Always look on the bright side of life…

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Thank you, Eric Idle, for this anthem to positive thinking – or am I missing something in the irony here? Whatever, there is a kind of message in these little words. How do you approach business? Is it with dread, not looking forward to Monday morning and unable to face the way things really are? Or do you have your feet on the ground, knowing that there’s always room for improvement and being willing to look at your finances from a realistic point of view? I have realised that a key part of FD In A Box is helping owners and managers of small and growing businesses to tap into feelings of realistic confidence. How do I do that? Continue reading →

I guess a lot of this comes from something that money cannot buy, experience. This, coupled with investment in my own personal development over the years, has helped me become more grounded as time passes. One of my clients bought me a mug emblazoned with the phrase ‘Keep calm and carry on’ after a particularly challenging time negotiating increased funding – because that’s just what I did through the whole process. And the same applies to delivery of the materials in the FD In A Box training. During the programmes we have to cover the technical bits of accounting – what the three financial statements are and how to use them, etc – but there’s a lot more than that.

The essence that I aim to impart is in assimilating this financial knowledge into daily use, so that business owners and managers know what to focus on for maximum effectiveness almost without thinking, thereby building confidence and hope for the future. Things may not always look bright on the bright side – but at least you’ll know where you are, and with knowledge comes choice.

Happy accounting!

 

Yes, I know that!

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According to a number of quotes that I’ve found on Google today, common sense isn’t that common. I’ve heard it said a lot about personal development ideas – “Yes, I know that, it’s just common sense.” But are you actually doing it? Is it also common practice for you? So many teachers write about the importance of being clear about our goals, with daily activities designed to give us clarity and focus. Yet how many of us follow through on this consistently on a daily basis? And the same applies to understanding and applying financial knowledge in running a business – you know that it would make sense to get your head around the finances, and somehow you just don’t get onto it. This is where FD In A Box comes in… Continue reading →

I fully understand why busy business owners may have neither the time nor the inclination to get to grips with the company finances. There is always something more urgent to do, if not more important (thank you again, Stephen Covey, for that distinction). And what an opportunity is being missed by not truly understanding what is driving costs, contributing to cash flow – and a host of other factors that have a direct impact on the bottom line.

FD In A Box will make it easy for you to pick up this information, to retain and apply it! The next webinar is on 10th May 2012, so just go here to get registered – http://fdinabox.com/seminar/  – and in time, you too may be able to say ‘Yes, know that!’.

Happy accounting!

Life is a cabaret…

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What good is sitting alone in your room? You’ll never grow your business and find customers that way. Yes, FD In A  Box is back blogging again, after a hectic time at a major client, finalising the finances behind major expansion plans. And what a valuable learning experience that was, both as a financial exercise for getting inside the heads of potential funders, and also as a reminder for me of the balancing act of important against urgent. Continue reading →

I have to thank Stephen R. Covey again for introducing me to this life-transforming concept, when I first came across The 7 Habits of Highly Effective People, many years ago. I have lost count of how often I have used this principle, both for myself and in coaching and training others – the principle of focusing on the important before the urgent. Perhaps it’s something we’re not always taught or aware of as business leaders – there always seems to be so much to do that it’s sometimes inevitable that the urgent things get done. Doesn’t the same apply to your business finances?

Okay, you have salaries to pay in a couple of weeks, and then the quarterly VAT next month – and they’ll get done regardless provided you have the cash. And there’s the rub – will you have enough cash? What are the drivers, the variables of which you need to be aware so that it isn’t left to chance? FD In A Box is about giving you the inside information so that you know how to manage the causes of cash flow (the important), rather than reacting as payday draws nearer, having to deal with the effects of a potential cash shortage (all of a sudden, the urgent). I know which position I’d rather be in.

Happy accounting!

 

 

 

 

 

The old chestnut – cash v profit

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This question comes up again and again, in start-up businesses and well-established companies – I’ve made profits this year, where’s all the cash? This must be one of the most challenging things for business owners and managers to get their heads around – why profit isn’t the same as cash – and it’s why I spend quite a bit of time looking at it in FD In A Box. Continue reading →

Understanding the financial statements isn’t just something for accountants to do – unless you can look at the profit & loss account and make sense of the numbers in conjunction with the balance sheet and cash flow statement, then you really are missing a  trick and making things more difficult for yourself. We all start up in business with some sort of aim in mind, then can get sidetracked and immersed in detail. The financial statements are there as a measure of how you are doing in relation to the goals that you set yourself – and this includes having money, yes, real cash, in the bank!

