Lean, Mean Small Business Machine

Simple tactics to grow with what you have.

If you’re small and you want to get big, don’t rest on the thinking that growing your company requires massive investment. We not only have some great products to help you on the way to your business goals, we also have a few tips to share too. Here are three ways of working that can help fast track your growth.

Plan to be lean

Big growth doesn’t always demand big budgets, but proceeding without a well thought out plan is certainly one way to spend more than you need to. Make sure you plan out what you want to achieve with your business based on a lean budget. Focus your resources on making it happen. If you can create clear objectives you can focus the energy of your business into growth. Constantly question each action and reaction to make sure that all aspects of your business support this growth activity. Remember that you need to maximise both your time and the money invested to make the most of your returns.

What am I going to achieve today?

Once you have created a clear plan and objectives, don’t just look to recruitment to complete your to do list. Stay lean and make the most of your time by looking for ways to automate. Small business can be a breeding ground for chaos, but it’s also incredibly nimble and therefore a hotbed of innovation and automation. Put your innovative thinking into action and dissect your business process-by-process. By finding opportunities for automation you’ll free up your most valuable asset – your time – which can be much better spent drumming up quality new business.

Keep your customers close

For every business big or small, the customer is central to success and growth. Small businesses have a unique opportunity to add the authentic, personal touch by following up with customers and exceeding their expectations. Use every interaction as an opportunity to create the WOW factor and your word-of-mouth marketing will take off. During a busy day of ticking boxes, it can feel like a ‘nice to do’; but in fact it is one of the simplest ways you can fast track growth without having to invest significant capital.

We believe in business staying lean and unearthing all opportunities to grow without adding unnecessary debt to the bottom line. Some simple in-the-business approaches (like those mentioned above) can be highly successful for small business. Of course there are times when an injection of capital is needed, and at those times, we can help. But importantly, we help with business finance solutions that support healthy margins and long term growth.

 

Three Reasons why Mentors Mean Business

Punch above your weight… be a sponge. A small business is exactly that: small. So with limited resources, how do you make sure that you have the expertise you need to make your business a success?

We’ve seen a lot of small business success, and often a trusted mentor is in the background, helping to steer the ship. Here are three of our top reasons why having a trusted mentor is essential for small business.

1. Struggling to ‘see the wood from the trees’?

A mentor brings with them experience and perspective. They take a good hard look at your business and help you ask the right questions. And that’s the key starting point – taking a critical look at your business from a wide perspective, or in a nutshell stepping out of your shoes and into someone else’s.

Of course, when you’re barring all, you need to feel comfortable. So the person or people you choose to hash out issues and opportunities with not only need to have good experience, you need to trust them. There’s no point in having a mentor and holding back – whether about the facts and data or how you’re feeling about your business. Most of what goes right and wrong in business is down to how we handle situations after all.

Get the relationship right, and overnight you’ll have an expert set of ears to navigate difficult problems with and see the path to realising opportunities clearly.

2. Are you failing to get connected?

Good mentors and advisers come with a wide network, as well as experience in how to create strong connections with the right contacts for your business. You will be able to tap into this for services, expertise, and recruitment. Bottom line: it saves you time and increases the value of your network by talking with people who have been pre-qualified by someone you trust.

3. Would you like to really grow?

Growing your business is not just about the bottom line, it’s also about growing your own skills and knowledge. If you’re up for a challenge, a good mentor will put you through the paces to critique your skills and help you continually develop in areas that will deliver the goals you have in mind. We never stop learning as the saying goes.

Informal or formal. One mentor or a group of experts across a range of skills. However you choose to structure your well of wisdom, getting different perspectives and gleaning experience from others just makes good business sense. And as there’s no time like the present. We have a wide network of skilled business contacts; and we’d be happy to put you in touch with someone to get the ball rolling.

 

Do You Have the Measure of Success?

Whether you want your business to grow in leaps and bounds or at a steady incline, there is no doubt about the importance of metrics as a business tool. Do you want to chart your progress but are not sure where to begin? Read on for our five step guide to using metrics to drive your business ahead.

