Your business - your opportunities

Whether you are a serial entrepreneur or following your dream of being your own boss, the simple truth is that running a business has its challenges, and being the boss can be a lonely place to be.

The buck stops with you; you are expected to have all the answers.

Where are all the good people to be found?
When you do find them, why are they so expensive?
Who can you trust?
Why aren’t you making any money again this month?
How did you lose your key customer?
Who do you turn to when facing a critical decision or when your market shifts and you need to change how you operate?

No one individual has all the answers – at Business Doctors, we firmly believe that successful business is rooted in sharing experiences and knowledge without expectation of reward or return, and that is why we have written the business owners handbook to help guide you on your business growth journey and help you future-proof your business.

Business growth pains: death by chocolate

Imagine you own a chocolate business. In the early days, life is sweet. You introduce three luxury chocolate products and start selling them through a network of high-end gift and chocolate retailers.

Buoyed by your early success, you later invest in selling directly – through a dedicated e-commerce website and a network of retail outlets you establish across the UK. You also branch out from your luxury chocolate range into middle- and mass-market products, eyeing the prospect of supermarket sales and more.

However, as the company grows and the opportunities keep popping up, the challenges multiply, too. Cocoa prices and the cost of other raw ingredients keep on rising, squeezing margins, while the complexities of producing dozens of confectionary products from a single manufacturing site for a growing number of customers with different expectations and cultures and overseeing dozens of retail branches across the country with all the staffing and property-related challenges that go with it starts to take its toll.

There is competition now coming from all directions, too, as others have moved in on the market niche you first identified and have undercut you in terms of price. Suddenly, things are not so rosy.

What to do? While most business owners might carry on working with the logic of the business they have created, distracted by cash flow, staff, customers, and all those other things, it is hard to plan for in business; really, what’s needed is a root-and-branch rethink.

Many SMEs find themselves here, and the answer isn’t always straightforward.

Budget-oriented or forecast-based planning methods are insufficient in today’s highly competitive business environment. To survive and prosper, you will need to engage in strategic planning that clearly defines your objectives and assesses both the internal and external situation to formulate strategy, implement the strategy, evaluate your progress, and adjust as necessary to stay on track.

We will guide you through this process. Our SME owner’s handbook is designed to address all these issues and give you a clear action plan to address each one. To succeed, we will help you go on a journey of discovery and work out what matters.

PART ONE: FIGURE OUT WHERE YOU ARE GOING

Your business growth journey starts here!

PART ONE: FIGURE OUT WHERE YOU ARE GOING

Take the time to remind yourself why you started your business in the first place.

Are you:

A restless serial entrepreneur who spends your life spotting opportunities and going after the best of them.

Following a vocation – perhaps because the prospects for doing so are better than the prospect of working for others for years to come.

An accidental entrepreneur forced by circumstance to pursue opportunities on a self-employed basis (maybe because of redundancy) has forged a business over time.

Despite your reasons, there’s a good chance that you were excited by creating your business and by its development at various points along the way. But what about right now? Is the excitement and passion still there? Or does work frequently become a stressful obligation and a chore?

Before you embark on your business growth journey, it’s worth reminding yourself about the positives of owning your business and thinking about where you would like the business to be. Next, you will need a plan for getting there.

Driving your business values

The importance of having a clear vision, mission and values is grossly underestimated, especially within the SME community.

When a business has a compelling vision and a clear, worthwhile mission, its owners and stakeholders will be genuinely inspired, staff will be motivated, and customers will want to do business with it;. This is what makes your business tick!

Driving values in a business is more than posting a mission statement on the wall, website, and in the new-starters pack for employees. Your business values must be embraced by every person in it, starting with you, your leadership team, and every staff member,

Once you are set on what you stand for, communicate this effectively to everyone within the business and externally to customers, suppliers, and the media. This will ensure consistency and cement your culture.

More information on business culture can be found in our article Vision mission and values and why they are so important.

Purpose: What is driving you?

It’s so easy for us to focus on what we make, sell, or provide that we sometimes forget to consider our actual value—in other words, what problems we solve for our customers.

“A Deloitte survey of over 4,000 respondents* found that over half of employees (62%) consider an organisation’s purpose before deciding to join, with over a third (36%) saying that an organisation’s purpose was just as essential as their salary and benefits package.”

It’s often easier to describe your business in terms of what you do or how you do it. But can you clearly articulate why you do it?

What difference do you make to your customers, what are they buying from you, and why are they buying it from you?

Business purpose is an essential concept for building a successful and sustainable company. It provides direction and focus for the organisation, helps differentiate the company from its competitors, attracts and retains top talent, and builds a strong reputation in the market.

If your team know your purpose, they can be 100% focused and at maximum efficiency. If suppliers know your purpose, they can focus on giving you exactly what you need regarding products and services. If customers know your purpose, they are more likely to provide you with all the orders for your essential products and services.

The purpose of your business should underpin everything about it and drive its reason for being.

More on purpose can be found in our previous article What is business purpose and why is it important.

Roadmap: Where is your business heading?

Long-term business vision

Although it may be difficult to think about the future when so much is happening here and now, it’s important to set out a longer-term aspiration and ambition for what you see the business achieving and becoming.

A vision is the best way to get your business moving in the right direction, regardless of others’ pessimism or lack of ambition.

No one could ever accuse Facebook’s Mark Zuckerberg of lacking a vision or some cast-iron self-belief, and look where Facebook is today.

Your milestone or visionary goal should be more challenging than the strategic or tactical goals you may already have in place. Think big; if you do, you can potentially transform your business.

PART TWO: PLAN YOUR ROUTE

Avoid roadblocks: choose the right lane

Once you have established your destination (vision), you will need to look out for any external situations and events that could affect your progress. Using the travel analogy, before embarking on a long journey, you would check your tyres, fill the tank, plan your route, and check for any traffic issues along the way.

Think snakes and ladders

Like in the children’s board game, ladders refer to any opportunities that could help jump-start your business with new areas for sales or improve profit margins. Snakes, meanwhile, are those changes in the social, technological, economic and political (STEP) that might restrict your business in some way, by taking away the problem your business was solving or by introducing competition that may radically cut or even remove your margins.

This process is also referred to as STEP Analysis. It is a way of scanning the horizon for emerging technologies or patterns of behaviour to provide you with foresight so you can start taking advantage of potential market changes. You will also be able to identify opportunities for accelerating your business, such as government legislation that may stimulate demand for a particular product or service.

Keep your eyes on the horizon

There will be opportunities for your business to grow and develop that you may not be aware of, but when you conduct some basic analysis on the current mix of business across your company, I wonder how many different revenue streams there are and how they could be broken down.

Conducting a market audit is the easiest way to gain a real understanding of your market and the extent of the opportunities that exist within it.

What is it that you do again?

Understand your customers, customer types, and supply chain. A list of customers is great to have, but do you really understand them and their relationship with you? Think about how and why they buy from you.

What companies are in your supply chain, and why do you buy from them? If you don’t understand where you fit into a changing supply chain, you are vulnerable.

Do you have the right vehicle?

Take a fresh look in your rearview mirror

Once you have a clear picture of the market opportunities available to you from the market audit, you will start understanding the reality of your current capabilities and, most importantly, the opportunities most relevant to you.

You will need to plan your skills and capabilities for the new market and opportunities you have identified. Think about the skills and new technologies you need to adapt or adopt.

It’s a great time for self-evaluation: consider what your business is great at and whether there are any areas for improvement. Think about where you might be vulnerable and what your edge or USP (unique selling point) is. You can do this on our GIVES checklist here.

PART THREE - MAKE IT HAPPEN

Look under the bonnet

Do you have the WOW factor?

The way companies reach their customers and deliver for them is changing. In today’s transparent business world, being run of the mill is not enough—delivering a WOW factor is essential.

Think about your business through the eyes of your customers, concentrate on the things you can really emphasise to stand out from the crowd and understand the benefits of having a well-targeted customer offer.

Take the right people with you

Do you have the right people on the bus?

As your vision and plans come together, implementation means finding and keeping the right people with the right talents and how to get the most out of them.

A common mistake is to build your business around your people; instead, build people around your business.

Start afresh and consider how your business needs to be staffed to meet that vision. Consider what the lines of accountability need to look like. Make sure you can retain good staff that support your business model, vision, and values by making them feel valued. Consider retraining where you have good staff who don’t have the knowledge or experience for the tasks at hand.

Any gaps in your workforce can be filled by recruiting the right people. Individuals who don’t fit with your business model or culture should be released, or they could seriously hamper your growth.

When you are happy with the people on your bus, ensure you clearly define roles, set objectives, measure performance and make them accountable.

