TOP 5 THIEVES OF TIME

/in ,

5 Fixable office issues are sapping time from your workforce – and costing you money.

 

Time is your most valuable resource, especially when you’re running a busy office. A lack of productivity doesn’t just leave you paying peoples’ salaries without much return – it also saps morale when people need to work late hours or through lunch to accomplish what should be done in the normal work day. Here are five fixable thieves of time in the office.

 

Going Off-Site

Sometimes, you simply need to go to a client or partner’s office and thrash out an important issue. But not every time. When you look at the time spent on meetings outside the office and the return on that investment, it’s usually obvious that several trips are unnecessary. Especially with established clients, try to arrange one monthly face-to-face meeting where issues of strategy are discussed, and relegate day-to-day matters to the phone, email and Skype.

 

Meeting Run-Ons

We’ve all been in meetings where the productive business was effectively done in the first twenty minutes, but the room has been booked for an hour and everyone plays along. You can save your time, and that of your employees, by working through an organised agenda, agreeing the consensus or necessary action on each item, and wrapping up once everybody is satisfied. Chairing meetings in this efficient way will free your staff up to work productively elsewhere in the business.

 

Lunch at the Desk

Some people make it a perverse point of pride to skip lunch as proof of how hard their working. In reality, failing to take a mid-day break saps productivity and morale. Meanwhile, a ‘half lunch’ at the desk blurs the line between rest and work, leading to an extended period of half-hearted effort. Don’t reward or encourage this ostensibly dedicated but ultimately ineffectual carry on, and set an example yourself by getting out of the office at lunchtime.

 

Unclear Priorities

Organised people get more done. It’s not because they’re inherently more intelligent, creative or dedicated: it’s simply because they know what they’re doing from minute to minute. If you’re working in an environment where priorities shift, and you need to jump from one task to another with little notice, you won’t accomplish half as much as you will when you know your priorities at 9 O’clock and can get stuck into one task after another. make sure your team know what they’re meant to be working on from day to day rather than frantically reacting to unforseen developments.

 

Personal Sites

The internet is always seen as a major thief of time in the workplace, and it’s easy for otherwise good employees to waste hours on personal browsing. Many large organisations have struggled with this phenomenon. You can take a proscriptive approach by blocking certain sites on company computers, or simply let your staff know that their use is continually monitored – that information alone encourages restraint.

 

Eamonn Garvey

Partner

DCA Accountants and Business Advisors

DCA Q&A – SHOULD I MOVE FROM SOLE TRADER TO COMPANY?

/in ,

Q:I’ve been in business as a sole trader for five years now. As things have picked up in the past six months, a few people have advised me to look at establishing a limited company. The problem is, I don’t know what advantages or disadvantages there are to this set-up, or how to go about the process. Can you help me out?

 

A: The first and most obvious advantage is hinted at in the name. As a sole trader, you’re personally liable for any debts accrued by the business. However, if you are the owner of a limited company, your personal liability is limited to a set amount – so, even if things go wrong and you have to shut down the business, you won’t be hounded to pay debts that are beyond your means. Moreover, once your business’s earnings pass a certain threshold, it’s tax-efficient to keep the funds within your company, and possibly re-invest them. Indeed, there are a few schemes that actively incentivise research and development of new products or services. This is why the limited company form is favoured by businesses who have to buy large quantities of stock on credit, or research-intensive businesses.

 

The downside to setting up as a limited company is that you need to file more paperwork on a regular basis with the Companies Registration Office (CRO). If you’re used to simply sending in your tax returns and availing of user-friendly VAT payment services, then having to file annual accounts as well as forms when you change directors, premises or business names will come as a shock. The burden of red tape increases when you establish yourself as a limited company. While the costs of setting up with the CRO and filing paperwork aren’t prohibitive, they are higher. As a general rule, we advise traders to seriously consider the limited company form once they’re paying themselves a salary that they’re comfortable with. It then makes life easier from the point of view of hiring staff, securing credit, and tapping investment if you need to.

