SME Blog

An absolute mess

As president Obama takes power in the US we must all hope he achieves as much success tackling the current crisis as in his internet campaign.

Over the last couple of weeks I’ve spoken to many people in the business world.  High level individuals working in the inside of banks, highly successful business owners, respected financial experts and leading professionals.  The one common strand is that we all agree that the situation is an absolute mess.  I'll add my own view is that it is only a matter of time before the UK starts printing money. With this in mind I thought a little light relief was in order.  The video gives tips from Monty Python on how to raise finance in testing times. 

Pivot tables - Excel training

As the downturn cuts there is the evitable squeeze on budgets.  Not surprisingly, for many companies the training budget is on the list to be slashed.   However, there are smart ways to train staff at next to no cost.

For example, Emily Coltman got in touch with me to point out a series of Excel videos that can be obtained for £7.50 (plus VAT).  Add to this piece of information that the cost covers all users in a company then the £7.50 represents superb value.  

The topic of the videos is Excel pivot tables.  If you use Excel regularly then this is a vital topic.  It does have an air of mystery to those not in the know, but is an indispensable skill once gained.

To conquer the topic there are four videos (each less than five minutes) together with supporting spreadsheet and manual.  It is a very clear and concise approach that is a winning formula and at £7.50 it certainly won’t be a drain of the budget.

You can find out more at Glen’s Feechan site at http://www.feechan.co.uk/index.htm?page=excelvideotraining

Simon Hurst Excel Guru

If you are a budding Excel guru or you want to be able to achieve more in Excel faster and quicker then an online visit to Institute of Chartered Accountants in England & Wales can help.  There you will find the Excel Guru in the form of Simon Hurstat their online network IT Counts.

A selection of Simon's tips are listed below:

Useful Excel shortcuts
Office IT Quick tip – Excel data entry
Did you know? Random MS Office tips
Excel and instant year ends
Part 2 – the best ever Excel tip?
Excel functions: MATCH(), INDEX() and the Lookup Wizard
Roadshow day 4, Lancaster - Excel's OFFSET() function

Simon's tips come in bite size chunks at IT Counts.  The online approach works well as many tips include animated screen shots which aids in grasping the concepts. The tips are also permanently online so if you forget a point then the answer is just a click of the mouse away.

If this has given you an appetite for more of Simon's tips then clicking on the link below.  You will have to join the IT Counts online network first - membership is free and open to all.

Simon Hurst's Excel IT Counts Posts

Note:  Once at Simon's web page select "All Dates"

The good, the bad and the entrepreneurial

I have a lot of admiration for entrepreneurs.  It can be tough and stressful road creating a business that will grow and last.

Over the last 18 years I've worked for both small entrepreneurial businesses and large established organisations.  Small entrepreneurial businesses are one of the most exciting to be involved with despite being hugely challenging.  Fresh and innovative ideas are often brought to life in a free spirited and flexible environment. 

If you look at the table at the side you'll see typical key areas listed that are associated with an entrepreneurial business, but are they all good and are some downright bad?

The answer to the above is actually quite simple.  The truth is that it depends where the business is in its life.  For new small entrepreneurial businesses the above list is common, but as the company grows it needs to develop and change.  For example, with 3 employees the above list is just fine.  Multiple the employees by a hundred to 300 and with the above list melt down will result unless there is swift change in key areas.  Here is the rub of course.  As the business grows it needs to develop and change, but making change is a painful process and gets avoided.  However, you just cannot avoid change if you want your business to grow and there are methods to make it less painful.

   

Business growth. Luck or skill?

Fast growth SME's are not the norm.  Quite the opposite, per the FT, two thirds of starts up have gone under by year 7.  So what do the fast growth SME's have that the others don't is it luck or skill?

Luck does play its part.  Sometimes being in the right place at the right time can make a huge difference.  I've seen some of SME's biggest clients come from unlikely situations.  The odds of it happening were small, but possible.  I've also seen strong management teams being caught up in external factors just outside their control.  Even the best team can't prepare for the infinite eventualities the world can through up at it.  Sometimes it is just plain bad luck that strikes us all.

So luck plays its part for a growing business, but over the years I've become more and more convinced skill is underplayed.  What do I mean by that? I mean there is an enormous amount that the majority of SME's can do to improve their odds of growing and becoming more successful.  What this entails I'll be covering over future posts this year.

