What corporate advisors should you have to be successful

So you have an amazing business concept and you feel so confident that you are ready to quit your job and step out on your own. However while you might be confident in your concept that is a million miles away from being an expert in every area that you will need to be successful. There is a simple solution to this problem and it is called corporate professional advisors.

You are probably now wandering what on Earth are corporate professional advisors? The simple answer is these are your businesses best friends and like best friends you need to select them with care, get to know them - good points and bad, and finally ensure your other business friends know them as you need to trust them totally.

So who should make up your corporate professional advisors - your inner circle?

Firstly you need a friendly banker. No matter what your business concept is at some point you are going to need a bank account and far more importantly business financing be that a overdraft, credit card or loan. Take your time over this and interview as many banks as you can. They will do their checks on you so you should do your checks on them. Remember the account manager you are talking too won't be there for life so ensure you get to know the other branch staff and if your account manager does move on ensure they personally introduce you to their replacement and run through your current and potential business banking requirements.

Secondly you need a chartered accountant. Accountants come in all shapes and sizes and therefore hourly rates. In my personal opinion I believe that it is better to spend money up front as it's often far cheaper than spending it later on. There is a reason the wealthy are wealthy, they have good advisors. Be honest and up front with the accountant you select as quite often they are willing to do work with high growth potential businesses for a reduced rate to build a strong business relationship for when you need the full suite of accounting services they offer. Remember the key phase "don't ask, don't get".

Thirdly you will need a lawyer. No one really likes lawyers though they have their place in your inner circle. Be it for employment contracts, non-disclosure agreements, investment offerings or to defend your intellectual property. Like bankers and accountants interview a few and select one that you have a connection with, as it will be easier to trust them, and whom has the ability to cater to your business needs. I have personally found that having a "big name" lawyer can often sort a situation with one letter as the letterhead seems to scare the other party off. If right is on your side and you have the right advisor then that's a excellent combination.

Fourth you should always have a business mentor. This can be a successful business person you know or if you don't know one many business groups have a mentorship program that you can take advantage off. The good news is that mentors often give up their time, and connections, for free to help young emerging business owners get off on the right step. They can become your trusted friend and potentially of more use to your business than you ever thought possible.

Lastly you should remember that the best advisor on your start up might not be the best one for every stage of your business. If you do it correctly you will maintain existing relationships and generate new ones.

Financing for positive cash flow businesses in the UK

Over the past week I have been approached by a number of business owners from rural England all with the same problem - a growing business which their banks won't support. This is a large scale problem for many businesses though there are solutions available.

Every business has a range of assets which can be utilised to secure their working capital requirements although many business owners are unaware of them. In this article I am going to outline a number of options that you might want to consider.

Does your business have inventory?

If the answer is yes then your existing business bank can offer you an overdraft that is secured all or in part by your inventory. They often wish to combine this with other lending products such as invoice financing, or factoring as it is often referred too.

Do you offer credit terms?

If the answer is yes and if your business has been trading for more than 12 months your business bank can often advance up to 75% of the invoice value which can be used to enhance cash flow in your business. If your bank won't or can't offer this funding option there are private funding options available.

Does your business offer credit / debt cards as a payment option?

If your answer is yes and if you have been trading for normally a minimum of 6-months then there are a wealth of lenders available whom can advance up too one month of average processing amount. This loan is then repaid over time as a percentage of your future card transactions.

Does your business accept PayPal?

If yes then there are lenders who will lend up to one months average transactions as a short term loan which is repaid out of future transactions.

Does your business import?

If yes then depending on the product and country of origin it is possible to finance up too 109% of the purchase cost and then repay the loan as you sell your inventory.

There are a few other options available too you although these are the most common and easiest to secure.

Okehampton May Fair

At sunrise this morning it was very clear that the weather was going to be beautiful for the 2014 May Fair in my families home town of Okehampton in the county of Devonshire within the United Kingdom. 

It was nice to see the uniformed cadets of 2443 (Okehampton) Sqn taking part in the events. This was the Sqn that I served in between 1993 and 1998 raising to the position of Flight Commander with the rank of Sqt and classification of staff cadet. They were joined by the Rotary Club, who were the primary organisers, the Lion's Club and the town's silver band who performed for all in attendance. 

As is custom 500 or so plastic yellow ducks were launched into the Okement River with each one sponsored by a local person or visitor hoping to win a price. The winner is the owner of the "duck" that crossed the finished line the first. Due to the speed and depth of the river during May volunteer's had to follow the "ducks" down the river to help out the ones that got stuck in the banks or on the rocks in the middle of the river. 

Ice cream was served to all who wanted them by the Okehampton & Distract Lion's Club and other stalls full with food, drink and general items for sale were available to the visitors to Simmon's Park. 

All in all a very fun day was had by all.

 

Traditional Small Business Lenders: Watch Out, Alternative Lending Is Gaining Steam

On the 25th of April 2014 Forbes.com published an article of non-traditional financing for small and medium sized businesses (SME's) which is a subject that I am well versed in therefore I took the opportunity to share extra information that might be of benefit to readers who are seeking either startup or expansion capital.

The full article can be located on the Forbes.com website and my selected comment can be read below.

"Traditional SME financing has come from the standard financial institutions however since the economic crash of 2008 management are now looking for other funding options.

In relatively recent years we have seen the growth of founders aimed specially at small and medium businesses. From credit / debit card transaction advances to inventory backed loans and cash-flow lending to corporate equipment leasing the options open to today’s businesses are far better than they were just a few years ago.

We have also seen an increase in governments globally increasing tax and other incentives for carrying out research and development which creates long term high paying jobs that stimulate the local economy.