 

The CRO process is relatively straightforward – you submit the Form A1, along with your memorandum and articles of association. While some highly experienced entrepreneurs will know what form of limited company they want, and be able to draft articles of association in your sleep, those without an in-depth knowledge should really invest in professional advice at this stage. Aside from making sure that everything is legally watertight, you can also get a more tax-efficient structure in place for your business as you grow. If you like, just contact us to set up an initial, no-obligation meeting where we can run through your options in more detail.

 

Declan Dolan

IS AN INVESTOR RIGHT FOR YOU?

/in ,

Having gone to the trouble of finding an investor, you may not want to question your luck. But understanding an investor’s suitability is vital.

Most people don’t like to look gift horses in the mouth. And, having gone through the long process of finding an investor to take your business to the next level, someone offering vital capital seems like quite the horse. However, not all investors are created equal, and tying yourself legally to a bad partner can be a fatal mistake. You need to ask yourself a few questions, therefore, to determine whether an investor is right for you.

 

Can my investor deliver?

It’s bizarre to think that somebody would commit themselves to investing funds that they do not have. Unfortunately, strange things happen in businesses, and we have seen cases where companies have been left waiting for a cheque that never comes. Do your homework on an investor’s past career and investment history to see whether there are any red flags. A prospective investor may be willing to talk about their past enterprises, and accounts filed with the Companies Registration Office (CRO) will let you check them out.

 

Does my investor have realistic expectations?

You’re obviously optimistic about your company’s future, and your prospective investor presumably shares that view. It’s important to make sure, however, that his or her optimism is grounded in reality. Your investor’s expectations in terms of growth and profitability need to be in line with your own – otherwise, you risk being tied to a partner who feels let down, maybe even cheated. In this situation, an investor can become obstructive, and create a pretty toxic working environment.

 

Does my investor’s vision match my own?

People invest in businesses for all sorts of reasons. Some buy in to the strategy of a company, while others see more value in radically realigning the business. Assuming you believe in your business plan, you want to attract the former and be wary of the latter. If an investor is taking a stake in your company where they can dictate or at least influence its direction, you both need to be broadly in agreement about your core business for the foreseeable future, what markets you will target, and products or services you will bring to those markets. Otherwise, you’re signing up to endless disagreements over strategy.

 

Can my investor add value?

An investor doesn’t need to be an expert in the field to help a business. He or she can have contacts in your targeted market, could offer insight to improve your business internally, or even have an idea for a related product or service that you can offer. Offering this added value isn’t essential for an investor – most entrepreneurs are happy for someone to offer capital and take a hands-off approach. However, you should think about areas of your company that an investor’s skills, contacts or knowledge can improve.

 

The right investor isn’t just someone willing to stump up cash – it’s somebody with the capital to actually meet their commitments, a realistic expectation regarding their return, and a shared vision for the business. If they can also use their talents to boost your company beyond the bottom line, then you’ve got a winning formula for a long-term partnership. At DCA, we assist many companies going through the process of finding an investor and sealing a deal – our experience has helped numerous businesspeople in entering appropriate partnerships, and avoiding bad ones. Just contact us if you would like to set up an initial, no-obligation meeting.

 

Eamonn Garvey

Partner

DCA Accountants and Business Advisors

DCA Q&A: CAN I AVAIL OF STATE SUPPORT?

/in

Q: I’ve been slogging away for some time now as a sole trader. Since January, a couple of major clients have gone out of business and I’m left with just a few hundred Euro at the end of each month. Because I’ve been self-employed for most of my working life, I won’t be able to just pack it in and claim Jobseeker’s Benefit. However, are there other supports that could help me in this situation?

 

A: You may well be entitled to Jobseeker’s Allowance , but the process of claiming is a bit more complicated because of your status. This payment is given based on your means rather than your PRSI contributions.

 

Jobseeker’s Allowance pays €188 a week, plus €124.80 for each adult dependant and €29.80 for each child. However, any money you make from self-employment is subtracted from this. So, if you’re married with a child, you might be entitled to  €332.60 per week. If you or your spouse is making €100 a week from self-employment, however, this would fall to €232.60 per week. Aside from your self-employed income, investments or property that you own (besides your own residence) will be considered as means.