1. Define success

Whether you choose one, five or 10 years as a time period to build your goals around, it’s important to draw a line in the sand and define where you want to be. Five year goals provide a good realistic timeframe to achieve some solid successes, so sit down and capture exactly what you want those to be. Where do you want your business to be in five years time?

2. Set your key performance indicators

If you have firstly defined what success looks like you must now use numbers and data to define the way that you will measure the achievement of that success. Identify which measures are important to achieving your goals.

3. Understand your baseline

Any journey has a beginning and an ending. If you want to set measures that will drive your business forward then you will need to start by understanding exactly where you are today. If you can extend numbers back for a reliable time period that will allow you to factor in seasonal changes, external impact and key trends to make sure these are considered when you set your targets.

4. Set targets

To be effective targets must encompass both the measure and the time period within which it will be achieved. If you set a target for a performance level five years from now, you will need to track back to break it down into a workable number. This will both help you decide now if your targets are realistic, and will help you to engage staff or business partners in the change that you want to achieve. Shorter time periods also ensure that any behaviour changes required to drive delivery against targets are immediate: the longer the time period the more you risk procrastination and an unachievable leap as the time period comes to an end. Think how much more motivating it is to target yourself to achieve one sale per day, rather than 30 per month, rather than 360 per year.

Try and avoid using a single metric to measure the achievement of a goal. This protects you from your numbers being skewed in a desire to achieve the metric and not the goal. In the above example it would be wise to consider the value of the sale and the loyalty of the customer as appropriate to support your overall business goals.

5. Go forth and achieve

Once your metrics are in place make them part of the everyday conversation of your business. Everyone should know how you are performing and what success looks like. If you have staff they should feel empowered to contribute to achieving your goals. Rewards should be structured around supporting their achievement.

If you can successfully introduce measures and performance indicators into your business it will become much easier to track your progress towards the growth you desire. But remember that these measures will only be effective if they empower you and your staff to make the changes needed to make them achievable. Introduce some effective growth measures today and with your enthusiasm for their delivery you can expect to enjoy watching your business grow before your eyes.

This article was kindly supplied by Fifo Capital New Zealand – specialists in sme cashflow solutions. To learn more, visit their website here.

Great Talent. Great Business.

If you’ve got a great idea and you’re ready to turn it into a winning company, you may be wondering who you need to get onboard to join you on the journey. Here’s our simple guide to creating a team that will set you up for business success.

You’re going to be looking for two kinds of support to get you where you need to go. Support for delivery and support for you. Firstly let’s looks at your business team and how they can help you and your company deliver and turn your idea into reality.

In the beginning we recommend that your idea, and some basic principles around how you are going to work as a business, are things that everyone you involve gets passionate about. If you meet someone you want on your team but their enthusiasm for your project is microscopic, best to move on and find another candidate. Your idea should unite you.

One of the best ways to identify the team you need to get onboard is to take a frank look at your own skillset and the industry in which you plan to establish your offering. Recruit where you see a skill shortage. This doesn’t have to involve direct employment: partners can be used if you want to keep your headcount down. But whether through employment or partnership, make sure you engage the services of a good accountant, banker and lawyer. This will be fundamental to ensuring your company is protected, viable and financially supported. If you are recruiting into your business we recommend you seek generalists where possible. With a small team you will find that people who are able to work outside their core skill set and across multiple functions are invaluable.

As well as creating a team for your business you should put some thought into the support that you need for yourself. Plan to recruit a team of advisers and experts who can guide you on the journey towards the success of your business. Check out our blogs on mentors and networking to find out more about how to choose people who will compliment your business and your skill set.

Many experts believe that the success of a small business lies in the team of people who are at its core. So it’s definitely worth investing some time in choosing the right people to support you. Then you can enjoy working with your team to navigate your company towards its future success.

This article was kindly supplied by Fifo Capital New Zealand – specialists in sme cashflow solutions. To learn more, visit their website here.

Designing a Treasure Map – Business Planning for SMEs


A great business plan: an essential tool for small business that focuses your working energy and helps you achieve your goals. So where do you start?

You more than likely have a lot of ideas you’d like to share, but popular opinion says your business plan should focus on: (1) the chosen direction for your business; (2) objectives for the next three to five years; (3) your day-to-day operations and financials; and (4) the steps that will allow you to achieve your goals.