 

ICAEW IT Counts wins award

If you thought that the words innovation and accountant never belonged in the same sentence then it is time to think again. That's what I said in March 2008 about IT Counts a new online network launched by the ICAEW focused on IT, but with a strong business slant.

I'm not the only one with that view as IT Counts has just won Best New Web 2.0 Initiative at the Web 2.0 Strategies 2008 event in London chaired by Euan Semple. 

A look at the current statistics for the site shows:

Community Statistics

3197           Users
169             Posting(s)
394             Comments

The comments to post ratio of 2.3 is a good sign for a new community especially one not based on the forum Q&A approach, but in providing longer blog posts.  The user numbers are also encouraging given IT Counts has only been going three months with no big publicity launch and is an online network for Chartered Accountants where IT isn't normally their main focus.  Perhaps most encouraging is that feedback received from members on the site is very positive.

I've been lucky enough to be involved with the ICAEW's online network development and it has been a pleasure to see these first green shoots emerge so well. Congratulations to the ICAEW for being forward thinking and having the mettle to launch IT Counts at a time when most organisations still haven't woken up and grapsed the benefits of online networks for business.

Reputation and the SME

Reputation is considered to be important, but why?  First of all I’m going define what reputation is.  I’ll take Steven Nock’s definition as “a shared, or collective perception about a person.”

I would take the word person to include a legal entity such as a SME company.  Also note the word perception.  It is quite possible for a good person to have a bad reputation.  It is also quite possible for a company to be trading on its past reputation, but delivering at a lower level than its competitors.

Daniel J Solove in his book The Future of Reputation notes that “We have a lot at stake in our relationships…in many circumstances we look to people’s reputation to decide whether to trust them.”

For most of us trust is a very important ingredient in business.  This is especially true for the majority of SME's that obtain work through recommendation.  Anything that damages trust and reduces that chance of recommendation for the SME should be a real concern. Loss of reputation is without doubt a genuine business concern.

When it comes to reputation men and women have for centuries been concerned about their reputation and with good reason.  The opinion of the individual’s community could be a matter of life or death for individuals such as “witches” that did not fit comfortably within the norm.  Whilst the consequences of reputation damage are unlikely to be as dire in the modern business world the means of the damage are similar and often result through:

1.    Reputation damage brought about by untruths and dubious data,
2.    Reputation damage by shameful behaviour or action that doesn’t meet the norm being exposed.

One strategy to avoid reputation damage is to keep a low profile, but given that a good reputation can help build trust and bring businesses keeping a low profile for a business is not always the best approach.

My own take on the situation is that the internet is bringing with it transparency and also leaving a trail that is likely to be semi-permanent.  The approach I can recommend is to be involved in something where you really strive to deliver and of which you are personally genuinely passionate.  It should reduce the risk of point 2 above and with any luck your business will have some supporters to stand up to any nonsense from point 1.   

My favourite Excel function

I'm a self confessed Excel junkie.  I've tried other spreadsheets, but to me they just don't have the flavour of the real thing.



The Excel vlookup function is rather useful.  If you look above you can see it in action. 

In this example, we have a table of sales budget figures for each month (in green).  By changing the month number in cell D2 (in red) it gives the corresponding sales figure for the month in cell D6 (in blue).

To do this all that is required is the vlookup formula as follows:

=VLOOKUP(D2,F3:G14,2,false)

So what does that actually do?  The function looks up the value in D2 and looks for it in the first column in cells F3:G14.  It then returns the corresponding value in the second column.  Our our example the second column is the sales budget column.  Adding "false" just ensures that Excel looks for exact matches.

Our example is quite simple, but it does give a taster for what is possible with the vlookup command

Spotting the trends

Google Trends is a fascinating free tracking tool.  The EEE PC is currently getting a lot of attention in the UK so I will use that for our first example.  Google Trends gives the first graph below.  This shows the searches for a chosen term relative to the total number of Google searches as displayed over a period of time.   If we look at the graph Google Trends creates then we can see that the EEE PC is currently a hot topic.

Now let us look at the Google Trend data, but this time compare three different topics.  I'm going to pick up on Microsoft's current interest in Yahoo and use Microsoft, Yahoo and Google as my search topics to give the second graph below.