 

As you can imagine, much depends on how the social welfare office assesses your means. When you apply, you will have to meet with a social welfare inspector to find out about your business. The inspector will be looking to assess the income you may reasonably be expected to get from your business over the next 12 months. Usually, the income from your past 12 months in business will be taken as a guide. However, if you can demonstrate that circumstances have changed – if, for example, your former clients have made concrete moves to shut up shop – this will be taken into account. You will be asked for your receipts and payments or audited accounts for the current and previous year – so, if you’re applying in July, you’ll have to supply details to cover the year to date and 2013. In some cases, you may have to show your audited accounts going back even further.

 

Because estimating your means is so complex, it may take some time to process your claim. However, you can also apply for Supplementary Welfare Allowance to cover any immediate needs you have. To get started, you can download the formhere and make an application. If it turns out that you qualify for Jobseeker’s Allowance, you can also apply for supplementary supports such as Rent Supplement, a Medical Card, and Back to School Clothing and Footwear Allowance.

 

At this point, you may well be evaluating the future of your business – is this something that you can revive? Do you have the energy and motivation to do so? There is no shame in shutting down your business if it isn’t working, or taking it in another direction. When you (hopefully) get the immediate financial crush addressed through Jobseeker’s Allowance, you should devote some time to considering the next step in your career.

 

Declan Dolan

EXCELLENCE IN EXHIBITIONS

/in ,

Participating in trade fairs and expos takes investment – a structured approach is the best way to maximise your return.

If you’re looking to make a big impression in the market quickly, a trade fair or expo is an attractive idea – rather than setting up many disparate meetings, these events offer you the chance to meet many potential customers. However, participating as an exhibitor takes quite a bit of investment, and even attending uses up valuable resources if the event is overseas. So how do you make the most of participation?

 

The Right Event

It might seem obvious, but picking the right event is half the battle. Event organisers can dazzle you with statistics about the number of companies attending or showcasing their products, but remember the maxim of quality over quantity. You’re far better off meeting a few strong potential customers then twenty random firms with no interest in your product or service. Before committing, seek a detailed breakdown of the companies that either attended past events, or are expected. Failing that, tap your contacts for information on how the event is perceived in the industry – particularly if it’s an overseas event that you’re not familiar with.

 

Plan Your Presence

The event hall will be a competitive space with many companies vying for attention – whether you’re an exhibitor or visitor, you need to communicate your unique selling points in a direct, impactful way. If you’re exhibiting, your unique selling points in a market should inform everything from stand design to the products that you showcase. As a visitor, you need to prepare your 30-second pitch, and also think up responses to the questions that you’re most likely to face.

 

Come Armed

Don’t arrive at an event with nothing to show people. Even attendees travelling internationally should bring a good supply of marketing materials, and business cards are still essential. Exhibitors, meanwhile, should have plenty to show. If you have a small budget and a small space at the event, just make sure that you fill it with things that communicate your company’s values – and value.

 

Listen

When you’re in a sales mindset, it’s easy to just talk about what you can offer. However listening carefully and showing interest is often the most positive message you can send about your company. It shows that you’re interested in the issues faced by potential clients or partners, while you’ll glean a lot of information that could prove useful in time. Also, remember that the people you speak with are also here to sell and make contacts beside yourself: it’s inconsiderate to monopolise them. If a conversation throws up a potential opportunity or longer sales pitch, agree to discuss it in detail at a less pressurised time, either at meal times around the event, or at a meeting later on.

 

Follow Up

When you get back, you’ll be tired and you’ll find a full workload on your desk. But don’t put off the essential follow-ups. Even if you see no basis for a sale or collaboration with people, a LinkedIn message or email thanking them for their time, wishing them well and showing that you remember them will create a positive impression. If, like many people, you struggle to recall faces and names after an event, you can take notes on the back of business cards that you collect – which will let you follow-up in a relevant way.

