bizRichard

One of the topics that keeps coming up in discussions with clients is how “difficult” or “impossible” they find so many things.

And yes, maybe that’s true of some things. What worthwhile goal was ever achieved without some degree of effort?

If it was that easy, then everybody would get to live their ‘dream life’??

What gets done quickly seems easy. But then comes “difficult”. And then the next stage – and there’s a huge difference - between things being “difficult”. .. and finally becoming “impossible.”

Why is that?

Unfortunately, because certain (possibly many) people seem to become preoccupied or focus on the “difficult” aspect of things, they eventually convert these to ‘impossible’ - in their own minds. And then, because it’s “impossible”, it then never happens.

So here’s a little secret about what you want to concentrate on when you’re trying to get something done.

Change the paradigm – focus on the beginning, not the ‘end’. Obviously you keep the ‘end’ in mind, but you focus on ‘one step at a time’ - nothing more.

When Warren Buffet started, he focused on making his first investment, not building one of the largest insurance and holding companies in the world.

And when Bill Gates started, his passion was developing his operating system, not on building the biggest software company in the world, or on becoming one of the wealthiest people in the world.

So focus on the beginning, and on each step along the way. Each individual step, each ‘bite-sized’ chunk, is rarely overwhelming on its own.

And then you will find that ‘almost nothing’ (within reason) is impossible – unless, of course, you choose to make it so.

So, easy? difficult?, or impossible? It truly is up to you – it’s your choice.

Now think about it, get out there and make more money the SMART way.

Richard C

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My apologies for this unusual blog posting.

But it is to make you (especially my UK readers) aware of an email phishing scam that I’ve been warned about today and have passed on to all my clients – it’s allegedly from HM Revenue & Customs (HMRC).

The email to me, from a fellow professional firm, reads as follows:

“A number of our clients have received emails purporting to come from HMRC advising on refunds of tax. They look official and have the correct logo and a very convincing website address.

However, clicking on the link can either entice you to give sensitive information or, as in one case, cause severe damage to your computer.

HMRC will never contact you directly via email about tax matters.

Should you receive any such email which you consider might be genuine, please telephone your usual contact at the firm to enable us to make enquiries on your behalf.”

Likewise, if you have any worries, do let me know.

End of Alert

Richard C

PS. To ensure you receive important ‘alerts’ of this nature, be it tax, investment, or any other aspect of business, etc, sign up right now to my blog alert - see top right of this page.

I’ve been away several weeks for a ‘well earned’ break but, back on the scene again, I’ve discovered, following on the theme of my last post “Hands up those who know the answer . . . . because I don’t!” that other people are equally puzzled about how things are panning out in the current economic conditions.

Why puzzled?  Because, the increase in ‘new business start-up’ numbers is defying the multitude ‘credit-crunch’ reports that have recently been forecasting doom and gloom for businesses in the months ahead.

The new research, from Barclays, suggests that ‘entrepreneurs’ are far from being discouraged by reports of an economic slowdown – there were an estimated 98,000 new start-ups formed in the first three months of 2008.

Although this number is not as high as the record-breaking business formation figures seen in 2006 and early 2007, the first quarter of 2008 shows the highest number of start-ups in the last three quarters.  It should be noted that the number of new businesses formed, and the number closed, was roughly the same in Q1 2008, but previous quarters saw much greater number of closures - in the last quarter of 2007, there were 86,4000 start-ups, and 111,900 closures for example.

According to the statistics, the most popular industries for start-ups were business and financial services (27,500 start-ups), construction (15,100) and the retail sector (10,700) – the later two clearly at odds with the reported downturn in construction and difficulties on the ‘high street’.

John Davis, Marketing Director for Local Business at Barclays, said: “Small business entrepreneurs are finding opportunities in the market place. They are entering in reduced numbers, reflecting an uncertainty over short-term economic prospects, but clearly there’s a feeling there is never a bad time to start a good business.