Any business looking to grow should invest in engaging a suitable consultant if corporate finance is not in their wheel house."

Should I Sell My Business For Installments, Or Should I Take The Money And Run?

On April 28th 2014 Forbes.com published an article on the subject of selling businesses and started a discussion regarding whether it is better to sell the business for a lump sum or instalments. This is an area where I have considerable experience and therefore believed I had valuable insight to share with the readership and Forbes.com agreed as they highlighted my comment as a "call out" - my first one. I therefore wanted to share it on here.

"Exiting from a business in my experience is one of the most stressful event in a persons life and structuring the sale is very important. It’s not as easy as saying “which option gets me the highest value” as the tax implications have a drastic effect on the real “worth” of the business.While many business owners want a clear cut split from the business it is often more financially rewarding for you and increase your probability to secure a good sale price if you structure the sale over a period of time.

One option which has been proven to increase the valuation of a business is a staged sale where the existing owner remains in the business for a pre-defined period of time to aid the new owners establish the business and be introduced to existing clients while the new owners can call on the expertise of the former owner. This solution has been successfully utilised to increase the value of the business asset – both buying price and earned consultancy fees for helping the new owners while giving your prospective buyers added confidence in the business (why would you stay involved if it was failing?) and giving them a higher probability of successfully owning and growing the business.

Engaging the services of an experienced business broker and corporate lawyer is key when structuring a buying package which is as beneficial to all parties as possible." 

You can read the initial article and other comments direct on the Forbes.com website. 

One for all and all for one

Family history or genealogy to give the subject it's correct name is a truly fascinating. No matter who you are, where you come from, your social class or education we all have family histories and were all descended from those whom came before us. It could there be universally interesting to each and every one of us.

When you commence your research you never know what exciting stories you might encounter or where in the world it might take you. Some families are famous while others might be hard working farmers and some might be high flying business people while others may be brave military men and woman. Each new family member added to your family is a new story to tell.

While researching my own family I came across the actions of my great grandfather, Thomas Lane BEM, during the bombing of Plymouth during the Second World War.

I had never met my great grandfather and he was never spoken about by my great grandmother who I had the honour to know for the first ten or so years of my life - I called her "gran". When sadly she died at the grand age of 99 her head stone listed her as the wife of Thomas Lane BEM. This is all I new about him until late 2013 when my research project took me down this branch of the family tree.

It turns out that my great grandfather was awarded his British Empire Medal (BEM) for an act of true bravery during one of the many bombings of Plymouth and her all too important Royal Navy base. The German bombers were dropping incendiary devices on the city trying to cause as much damage as was humanly possible. One such device landed close to where my great grandfather was standing and he jumped onto the device in the hope of saving the lives of others in the surrounding area. We don't know if he considered the act brave or simple a gut reaction to a situation outside of his control and to be honest it does not matter as the outcome was to be the same - he lived to tell the tale as the device failed to explode. It was for this action the he was awarded the British Empire Medal.

When one thinks back to that event and how it could have ended very differently I am reminded of that famous saying "one for all and all for one". One man truly can have a huge difference to this world and all to often these events go unnoticed. Happily he was not.

After years of not being awarded I was very happy to read that once again the British Empire Medal is to be awarded!

Okehampton Castle and historical sites of interest

Being a warm and sunny day in Devonshire on Friday I decided to pay a visit to my local castle which is only a short 15-20 minute walk from my families home. It had been some years since I last visited and I had forgotten much of the history of the building. 

Okehampton Castle is a medieval motte and bailey castle in Devon, England. It was built between 1068 and 1086 by Baldwin FitzGilbert following a revolt in Devon against Norman rule, and formed the centre of the Honour of Okehampton, guarding a crossing point across the West Okement River. It continued in use as a fortification until the late 13th century, when its owners, the de Courtenays, became the Earls of Devon. With their new wealth, they redeveloped the castle as a luxurious hunting lodge, building a new deer park that stretched out south from the castle, and constructing fashionable lodgings that exploited the views across the landscape. The de Courtenays prospered and the castle was further expanded to accommodate their growing household.

The de Courtenays were heavily involved in the 15th century Wars of the Roses and Okehampton Castle was frequently confiscated. By the early 16h century the castle was still in good condition, but after Henry Courtenaywas executed by Henry VIII the property was abandoned and left to decay, while the park was rented out by the Crown. Parts of the castle were reused as a bakery in the 17th century, but by the 19th century it was completely ruined and became popular with Picturesque painters, including J. M. W. Turner. Renovation work began properly in the 20th century, first under private ownership and then, more extensively, after the castle was acquired by the state. In the 21st century it is controlled by English Heritage and operated as a tourist attraction.

Source: Wikipedia 

Sadly the castle is no longer in the best of condition as you can see from the picture above however it still makes a great outing for history lovers and families alike. It is only a short walk from the centre of Okehampton though I strongly suggest that you check their website before you visit as the opening times do very depending on the time of the year. 

While you are visiting the castle you should spend some time walking around the town of Okehampton as there are many a historical sight to be seen from the White Hart Hotel which played a key role in the Napoleonic wars and the route getting messages and supplies from London to Plymouth. Just down the road from the hotel is a bridge and a plaque which is the location of the towns prison which has long since been taken down. 

Directly opposite to the hotel stands the Okehampton Town Hall with many an example of heraldry and history for those of you that are interested in such things rather like myself. 

If you head in the directions of the supermarkets you will notice on the wall of one of them over looking the round about is a modern version of the towns coat of arms. 

I wanted to share with you a image of the town's coat of arms though sadly the best one could find was displayed on the town council's website. 

  Source: Okehampton Town Council