 

Eamonn Garvey

Partner,

DCA Accountants and Business Advisors

 

For more on our services or to receive a free consultation for your business from one of our experts, visit www.dca-ireland.ie or follow us on Twitter.

DCA Q&A – SHOULD I MAKE AN UNPROMTED DISCLOSURE?

/in ,

Q: My business struggled in the past with meeting tax obligations, and has been selected for an audit covering 2011 and 2012. Having gone through the accounts for these years, I’m pretty confident that there are no problems. However, I’m concerned about a claim made for the 2010 tax year – new guidance issued by Revenue on allowable expenses and subsistence makes me worry that there would be an issue with it. The amount isn’t huge – I could afford to pay any tax bill arising from it – but I’m now somewhat worried that it could result in a significant fine or more problems. Should I disclose it, and what would the likely attitude be.

 

A: Yes. It might sound glib to say, but paying your taxes is the right thing to do – and, if you leave this to lie, it will be a constant source of stress.

 

There are very few arguments to support not disclosing the matter. If I were to play Devil’s Advocate, I’d say that Revenue are unlikely to look back into your 2010 accounts if 2011 and 2012 prove squeaky clean. But you’d be taking a major chance – and the longer it lies, the worse it will look.

 

If Revenue you make this as an unprompted disclosure, then you may be surprised at how flexible they can be. As you explain it, this appears to be a genuine mistake arising  from your misinterpretation of the law in lieu of Revenue guidance – I can’t speak without knowing all the details, but I would be optimistic about your chances of a settlement to pay any outstanding amount with some interest rather than a fine.

 

If you have been are preparing for this audit and disclosure yourself until now, I’d highly recommend getting professional advice. At DCA, we often go through a client’s books and help clear up issues like this. Don’t hesitate to get in touch if you would like an initial, no-obligation meeting to discuss your options.

 

Declan Dolan

Do you have a question for DCA’s experts? Contact us or connect with us on Twitter.

THE DIGITAL DILEMMA

/in ,

Irish businesses remain slow to tap online shoppers – but selling through the internet is easier than you’d think.

 

According to many futurists, digital commerce will slowly but surely outpace – and perhaps eradicate – retail as we know it. However, it seems that Irish companies haven’t been getting the message. According to a study by the Dublin Chamber of Commerce, only 22% of Irish small and medium enterprises trade online.

That may not seem life a problem, but the online spend of Irish consumers is on course to reach €13bn by 2020. In other words, if you’re selling to consumers without selling online, those companies that are trading digitally – whether from Ireland or abroad – are making inroads into your business.

Luckily, the process of setting up safe and reliable e-commerce is far easier than it used to be. A few key principles will help you make the transition well.

 

Simple, Safe Solution

Once upon a time, setting up an e-commerce site was a major project involving a huge amount of investment and a bespoke solution from your web design firm. However, the barriers to entry have fallen as more firms adopt online selling. At the most basic level, Squarespace offers a simple and cheap way to get an elegant website – and take orders – quickly. More advanced solutions are also cheaper than before thanks to affordable payment providers such as Paypal. Whether you’re happy to use an off-the-peg site, or want a web design firm to design something a bit more special, make sure the solution for shoppers is straightforward and affordable.

 

Customer Service

Next to price, good customer service is an online shopper’s key consideration – in fact, at its best, good service can outweigh cost for many consumers. So you should gear up your business to provide service for online shoppers – that means a clear selling and delivery process for online transactions, and clarity within your organisation about who looks after this area.

It’s not enough, however, just to have excellent service – your shoppers need to be aware of it too. Having a telephone number that customers can call – not just an ‘info@’ email address – reassures online shoppers. So too does a postal address. Also, as soon as you have some customer testimonials to share through your website, do so.

 

Know the Law

Some new EU regulations governing online selling have come into force, so it’s vital to be compliant with them. If you trade with customers within the EU, products or services purchased must be delivered within 30 days of the customer making the order unless they agree otherwise. If you won’t be able to deliver on this, you must inform the consumer who then must agree a revised date of delivery. In the EU, customers can cancel or withdraw from a purchase without giving any reason within 14 working days of making the order – as a trader, you must then refund any money paid within 14 days. You can only levy charges based on the cost of returning the goods.