Profits (and losses for that matter) are a calculation arising from invoices sent out, bills received and wage/salary costs; cash flow comes from when money has actually moved in and out of your bank account in respect of these transactions. Okay, this is a gross oversimplification  but I hope it helps in this way: accounting systems process documents, your bank statement shows you the cash movements. One of the first thing I do when I go to a new client is to ask to look at the most recent bank statements, as they tend not to lie and are not so open to interpretation, unlike spreadsheets!

As a start, make sure you know how much money you have in the bank and then make it a daily habit to monitor the bank balance. Just this simple step alone will give you more visibility – and confidence about your cash flow.

Happy accounting!

Social enterprise, Turkish style

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I had the privilege last week of attending a conference on ‘International Social Entrepreneurship’, in Istanbul. This was an amazing experience as, not only was I able to make contacts and build relationships on behalf of my client for whom I attended – I also learnt a huge amount about the need from people for a sustainable way of carrying out business to meet social ends. It was humbling and eye-opening for me to sit down and talk with delegates from Turkey and other Eastern European countries, where there is nothing like the structure that exists in the UK and where they are starting from scratch in developing new types of enterprises. What lessons can be drawn out here in the context of FD In A  Box? Continue reading →

You will notice that the word sustainable is underlined above – and this has to apply to any business that wants to grow and flourish, social enterprise or commercial. The UK press is full today of the story that Remploy is going to shut a number of factories – I don’t know the full picture yet, and there is bound to be a strong political slant; however, you can be certain that sustainability will be part of this decision and the suitability of the Remploy business model to allow flourishing businesses to grow.

Whether you own your own business or you are social entrepreneur, you owe it to yourself to cover the bases, to know that you are doing the right thing (isn’t that what leadership is about?) to avoid potential crisis and to grow the business. FD In A Box is all about giving you those tools – and the confidence that goes with them. The next free FD In A Box seminar is on 22nd March and you can find more details here: http://fdinabox.com/seminar/

I look forward to seeing you on the call – and Happy Accounting!

Thank you again, SIBL

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I went to another amazing meeting at SIBL yesterday, the Scottish Institute for Business Leaders – see link in blogroll above. Karen Galley spoke about the practical application of Stephen R Covey’s “7 Habits of Highly Effective People”, sharing what she had found from facilitating a stunning application of the principles to implement change within the senior management teams of the London Underground. The work she carried out was so outstanding that the Director of Research for Franklin Covey published a case study, showing just what Karen had achieved with the team. So what? What does this have to do with FD In A Box. Well, everything actually… Continue reading →

At the start of the session, Karen asked us all to draw how we saw our lives, both work and personal life. I found myself depicting balance – balance in my own life and also guiding and supporting business owners in achieving balance in theirs. FD In A Box is very firmly about understanding the finances to improve the bottom line and avoid financial crises – and it is also about keeping things in perspective, keeping the balance right so that we are clear that the steps we are taking are truly moving us towards our goals.

This ties in with the second ‘habit’, begin with the end in mind. If you know why you’re in business in the first place, how you want to contribute to society and what you want for yourself and your family, then that vision can help you in decision-making, both large and small. It is also the perfect backdrop for getting to grips with the numbers, for really understanding what the financial statements are telling you so that you can take corrective action. And here’s the rub (you probably saw it coming) – you have to make it a habit!

If you look at a balance sheet once and then decide, yes, I have it, I now understand it – well good luck to you, but I don’t think so. Why do top sports men and women practise for hours a day? I believe it’s the same with business and life – you need to give it time, absorb it, practise consistently. If you do want to understand where your business is going and how the finances can make the ride easier and more fun, then stick with it. FD In A Box is here to guide you along the way.

Happy accounting!