Get your business into gear

We hope this article has helped you think about your business journey, where you want to be, and, most importantly, how to get there. You should have a better understanding of your customers, what matters to them, and how to leverage your USP.

You know what obstacles and opportunities you may face along your journey, but the route ahead is clear, and you have the right people on the bus.

You have checked your rearview mirror; now it’s time to accelerate. You are about to embark on an exciting journey.

Summary: There is no 'one right way to run a business

There are many coaches, consultants and mentors, all with their own ideas on how to run a successful business. Graham Robson, Business Doctor for the Northeast, succinctly explains the role of Business Doctors.

“Someone told me there is no ‘one right way’ to run a business. And that’s logical when you think about it: if there were one book, we would read it and know what to do. But there are thousands of books, and each tells us the ‘one right way’ to run our business, so they can’t all be right.

“It’s worse than that. There’s an army of consultants out there who have run supposedly successful businesses and think they know the ‘one right way’ to run your business. But that’s not logical, either. When they were successful, they made decisions in different environments under different circumstances and with different resources. Your business is different, so we can’t apply the same logic and circumstances; it doesn’t make sense.

“What makes Business Doctors unique is that we don’t tell you how to run your business, we do not have the one answer. What we do is listen; we want to learn and understand the issues you face – the challenges and the opportunities you have – by listening and understanding, we can get to one of the root causes behind them.”

Footnote: This article is based on the Business Doctors 10 Step Process. Just like every new car comes with a handbook—but reading it doesn’t make you a mechanic—owning a business doesn’t mean you have to navigate growth alone. If you’d like expert guidance from a Business Doctor to support your journey, we’re here to help.

Reference: Breaking Big – The Business Doctors’ no-nonsense guide to achieving breakthrough growth for your business.

Book a complimentary discovery call

If you want to avoid the pitfalls of business growth, book a complimentary discovery call with one of our expert advisors.

Business Doctors welcomes Alastair Stewart as new Business Doctor for North Yorkshire

Keep Your Eyes on the Horizon – Spotting Opportunities and Knowing Your Market

How to Future-Proof Your Business by Spotting Opportunities and Risks

Why Having a Clear Vision Is Crucial for Business Success

Why Purpose Matters More Than Ever in Business

Why Core Values Drive Performance, Engagement, and a Strong Business Culture

Alastair Beveridge Launches Business Doctor Practice to Empower Local Entrepreneurs

Start Your Business Growth Journey: Reignite Your Purpose and Set Clear Aspirations

Uspire Partnership and Business Doctors join forces

The Business Owners Handbook

With Yuletide almost upon us, we wanted to give you some tips to help you navigate a stress-free December.

Christmas can be challenging for many business owners, regardless of industry. For those in retail, hospitality, and beauty, it’s the time of year when your services are in high demand, and you need to focus on maximising sales before the January drop-off.

Christmas also means extra shifts for manufacturers as they work hard to meet customer demands and fulfil orders before the holiday shutdown.

Whatever your business, we have some tips to ensure the Christmas shutdown is as hassle-free as possible without compromising on customer satisfaction.

A Stress-Free Guide for Business Owners

1. Manage your customer expectations

The key to client retention is good communication.

Inform your customers about reduced trading days or hours and ask if they would like extra stock to cover the holidays.

Ensuring continuity of communication throughout the holiday period is really important, so make sure customers can get in touch when your office is closed. Do this well, and it will cement your relationship in the future.

2. Manage your supply chain

Ensuring your shelves stay fully stocked can keep your business booming and your customers happy.

Inform your suppliers about your holiday closures and last order dates, and ask them what their shutdown plans are to ensure you’re not caught off-guard.

Analyse last year’s sales data to identify which products were in high demand. Understanding these patterns helps you to anticipate what your customers might want this season.

Stock more of your most popular items to create a buffer. This cushion can be the difference between meeting demand and missing out on sales opportunities.

Consider building relationships with secondary suppliers as a backup plan. This flexibility might be critical if your primary suppliers face difficulties.

3. Analyse market trends

December offers a unique vantage point for observing market shifts. Customers may exhibit different shopping habits influenced by festive season promotions or end-of-year deals. You can adapt your strategies by analysing these trends to meet their expectations better. It’s not just about reacting but anticipating needs, giving you a competitive edge.

These strategies will safeguard your operations and enhance customer satisfaction and loyalty, ensuring they choose you over competitors

4. Consider using the Christmas period to explore ways to innovate

Take advantage of the changing demands and conditions this time of year brings. For example, looking for ways employees could operate more flexibly and even remotely. A Christmas period trial may provide valuable insights into new ways of working, such as reducing demands on physical workspace and offering employees the flexibility they may crave.

5. Get your team onboard

As you plan for the future, remember the transformative power of collaboration and open dialogue.

Clear communication with your team will ensure everyone is on the same page, driving towards common goals. Use this period to galvanise your workforce, fostering collaboration and innovation.

Organisational alignment boosts team morale and productivity.
Clear communication of strategic objectives can lead to increased employee engagement.
Collaborative planning helps identify potential challenges early.
Engaging all teams in strategic discussions promotes innovative solutions.
Sharing a unified vision ensures efficient resource utilisation.

6. Time for reflection

Take this opportunity to reflect on the past year’s triumphs and challenges. It’s a time for honest evaluation, which can illuminate pathways for growth and improvement in the following year.

7. Relax and regroup

Make sure you have time over Christmas to relax and recharge those batteries. You can’t effectively operate any business if you don’t take time to step back, spend time with family and friends and perhaps reflect on why you started your business and all you’ve achieved throughout the previous year. We can often get lost in the hustle and bustle of running a business; as the saying goes ‘If you don’t make time for your wellness, you will be forced to make time for your illness”. Self-care is essential, so it’s key that you carve out some time for yourself – quality R&R will benefit you, your loved ones, and the business itself. Wishing you a very Happy Christmas and a Prosperous New Year. You’ve got this!

Being the boss can be lonely, but it doesn’t have to be! If you want support or someone to bounce ideas off next year, please get in touch.

Book a complimentary discovery call

If you want to avoid the pitfalls of business growth, book a complimentary discovery call with one of our expert advisors.

Business Doctors welcomes Alastair Stewart as new Business Doctor for North Yorkshire

Keep Your Eyes on the Horizon – Spotting Opportunities and Knowing Your Market

How to Future-Proof Your Business by Spotting Opportunities and Risks

Why Having a Clear Vision Is Crucial for Business Success

Why Purpose Matters More Than Ever in Business

Why Core Values Drive Performance, Engagement, and a Strong Business Culture

Alastair Beveridge Launches Business Doctor Practice to Empower Local Entrepreneurs

Start Your Business Growth Journey: Reignite Your Purpose and Set Clear Aspirations

Uspire Partnership and Business Doctors join forces

The Business Owners Handbook

Being a small business owner comes with unique challenges, but navigating the world of strategy doesn’t have to be one of them.

This article demystifies strategy and breaks it down into actionable steps. Whether expanding your product line or entering new markets, a well-thought-out strategy can be your roadmap to success. So, discover how strategic thinking can transform your small business into a powerhouse.

Demystifying strategy

You might ask, “Why do I need a strategy?” The answer is simple: A clear strategy guides your decisions, aligns your team, and helps you seize opportunities. It forms the foundation of all that we, as business owners, build our enterprises upon.

“A well-defined strategy is crucial for businesses of all sizes to set a clear direction and achieve long-term goals.

It is a common misconception among small business owners that strategy is only for large corporations. Many believe that strategic planning is too complex or unnecessary for their smaller operations when, in fact, a well-defined strategy is crucial for businesses of all sizes to set a clear direction and achieve long-term goals.

Another misunderstanding is that strategy is synonymous with tactics. Small business owners often confuse strategic planning with day-to-day operational decisions. While tactics involve specific actions to achieve short-term objectives, strategy is about setting a long-term vision and determining the best path to reach it.

Why small businesses need a strategy

A strategy helps us understand and define what success looks like for our business, allowing us to establish its purpose and the values needed to guide how we operate. A strategy provides a roadmap for our business, shows us our destination, and identifies useful stopping points along the way.

After all, who would set off on a journey without knowing where they were heading or how they would get there?

It’s surprising then that, according to a recent survey conducted by Barclays, a staggering 47% of small business owners have no formal strategy to support their business growth. Of that total, 25% have an informal, verbal business plan, whilst 23% have no plan whatsoever.

“70% of small businesses that implement strategic planning report improved performance.” Source: CEO Hangout

Why is a business strategy often forgotten?

Virtually every business owner I have met has some kind of business vision in their head, but it is often unstated, almost sub-conscious. Nevertheless, that core belief drives them to growth and achievement. In the early days, this, along with boundless energy, enthusiasm and hard work, can be enough to deliver some initial success.