You can no longer charge customers extra for paying by a particular method of payment – such as by credit card – than the costs actually incurred by you. Also, if you operate a telephone hotline, you can no longer chare more than the basic telephone rate for the telephone calls.

 

Getting set up to take and fulfil orders online isn’t an expensive or hugely laborious task. It just calls for a bit of organisations and effort, which should hopefully position you to tap a growing digital economy.

 

Eamonn Garvey

Do you have a question for DCA’s experts? Contact us or connect with us on Twitter.

DCA Q&A: WHERE SHOULD I LOOK FOR ACQUISITION FUNDING?

/in ,

Q: I am in the process of buying out a business where I’ve worked for a few years. While I’m debt-free, and have a mortgage on my house paid up, I have very few savings. The current owner of the company has said that he is willing to sell for €200,000, which I’d consider to be a reasonable valuation – truth be told, he could possibly obtain more if he sold to a third party. I’ve spoken to my bank, and they’re willing to lend me €150,000 against the value of my home. Where can I go to for the rest?

 

A: Well done, firstly, on getting this far. This funding gap can often crop up when you’re acquiring an existing business, and you have a few options for overcoming this.

 

You can start by looking at the ‘top line’ of money that you have to raise. Is it possible to push the price down a bit? As a member of staff, you know the company’s strengths and where it can improve – an external buyer may not see the same value in the business. Even if the headline price is not negotiable, you could propose deferring part of it – for example, paying €150,000 up-front and the remaining €50,000 over four years – with or without interest. This is a common enough practice in the process of acquisitions. An alternative would be for the owner to retain their 25% stake in the company, ideally with an agreed purchase price for the remaining stake at a later date. This gives you breathing room to raise the money you need for completing the transaction and ensures the current owner sees some return.

 

If you can’t do anything about the price, or the timing of the payments, you’re probably looking to enlist another lender (which may unnerve your bank) or investor. This can be a difficult process but, as an experienced member of the presumably successful business, you’re attractive as a partner to someone who prefers a hands-off role. In a past blog, we’ve offered advice on where you can find an external investor for your business. Just make sure that, when dealing with investors, you get proper non-disclosure agreements and some legal protection against them hijacking the deal – better yet, look for a reputable individual as well as someone with money to invest.

 

Whenever you’re dealing with transactions like this, it pays to have independent, experienced advice. We deal with many entrepreneurs and potential entrepreneurs so, if you want to arrange an initial no-obligation meeting, just get in touch.

 

Do you have a question for DCA’s experts? Contact us or connect with us on Twitter.

DO YOU HAVE A ‘LIFESTYLE BUSINESS’?

/in ,

Have you created a saleable business, or just a job for yourself? And how do you change that?

 

‘Lifestyle business’ is a term that, understandably, gets up many entrepreneurial noses. When used in certain circles, it can sound patronising, or as if the speaker is seeking to diminish a business’ achievement in getting started.

 

So firstly, we’d like to make one thing clear: there’s nothing wrong with having a ‘lifestle business’, one that can’t really be sold easily or grow exponentially. Creating a sustainable job for yourself and others is a real achievement. However, many entrepreneurs do want an exit strategy for their business – whether they want a big payday, or simply to do other things later in their working life. In that case, having a business that they can’t walk away from is a problem.

 

How do you tell if you’re running a lifestyle business? There’s one easy litmus test. Imagine the business if you weren’t working in it, and with another employee drawing down your salary: could it work? If you can foresee it humming along under a competent manager, you have a business that you can sell. If you instead see the whole thing coming apart within a few months, then you’re working in a lifestyle business – one that you just can’t sell and walk away from.

 

Some business just can’t advance beyond this dependence on the founding entrepreneur – but some can, even well after the start-up stage. If you want to shift away from running a lifestyle business to operating a more independent (and saleable) company, there are a few key steps to take.