For those of you who like figures, the statistics for Start-ups and Closures over the past year 2007-8 are as follows:

The above figures are supported by another new survey, conducted by Deloittes, suggesting too that the UK’s entrepreneurs remain confident about business growth despite the current economic uncertainty.  Their survey, “Entrepreneurship UK: 2008″, offers an insight into the mindset of the country’s entrepreneurial business talent and suggests that entrepreneurs are actually bullish about their future with 45% predicting revenue growth in excess of 20% in the coming year.

So, optimism and opportunities for all. 

But with plenty of competition still entering the field, make sure you are always the best at what you do – that way, you build market share, while others lose it!   Seize the opportunity now, get out there - and get your share . . . and then make volumes more  money the SMART way

Richard C

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And sure as hell, all those ‘adviser’ type guys with their fancy crystal balls don’t either.

“Credit Crunch!” - the current financial ‘buzz word’ – is nothing more than an euphemism (to disguise and to deliberately and politically shift the blame) for the expected downward trend of the traditional business cycle – see my blog post dated 15th April 2008.

Here’s the story in a nutshell. Lots of people (and not just those on low incomes) ran up lots of debts. Then the ‘credit crunch’ happened. Now some of those people can’t pay their debts.

And who is to blame - not the banks who encouraged reckless borrowing, nor the governments who did nothing because it increased the national ‘feel good factor’ during their regime? No! It’s clearly the ‘credit crunch’ that is to blame.

This story sort of makes sense… up to a point. But let’s not ignore the bit that happened before the credit crunch. The bit when lots of people were sucked into euphorically signing forms that said ‘Give me a loan’ - ignoring the small print - the bit about paying it back!

But it does astound me how quickly the credit crunch bogeyman has become a handy, off-the-peg blame shield. If a business is slow in paying its debts, or has to issue a ‘profit warning’, then it happened “because of the credit crunch”.

Never mind that other factors may be at work — bad management. . . a flawed business model. . . failure to keep up with a changing market. Or plain bad luck.

The ‘crunch’ is merely the mechanism by which common sense has returned to the credit market. But in so doing, it marks the cyclical slowdown in the economy, the reduction in consumer demand, unemployment, a tightening of belts, mounting bad debts, crashing house prices, etc, etc? It’s happened before! . . . and more than likely it will happen again.

And for some this might be what is happening right now!

Credit is tight (for some) and economists are still predicting falls in house prices of about 10 percent this year. Bank of England policymaker David Blanchflower has warned prices could dive by about a third unless aggressive, immediate action is taken.

BUT . . . . The property website ‘Rightmove’ now tells us that average asking prices for property in England and Wales rose to a record high in May - 2.2 percent (on a year ago between April 13 and May 10) to hit an average £242,500, compared with a 1.3 percent annual rise in the month before – and expectations are for house price inflation to accelerate despite ‘a much weaker housing market this year’.

BUT . . . . Interest rates are unlikely to come down fast given worries over inflation and, after a decade in which house prices nearly trebled, Bank Governor Mervyn King has indicated a moderation in prices is probably needed. (Has somebody just woken up?)

BUT . . . . On the stock market the FTSE 100 is ‘climbing strongly’, recently heading for 6400+ (only 300 points off its all time high of 6700 last July) having recovered from 5300 (several months back) despite the financial press’s very best efforts at predicting doom and gloom over the past 18 months. (Note, the FTSE is an averaging index and does not segregate the better performing ‘out of the ground’ type shares from the lesser performing ’high street selling’ type shares.)

So, is it really true then, what we’ve always thought, that “recession exists only between the ears”?  Maybe it is!

Or are we in a ‘different’ world where people either don’t understand, or don’t know what to do if they do understand, or are just not interested and don’t care anyway?

Perhaps the following quote sums it up?

“Drive-in banks were established so most of the cars today could see their real owners”. (E Joseph Cossman)

Everyone seems to ‘be on credit’ – so what!