Value and Values

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I am inspired this morning by a conversation yesterday with a new business acquaintance – we had a great discussion about the importance of values in business and indeed in life. I was very struck by how values inform all her coaching work, and I’ll post her website address when I have her permission. This also got me thinking about FD In A Box, how I can provide ‘value’ within a ‘values’ framework – and of course, because of who I am and how I operate, that is there from the very beginning. How to get this message across through FD In A Box? Continue reading →

I hadn’t specifically thought of addressing values in the curriculum of FD In A Box – however, several modules in, we will be looking at purpose and goals. With a secure set of authentic values in place, this becomes a lot easier. I know where I am going in my business because both coaches with whom I have worked, the late and lamented Dan Patey, and now John Kenny-Levick, both have their work rooted in values. And this inspires me in FD In A Box – I want to continue giving massive value whilst remaining true to my key values. I suspect these will ‘leak out’ as the programme unfolds. Come along for the ride – it’s going to be fun…

Happy accounting!

Accounting, that most glamourous of professions

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What, has FD In A Box finally lost it? Glamourous? What is he talking about? Okay, I’m a bit tired and the TV in the background is showing assorted celebrities doing fun things for charity – and you’re right, compared to wonderful TV life, the real life of creating wealth and contributing to the world at large through financial understanding and reporting does seem a little tame. Continue reading →

But, do you know what? Without celebrities, life might be less fun though I suspect we would manage to go on living. Take away the bean counters, the women and men in suits who let us know how we are doing, and it wouldn’t take long for the world to grind to a halt. Don’t believe me? Imagine owning a filling station without any pumps where people just help themselves… FD In A Box is all about giving the brave entrepreneurs of this world enough savvy to know what’s commercially important in their business.

Happy accounting!

Having to forget what I don’t know I know…

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Wow, this is challenging. The materials for the FD In A Box webinars are coming together now, and the most interesting part for me is putting myself in the minds of my customers – those business owners and managers who are expert at what they do, in their business area, but are coming new or rusty to accounting and finance. How to explain a balance sheet in a way that makes business sense and is also relevant? And is it really important to understand that there are at least four accounting terms for ‘sales’? This is precisely why I have founded FD In A Box – to boost the profitability of my customers through my proven ability to deliver these concepts in ways that are fun and actually mean something to people. Let me give you an example. Continue reading →

A few years ago, I trained foremen and supervisors for a major utility company in financial awareness and budgeting and forecasting. These were the guys who dig holes in the road and I could tell, as they trooped into the room, that they weren’t particularly looking forward to it. And I couldn’t really blame them – on the face of it, a day spent looking at figures wouldn’t appeal to many people. There was always an angle though, a nugget of information that they found useful and then they were hooked. I guess it was the first time anybody had explained properly to them why financial information was important and how it could help them do their jobs better.

Et le voila! That sums it up. FD In A Box will make finance fun and informative.

Happy accounting!

Welcome back, reality

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I don’t believe I am alone in being pleased at getting back to work! I love Christmas and being with family – there’s also a sense of unreality about it, of being disconnected from some things that are important to me, like my daily routine and habits that I’ve developed over the years. When I do set myself up for the day, I know that I am more productive, happier and more focused – especially with respect to FD In A Box which is moving forward in leaps and bounds now. So, what good financial habits and daily routines would I recommend for the owner or manager of a growing business? Continue reading →

What serves me well is to focus first on my own wellbeing before looking at the corporate side. I review my goals, both long-term (“Life’s Intentions”) and current and get myself grounded. That way I can decide who I am willing to be that day, and it also helps me to focus on areas that are important and not merely urgent. Then I will look at the business – what do the online banking reports show and how is cash doing against forecast? What’s on my action plan for today (prepared the previous evening if I’ve been really good…)? What can I focus on that will bring most value today to the business? And specifically on the financial side, what are the targets for the month – sales and cash flow – and how are we doing so far? What corrective actions do we need to take to bring us back in line?

The whole emphasis here is on being clear about where I am going and why. Moreover, this focus at the start of the day has become a habit for me, just by constant repetition – FD In A Box is about inviting business owners and managers to discover for themselves just what habits will serve them. I guess this is why Christmas was great – and getting back to my routine is great as well…

Happy accounting!