How to run a sucessful business

In September of last year we started up Et Voila Accountancy Services Limited ( www.et-voila.co.uk) and I embarked on a new journey in my professional career as an accountant.

However, I learnt fast that one of the key elements that every business needs is to be financially aware of what is going on. I think I took that for granted within my own Company but I have learnt from my clients how important it is. Therefore I decided to write this blog to give advice to all businesses, not just start ups, on how to progress. Some of this you may already know but I hope you will gain something from it.

Firstly, you need to set yourself goals, you may not have a boss breathing down your neck wanting to set targets for you but you need to be hard with yourself. As in if you need to say, where do I see myself in a years time? You then need to plan to get to that point. Set yourself a bit of a challenge, push yourself. For example, if you are turning over £50,000 and you want to be turning over £60,000, set yourself a target of increasing sales by £1,000 a month. Then you need to work out what you need to do to get this increase. Then monitor it. For example, how many referrals do you need? I am a firm believer that if you are determined enough you can achieve it. You need to set realistic targets, but it can be done.

However, it should be noted that turnover is not what is going to make your business profitable. Cash is king and this cash in the form of profit, is what goes into your back pocket less the tax. I would recommend to anyone that has clients that are taking a while to pay to use Money Claim online, www.moneyclaim.gov.uk. You can use this to issue a County Court Judgement against your customers and the cost is £25, which they have to pay if you win the case and you can charge interest on the debt. This is last resort as you don't want to loose the client but don't be afraid to write letters to your customers threatening this, you have worked hard and deserve to be paid. Start with an friendly call and gradually make your demands stronger as time goes by. Stay professional but explain you have bills to pay. That is another target you should set, what percentage of debt against turnover remains outstanding on a monthly basis. Try an beat it each month.

Then you need to look at cost. You could be making a fortune but this element still applies to you. For example if you could have free banking and you are paying £20.00 a month in bank fees, well it is not much is it.... a few pints down the pub. However, then look at it over a year, £240.00, even after tax, think of what you could have. As a female this is not hard, a spa break, a flight to Paris, a new outfit.... well it all adds up. Stationery is the same, phone bills, electricity, have you shopped around? Every little helps....

I also strongly advise monitoring where you get your clients from. Companies can spend a fortune on advertising and not get much from it.However, I am not adverse to advertising because it can bring you work. Experiment find the best ways....

I hope that helps and if you have any queries please get in touch....

Sally - Managing Director and Practising Accountant 0121 226 3601