As time passes and the business gets busier, many owners find that they simply don’t have the time to step back from the day-to-day and think about a long-term strategy. Business planning becomes a luxury that they can’t afford.

“60 of small business owners feel overwhelmed by the strategic planning process.” source: Truist Survey

The problem becomes compounded if sales dip, costs rise or competition bites. The business starts to suffer. Time is the most precious of commodities, and it gets harder to spare. Every free moment is spent putting out fires. Many business owners feel like they’re on a ship without a rudder, blown by the winds of fortune, with no control over where they might land.

Make time for strategy

Businesses with a clear strategy grow revenue 50% faster than those without – Source: McKinsey

The most successful business owners I have encountered are successful because they have spent time outside their business, thinking about strategy and developing a formal action plan.

They understand their values and the purpose of their business in their customers’ eyes. They strive to achieve financial targets and understand the means needed to achieve them. They know what risks they might be facing and have a plan to minimise them—or even turn them into opportunities.

Most of all, they understand their unique point of difference—the thing that gives them a sustainable competitive edge and makes them truly valuable to their core customer base. They know who their most valuable customers are and how to reach them.

How to cultivate a healthy business

It’s important to remember that business strategy isn’t solely about aggressive growth. It’s about cultivating a healthy business that thrives sustainably over time. While growth can be exciting, it’s just as crucial to focus on building a stable foundation, making informed decisions, and maintaining a loyal customer base. This balanced approach can help you weather market fluctuations and ensure long-term success. By striving for health over hustle, your business can enjoy a prosperous future where growth is one of many achievements, not the sole goal.

Emphasising a sustainable approach requires you to understand your market deeply and be adaptable to its changes. Ensure that your business strategy is not rigid but a dynamic framework that evolves as new opportunities arise. Listen to customer feedback, monitor industry trends, and be ready to pivot when necessary. This flexibility allows your business to survive and excel amidst uncertainty.

Moreover, developing a sound business strategy involves setting clear, attainable goals. These goals act as milestones on your growth journey, providing direction and purpose. Remember, it’s not just about setting them; consistently review and adjust them to align with your shifting business environment and customer needs. By doing so, you maintain forward momentum, ensuring your business strategy remains relevant and practical.

Lastly, don’t underestimate the power of a motivated team. Ensure your employees understand the business strategy and see their roles in its success. A unified team working towards a shared vision boosts morale and productivity, indirectly reinforcing your strategy’s effectiveness. Collaboration and communication within your team can spark innovative solutions and drive your business toward its strategic objectives.

Conclusion

Many business owners believe they can handle strategy independently without any external input. While they may deeply understand their business, seeking outside perspectives from mentors, advisors, or industry experts can provide valuable insights and help refine their strategic approach.

Creating a business strategy is not difficult, but it does take a little time and focus to get it right. It’s not always that easy when you’re busy running a business, especially when urgent meets important; urgent usually wins. I always advise business owners to try and make time to step out of their business and think about what they want to get from it.

Making the time is the first step. I have never encountered a business owner who has regretted taking it.

More information

At Business Doctors, we can help you take that step with our business advice and support. We can help you plan ways to spend more time on your business, rather than in it, work with you to build a strategy to grow your business, and, crucially, make it happen.

If you’d like to learn more about what Business Doctors can do to help your business, get in touch.

Book a complimentary discovery call

If you want to avoid the pitfalls of business growth, book a complimentary discovery call with one of our expert advisors.

Business Doctors welcomes Alastair Stewart as new Business Doctor for North Yorkshire

Keep Your Eyes on the Horizon – Spotting Opportunities and Knowing Your Market

How to Future-Proof Your Business by Spotting Opportunities and Risks

Why Having a Clear Vision Is Crucial for Business Success

Why Purpose Matters More Than Ever in Business

Why Core Values Drive Performance, Engagement, and a Strong Business Culture

Alastair Beveridge Launches Business Doctor Practice to Empower Local Entrepreneurs

Start Your Business Growth Journey: Reignite Your Purpose and Set Clear Aspirations

Uspire Partnership and Business Doctors join forces

The Business Owners Handbook

How I helped a client achieve personal freedom

We all want freedom, especially in business. Freedom to make decisions and head in the direction that we know is right.

To take you down that road, I’m going to tell a story about a client.

During our first meeting, he asked me something: Can you reduce the size of my business?

Wow, I thought, and wondered how this would look on my CV.

Graham Robson – he shrinks businesses, would be the tag line, and subject of many conversations no doubt.

Hands up if you're downsizing?

So first – a quick survey: how many of you are thinking about reducing the size of your business right now?

I thought so. Not many. It would be a very limited market for a business advisor. However, competition would also be minimal.

Seriously, the irony was that he’d started his business 12 years earlier. He’d built it into something successful, highly profitable and with a good reputation. His request was not unusual, sometimes it seems like business consumes us and we long for the times when the business was smaller, easier to control and we had more freedom.

Previously, he’d worked at a large organisation. He was unhappy there, and wanted the freedom to start his own business, to create something of value. He craved the freedom to achieve a work/life balance, to build something to be proud of, ultimately leaving it to his children in the future.

Where he ended up was the opposite. But how could things have gone so wrong?

Understanding the challenges

I wanted to hear his story so that I could understand the challenges he was facing.

He was a perfectionist and had very high standards for customer delivery. That’s no bad thing for a growing business. But as a perfectionist, he got heavily involved in operational details. He worked all hours.

He believed that nobody could deliver the service as well as him. He was the go-to guy for customers, employees and suppliers.

As the business grew he found he had less time to manage the important things. Luckily, he knew that he needed to stand back and take stock. So, he hired a commercial director to handle the increasing volume of tenders. This removed some of his workload – initially!

The problem was that he made a great appointment and the new commercial director did a fantastic job. He won so much work that the business grew a further 50% within a year. Rather than easing up and standing back, our entrepreneur become more heavily involved than ever.

He was working 7-day weeks, 10-12 hours each day. The business was maxing out because he had no more time to give.

Although the business grew very quickly in a short period of time, the business wasn’t structured to scale, the growth was not sustainable. The increase in workload could not be maintained, therefore the growth did not translate into increased business value.

Growth in bottom line profit and business value are two separate things!

A scalable business is valuable, whereas a profitable business may not necessarily be scalable

There are many things that come together to make a business valuable. It’s not simply the profit, but how sustainable those future profit streams are, and how that is captured in a profit multiple.

A key area that determines value is how independent the business is from the owner- not how reliant the business is on its owner.

Creating a business that functions effectively and independently of you ultimately provides you with a more valuable business. It also provides personal freedom.

That’s freedom to stand back, freedom to direct and manage, freedom to scale, freedom to sell or freedom to hand the business on to family members. Ultimately it provides freedom of choice.

My client eventually learned how to stand back so that the business could function independently of him. And guess what? The business continues to grow.

He discovered the road to freedom and rediscovered the goals and desire that drove him to go into business in the first place

How to create a more valuable business

If you are looking to create a more valuable business on your road to freedom, take a few minutes to complete our Value Builder Survey. It will only take you about 10 to 15 minutes and you will receive your free business evaluation showing where you are now against your competition and where you need to be to build more value in your business.

Book a complimentary discovery call

If you want to avoid the pitfalls of business growth, book a complimentary discovery call with one of our expert advisors.

Business Doctors welcomes Alastair Stewart as new Business Doctor for North Yorkshire

Keep Your Eyes on the Horizon – Spotting Opportunities and Knowing Your Market

How to Future-Proof Your Business by Spotting Opportunities and Risks

Why Having a Clear Vision Is Crucial for Business Success

Why Purpose Matters More Than Ever in Business

Why Core Values Drive Performance, Engagement, and a Strong Business Culture

Alastair Beveridge Launches Business Doctor Practice to Empower Local Entrepreneurs

Start Your Business Growth Journey: Reignite Your Purpose and Set Clear Aspirations

Uspire Partnership and Business Doctors join forces

The Business Owners Handbook

Artificial Intelligence is no longer a futuristic concept; it is a present-day reality that has the potential to revolutionise some sectors, including small and medium-sized enterprises (SMEs). Embracing AI can unlock numerous benefits that drive business growth, efficiency, and competitiveness. Understanding how to integrate AI into your business operations is crucial to stay ahead in a rapidly evolving market landscape.

Forbes published The 10 biggest business trends everyone must be ready for now, and because AI featured as their number one, we thought it would be good to delve into the subject of AI, how it can help you achieve business growth, what specific AI tools you may wish to consider, we will also touch on AI vs the human touch.

