designed to strengthen the regulation, supervision and risk management of the banking system. They have been devised in response to the financial crisis and aim to strengthen the banks ability to respond to economic stress and regulate their risk management procedures.

What does all this mean for the SME?

One definite consequence is that the days of an endless credit supply are even further away than ever.
Basel III sealed a deal in September 2010 to triple the size of the capital reserves that banks are required to hold against losses. It sets out a new key capital ratio of 4.5% – more than double the 2% level in 2010 – plus a new buffer of a further 2.5%. Banks whose capital fall below the buffer zone will face restrictions on paying dividends and bonuses, so the rule sets an effective floor of 7%.

The new rules will be phased in from January 2013 to January 2019. These tougher capital standards are considered critical for preventing another financial crisis but this has curtailed lending, economic growth and is costing jobs.

For the banks, these rules will mean reshuffling their client bases and change products to reduce the amount of risk they take on. Less risk means fewer loans and higher costs associated with those loans.

For business owners, it will lead to transformed banking relationships and different types of funding.

Buying a distressed business – Is it sensible?

The current economic climate has created more opportunities to buy distressed businesses. The risks are obviously high with such a venture and entrepreneurs will need to do their home work but there are ample rewards for the bold.

Why buy a distressed business? A business in distress or at high risk of failure is obviously less valuable than a healthy business however the fact it is a bargain alone should never be the motivating force towards the purchase of a business in trouble.

Buying a distressed business can offer a quick method of growth and opportunities to return to profit as well as prevent a competitor from seizing the opportunity and a chance for capital growth through purchase, turnaround and controlled sale. It also offers the opportunity of controlled disposal of parts of the business at a premium and is cheaper than buying a successful business. However, buying a distressed business requires a high level of commitment and preparation is crucial.

An entrepreneur needs to ask themselves why they want to do it and what businesses they are interested in buying. Focusing on a particularly industry will ensure they are taken more seriously. They also need to understand why the business failed, what are the costs of making it viable, whether there is room in the market for the business and whether key stakeholders are likely to support the purchase.

The buyer of a distressed business needs to have funding immediately available. The discounted price is there for those who can act quickly and many offers fail because the buyer cannot show proof of funding. Upfront payments secure better deals than staggered payment.
Buyers need to ask themselves who is going to run the business? Consider bringing in a specialist who has a track record of turning businesses around.

Seek the help of a professional

Seeking the services of an advisor can be an important move. Buying a distressed business is different to a normal purchase and using lawyers and accountants who are familiar with the process and can deal with the liquidators will protect your position.

There are various types of sales from asset only to a going concern or a pre-pack (a deal for the sale of an insolvent company’s business and assets which is agreed in principle before the company goes into a formal insolvency process).

How do you find distressed business sales? Seek out business for sale adverts – the London Gazette lists insolvencies. If you are a supplier, look out for change of trading patterns and listen out for opportunities by keeping your ear to the ground.

SME sector says Business is looking brighter

SME sector sees growth potential in UK

Although the economic crisis continues to place severe pressure on small and medium-sized businesses and make trading conditions difficult, the outlook is encouraging.

SMEs account for the majority of all enterprise in the UK and feedback indicates many are placing themselves in the best possible position to survive and prosper by running a tighter ship, streamlining services and becoming more customer-focused as they work hard to retain existing clients.

A recent survey indicated four fifths of SMEs believe that 2012 will be better than 2011.

Consumers still value the individual care and attention to detail a small business can offer and those SMEs which invest time in nurturing the relationship they share with their customers will encourage loyalty and satisfaction.

Advances in social media and digital marketing have widened the opportunities for businesses to communicate with their customers and develop stronger relationships. Social media, in particular, gives businesses a direct route to their customers and provides a valuable insight into their habits and preferences. It’s one of the most cost-effective options for building brand awareness and the information collected can be used to modify sales and marketing projects to be more personal to specific customers.

Evidence shows more and more SMEs are embracing social media and using it to manage their reputation and the relationships they have with their customers. They are also measuring their performance by actively seeking feedback from customers and welcoming complaints so they can improve service standards.

Many small or medium sized businesses are also reporting good profits despite the economic downturn and are seeing a steady stream of work. Although the financial climate has led to cost-cutting and staff losses, the result has been a more streamlined operation which is both competitive and growth-orientated.

However, despite the growing optimism, the availability of finance continues to be an on-going concern among SMEs and a barrier to growth. Banks are now much more likely to reject loan applications and overdraft requests as they did before the financial crisis. Many businesses are reluctant to even attempt to apply for finance because of the perception they would be unsuccessful.

Taken from a discussion at Business Exposure Group

CRM systems – vital or just a good idea?

The way a business manages its relationships with its customers can play a significant role in its success. In times of economic uncertainty in particular, the importance of strengthening loyalty and retaining existing customers is often paramount to the business’s survival.

Customer Relationship Management (CRM) is a widely implemented strategy for managing a company’s interaction with customers and projects. It involves using technology to organise and synchronise business processes.

However, CRM shouldn’t be viewed as an IT project alone to make customer contact more effective and efficient. It needs to involve the whole business and should be embraced as a strategy to understand more about customer needs and use that information to enhance relationships and modify sales techniques.

The overall goals are to find, attract and win new clients, nurture existing clients, entice former clients back and to reduce the cost of marketing and client services. Identifying which of your customers is more profitable can improve your marketing success and ultimately lead to increased sales and stronger customer satisfaction.