Except, being positive because I know you and I can, there remain some big opportunities out there still - if the ’so-what’ consumers are still ‘spending’ money like water it must mean that we can still keep ‘earning’ volumes of cash!!

So banish the thoughts of ‘recession’, seize the opportunity and get out there . . . make volumes more  money the SMART way

Richard C

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One of the UK’s less admirable gifts to world culture is the “chav”.

For those lucky to be confined to the sleepy lanes of Hampstead (or, even better, resident overseas), I should perhaps explain that the “chav” is a particularly loathsome breed of local youth, whose semi-illiteracy is matched only by the predictability of their clothing (cheap, derivative), diet (cheap, fast, chemical) and cars (cheap, rusty, excessively noisy). They also shout incoherently a lot, even in normal conversation, in a dialect which is part stolen from elements of US rap culture, part made up, and part absolute drivel.

Undeterred, Martin Baum, with the aid of his 13 year old son, has re-written 15 of the Immortal Bard’s (our William Shakespeare’s) greatest works into ‘chav-speak’. Quite what the point of his doing all this is, evades me somewhat. Anyway, if you fancy sampling the revised works, you will find them on Mr. Baum’s web site (and can buy the complete 15 works for anyone you really dislike). I note one of the masterpieces duly mutilated is “Romeo and his Fit Bitch Jools”       (My thanks to Ewen Cameron for the above) 

However, despite the humorous element of the above, there is a very serious point to be made here – and that is the importance of ‘effective communication’.

We all know that languages, dialects and accents do change and evolve over time due to a number of reasons (none of which there is any point in touching on here). But, do take 10 minutes out from your heavy schedule to look, objectively, at the way you write your letters, your reports, and your advertising material.

Does your communication look old fashioned, the same as it did when you left school? Is it too flat, too serious, too light, too technical, etc etc? Or is it more modern, daring, and grammatically challenging? Does it reflect YOU, as a character, your role in society, or your position the business community?

And, most importantly, does it resonate with your audience – your customers, clients or patients?

If you can’t communicate with your customer - and in using the term ‘you’ I include all of your team members in your business - then what hope do you have of generating that ‘wow’ factor needed to keep your customers. You need your customers to keep talking about you, to keep coming back to buy more and more, and they will only do this if they like you, get on with you, and enjoy communicating with you?

So go out there – be smart, speak the right language to your customers, and keep them for ever!

Richard C

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“As far as the laws of mathematics refer to reality, they are not certain, and as far as they are certain, they do not refer to reality”
Albert Einstein

Clearly I can’t let the week go by without joining in with a ‘topical’ comment of some sort!  After all, those who know me will understand, although I’m not anything of a political animal, how irresistible I find the opportunity.

In this increasingly bizarre fiscal scene, occupied (controlled) by Gordon Brown, even the numbers seem to work differently, depending on where you stand. In Prime Minister’s Question time, accused of the highest taxes in British history, GB said that the current tax take was only “around 37% of GDP”.

But the Office for National Statistics reckon it’s 39%! 

And the IMF, who have probably got it more accurate still, say it’s 42.5%.

Oh well, what’s 5% of GDP between friends.

But, as proof there’s still some justice in the world, the week ended, of course, with Labour’s most comprehensive drubbing in the local elections in forty years. Gordo, unsurprisingly, said he was “disappointed”.  Not for the few, but the many, naturally.  (Perhaps someone ought to let him into a ’secret’ and tell him that we, as an inteligent nation, are able to think and do work things out for ourselves sometimes!)

PS.  If anyone can get a copy of the week’s most notable P45, I (and a few others too) would love a copy.  It’s easy to identify - the employee’s name “K Livingstone” will be the giveaway.

Now, go out there and make some money – the SMART way – which includes minimising taxes – It’s what you keep that matters most!

Richard C

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I was reading an article in the Times today – that the job of ‘Director General NHS IT’ is to be split in two following the resignation of it’s present incumbent – but are they going to split the £275,000 salary cost in two? Of course NOT!