Benefits of using AI in your business

AI can automate up to 45% of business processes in SMEs Forbes

One of the primary ways AI can benefit you is through automation. By automating routine and repetitive tasks, AI will help you to streamline your operations, reduce human error, and free up valuable time so employees can focus on more strategic activities. Automation can lead to significant cost savings and improved productivity, which are vital for your growth and sustainability.

AI enhances decision-making processes by providing data-driven insights. By analysing vast amounts of data quickly and accurately, AI can identify trends, forecast demand, and make informed strategic decisions. Data leads to more effective resource allocation and better market positioning, driving business growth.

AI improves customer experience through personalised interactions. By analysing your customer data, AI can tailor recommendations, predict needs, and provide you with timely support. Enhanced customer satisfaction and loyalty directly contribute to increased sales and business expansion.

AI-driven marketing strategies will help you to target your audience more effectively. AI can identify the most promising leads through advanced analytics, optimise ad spend, and personalise marketing messages. This precision in marketing efforts results in higher conversion rates and revenue growth.

Incorporating AI into your business operations can significantly enhance efficiency by automating repetitive and time-consuming tasks, allowing your team to focus on more strategic activities that drive growth and innovation.

75% of SMEs believe AI is essential for future competitiveness Forbes

Implementing AI can give your business a competitive edge by enabling faster innovation cycles. With AI, you can quickly test and iterate on new ideas and stay ahead of industry trends and competitors.

Incorporating AI into your business operations is not just about keeping up with technology trends; it’s about future-proofing your business. As AI evolves, early adoption can position your business for sustained growth and success in an increasingly digital world.

70% of SMEs plan to invest in AI technology by 2024 Forbes

Essential AI tools for SMEs

We have helped many business owners adopt AI in their businesses with transformational results, so we have compiled a list of our favourite tools.

Customer Relationship Management (CRM)

One of the most effective AI tools is customer relationship management (CRM) software enhanced with AI capabilities. Tools like Salesforce Einstein or HubSpot use AI to analyse customer data, predict sales trends, and automate repetitive tasks, allowing you to focus on building stronger customer relationships and driving sales growth. Read independent reviews on the Best CRM Software with AI capabilities from Tech Republic and Technology Advice.

Customer Service

AI-powered chatbots and virtual assistants, such as those offered by platforms like Intercom or Drift, can significantly enhance your customer service. These tools provide 24/7 customer support, handle common inquiries, and can even guide your customers through the purchasing process, improving customer satisfaction and freeing up human resources. Read AI Customer Support Software for 2024 from Zendesk for more information.

Decision Making

60% of SMEs report improved decision-making with AI Forbes

Predictive analytics tools, such as those provided by IBM Watson or Google Analytics, can help you make data-driven decisions. These tools help you analyse historical data to forecast future trends, helping optimise inventory, manage resources more efficiently, and identify new market opportunities for your business. For more information, read Best Predictive Analytics Software – Gartner.

Marketing Automation

AI-driven marketing automation platforms like Mailchimp or Marketo can streamline marketing efforts. These tools use AI to segment audiences, personalise content, and optimise campaign performance, ensuring that your marketing efforts are effective.

Natural language processing (NLP) tools, such as those integrated into Grammarly or Zoho Writer, can improve content creation and communication. These tools help in drafting error-free, engaging content and can even provide insights into the tone and readability of the text, enhancing overall communication strategies. Just be mindful to add a personal (human) touch (see final paragraph). 10 Best Marketing Automation Tools – Digital Ocean.

AI can automate routine tasks, freeing up employees for more strategic work (LinkedIn)

Financial Management

AI-based financial management tools like QuickBooks or Xero can automate accounting tasks, provide real-time financial insights, and help with budgeting and forecasting. These tools reduce the time spent on manual financial management and improve the accuracy of your financial data, aiding in better financial decision-making.

Supply Chain

Supply chain optimisation tools, such as those offered by Amazon Business or ScaleAI, use AI to enhance supply chain efficiency. These tools analyse data across the supply chain to predict demand, optimise inventory levels, and improve logistics, helping you reduce costs and increase your operational efficiency.

AI vs the human touch

When we consider AI versus the human touch, it’s important that you recognise it isn’t a battle but rather a collaboration. Yes, AI can streamline your operations, provide you with data-driven insights, and assist in handling repetitive tasks.

However, the human touch remains irreplaceable in many aspects. Our empathy, intuition, and ability to build relationships forge strong connections with customers and partners. When you combine the power of AI with human nuances you will be able to create a harmonious blend.

Imagine leveraging AI to analyse customer data and predict trends while the human side uses these insights to tailor personalised experiences and build lasting partnerships. This synergy can significantly enhance how you operate, making processes smoother while keeping interactions personal and meaningful.

So, let’s embrace AI as a valuable ally. Together, we can harness its capabilities to amplify our strengths and elevate our business into the future. The key lies in balancing technology with a unique human touch, ensuring we stay connected, relevant, and resilient in an ever-evolving marketplace.

This is part six in the topic, Planning for a Successful Year, where we explore current business challenges and how new business trends can help drive business growth this year and beyond.

If you would like additional information on the subject of AI, please get in touch.

Book a complimentary discovery call

If you want to avoid the pitfalls of business growth, book a complimentary discovery call with one of our expert advisors.

Business Doctors welcomes Alastair Stewart as new Business Doctor for North Yorkshire

Keep Your Eyes on the Horizon – Spotting Opportunities and Knowing Your Market

How to Future-Proof Your Business by Spotting Opportunities and Risks

Why Having a Clear Vision Is Crucial for Business Success

Why Purpose Matters More Than Ever in Business

Why Core Values Drive Performance, Engagement, and a Strong Business Culture

Alastair Beveridge Launches Business Doctor Practice to Empower Local Entrepreneurs

Start Your Business Growth Journey: Reignite Your Purpose and Set Clear Aspirations

Uspire Partnership and Business Doctors join forces

The Business Owners Handbook

The Importance of Sustainability for SMEs

In our article Planning for a Successful Year we talked about the importance of keeping up to date on industry trends so you will be better placed to make informed decisions, innovate, and adapt to changing customer needs and expectations. In this article we explore the hot topic of sustainability, why it has become critical for businesses of all sizes, and what it means specifically for small and medium-sized enterprises (SMEs).

The benefits of adopting sustainable practices

SMEs play a significant role in the global economy, by adopting sustainability practices they help build a greener future for all of us.

As the world becomes more aware of environmental challenges, consumers are demanding sustainable practices from the companies they engage with. By embracing sustainability, you will enhance your reputation and attract environmentally conscious customers.

Adopting sustainable practices will also help to reduce your carbon footprint, minimise waste generation, and conserve resources. Additionally, green practices can save costs through energy efficiency and streamlined operations. With all these business benefits, it makes sense for you to prioritise sustainability in your business and stay competitive in the evolving market.

Six green practices for SMEs

Many business owners have already taken steps towards implementing green practices in their operations, and in doing so have already reduced their environmental impact and demonstrated their commitment to sustainability to customers and stakeholders. Here are some of the practices you could consider:

Adopt renewable energy sources such as solar panels to power facilities
Implement energy-efficient technologies and equipment to reduce energy consumption
Implement waste reduction and recycling programs
Source sustainable materials and products where possible
Encourage telecommuting and remote work to minimise transportation-related emissions
Promote eco-friendly packaging and shipping practices

Five innovative strategies for a sustainable future

Adopting one or more of these these strategies will help you stay ahead of the curve and position yourself as a leader in sustainable business practices this year and beyond.

Embrace circular economy principles by implementing practices such as product life extension, repair services, and remanufacturing
Invest in renewable energy projects to not only power their operations but also contribute clean energy to the grid
Implement smart technologies and automation to optimise resource utilisation and minimise waste generation
Collaborate with other SMEs and stakeholders to create shared sustainability initiatives and leverage collective impact
Prioritise sustainable supply chain management by partnering with suppliers who adhere to environmentally responsible practices

Challenges and solutions for implementing green practices

According to NatWest’s Sustainable Business Tracker, only 35% of UK SMEs viewed sustainability action as a high priority for 2024
60% of the survey panel noted that rising business costs were a significant obstacle to becoming more sustainable in the next 12 months.
The second-highest ranked barrier was the difficulty in measuring carbon footprint.
The primary challenge for 60% of SMEs lies in increased business costs.
Manufacturers appear to bear a heavier burden, with 66% pinpointing rising costs as a significant constraint, in contrast to the 54% reported by services companies.

