The theory on One in a small business

The theory on One in a small business

The theory on One in a small business

When you start a small business, you will often hear the phrase Cash is King but does this still ring true now that we are moving towards a cashless society? The quick answer, of course, would be yes. We should change the phrase from Cash is King to Know your numbers. It would be a much better phrase and affect every small business area. Cash is king only looks at your business’s money, needs, or wants. Check out our next post entitled ‘Follow The Money.’

So what do we mean by numbers?

The most obvious one would be how much money you have in the bank. Do you have enough money to pay your bills, staff, and taxes? Then do you have enough money to invest back into your business, market your products and finally, if you are the business owner, enough money to pay you some dividends? Knowing the cash figure in the bank is vital for these functions.

There are other numbers that you need to know. One of my favourite numbers is number one. It’s not a number I used to think about in any significant way until a business coach mentioned the figure in passing. Their reference was about being the only person in the business and what would you do if you became sick, went on holiday or needed to have an extended period of absence. Are there processes in place to cover your absence? 

Small Businesses and one bank

The number of one then grows to be a much more significant number for a small business. Banking is a perfect example of the number of one, where it might have a deficit influence on your business. Most companies would approach a bank if your business was expanding, and you wanted a loan or overdraft facility. If you only bank with one banking institution, your company’s financial history is only known by them. If this institution had restrictive rules on business loans or overdrafts, this could become an issue. Effectively, you only have one institution to ask. I am not saying that you won’t get a loan or overdraft, but it could reduce your opportunities. It is advisable to take out two different bank accounts with other banks. One for your everyday business activities and one to squirrel away your staff wages, tax liabilities and potential dividend payments. (Banks are not the only institutions that loan money to small businesses, there are specialist institutions that only loan to other businesses).

Employing one staff member

Staff numbers can also become an issue with the number of one. It’s great when our small business employs staff. It is a sign that the business is growing; you are good at what you do, and your customers value your service. Hiring your first staff member changes your company staff from the magic number 1 to 2. But only having one member of staff also means that a member of staff has much power in your business. Often a first employee means the owner takes a bit of a cut in their salary to employ the member of staff and their take-home pay is less than the employees. What do you do when the staff member is on holiday, sick, or is a lousy employee? Upsets your clients, and you spend more time redoing or talking to your clients because of the employee. If possible, think about taking on two members of staff or maybe two part-timers. Of course, taking on staff will have a financial burden, such as employers’ tax liabilities, additional equipment and licences, and training. You could, however, sub-contract but ensure you have a tight Non-disclosure agreement and contract with the sub-contractor.

One Client in a Small Business

One in a business is dangerous

Client retention can become an issue when discussing number one. The trouble with having only one client or one client that brings in most of your sales. You may have an excellent relationship currently with your client, but what would happen if that client moved away? A client stopping your services can be for many reasons; you have a falling out, they can find your services cheaper or are taking the work ‘in house’. Losing a significant client that brings in most of your finances can be catastrophic for a small business. Spread your client base out and try not to rely on one company for your financial success.

One Marketing Strategy for a Small Business

Having only one marketing strategy can also be very limiting. Are you reaching your target audience, where are they, and what do they think of your services? If your small business relies on Facebook ads and posts, will your customers see them? Is that where they go to find business contact and services? If you solely rely on printing in a magazine, how often does the magazine come out? Are you a member of a networking group? Do you network with other small businesses? Limiting your marketing to a one stream strategy is a dangerous and potentially restrictive plan.

The number one can be dangerous if relied on for too long. However, it is also an exciting number and one that a small business should give as much respect to as possible. The advantage of one means that you have tremendous flexibility. We have seen how important flexibility can be in the past two years. Many small businesses had the foresight to adapt their services easier, quicker and more cost-effectively than their counterparts. 

In conclusion one in a small business

Knowing your number one limits, advantages, and disadvantages puts you in a much better position to ensure the success of your small business.

You may also be interested in the following articles/blogs

A Virtual Office Address?

A Virtual Office Address?

A virtual office address is perfect for self-promotion of micro businesses. Legally you have to register your business with HMRC and Companies House. As a result, this is known as your registered address. However, your day to day post needs to delivered somewhere. A virtualVirtual Office Address address is ideal for businesses operating from their home. Additionally, a virtual office helps a business look and promote a larger corporate image without the high costs or renting or buying.

 

Once a Virtual Office has been created; mail is automatically delivered to the new address. You then have a choice on how mail is actioned, you could have (more…)

Business Expectations for Small Businesses

Business Expectations for Small Businesses

Business-goals-can-be-driven-by-business-expectations

Business Expectations can drive business goals

When starting a business, the owner or director will have some business expectations. The first expectation will be, the business will be a success. Secondly, there will be financial rewards and personal achievement. Very few people start a new business expecting it to fail or have limited financial reward. The new business owner will be looking forward to creating fantastic relationships with both clients and suppliers. A relationship that will ensure:

  • Their clients will value their product or service
  • Clients will become an advocate for their business
  • Invoices paid on time and in full
  • Clients will be courteous and respectful

(more…)

“Mail forwarding and Virtual Office address in Oxfordshire”

“Mail forwarding and Virtual Office address in Oxfordshire”

myPA are here to help you with your personal and business needs. We take pride in the level of customer service we offer our clients. This could be from our Mail forwarding to our virtual office, our virtual assistants or answering services. All of which are highly competitive in price and can provide your business with a professional look and feel.

Mail Forwarding Address

Virtual Office Address

(more…)

Office Space, Virtual Office

Office Space, Virtual Office

Office Space, Virtual Office

Office Space or a Virtual Office offers many benefits and can be extremely comprehensive in terms of what it offers. From Mail Forwarding to Telephone Answering, it really does cater to the many needs of a small business owner. With that in mind, let’s take a look at how you can set up your very own Virtual Office and utilise our Office Space

 

Appear to have more office space and be more professional

A Virtual Office

If you have a mail forwarding address with us we can handle your mail in a number of different ways; posted straight onto you, held at our offices for you to collect, scanned and then posted, or scanned and then held for collection. If you choose to collect, you’re probably interested in when you can and can’t pick mail up from us

If you have a with us we can handle your mail in a number of different ways; posted straight onto you, held at our offices for you to collect, scanned and then posted, or scanned and then held for collection. If you choose to collect, you’re probably interested in when you can and can’t pick mail up from us

MyPA assistants are professional and polite so you can be sure that your company will be portrayed in the best light. And they never let on that your customers are speaking to an answering service.

Never miss a call

Answering Service

With a Virtual Office you too could have a professional and Polite Answering Service

We offer telephone answering during office hours or as a 24/7 answering service so, you can rest assured that you will never miss a call.

If you are going on holiday, we can cover you while you are away. Simply divert your phone to the number we provide you and we will ensure that all your calls are answered and messages passed on to you. A great way to relax while away without worrying about missing an important call.

Cost-savings

Having a telephone answering service means you can save on the costs of an office, a landline and even a receptionist. If you are a small company, not having these additional overheads can be very beneficial. We have a number of packages available to suit a variety of needs and to match your budget.

Meeting Rooms & Flexible Work Space

Rooms available from £12.50 an hour – Hot desks coming soon.

Do you need somewhere to hold a meeting? Or perhaps you would like to swap the coffee-shop table for an office-based desk? Our purpose built facility 5-minutes walk from Faringdon Town Centre.

We offer:

A meeting room (6-8 boardroom style)

Event space (20 classroom style)

Soft seating area

Private kitchen

Free wifi

Refreshments can be provided

AV included (screens, sound system and projector)

 

Interested in finding out more? Take a look here for more information on our services