Getting started

Have a look online for the best business plan template for you – there are lots of different structures to choose from. Once you’ve chosen a favourite, start capturing the contents of your plan by noting down ideas and key points under each heading. Then sort them into a logical order before writing them properly into the plan.

Who your plan is for

Your business plan will be read by your staff; potential investors and lenders; potential business partners; buyers; and probably many others. So with all these audiences in mind it’s good to keep language as simple as possible. Avoid any unnecessary information or words and try to write in bullets or use visuals if you can; it just makes it easier to read. A good tip is to keep numbers realistic and stay conservative: it’s usually better to under-estimate and over-deliver.

Critique for success

Once your business plan is complete it’s a good idea to have it reviewed by your mentors and advisers. A business plan needs a few sets of eyes and a thorough critique to ensure it is robust in its objectives and considered in the path to achieve those. Another good idea is to get someone to read it through and spell check it too – investments or other funding and typos don’t usually go hand in hand.

Evolve and grow

A living document, don’t file your business plan in the bottom draw to gather dust – keep it front and centre. Your business plan will grow and change over the lifetime of your business. To make it really effective, refer back to regularly. To make it relevant, keep it up to date. But most importantly if you start writing it today you need never look back – only forward.

 

You Deserve to Think Big

The small business quest for big picture thinking

Small business can do big things. Sure it takes hard work and smart planning, but it is achievable. It starts with believing that you can make that vision a reality. Here are three things to mull over in the quest for big-picture thinking.

Learn from experience

We all have business heroes that we admire. Make a list of businesses that you would like to be like and take the time to understand what made them big. Learn from their successes and failures. Consider them as a source for a new mentor or adviser if you feel there is an ongoing opportunity for you to benefit from their expertise. If you can take the experience of these businesses and use it to shape your own journey, it will make your goals even more achievable.

Manage your energy reserves

Getting big will not happen overnight. You need to protect yourself from small business burnout by recognising the stamina needed to achieve your long term goals. Most importantly don’t try to do everything now: small steps will get you there much more effectively. Establish some good habits that will protect your energy reserves for the long term. Small business owners are notoriously bad at taking time out. Manage your work/life balance. Remember to give your brain a break, as it is during mental down time you have the chance to out-think the problems and creatively build solutions.

Think big picture and experiment

Time to think creatively is something that few of us build into our calendars. But if you want to move mountains and achieve big-picture growth it’s something you can’t afford to miss out on. Expansive thinking will allow you to think beyond the challenges that stand in the way of your success. By taking time to explore possibility you will create solutions that really allow your business to move towards greatness. And experimentation is a great way to test these ideas out to find out if they work. Experiment with your solutions by testing them: through pilot stores; focus groups, or follow up with customers.

 

Business Cost of Naval Gazing

Knowing your organisation inside and out is essential. How your operation runs; staff productivity; the cost of providing the service you offer – all elements that successful business operators know like the back of their hand.

But when having internal knowledge becomes having an internal focus, only one thing can happen: customers get less attention and prospects are lost.

There are a myriad of reasons why a business can get caught in the trap of naval gazing for too long, and often performance, operational costs and cash flow are the leading culprits. Here’s a common scenario:

Cash flow is tight, demanding daily management of payments in and payments out and review of operational performance and costs. Getting into the detail of customer payments; whether staff are performing at an optimum level and opportunities to reduce costs is no small task. It takes time and considerable attention to detail.

But while it obviously has to be done right – and can be the milestone moment that determines ongoing success – allowing this process to take over for an extended period of time is perhaps the biggest risk to your business.

It needs a game plan – a strategic program to cover all areas for consideration with deadlines for completing the review and implementing change. It also demands that time be put aside for keeping abreast of your market; what your competitors are doing; customer experience and the services your prospects are seeking.

Whether you are undergoing a review of your business or it’s business as usual, here’s a handy question to ask yourself: Does my company spend more time working to understand our products or working to understand the issues facing our best prospects?

If you identify that naval gazing may be taking precedence over customer and prospect needs, it might be time for a shift in focus.