While implementing green practices is crucial there are some common challenges you may encounter along the way including:

Limited financial resources to invest in sustainable technologies and infrastructure
Lack of knowledge and awareness about sustainable practices and their benefits
Resistance to change from employees and stakeholders
Complexities in navigating regulatory frameworks related to sustainability

However, these challenges can easily be overcome and here’s how:

Explore funding opportunities and incentives for sustainable initiatives
Educate employees and stakeholders about the importance and benefits of sustainability
Foster a culture of sustainability within the organisation through training and awareness programs
Collaborate with sustainability consultants and experts to navigate regulatory requirements

Measuring success: Metrics and impact assessment

Measuring the success of green practices is essential so you can track your progress and make informed decisions for continuous improvement. Some key metrics and impact assessment methods include:

Carbon footprint measurement to quantify greenhouse gas emissions
Waste diversion rate to measure the percentage of waste that is recycled or diverted from landfills
Energy consumption tracking to identify areas for improvement and evaluate the impact of energy-saving initiatives
Employee engagement surveys to assess the level of awareness and participation in sustainability initiatives
Customer feedback and satisfaction surveys to gauge the impact of green practices on customer perception and loyalty

By regularly monitoring and evaluating these metrics you will be able to identify areas for improvement, set realistic sustainability goals for your business, and showcase your achievements to stakeholders.

Conclusion

Adopting green practices is an ethical responsibility and will give you a strategic advantage in today’s competitive business landscape. By prioritising sustainability, you can contribute to a greener future and inspire others to follow suit.

If you would like more advice on building a sustainable business, please get in touch with your local Business Doctor.

Book a complimentary discovery call

If you want to avoid the pitfalls of business growth, book a complimentary discovery call with one of our expert advisors.

Business Doctors welcomes Alastair Stewart as new Business Doctor for North Yorkshire

Keep Your Eyes on the Horizon – Spotting Opportunities and Knowing Your Market

How to Future-Proof Your Business by Spotting Opportunities and Risks

Why Having a Clear Vision Is Crucial for Business Success

Why Purpose Matters More Than Ever in Business

Why Core Values Drive Performance, Engagement, and a Strong Business Culture

Alastair Beveridge Launches Business Doctor Practice to Empower Local Entrepreneurs

Start Your Business Growth Journey: Reignite Your Purpose and Set Clear Aspirations

Uspire Partnership and Business Doctors join forces

The Business Owners Handbook

Why you need a business plan

A business plan will provide you with a clear outline of all the actions that need to be taken to achieve steady growth and success. It will help you manage business critical factors, hiring, budget and revenue potential, all important factors for you as the business owner as well as potential future investors.

A business plan will also provide you with essential insights, establish timelines, and prevent potential risks. It is the foundation that will help your business grow, evolve, increase market share and respond to increased demand.

Yet when working with small business owners, we often hear them say, “I’ll be happy if we do the same as last year.” But that isn’t a plan as such; it’s more an acceptance that there’s nothing they can do to change their business performance and that their business growth is out of their hands.

VistaPrint survey results

Four in five (83%) UK SMEs are struggling to plan for 2024, according to data released by VistaPrint (VistaPrint and Enterprise Nation help UK SMEs plan for growth with £150,000 grant programme).

Despite 58% of UK small business owners anticipating growth in the year ahead – many are unclear on where this will come from. Over half (55%) have a “rough” business plan but nothing detailed, while 13% do not have a plan at all. Among the small business owners who stated they had a plan, almost half (45%) were unable to plan beyond the first half of the year.

And there is a similar picture when it comes to achieving financial targets. While just over a third (34%) are confident that they’ll hit targets, a more significant proportion (40%) are unsure and 11% suspect they will not. This uncertainty continues when it comes to their long-term business prospects. Almost two-thirds (59%) believe there is a risk they will have to close their business as a result of the cost-of-living crisis. One in five (20%) are already redirecting marketing budgets towards survival – with 57% among these, using it to pay the energy bills.

The current uncertainty results from recent economic challenges for UK SMEs, where four in five (79%) have had to change their business plan. Two in five (41%) small business owners have increased their hours over the past few months, at an average of 7 hours per week. Stress has also increased amongst small business owners, with 60% stating their stress levels have increased in recent months due to the economic landscape.

How to develop a business plan

If you are serious about growing your business to the next level, it’s clear that you will have a much better chance of success when you have a plan, one that is meaningful and achievable.

Strategic planning requires you to step back from your day-to-day operations, articulate where your business is heading and set long-term goals, objectives and priorities for the future.

Your business plan should cover a three-to-five-year period and set out the tasks, milestones and steps needed to drive your business forward. It will help you focus your efforts on the right thing and will ensure everyone in your business is working towards a common goal.

Business planning will help you agree on actions that will contribute to your business growth, align resources for optimal results, prioritise financial needs, build competitive advantage, engage with your staff, and communicate what needs to be done.

Another significant purpose of business planning is to help you manage and reduce business risks. Growing a business is inherently risky. Detailed planning may help you remove uncertainty, analyse potential risks, implement risk control measures, and consider how to minimise the impact of risks should they occur.

For the best results, set aside some time (at least half a day initially), preferably off-site, where you, your management and sales teams can run through some exercises to better understand the marketplace, opportunities, and potential challenges over the next 12 to 18 months and agree on actions.

Four key questions to ask

As a starting point, consider the following four questions – the answers will be key in forming the basis for your Plan.

What are your key drivers? In other words, why did you start the business in the first place
Where do you want your company to be in 5 years
Do you understand your market?
How big is the opportunity, and what products or services will you promote?
Who are your most valuable customers?
Who are your competitors for those high-value prospects and customers?

Essential components of a business plan

1.Executive Summary

Summarise all the sections in your business plan, including your business vision and goals.

2.Purpose, Goals and Vision

Share your core values as a business owner, collaborate with your people, and work out what means most to you collectively and carve out a meaningful set of values.

Think about what you want and expect from your team and what they want and expect from you.

This process will unite you and your people in ways you couldn’t imagine. We have seen companies who have tried to do this in isolation from their employees – it never works. It must be done together. Once you have done this, the values must pervade all.

Your values are the standard against which your company can measure everything and everyone. Describe your company goals, target audience and products or services. Think about what problem you want to solve for your customers. Read more on purpose.

3.Sales and Marketing

Develop a SWOT analysis to help assess your strengths, weaknesses, opportunities, and threats.

Describe how you will take advantage of your strengths and eliminate your weaknesses.

It’s important to know who your competitors are, document their strengths and weaknesses and consider if their weaknesses could benefit you.

Determine which market forces (drivers) are affecting your customers and, possibly, their customers. Are the social demographics within their area of influence changing? Are they growing or shrinking? Are the age profiles of their customers/end users changing?

What effect does developing technology have on your customers and their customers? Do you face stiffer competition due to cheaper manufacturing and automated delivery processes, or are traditional buying habits changing through utilisation and access to online information and social media?

Consider trends caused by economic fluctuations and the effect of currency exchange rates. Ensure you consider any political factors and their potential impact on the marketplace.

Review your current product/service sales split against total sales revenue. Then, determine which revenue stream delivers the highest gross margins and which covers costs.

Focus on the areas in which to increase sales over the short term. For each existing customer, highlight what products or services they buy from you and, importantly, what they don’t buy. Ask yourself if you’re getting your ‘share of their wallet’ or if there are further products you could sell to them.

4.Management Team and Structure

Your business is a system, and every part has an impact on all of the other parts. To change one thing means to change everything. Change-related problems often occur because the business has changed one or two things but attempted to keep everything else the same. Leaders and part owners must be crystal clear on the business vision. They must share the business values and understand the need or purpose in the market that their part of the business fulfils as well as the business as a whole.

Plot your current management and organisation structure. Consider whether you have the talent to achieve your business plan and if you have the right people in the right roles.

5.Operating Plan

An operational plan can ensure that a business stays on track, whether for a single project or a set amount of time.

It should include:

Who should be working on what?

How can we mitigate those risks?

How will resources be assigned for different tasks?

Are there any internal and external risks facing the business?

Who currently does what and when, and how will this need to change to accommodate your new plans?

An operational plan may also highlight any business areas that need improving. For example, if you wish to achieve a 25% increase in production over the next year, you may notice that you need the mechanical capacity to hit this target. Once you realise this, you can put another plan in place to increase your revenue streams to afford new machinery to increase production.

6.Financial Projections

Not only does a financial forecast sense check your Plan, but the process also gives you a benchmark and something to review against with the added value of the opportunity to adjust your business activities as it develops.