CRM Systems – Are they different?

There are many types of CRM including sales force automation (providing sales reps, managers and executives with more selling time and less administration), marketing (identifying potential targets and measuring multichannel campaigns) and customer service and support software (to identify and reward loyal customers).
There’s also appointment scheduling, analytics, collaboration between teams within a business and social media, where companies look to gain access to conversations and take part in the dialogue.

However, there are disadvantages of CRM. Businesses can find the process of training their staff to use the new systems they have installed challenging. It can also require additional work for the team through data inputting and will require continuous maintenance and system upgrades.

There may also be issues with data protection and processing times and it could run the risk of dehumanising a process that should be personal.

The relevance of the QR code in 2012 – or is it just a fad?

Is the QR (Quick Response) code relevant to all business types?

It’s the black square maze on business and advertising literature.

By the end of 2013, 85% of mobile phones will be smart phones which contain the necessary technology to read these super bar codes. There is a problem that if the code just links to your website, not all websites are smart phone friendly. To maximise communications you need to make sure the smart phone can easily show what’s on your website.

The real power lies in creating a call to action – perhaps providing vouchers so that when people click on the QR codes it guides them into the system so they can get some benefit from visiting your site.

QR codes were originally established for the manufacturing process, and enabled assembly workers to find out what they had to do at a given point in the production process. Now it’s used widely for marketing purposes, but it also continues to be used in manufacturing. Wholesale catalogues can have supplier QR codes on individual stock items, which can link to a video showing how it is manufactured. A real value added concept!

QR codes allow you to track your return on your investment via analytics which indicates who is responding to this form of marketing. It allows you to get immediate feedback in relation to the messages you’re putting out.

QR codes could be the next big thing!

Gaining employee commitment in tough times

Businesses in today’s turbulent economic climate need to frequently ask themselves whether any member of their team is likely to jump ship and if so, what are they going to do about it?

Employees can become frustrated if they are not sure what’s expected of them and good employers will invest time into making their staff understand their role within the organisation. You need to confidently communicate with employees and ask them what they need you to provide for them to enable them to outperform. Create urgency to get enhanced cooperation especially if they are long-serving employees who have become a bit lax.

Employers should involve staff and not just throw figures at them, explain your reasoning with stories which are memorable. Listening to staff feedback gives them ownership. Staff views should be solicited while the plans are still in development, not when it’s too late to have an impact.

If you have latent untapped potential in your staff how do you release that? It’s about having one to one meetings and then allowing them the freedom to run with an idea. In order to instigate change, 30% of your staff need to go beyond their normal course of duty.

Trust is an important factor between you and your staff. When you hold meetings you should welcome back-lash, otherwise meetings are just full of passive buy-in. If people are reactive and passionate, at least you’re getting a response.

Otherwise, all the strategies in the world are pointless without the tactics of engaging staff.

This article was taken from a discussion at a Business Exposure Group event

Why business investors should take a leap of faith

We are told that access to funding for small businesses is the most critical factor for unleashing business growth, the kind of growth David Cameron expects to help the UK rise out of the economic downturn.

The good thing about the past few years when it comes to finding funds is that there are a wide range of alternatives now available in addition to the traditional banking route. Many established businesses have left cash in their company to try and make sure they have enough for a rainy day. In addition, many wealthy individuals are sitting tight.

All this storing of cash is a missed opportunity.

We all need to become hungry and passionate again and have an open mind about investing in business. Business owners need to create a compelling story in the form of a business plan that shows that they fully understand their market and competition.

Investors must come out of the woodwork and add value with their skills to the management teams, and provide the necessary funds to allow the early-stage businesses to get to the next stage.

It often doesn’t require that much cash but it does involve a leap of faith.

Why now could be the best time to invest and grow?

During the recession you need the safety net of cash reserves in your business.

The businesses which benefit most from economic recovery are those that choose the right time to put their funds to work. Cash deposits are currently generating very little income but if your business is doing well, now could be the time to invest for the future.

Should you expand?

Even in a tough market many business opportunities exist for those with the experience and ability to act quickly and safely. As the economy comes out of recession many business sectors are seeing consolidation as strong businesses absorb weaker ones. This is because asset values remains low and forced sales can push down prices even further.

Buying competitors is a quick way of increasing market share and defending your market position. Combining businesses can help to reduce risk by spreading income streams and reducing customer dependence.
Experienced teams and assets previously not on the market are now readily available.

Opportunities are more abundant at this time because there are a number of potential vendors who want to exit so a sensible offer might be welcomed. There will be others that recognise the need to consolidate and may welcome an approach to explain what options are available.

Assessing the timing of a deal requires a considered evaluation of your business and the drivers in the market. As part of this process you should be flexible in considering your options – a merger or partial exit might be a more attractive solution.

How ‘Think Tank’ groups can help revitalise business owners

Business owners operate today in a varied and complex world.

As an owner you are expected to have all the answers – but it’s impossible.

The future is all about trusted groups of people.

So why not join a group and feel revitalised in business?

As a member of the Business Exposure Group you will find that business issues which you find challenging, will have been overcome by other group members – allowing each of you to learn from each others experience.

These “think tank”, “mastermind” forums provide business owners with a unique opportunity to share insights, direct from the people who really understand – because they are also business owners, working relentlessly through good and bad times.

Check out our new updated website at www.business-exposure-group.co.uk with our latest value propositions.