 

Delegate and Replicate

Many businesses are dependent on an entrepreneur who works punishing hours for comparatively little financial reward. However, does this have to be the case? If you look at your team, they may well be able to take some of your workload, especially if this is presented in the right way: most good employees will welcome added responsibility, for example, if this means that they’re being groomed for management positions as the company grows. Taking some of this day-to-day work away will let you work on the business rather than in it. In time, your goal should be to replicate your own role within the company – this will allow you to adopt a strategic position, identifying opportunities, trouble-shooting and stepping back from day-to-day minutiae.

 

Maximise Profit

Growing a business can be expensive, especially when you’re looking to take on new employees and manage the cash-flow ‘lag’ that comes with new clients. In order to do this, you’ll need to maximise the profitability of current and future clients – this takes discipline and nerve. You can find some useful advice here on getting through the process.

 

Tie Down Clients

Many businesses could operate without their owner doing the day-to-day work, but are dependent on them because of client relationships. If your customers work with you because of you (rather than the advantages of your company), then that’s an issue you need to address.

Getting customers to feel that they’re working with a company rather than the entrepreneur requires a deft touch, and patience. Introduce them to members of your team, and gradually get them used to dealing with those people rather than yourself. In the early stages, of course, you will probably need to reassure them that you’re just a phonecall away if an issue requires your input. Also, tie clients down to long-term contracts if possible – if you’re looking to sell the business, this will reassure a potential buyer that the customers won’t just vanish when you leave yourself.

 

Do you have a question for DCA’s experts? Contact us or connect with us on Twitter.

TIME – YOUR MOST VALUABLE RESOURCE

/in ,

You’re willing to work long hours for your business, but that doesn’t mean you shouldn’t place a value on your time – and manage it effectively.

 

Time is money – that may be a well-worn cliché, but it’s palpably true. As an entrepreneur, your productive time is the most valuable thing that you are investing in a business, but it’s also one thing many entrepreneurs treat far too cheaply. Just because you’re working long hours to build your business doesn’t mean that your time shouldn’t be valued. Effective time management will let you maximise this valuable resource, and use it far more effectively to drive business success. A few key tips have been proven to work when you’re looking to do this.

 

Make Appointments

A single ‘to do’ list will eventually get so long that it’s impossible to get through – you’ll end up just playing catch-up with the day’s work. Most people will find it far more effective to assign a specific time for each activity that they need to do in their day. This allows you to make reasonably accurate projections about when key tasks will get done – and, if you do need to delegate something to somebody else, having a schedule to cover your main tasks will let you identify this sooner. Dedicate the first 20 minutes of your day to confirming your schedule. Also, invest some time at the end of the day to ‘update’ the schedule, identifying what you did and how long it took. This will be helpful for future scheduling, as you’ll have a much better idea of how long tasks actually take.

 

Realistic Expectations

Humans are optimists by nature, and it’s been proven in many studies that we’re overly confident about our ability to perform a task in a certain timeframe: even when we’re looking to be conservative in our scheduling, we always give ourselves too little time. You can minimise this by budgeting slightly more time for each task than you optimistically think you need. Also budget in time for interruptions, such as calls from home and dealing with day-to-day issues.

 

Cut Yourself Off

People naturally answer a phone just because it rings. They respond to email instantly even if they’re engaged in something else. And now, with instant messaging, friends, family and colleagues can make immediate demands on your time.

If you’re engaged in something where you need a clear head and concentration, try putting up the ‘do not disturb’ sign. Turn Facebook and other instant messaging services off. Let phonecalls go to your voicemail – if it’s important enough, people will leave a message – and don’t open your emails until you’re ready to. If you’re one of those people who idly browses the internet when you’re meant to be working, the Stayfocusd app will break that habit – you can limit the amount of time you’re allowed on unproductive or leisure sites that tend to steal your time away. Finally, if you need to, lock the office door.

This can be a huge mental adjustment to make for people used to constant – and not necessarily productive – communication on all fronts. But you’ll see an immediate impact on your productivity when you do it.

 

Do you have a question for DCA’s experts? Contact us or connect with us on Twitter.