Eight financial questions to ask yourself

What will your next quarter’s turnover and net profit figures look like? The next year? The next five years?
What will the sales split look like across your product lines?
How much will your cost of sales (i.e. purchase cost, material cost and delivery) be?
What is your Gross Profit Margin (GPM) per product/service?
What are your fixed costs for each month (rent, rates, utilities, insurance, wages, etc.) and your break-even point?
Are there any exceptional items or purchases to be made in the next 12 months, and how will these be financed?
How do your cash flow and working capital requirements roll forward from month to month?
Looking forward, are there any sticking points you may need to cover with a loan or an overdraft facility from your bank?

Setting your cash flow forecast

Obtain up-to-date financials for the previous full year, as well as management account P&Ls sorted by month-to-date. Before you look forward, you need to assess what current trading looks like and if there are any trends. Does seasonality swing sales revenue? Do your costs of sale increase dramatically during busy periods as you hire sub-contracted labour?

If you are using sub-contracted labour continuously, consider recruiting your own employees. Having your own staff will be more cost-effective in the long term, give you more control and secure future capacity for growth. If material purchases are high, could you reduce costs by negotiating better terms or going to a different supplier? Ensure there isn’t a lot of wastage/surplus or write-off of materials in the delivery process too. If there is, where and how could this be improved?

Review your fixed costs, wages/rent/rates/energy, motor expenses, print and stationery, bank and interest charges, and general expenses and think about how you can do something different to reduce your expenses. Write down a list of actions and, before you plot the next few year’s growth plans, adapt what you can immediately, turning these items into quick wins.

Start plotting numbers and setting targets for each trading month ahead. Start with a blank sheet of paper and set a realistic but stretched sales target for each month based on each product or service offered, and create separate invoice codes so you can measure and track.

Consider how an increase in sales will affect fixed costs and the capacity to deal with more significant volumes. Do you need to spend more on marketing, staff and wages, warehousing, equipment, machinery or plant? If so, allow for these in your forecast.

Visit our article ‘12 tips for managing your cashflow‘ for tips on managing your cashflow.

Failing to plan is planning to fail

If you understand the importance of a business plan but cannot find the time to develop one, it could be a sign that you are spending too much time working in your business and not working on it.

In this case, it can be beneficial to engage with a professional to help facilitate your planning; they will have gone through the process many times and will be able to challenge you to think about your business differently.

Once you have a plan in place, make the time to sit down regularly with key shareholders and review where your business is going and how you plan to get there.

And remember to communicate your plans with your staff so they understand their part and what you expect from them.

If you would like us to help facilitate your business planning workshop, please get in touch.

This article is part of our Ultimate Guide to Business Growth.

Book a complimentary discovery call

If you want to avoid the pitfalls of business growth, book a complimentary discovery call with one of our expert advisors.

Business Doctors welcomes Alastair Stewart as new Business Doctor for North Yorkshire

Keep Your Eyes on the Horizon – Spotting Opportunities and Knowing Your Market

How to Future-Proof Your Business by Spotting Opportunities and Risks

Why Having a Clear Vision Is Crucial for Business Success

Why Purpose Matters More Than Ever in Business

Why Core Values Drive Performance, Engagement, and a Strong Business Culture

Alastair Beveridge Launches Business Doctor Practice to Empower Local Entrepreneurs

Start Your Business Growth Journey: Reignite Your Purpose and Set Clear Aspirations

Uspire Partnership and Business Doctors join forces

The Business Owners Handbook

How are you feeling about this year?

You probably spent the latter part of December talking, eating, drinking and hopefully relaxing with loved ones. And one frequent topic of conversation was likely “What are your New Year’s resolutions?” If you’re anything like me, when you made those well-intended statements of what you will do differently, you genuinely meant it.

Then January comes and goes, and you return to working reality, and all too soon, you’re right back doing what you always did in the way you’ve always done it.

And your job as a business owner hasn’t been easy since COVID-19. The turbulent economic climate has taken its toll on many business owners, affecting their interpersonal relationships and ability to make sound decisions and apply creative thinking.

On the positive side, an economic downturn can allow your company to expand and thrive, so perhaps this year will see you achieving your resolutions by taking a different approach and setting new goals.

Whether embarking on your first venture this year or managing a long-established company, take time to refresh your planning and strategy skills. The long-term benefits are enormous.

Firstly, let's talk mental health

Entrepreneurship is often portrayed as a glamorous, exciting journey filled with success and rewards. However, the reality is that it can be an incredibly challenging and stressful experience that often takes its toll on a business owner’s mental health. The link between mental health and business success is a topic that is often overlooked in the business world, yet it is essential to thrive.

Mental health will play a significant role in your performance and decision-making. When you are stressed or experiencing mental health issues, you may struggle to focus, make sound judgments, and effectively manage your businesses. The pressure and demands of entrepreneurship can lead to burnout, anxiety, and even depression if not addressed.

Your mental well-being will also affect your ability to handle setbacks and failures. Resilience is crucial when facing challenges, and good mental health enables us to bounce back, learn from our mistakes, and adapt our strategies accordingly.

Strategies for managing stress in the workplace

Here are some practical strategies to help you manage stress and maintain well-being in the fast-paced business world.

1. Prioritise self-care

Make it a point to prioritise activities that promote well-being. This includes getting enough restful sleep, eating nutritious meals, and engaging in regular exercise. Taking care of your physical health can have a positive impact on your mental well-being.

2. Practice stress management techniques

Find healthy ways to manage and reduce stress. This can include practicing mindfulness or meditation, deep breathing exercises, or engaging in hobbies and activities you enjoy. Taking breaks throughout the workday to relax and recharge can also help alleviate stress.

3. Create boundaries

As a business owner, it’s easy to work around the clock. However, setting boundaries between work and personal life is vital for maintaining balance and preventing burnout. Set specific working hours, delegate tasks when possible, and make time for activities outside of work that bring you joy.

4. Seek support

Don’t be afraid to reach out for support from friends, family, fellow entrepreneurs or a business coach. Surrounding yourself with a supportive network can provide a listening ear, valuable advice, and understanding, especially during challenging times.

5. Regularly assess your mental health

Check in with yourself regularly to evaluate how you’re feeling mentally and emotionally. If you notice signs of burnout, anxiety, or depression, seek professional help.

Read our article The SME and mental health for more in-depth information on the subject of mental health and how it affects business owners.

Familiarise yourself with the latest Business trends

It’s important to keep yourself up-to-date on industry trends so that you will be better placed to make informed decisions, innovate, and adapt to changing customer needs and expectations.

Forbes report that the general global economic downturn is expected to worsen before it improves, making business owners cautious regarding spending and investing.

Stay ahead of the curve and future proof your business, with their top 10 business trends for 2024.

Artificial Intelligence (AI)
Soft Skills – the Human Touch
Skills Shortage
Sustainability
Personalisation
Data economy
Customer experience revolution
Remote and distributed work
Diversification and inclusion
Resilience

Take a new approach to running your business

Are you stuck in the owner’s trap, running the business in the same way, failing to delegate, replying ‘we’ve always done it this way’ when challenged.

Einstein’s famous quote “Insanity: doing the same thing over and over again and expecting different results.”

Your business may sell the same products to the same people, but are fewer people? Is there more competition? Have you managed to retain your key staff? Do you need to re-evaluate your cash flow and supplier relationships?

Don't be an Outlook Warrior

Are you spending too much time on Outlook, reacting to emails, customer complaints, and staff issues instead of being proactive and planning for the future? Ask yourself, is what you are doing today getting you closer to where you want to be tomorrow?

Free up some time by delegating tasks to your staff and ensure you schedule planning time.

Reignite your Excitement and Passion

You have probably worked hard to achieve a reasonable income as your business achieved its original objectives. Still, if your original energy and passion have waned, it may be time to stand back from your company and set new goals and objectives.

Get the fundamentals right

1. Formalise Job Roles

The business started with you, and then over time, you will have been joined by others – a relative or friend who helped to take on some of the burden as your business grew. Then came actual employees, and you now have a mix of the formal and informal. It’s time to formalise job roles.

Formalising job roles helps people understand what is and what isn’t their job. Untangle personal assets and business assets and make them separate. If there are two of you, enter into an owners’ agreement and get the appropriate insurance.

I spoke with a business owner who had lost his business partner to a heart attack. The partner’s wife inherited his shares and, therefore, had a claim on half of the company’s profits for the following fifteen years, even though she contributed zero to the company. Look for any oral agreements you have made and formalise them in writing.

2. Reduce your reliance on any single entity.

Being heavily reliant on any single entity, suppliers, employees, or customers will prevent your company from achieving growth. While many business owners recognise the risks associated with dependency, they often ignore them.

3. Review critical contracts

Schedule time to review crucial contracts and ensure that you understand them fully and that they are fit for purpose (your lawyer will help you with this). Check that you are not bound by anything that you do not find acceptable. Review your insurance policies to make sure that you are not overpaying, inappropriately insured, or both.