But it wasn’t actually the poor taxpayer ‘footing the increased cost’ that got me thinking - it was the ‘why’? Admittedly, as jobs go, this one’s a biggie; but how can you have TWO people doing ONE job?

But then this IS the civil service I suppose! And haven’t we been seeing this phenomenon evolving everywhere we look in the NHS – more and more managers, multiplying like the very viruses they are ultimately seeking to eradicate?

And it’s this curious phenomenon, which I know you too will have experienced for yourself, that I wanted to discuss today.

It’s called “Parkinson’s Law”, a humorous observation (not a scientific law) that states that “work expands to fill the time available”. The observation was first articulated by ‘Cyril Northcote Parkinson’, appearing as the first sentence of a humorous essay published in The Economist in 1955, later reprinted together with other essays in the book Parkinson’s Law: The Pursuit of Progress.

And guess what - he derived the dictum from his ‘extensive experience in the British Civil Service’.  Now isn’t that a coincidence?

So here it is – this man, Parkinson, says that it will take you as long to do a task, as you have time to do it. So basically, the amount of work you have will expand to fit the available time you have, or the available time you give it.

And here is my point – when you need to achieve something, setting yourself deadlines becomes very important.

You see, without deadlines and time pressure, you rationalise your tasks within the parameters of Parkinson’s Law.

And, short-term deadlines are far better and more tangible than long-term deadlines (or goals) - long-term goals are just too distant to be real enough to need reacting to. Not that you shouldn’t set long term goals - I do - but for effectiveness, a series of short-term goals is very likely to be just the motivation you need.

So get out there, set your deadlines, keep up the pressure, and watch your output improve.

Richard C

I don’t know about you, but I can’t stand shopping at Ikea.

I don’t particularly mind putting together flatpacks. It’s a great concept – well designed and functional furniture that people can afford. And I’d much rather have a house kitted out with Ikea products than the dreary stuff obtainable from most other DIY chains.

It’s just that I find elbowing my way around one of their warehouse is such a depressing experience. Even if you go in just one item, it still seems to take most of the day to get in and out of the place. (And heaven forbid that you have take something back for a refund or replacement – that takes even longer!)

But where am I going with all of this? Well, as much as I find their shops depressing, I have to say that an interview with the company’s president in this weekend’s Sunday telegraph stopped me in my tracks. . .

Anders Dahlvig, president of Ikea, came out of with one of the smartest business quotes I’ve read all year!

He was discussing the impact of the housing slump with interviewer James Hall. Noted, was the fact that many DIY retailers are pretending that a housing downturn is not an issue, on the basis that if they bluff it out and persuade people to stay put rather than buy new homes, they will then spend more money ‘DIY’ing up’ their existing house.

Dahlvig dismissed this with refreshing honesty. “Oh, they (consumers) spend less. Overall consumption is always down, especially when the housing market is down. It is not a concern, as that is the nature of business. You have good times and bad. After sunshine comes rain. We have to accommodate that.”

Now, Dahlvig is of course in the lucky position of running the market leader, said he can afford to be blunt about a recession – his rivals are likely to suffer more than he does. So there was nothing staggering in this comment. It doesn’t take an Einstein to understand that business goes through ups and downs. Economists even call it the “business cycle”. But to hear this clearly stated amidst the gibberish that most business people and politicians are currently sprouting about the ‘credit crisis’, is unfortunately rare.

You can’t eliminate the business cycle

Gordon Brown said he had eliminated boom and bust. We all knew that was rubbish, but everyone went along with it because he said it in the middle of a boom - and no one wants to believe that the boom is going to end.

And that is the trouble. You can’t eliminate the ‘business cycle’. Because to get rid of the bust, you also have to get rid of the boom. And as booms make everyone feel richer, no one wants to do that.