Fifo Capital works with many small businesses seeking ways to streamline their customer payments, taking the immediate financial stress off the business to allow for proactive planning rather than reactive management. Contact us for a complimentary review of your needs; the first step in shifting the focus from internal to external.

This article was kindly supplied by Fifo Capital New Zealand – specialists in sme cashflow solutions. To learn more, visit their website here.

What is Business Savvy and How Do You Get There?

To describe someone as business savvy is a rare compliment that we seldom pay to ourselves. Perhaps that’s because when you have spent some time striving to reach your goals in business you realise that to become an expert in the business arena is a process of continuous development, learning, communication and problem-solving. So it’s a compliment indeed when we describe someone as business savvy.

But what characteristics are we describing?

There’s no doubt that expertise in the field of doing business is itself integral to being a business savvy individual. Being an expert in the industry of business means having a complete understanding of the machinations of a business, from the top down and back up to the top again. Not only should there be an in-depth understanding of how a company works; there’s also a seamless grasp of the interconnectedness of everything. It’s about understanding the way that one action links to another and one individual can, therefore, impact the success of a whole business. So what are the key characteristics and attributes that combine with business expertise to single out these individuals?

We’re going to take a closer look at six of them now.

1. Great communication

You don’t get to be described as business savvy unless you come top of the class in communication. And by communication we’re talking about a two-way process – both listening and talking.

Great communicators unite people because they are able to understand what people want and need, and at the same time translate their own needs into a language and message that motivates and engages their audience. When you think about these people you’re thinking of someone who is comfortable communicating with anyone across a business and probably spends a lot of time doing just that.

They understand the importance of communication for many reasons including the fact that they never stop learning, never stop processing and constantly evolve their thinking. They create power in their people by recognising them as individuals with their own stories to tell and ideas to input.

2. Solution seekers

Whether natural or self-taught, there is no doubt that when you call someone business savvy they will have problem-solving skills that are sure to impress. For them problem-solving is not just an option: it’s a way of life. And they are never happier than when coming up with a solution that will drive efficiency; make the impossible possible; enhance profit, or just simply make things work. And with the expertise you would expect from these individuals you know that the solution they create will work across every area it impacts.

3. Where they’re going and how they’ll get there

When you are dealing with a business savvy individual, you are working alongside a master of planning who has a firm grasp of every process that exists and will be impacted by any plan they should want to put in place. It’s an impressive feat and means that there is an innate understanding of the interconnections between every area of the business. This understanding of interconnections also extends to the future and the past – these leaders know where their company has come from; where it is going to; and the processes that need to happen in between to make possibilities become realities.

4. Number literate

When you point at someone across the room and identify them as business savvy, their ability to grasp the numerical intricacies of their business will be a key factor in what has led you to name them as such. Because they will need to have a detailed understanding of all the metrics that comprise the functioning of the business, from its past to its future goals. This is about more than just accounting, this is the ability to use numbers to track the life of a business. These individuals understand the numerical impact of progress and can pinpoint the triggers of success or failure in their monthly performance and projections.

This grasp of numbers extends well beyond the workings of the business to the wider industry and local, and global economy. From oil prices to currency, you can be sure that anyone worthy of this label knows that numbers make the world go around when it comes to business performance.

5. Sales

When you look at sales people you’re looking at the area of a business that is in contact with customers most regularly; understands the threat of competition most keenly; and also drives the flow of cash into the company. Any business person worth their salt recognises that sales is an incredibly important part of the business machine. The business savvy individual treats them as the life-flow of the business and works hard to keep a finger on the pulse in order to track the company’s health.

Using finely honed communication skills they speak the language of sales and are rewarded with a wealth of knowledge and understanding of their position in the marketplace, and the opportunities that are there to be seized. They keep one ear bent towards their sales team and take the insights gathered and sow them across the rest of the business in order to watch them grow into their future success.

6. Business Development

Because they are excellent networkers, those who are identified as business savvy are also recognised as natural performers in the field of business development. Their focus on developing the business is keen, and they are well adapted to identifying opportunities for growth through potential new customers, mergers, product opportunities, acquisitions and more. As with all characteristics of these individuals, the finger is firmly on the pulse and there is never a moment when they are not considering the opportunities to enhance their offering or sign up a new contract.