4. Finance for growth

Have a look at the financing you have in place. Is it the right price, and is it appropriate to support your growth plans? Ensure you manage your cash flow effectively, or it could seriously hamper your growth.

5. Review your business plan

Do you have a business plan? Was it written to get finance or as a temporary measure, or is it a living and breathing document that is familiar to all of your people? If not, get your Business Advisor to help you create a true plan that leads to your definition of success, and then use the professionals to structure the details to support your plan. How to write a business plan.

Give yourself the best chance of success.

1. Seek and engage with people that can help

You don’t need to feel isolated, there are a number of individuals and organisations that can help. Make your first task this year to reach out and engage with people who can support you and your business, whether it be your accountant, financial advisor or business coach/mentor.

2. Join business support groups

There are a number of online business support groups, find your local one and join. Examples are your local authorities, The Federation of Small Business (FSB) or your Local Chamber of Commerce.

3. Attend business workshops

Attending local business seminars and workshops is a great way to meet and chat openly with other business owners.

I will be running a Mental Health in the Workplace Seminar on 16th January with some fantastic guest speakers including, Chas Howes – ex CFO of Superdry, Dr. Helen Scott, Head of School, Psychology, University of Worcester, Chris Hopkirk of The Business of Mindfulness, Dominic Dutton-Edwards – NHS Talking Therapies for Anxiety and Depression, and Paol Stuart-Thomson – MIND Charity. Register here to attend.

Business Doctors will also be running a number of Planning for 2024 seminars, check here for one near you.

Have a fantastic year!

Steve Ennis

How to write a successful business plan

Mental health and the SME

Embracing new trends – Sustainability

People, skill shortage, innovation

Embracing new trends (2) AI/human touch

The road to personal freedom

A simple guide to strategy

Book a complimentary discovery call

If you want to avoid the pitfalls of business growth, book a complimentary discovery call with one of our expert advisors.

Business Doctors welcomes Alastair Stewart as new Business Doctor for North Yorkshire

Keep Your Eyes on the Horizon – Spotting Opportunities and Knowing Your Market

How to Future-Proof Your Business by Spotting Opportunities and Risks

Why Having a Clear Vision Is Crucial for Business Success

Why Purpose Matters More Than Ever in Business

Why Core Values Drive Performance, Engagement, and a Strong Business Culture

Alastair Beveridge Launches Business Doctor Practice to Empower Local Entrepreneurs

Start Your Business Growth Journey: Reignite Your Purpose and Set Clear Aspirations

Uspire Partnership and Business Doctors join forces

The Business Owners Handbook

“Growth is never by mere chance. It is the result of forces working together.” — James Cash Penney.

In our series of business growth articles, we have explored some key components for building a successful business growth strategy, the importance of having a purpose, some roadblocks to achieving growth and how to develop a winning business strategy.

Now comes the exciting bit, making it happen, where you will see your plans come to fruition, and you and your team can start to put all your plans into action.

Ready, steady, grow!

“Your value proposition is what sets your business apart from the competition and is the reason why customers choose your business over others. To scale your business exponentially, it is essential to have a value proposition that is both unique and compelling. This means understanding what makes your business different and why it matters to your target market.” Forbes

You have decided upon a business growth strategy; you should have also identified your market, the opportunity size, and what products or services you will promote.

You should also know who your most valuable customers are and be aware of your competition.

Before diving in, take a deep breath and ask yourself if your plans are feasible, achievable and deliverable. Think about and document your strengths and weaknesses.

What are you great at?

They might be a high service level, prompt delivery, high-quality product or the ability to listen to your customer’s needs before offering a solution. Keep doing these things well, and tell people about them. Obtaining testimonials and case studies is a great way to share your strengths and promote your business through marketing.

Where can you improve?

Be honest and list improvement areas; these become your first actions in your business improvement plan. You may need to improve systems, branding, corporate image, and communications across the business, refine team meetings, host one-to-ones or enhance the measurement of business metrics.

Where are you vulnerable?

What are the significant risks in growing your business? Does your business revolve around one or two key people? Dependency on specific individuals poses a risk and can restrict your business growth, so you will need a plan to mitigate this.

What is your competitive edge?

What makes you stand out from the crowd? What’s your Unique Selling Proposition (USP)? Write these down and form your key messages around them.

Create a winning team

Look at your current organisational structure and ask yourself if it is adequate and able to handle an increase in business. If you don’t currently have the right people in the right roles, you may need to make some tough decisions.

Focus on the job roles and competencies you need rather than building the business around existing individual staff members.

Consider recruiting a business development executive who can get to know your customers and your business inside out to prepare you for new growth opportunities.

Get your team onboard

If you want your business growth strategy to have the best chance of success, you will need to get your team on board. Share your purpose, so your staff have a clear understanding of what the company stands for and delivers. See our Staff engagement post for more information.

Establish real sales targets and share these with your team. Give your staff ownership and the tools to deliver. Measure their performance and follow up with them regularly, providing praise and managing poor performance face-to-face.

Chase margin, not turnover

In the first few years of your business, you may have said yes to every opportunity; now, it is about chasing margin, not turnover and being confident in saying no.

Focus on high-margin generating revenue and do more of those pieces of work which make higher profits and have less hassle factor.

Develop strategic partnerships

Build relationships with strategic partners – for example, businesses that are selling something different to you but to the same target market; you may well complement each other.

Work smarter, not harder

Outsource non-core activities such as marketing, social media, website development, accountancy/bookkeeping, and HR so that you can spend your time strategically and operationally on high-revenue generating tasks. It might seem expensive to pay someone, £25-£50 per hour or £400 per day, to do something you could do yourself, but free up more of your non-productive time, and you’ll be surprised what new business you can generate.

Systemise your business processes

Invest in IT software to secure processes and take human interaction out of as many tasks as possible – this helps with consistency, customers will get a consistent and robust level of service, allowing you to step out of the business. Consider ERP – Stock ordering/management systems; CRM – Customer Management and accounts systems. There are many on the market, and some are even sector-specific.

“If you always do what you’ve always done, you’ll always get what you’ve always got.” Henry Ford

Navigate your route to business growth success

Here are some common pitfalls you may encounter as you begin your business growth journey and how to avoid them.

Set SMART objectives monthly, quarterly, and annually. Stretch these and aim for the moon. One tip is to work to a 90-day plan. When faced with many tasks on the to-do list, ask yourself: What could I do today or tomorrow that will make a positive impact on my business this month? Then do it.
You cannot do everything yourself, so think about outsourcing or delegating and escape the Owner’s Trap
Have a plan and review actuals versus budgets and do something different to rectify any variances. Why not ask yourself every Friday afternoon: What went well this week? What didn’t go so well? What am I going to do differently next week? Then, plan those tasks in the diary.
Surround yourself with like-minded associates and a support network because running a business can be lonely.
Fail fast and bounce back from the falls and disappointments – James Dyson once said that if you haven’t failed, you are not trying hard enough.
Find out how to effectively get your product or service to market; if it is a challenge, outsource to a marketing or sales specialist, particularly if it is not your forte.
Get out there – Be sociable, network, go to seminars, events, Expo’s. Interact, learn and get yourself known in your marketplace.
Your best salespeople are your customers – make sure they become advocates. Ask for testimonials and case studies to build social proofing. Keep in close contact with these customers as they will have many contacts they could introduce/refer you to.
Keep a close eye on your finances and future working capital requirements. Rapid growth can cause just as many company failures as having no growth. Ensure you use accountancy software such as Xero, QuickBooks, Sage One etc. Create and have current robust business KPIs at your fingertips; this helps when you go for funding or to the bank to finance growth. Take a look at our 12 tips for managing cash flow.

Don’t let doubt stop you from growing your business

We all have moments of doubt from time to time. As business leaders, we must push through them and believe in ourselves. As if this wasn’t hard enough, we have to learn how to believe in ourselves when we are feeling at our most alone and vulnerable. In amongst that noise, we then have to be able to recognise when we are the very factor that is holding back the company’s growth! The only way to do this is to commit to growing your business by making the changes necessary whilst maintaining our self-belief!

Don't become an employee in your own business.

Working long hours seven days a week will not make you more productive, effective or successful. It will make running your business a chore and a millstone around your neck; you will become a slave to the tasks and needs of the business.

Take time for yourself by planning your downtime in the diary now at the start of the New Year – plan your family holidays and put these in the diary first. Work around these dates and don’t cancel, because if you don’t take your holidays, you’ll compromise your most important relationships.

I hope that our series of business growth articles has motivated you to think about some of the things that you need to implement in order to grow your business. If you feel overwhelmed by these considerations, that’s normal; no one can achieve their aspirations without help and guidance.