So we all pretend that a boom is not a boom. And we come up with increasingly ridiculous justifications to maintain this pretence. House prices rise because there is too little supply, or there’s too much demand, or there’s not enough land! And if credit does have anything to do with it, well, that’s okay, because we are now in a world of rising incomes (not inflation), permanently low risk, and permanently low interest rates.

Maybe if we all just accepted Dahlvig’s point – that ‘ups and downs’ are simply the nature of business, and life for that matter – then we wouldn’t be so terrified of booms coming to an end. Also, we would make sure we prepared ourselves for the hard times ahead while the good times are still around. (They even knew this in biblical times if you’ve read the story about Joseph.) If we accepted that good times had to end then we wouldn’t strive so desperately to keep these booms going way past their sell by date, and thereby ensuring the bust wouldn’t be quite so brutal.

Why the squeeze on small /medium sized business is bad for us all

Of course, it’s now too late for us in this business cycle. And while the Ikea’s of this world can ride out the hard times, is much tougher for your average business owner. In the first three months of 2008, profit warnings hit a seven-year high, say Ernst & Young, international accountants. Life for small businesses is particularly tough.

Late payment is one of the big issue for small businesses, says the British Chamber of Commerce. Just as the banks are tightening up, so the big corporates are also paying less promptly, thus turning the screw even more on their less fortunate suppliers. The Federation of Small Businesses reckon that 10% of business failures are caused simply by late payments resulting in severe cash flow crises, reports the Times.

But is this the real point?

Nearly 3/5 of the private sector employees work in small businesses. Anyone still predicting that the UK can ride out a credit crunch without a rise in unemployment, and the consequent decrease in consumer spending, should perhaps take these figures into account.

So, for you SME business owners, now’s the time to make sure you keep your credit control tight and your liquidity strong. Remember, “cash is king”! You can’t pay your bills with stock, debtors or promises – your suppliers will only take cash. And no cash = no supplies = nothing to sell = bust business (and probably a ‘broken’ you too).

Apologies for the morbid realities stated above, but my concern is for you – just get out there now, optimise your business, make money the smart way, sort it, and you too will not only  survive the ‘bust’ end of the business cycle but be ready to ‘make a fortune’ next time round!

Richard C

According to researchers at the University of Utah, using a larger monitor screen could save you up to 2.5 hours per day.

Specifically, the test subjects completed everyday office tasks, like editing documents and manipulating spreadsheets, 52% faster when using a 24-inch monitor than they did the same work using an 18-incher.

I’m not sure who uses 18-inch screens - 17” and 19” are more typical in this country – but if they are referring to documents and spreadsheet work, then it would seem to be a mostly scrolling-based discrepancy?

Thanks to Tim Ferriss for this one (he’s an intriguing fellow).

In my book, that’s a whopping 33% increase in productivity!  Does this signal a frantic change of IT equipment across the office world?  (If so, maybe it’s an opportunity to nip in and buy a few shares in Dell, etc)

And, what hope is there for those of us who love our laptops?

Go, make changes, and make money the smart way.

Richard C

Wishing you, one and all, a happy Easter break.

I’ve never been entirely sure where the Easter eggs or Easter bunnies fit in, but Easter is a religious festival for many (with pagan origins we are told). It’s origins however seem to matter little these days, but what it certainly does mark is the ‘new start’, from whatever aspect we view it. Significantly, in the northern hemisphere, it also marks the end of winter and the start of spring. And spring brings a new vibrancy to everything around us and in everything we do.

And in business too, it seems, shaking off the winter bleakness brings out a freshness of ideas, new plans, enthusiasm, renewed vigour and energy. So, this weekend, take a little time off for yourself, sit down in a quiet place, and think about those activities (both in your business and in your life) that might become the ‘geese’ that will lay your golden eggs this Easter.

Now go have a ’smart’ moment or two this Easter.
(and if you don’t know what the acronym ‘SMART’ stands for, tune in again later this month when we shall be exploring planning and ‘goal setting’).

Richard C