One look at this graph reveals why Microsoft are so interested in joining of forces with Yahoo.  Of course Google Trends could be viewed as a toy and Google do give some disclaimers on it, but it does show a side of online technology that I believe will come more to the fore in future.  The politicians at the very least will always want to track the trends.  Try it for yourself at www.google.com/trends.

ICAEW launches IT Counts - a world first?

A new online network has just been launched called IT Counts.  Whilst you may be familiar with Facebook or Myspace this one is different.  What makes IT Counts different is that this online network is provided by the Institute of Chartered Accountants in England and Wales (ICAEW) and Microsoft.  If you thought that the words innovation and accountant never belonged in the same sentence then it is time to think again.

ICAEW IT Counts is focused on practical business IT.  The site is aimed at the general individual. It should also interest the technophile as IT Counts sets itself apart from the flood of technology sites with its strong business slant.

You may be wondering why Chartered Accountants need an online network dedicated to business IT.  The answer is simple.  The Chartered Accountant is no longer the stereotypical bean counter and an awareness of technology is a pre-requisite in a modern business environment.

IT Counts is packed full of Web 2.0 technology and uses the Wordframe platform. I've been lucky enough to be involved with the ICAEW's online network development together with Dennis Howlett, David Terrar and many forward thinking individuals at the ICAEW (more on that later).

The initial launch is restricted to ICAEW members, but that is expected to change.  This leaves the enticing prospect of the ICAEW as a professional member organisation hosting a virtual room that includes itself, Microsoft, CA's, technology specialists together with other business professionals and owners.  I  may be wrong, but as far as I'm aware that will be a world first.

Workflow using stickies

Most small companies act as a team rather than a machine. When a small business grows to a mid-sized business then workflow starts to become a serious issue.  Tasks will be naturally delegated and the business owner starts to become more detached from the everyday detail.  There is a danger point in losing control and inefficiencies can easily occur as it becomes more difficult to coordinate business processes.

If you can think of one process in your business that you particularly need to control and coordinate then it may be time to take the stickie test.  The stickie test is a keep it simple approach using small paper stickies.  As an example we will take the process of producing a report for a client.  On each stickie you need to put the step in the process and who is doing it.  In our example, we would have the following steps:

1.    Creating the report - Mr Creator
2.    Reviewing the report – Mrs Reviewer
3.    Second review of the report – Mr Signoff
4.    Delivering the report – Mr Signoff

We have defined the process steps and the order.  A quick look at the process and we can see there may well be some loops in the process where the work goes back to Mr Creator for amendments and changes.

You may well find your particular process is far more involved than our example, but just creating stickies as above will give a quick insight to improve a process and make it more efficient.

Work life balance

In the words of one entrepreneur:

"Yesterday I was sick as a dog. But my business partner was out of town, so I had to go in to work. I was supposed to have a nice steak dinner with my wife that night. All I really wanted to do was curl up by myself on the couch..."

The above quote comes from Jeff Weinstein in an article in BusinessWeek.  Jeff is trying to solve the problem of the work life balance.  Good luck to him.  My hand is up, this is one problem I can't ever seem to quite crack.

Life can be incredibly rich. I find there isn't enough time to do everything well and make it fit neatly into one box.  Jeff however thinks he has cracked it.

He's tried all the traditional methods such as budgeting time and not bringing work home, but that has not worked.  He is now taking on the 21st century solution of being flexible and realising that work is no longer 9 to 5.  Now Jeff takes some leisure time during the 9 to 5, but works in the evening when required.  The odd email or phone call at 8pm shouldn't be a problem.  He discusses his work much more with his wife in the evening.  By the end of the day he's completed all his tasks.  Eureka! It is early days but Jeff thinks he has cracked the work life problem. The 21st century approach of flexibility works after all?  Not a chance.

The reason it is working for Jeff is that it is early days.  He has not yet established a pattern of working in the evening.  Once he does he will also establish an expectation on the part of the people he is working with.  Soon they will be expecting that Jeff respond in the evening and will be disappointed when he doesn't.  Work can be a bit like traffic sometimes.  It fills up a new motorway or freeway almost instantly.  I hope I'm wrong, but I expect a return visit to Jeff in two years will see him working harder than ever.

I remember watching Tomorrows World in the 1970's and being given the message that we all have more leisure time in the future.  It hasn't really turned out that way and that message has been well and truly trashed.