If you think you could benefit from help and guidance from someone who has been where you are and encountered the same challenges, please contact us.

We can arrange a free business health check to help you set a clear vision and understand the key steps you need to take to fulfil your aspirations for business growth.

Business Growth Article 6/6

Book a complimentary discovery call

If you want to avoid the pitfalls of business growth, book a complimentary discovery call with one of our expert advisors.

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The Business Owners Handbook

Roadblocks to business growth

The Owner’s Trap

Many individuals set up businesses because they are looking for freedom. Freedom from bosses, from routine and drudgery and the freedom to work with who they want, how they want.

Unfortunately, the reality is somewhat different for many business owners, particularly after the first two or three years.

By now, things have fallen into a pattern, and you’re the first to unlock the business in the morning, the last to get paid, and you generally deal with all the complaints and problems. And you’re working longer hours than ever.

Sales slow whenever you are away, and your company seems to have stalled in its growth.

No one is taking responsibility, all phone calls seem to be for you, and staff are hanging around waiting for your instructions.

Being in the Owner’s Trap is bad news for you and bad for your business.

Signs that you are in the Owner’s Trap

Has your revenue reached a plateau?
Does your business slow down when you are away?
Do customers come to you when something goes wrong?

If you were to draw a picture representing your role in your business, would you be at the top of a traditional Christmas tree-like organisational chart, or are you stuck in the middle of your business, like a hub in a bicycle wheel?

Are you able to leave the business for a month without serious repercussions? Do you need to be consulted whenever decisions are required?

If this sounds familiar, you are not alone. Most business owners and CEOs face this challenge at one time or another in the evolution and growth of their businesses.

More than 60% of businesses fail within the first three years. And many that do survive past this start-up stage are firmly in the owner’s trap.

(See our Ultimate Guide to Business Growth for more roadblocks to growth).

Six tentacles of the owner’s trap

Those businesses that go on to be successful and sustainable enterprises have learned the key to standing back from the coal face and focusing on growth.

So why do a handful of start-ups make it through this critical stage whilst others languish and become a lifelong burden for the owner?

Let’s review the six tentacles of the owner’s trap and examine how each may hold you back.

Technical competence

Competence is probably the leading cause of falling into the owner’s trap. Most entrepreneurs start a business because they are technically competent at something. They have a skill and assume that no one else can deliver the product or service as well as they can.

Customers go to the owner for issues, employees go to the owner for decisions, and suppliers go to the owner for orders. The growth of the business ultimately becomes dependent on the amount of time the owner can devote to it.

The owner mistakenly believes they are working hard for the business’s good but, in reality, may be sacrificing family for nothing. When a company depends on the owner in this way, it is not a valuable business.

Striving for perfection

Many entrepreneurs caught in the owner’s trap believe their delivery to the customer must be perfect, creating an immense strain on both owner and business. Good and on time is far superior to perfect and late. Perfection is always elusive and cannot be accurately specified; it lives in the owner’s imagination and holds back productivity and growth.

Fear of delegation

Fear of delegation results from an owner’s belief that no one can perform a task better than them. In this situation, the owner mistrusts their employees, believing they are not as dedicated as them —lack of delegation can result in low employee engagement and high staff turnover, seriously impacting business growth.

Customer satisfaction

Business owners caught in the owner’s trap often know their customers on first-name terms and deal with them directly; they are eager to satisfy their needs and believe they are always right. As a result, customers may become more demanding, requesting additional services that are typically outside the primary offering.

Turnover over profit

Focussing on growing turnover rather than profit can manifest itself with the owner adding more products or services for incremental growth in turnover without understanding the cost of providing such additional services.

This leads the business to experience cash flow issues where the working capital required to grow the company cannot be covered by the low margin return

Scaling up

Anything more than incremental growth may strain resources and result in a poor customer experience. On the other hand, Scale is about exponential growth in turnover with incremental growth in resources, which is far less risky

Three cost-effective strategies to help you escape the owner's trap

If you aspire to build a valuable company, the ability for your business to operate independently without you is crucial.

Let’s explore three cost-effective, simple strategies to set your business on a path to autonomy and allow it to thrive without your constant presence.

1. Narrow down your offering

Most owners can’t replace themselves because a substitute would be too expensive. Trying to replace your breadth of experience would likely require a very high-salaried employee. If you can’t afford to replace everything you do, narrow down your core offering.

Attempting to be all things to all people may spread yourself too thin. Think carefully about your target market and your range of products and services.

When you narrow down your offering, you can bypass the high salary that comes with someone with a wide breadth of experience.

2. Create a question diary

When Steven Davies was building his digital marketing agency, he made a conscious choice every time an employee came to ask him a question.

The easy thing to do would have been to answer the question, but he forced himself to write each question down. He turned that question diary into a business manual that documented how to do every task his employees required.

His manual came in the form of an Excel spreadsheet with 50 tabs, each documenting a specific process.

Challenge yourself to do the same: When an employee asks you a question, resist the urge to answer and move on. Document those queries and turn them into a standard operating procedure (SOP) that enables your staff to develop expertise. The go-to reference will become the manual instead of you.

3. List your employees alphabetically on your site

Most companies list their employees by seniority, with the owner and CEO as the top listing. However, this communicates that you are the most important person in your company, which will trigger everyone, from salespeople to suppliers and prospective partners, to want to go straight to the top by calling you.

An effective strategy for downplaying your role in your company (and getting others to step up and shoulder more) is to list employees alphabetically rather than by seniority on your company’s website. This approach can minimise the spotlight on you. Additionally, using titles like “Head of Culture” and “Head of Product” instead of “CEO” or “Owner” can further obscure your seniority, making it less likely that customers will call you by default.

“Many years ago, my wife and I were starting up our software business. After a few months, we were fully-fledged residents of the Owners Trap. I knew we had to break out somehow, and we took on our first employee, a field engineer. Naturally, it took a few months to get him to become useful.

“One memorable day, the phone rang, and someone asked to speak to someone else but me. I’d never even met the customer! It was a great feeling, although a scary one. I wasn’t the hub of the business any more; I was out of the Owner’s Trap.”

Step out of the owner’s trap and manage yourself out of the business

Find out what’s holding you back

Diagnose what may be holding you back from creating a company that can fully thrive without you.

Take our 15-minute survey and see how you fare against the industry averages. Your answers will also unlock a 21-page report with recommendations on escaping the owner’s trap. Take the survey

“If you can remove yourself from the day-to-day stuff of the business, you can get into your helicopter and see how things look from above.”

Getting your business to thrive without you gives you the freedom to cherry-pick the projects you want to work on or own your business and collect passive income. A company that runs without you is also a valuable, sellable asset if you decide to move on to a new chapter in your life.

Narrowing down, creating SOPs, and downplaying your role on your website are all tactical things you can do today to get your business running more independently in the future.

If you’re experiencing the owner’s trap, or would like further information about the services Business Doctors provide – get in touch.

Business Growth Article 5/6

Book a complimentary discovery call

If you want to avoid the pitfalls of business growth, book a complimentary discovery call with one of our expert advisors.

Your business - your opportunities

Business growth pains: death by chocolate

PART ONE: FIGURE OUT WHERE YOU ARE GOING

Your business growth journey starts here!

PART ONE: FIGURE OUT WHERE YOU ARE GOING

Driving your business values

Purpose: What is driving you?

Roadmap: Where is your business heading?

Long-term business vision

PART TWO: PLAN YOUR ROUTE

Avoid roadblocks: choose the right lane

Think snakes and ladders

Keep your eyes on the horizon

What is it that you do again?

Do you have the right vehicle?

Take a fresh look in your rearview mirror

PART THREE - MAKE IT HAPPEN

Look under the bonnet

Do you have the WOW factor?

Take the right people with you

Do you have the right people on the bus?

Get your business into gear

Summary: There is no 'one right way to run a business

Book a complimentary discovery call

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The Business Owners Handbook

With Yuletide almost upon us, we wanted to give you some tips to help you navigate a stress-free December.

A Stress-Free Guide for Business Owners

1. Manage your customer expectations

2. Manage your supply chain

3. Analyse market trends

4. Consider using the Christmas period to explore ways to innovate

5. Get your team onboard

6. Time for reflection

7. Relax and regroup

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Demystifying strategy

Why small businesses need a strategy

Why is a business strategy often forgotten?

Make time for strategy

How to cultivate a healthy business

Conclusion

More information

Other articles relating to business strategy include:

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How I helped a client achieve personal freedom

Hands up if you're downsizing?

Understanding the challenges

A scalable business is valuable, whereas a profitable business may not necessarily be scalable