There is not just one skill or area of knowledge that sets them apart from other hard working and competent business people. But there are some key characteristics and skills that dominate their overall makeup, and these are consistently demonstrated and developed. One of the strongest characteristics is the ongoing desire to learn, and so to constantly improve skills, knowledge and understanding. One of the strongest skills is in communication, and the ability to engage people of all disciplines and areas of expertise. They are a uniting force in a company, and are there to inspire. They never stand still, and use their repertoire and experience to constantly drive themselves, their team, and their business forward.

 

How Import Finance Can Improve Your Cash Flow

If you work in the import industry then you know that finance is never as straightforward as ABC. Things change, costs change, needs grow or reduce, and all of this impacts your finance choices and the amount that they will cost your business. So if you work in imports and you’re looking for finance, we think you should talk to us. We’ve got the right products along with speed and flexibility on our side. And most importantly you can enjoy 1:1 service that allows you to react quickly to a change in circumstance and ensures we do everything we can to help you keep your costs down. Interested? Read on to find out more about where import finance can help you.

Import finance image

At Fifo Capital we have supported many businesses who work in the import industry. So we know that your import finance needs can be grouped into four categories:

1. Placing an order – you need a deposit to secure your order.

You may already have the deposit needed to place your order with your supplier, but if not talk to us about our finance options and how we can help you raise funds. We’ll be keen to sit down with you and get some understanding about your business, your areas of expertise, and how you plan to use the goods once you get them into New Zealand. Your Fifo Capital Business Partner will also want to explain to you how your preferred form of finance works, and how you can keep the costs at a minimum as you bring the goods into New Zealand.

2. Order completion – payment for the goods and shipping.

This is such an exciting phase. Your goods have been produced and now you need to pay the supplier for them so you can bring them into New Zealand and realise those sales that you’ve been planning. You’ll also have the cost of insuring your goods while they’re in transit. Our Import Finance is specially designed to help you manage the cost of purchasing your goods until you get them into New Zealand. Ask a Fifo Capital Business Partner to talk you through the details today.

3. Import costs – GST bills and import duty costs.

It’s important not to forget the Customs cost of bringing goods into New Zealand, so we’ll be happy to talk to you about how one of our finance options can make sure that you have the cash you need available when you need it.

4. Settlement – the goods have arrived, domestic finance can take over.

Once your goods have landed and passed through Customs, it’s time to get selling and get any loans you have taken out paid off as quickly as you can. Our Business Partners will be happy to help you understand the cost of borrowing so that you can manage your numbers and make sure you maximise your profitability by creating and following through with a robust sales plan. Once landed you may choose to transfer the funding of your stock to more traditional asset-based finance or you may find your bank is able to support your borrowing once your stock has arrived in New Zealand. We’ll be happy to discuss your options with you so that you can understand how Fifo Capital can support your business.

Your cash flow is in good hands

From ordering through to receiving your goods, and then beyond as goods are sold: the import process is not fast and if you don’t plan it carefully it could end up being costly. That’s why you should call Fifo Capital. Because when you borrow money with Fifo Capital, you work directly with the decision maker: a business finance expert who understands your business and your unique needs and situation.

When everything can change overnight, you need to be able to contact the right person and rest assured that you will receive a fast response to your enquiry. So we’ve made sure we are always available and fast to respond. When you need to speak to your Business Partner you can call them on their mobile. You’ll know them by name, and they’ll know you too – because they will have invested time in getting to know your business so that they can help you manage your cash flow as effectively as possible. Our Business Partners know that margins can be narrow and will work with you to structure the best finance solutions possible to ensure you can drive the profitability of every order that you place.

 

This article was kindly supplied by Fifo Capital New Zealand – specialists in sme cashflow solutions. To learn more, visit their website here.

Introducing Fifo Capital

Importing is all about seizing the opportunities and being prepared for the challenges. When you choose import finance with Fifo Capital, you are choosing fast, responsive service and the comfort of knowing who you are dealing with whenever you need to call. If you’d like to speak to a Business Partner today to find out more about our expertise, our service or our products – contact us here today.

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