From the customer point of view this is of course good news.  Why can't the customer have instant response and extended hours.  It is a benefit that Jeff is available from, say, 8 to 8.  Why shouldn't a customer get this service? Like it or not that is the way the world is moving and the work life balance problem is becoming larger.  It is one problem that SME Blog certainly wants to crack.

Ever had an unintentional sabbatical?

Yes, the unintentional sabbatical is over. Oddly, whilst I've been away I've had some good web stats.  Before I get too paranoid about the value of my (lack of) contribution, I should thank Google for frequently listing SME Blog on page 2 on its search of "SME".  My contribution is clearly nothing compared to that of Google.  It goes to show it is not always what you know, but...

What have I been doing?  Well, the really exciting bit is the twins have turned 4 and just got new bikes. A bit of tension as one is better than the other at cycling, but - hang on this is SME Blog not Twins Online. Ok, I've been looking at strategic issues for external and internal stakeholders.  Mmm, not sure that quite explains it either.  Ok, I've just been REALLY BUSY.

Anyway, it is good to be back and thank you my dear reader for not giving up on me just yet.

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Does the UK government understand the world we live in?

Every UK family with a child under 16 is currently at risk. Where are the two data disks with the personal data of 25 million citizens? No one knows. MI5 and the police are no doubt on the case. Let us hope they get there first and the disks don't fall into the wrong hands. There is a real risk that the data will become the property of identity fraud gangs. Worse still our children on the lists could be targeted by gangs of a different kind.

Normally, I try to see the other point of view and be fair minded. On this matter I'm struggling. Whilst SME's have to make do with limited resources the government has huge resources. Whilst I see many SME's that are innovative and understand the IT world we are currently living in, I have huge doubts now about the government. This is jaw dropping incompetence.

We're told a junior official posted the data discs to internal audit. This is staggering in two respects:

1. The junior employee had such easy access to the data;
2. Internal audit requested it in this format.  Even with internal mail the existence of these two data disks outside a secure environment is a risk.

I can only come to the conclusion that when it comes to IT privacy the UK government does not understand or want to understand the world we live in.  No doubt they are rightly going to receive a very painful 21st century lesson.

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Basking in the warm glow

A big thank you to Accountancy Age.  I'm basking in the warm glow as for the second year running my firm, Goodman Jones, won the Accountancy Age Award for Best Use of Internet: Practice.

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Project management made easy

If you have ever been involved in a SME project then the chances are you have used Excel.  For all the sophisticated project management tools available Excel has the advantage of being familiar and easy to use. 

Getting new users to learn project management software is a problem.  For the average person in a SME the regular job will still need to be done.  Placing the project on top will increase the time pressure.  Small wonder that the thought of learning new project management software is unappealing. 

For the project manager Excel is not the best tool.  There will be a constant round of emails to update tasks and the timeline created in Excel.  Different versions will be passed around and there is no instant view by the project team of the level of progress.

A good solution would be an online tool that organises tasks and creates the project timeline automatically.  All users are able to log on via the internet and the administrator can set the system to send automatic email reminders for tasks to be completed.  Once the task is completed the user logs into the system and clicks their task box to say it is completed.  All users then have an instant view of the progress to date. 

I've been looking for a system that will do the above AND be very easy to use.   Wrike is the closest I've seen (thanks for the tip Daniel).  It is not prefect, but it is very good.  It is extremely easy to use and if you're undertaking an SME project coming then it is well worth finding out more.

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FreeAgent Central

Technology consultant Ed Molyneux found he was frustrated with the time taken keeping track of expenses and raising invoices on spreadsheets.  For one and two person service based companies he found the accounting software wasn’t easy enough for non accountants. 

Ed founded FreeAgent Central an online service for small service based SME’s to deal with their financials.  What I found extremely interesting is Ed’s comments he made in an interview with Tom Raftery on blip TV.  Here are a few of his comments:

“Quite hard to do some simple things …sharp contrast to the rest of the way we’re running our business which is using technology and the internet”

“Accountants are offering a very valuable service.  Clearly there is a lot of information out there which you need to understand to run your business.” 

“It seems to me a lot of stuff they are doing is stuff that could be automated.”

I agree with all of the above.   Ed clearly realised that in addition to automating processes the online service must be as easy to use. 

This focus on usability is an extremely important one as both Amazon and Google know.  Most business owners don’t want to be confronted by the cockpit of Concorde when they open up a new piece of software.  In my experience they want something that is easy to use and gives instant benefit. 

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....and other times things go well

Last year my firm, Goodman Jones, won the 2006 Accountancy Age Award for Best Use of Internet by a Practice.  We've also recently been short listed for 2007. 

Accountancy Age has a strong online presence, but from a personal point of view I like informal comment.  It's therefore refreshing that their Editor On Chief, Damian Wild, reveals his thoughts through his blog.  If you're in the profession it's certainly worth a read.

I'll be at the Accountancy Age Awards on 14 November.  Last year in turned into a bit of a bloggers convention with a chance to finally put faces to names.  I'm hoping to see some more new faces this year.

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Sometimes things just go wrong

Even with the best will in the world sometimes things just go wrong.  The other day I tried to log into a Ning social network and it was down.  Instead of being annoyed I looked at the picture (below) and smiled.  We are all human after all, except perhaps for Ning's technicians.  The technicans did a wonderful job and the site was up and running again in no time.

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Online delivery of services

The online delivery of services is a concept that it still new to most people, but is well on its way to becoming mainstream.  The online delivery of services is known as software as a service (SaaS).  Rather like a mobile phone package the customer pays (usually a fixed monthly amount) for what they need.  The software is hosted by the provider. Good examples of UK providers are Twinfield and FreeAgent Central.

With the technology revolution I have always thought that the online delivery of services was such an obvious approach.  To be able to dip into the information anytime and anywhere seemed the way forward in age where instant access and more flexibility are demanded. 

On the other hand the online delivery of services reminds me of the early days of the ipod with those in the know getting the benefits and the rest of us wondering what an earth the white box is.  In other words, we are the equivalent of the first generation ipod stage.  That looks all set to change.

Why? Firstly SAP are launching Business By Design and secondly other software vendors are moving significantly forward in this area.  You can find out more about Business by Design at Dennis Howlett's blog, but if SAP deliver then there is no doubt in my mind it will be the most significant piece of financial software the M in SME will see this decade. 

Finally, McKinsey have produced a good analysis of the SaaS market.  It is free to view after a login process and points the way forward to how the SaaS landscape may look in the second and third generation stage evolution.

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Work life and home life

Following on from the 9-5 post there is growing evidence on how our work life and home life are blurring.  Best Practice Magazine  highlights research that shows 31% UK finance professionals take the office with them on holiday via a laptop or handheld computer.

It doesn't surprise me.  Emails, mobile phones, 24-7 shopping - the desire for immediate response is ever increasing.  Technology is changing the whole dynamics of how we all work.  In many ways that can be liberating as there is no need to be chained to a desk to deliver results.  The flip side to that can be CrackBerry addiction.  The bottom line is we are going to all have to deal with it. How do we do that?  I think it comes down to a blend of good technology, business structure and expectation management.   

 

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Great success whilst being a 9-5 person?

Running a SME is a consuming affair.  Have you met anyone who has achieved this with great success whilst being a 9-5 person? 

For most people success requires hard work and effort.  A comparison with the sporting world and we see even naturally gifted athletes have to be driven and put in the extra effort to get to the top.  The same could be said of becoming and being a partner in a firm of Chartered Accountants.  According to the article in the Observer, Scott Cormack, a partner at KPMG, certainly worked hard.  70 hour working weeks were common.  The resulting stress is thought to have contributed to two broken marriages and prostrate cancer. 

It is never easy is to obtain a good work life balance whilst driving for success.  However, I do believe that the workflow and culture of an organisation makes a huge difference.  Good workflow saves time and an open culture means not being chained to a desk to deliver results.  The aim being to achieve more from the effort put in.  In an ideal world this would be enough, but the reality is for most successful SME owners there are times when you are going to have to work painfully hard.  Just try to avoid doing it all the time.

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Social networking and the entrepreneur

For entrepreneurs social networking has enormous potential.  With each technology sea change comes new opportunities.  Small businesses such as Google and YouTube have grown to major global concerns.  Try to think of traditional sectors where this has happened in the last 15 years?

For an insight into social networking I recommend listening to the Standford Entrepreneurial Thought Leaders podcast.  It features, amongst others, the key individuals form Facebook, Myspace and Ning in a panel discussion.

I find it hard to think of non technology sectors where this kind of cooperation and openness would happen.  A more cynical view would be that this particular cake is more than big enough to share.  Whatever your view, the expectation is social networking will become part of our lives just like email and mobile phones.

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KPI's - Non financial

Ask an accountant about KPI's (key performance indicators) and invariably you will get a list of financial KPI's such as average debtor days and gross profit margin.  These are all well and good, but it is really only half the story.

As a small business grows to a mid-sized one the business owner starts to become more detached from the everyday detail.  Business tasks will need to be delegated and this is where non financial KPI's are particularly useful.

Non financial KPI's on business processes allow managers to measure how well their business is running.  An example KPI is the Perfect Sales Order. This is ability to deliver to the customers' requirements without any issues.  A low result could be due to delivering late, the wrong quantity or damaged goods.  In a mid-sized business it is expected that the managers will be aware there is a problem.  However, by representing the problem as a metric that problem can be measured and goals set to improve performance.

Nadim Razvi from SAP got in touch with me and pointed me to their KPI's wiki.  Well worth a look as it contains a good selection of non financial KPI's.

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Share

The 21st century is one of too much information.  We are living in an era of information overload.  On the other hand finding information on something you care about can be enriching.  A good example of this is tracing a family tree.  Recently my wife, Sue, did this and it is moving to find out about the life struggle in generations past.  Most of the vital information came from the community, from individuals sharing information they had found.  Pieces were linked together in months that previously would have taken years. 

In business the same principal can apply.  Online communities can provide a useful space where relevant information is shared for the benefit of all.  Reuters have one for the Carbon Community and there is no doubt we will see more.

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Online community for a fiver

I know I’ve been away a while, but I’ve not been idly sitting in the garden (with our UK rain?).  No, I’ve been lost for a month in the world of online communities.  Busy on Ning, Blogtronix, Terapad and of course Facebook.

A while back Gary, the Pastor, at Montpelier Church bumped into me at the twins Parents and Toddlers group.  Gary is a lovely chap and if anyone can get me back to church it is him.  He’s young, down to earth and is not afraid to be innovative.  The conversation led to the church’s website.  What should we do Gary asked?

Montpelier is a small church and unlike large companies really can’t afford a big outlay on a website.  On the other hand as well as needing a traditional website the church very much has a community that could be brought together online.  Question was how to give Montpelier a new website plus Web 2.0 blogs, forums and events?  And how to do it all at very low cost?

The answer was actually very simple we used Terapad and it cost £5 (for half a dozen graphics from iphotostock).

You can take a sneak preview of the finished article before its official launch on Sunday.

There will be more later on our technology on a shoestring approach.

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The family business

BusinessWeek have produced another of their informative slide shows, this time on the family business.  It gives a brief insight into 6 American family businesses.

One quote caught my eye from the Fernandez-Montes family:

“When my parents came to the U.S., they thought if they worked hard for a big company, they would be treated well, have a pension, and live the American Dream,”

“But my cousins and I see ourselves being safer and more secure when we’re the captains at the helm.”

It is not a given that running a family business will be safer. However, the captain at the helm does indeed set his own course. For a family business the ship may be quite small compared to some, but it is likely to be more agile.  If you are captain at the helm then there is the possibility to explore new waters which can be enormously satisfying and enriching.

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Web 2.0

If you are curious to find out what Web 2.0 actually means then this video is a good place to start. The fuzziness disappears when the video is played.

As the video mentions Web 2.0 is about linking people.  The online social networks and communities are quite possibly the most exciting development of internet technologies. See ning for just one example. 

My thanks go to Justin Dean for pointing the video out to me.  Justin found me via the Terapad post below. Interestingly, I then found Justin via the community link on the right hand bar of this blog. Thanks Justin.

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Terapad

How much would you pay for a new online presence?  Not just a traditional website where you have a content management system to edit and load content, but one that allows for a blog, discussion forums, rss feeds and the ability to accept payments? Add that it is brain dead easy to use and it starts to look tempting.  Rather brilliantly, Terapad give it to you for free.

I love this system. It is perfect for the small business or not for profit.  Use their templates or create your own look. A little outlay on design and you can easily make your site something quite special. 

I was expecting support to be non existent when I sent an email query.  Instead, I got a fast and enthusiastic response and a simple answer to my query. 

Terapad is well worth investigating and it is refreshing to see a system that is actually far better than the marketing that promotes it.

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MYOB and 21st century business thinking

MYOB are fascinating example of a business thinking in the 21^st century rather than the last. MYOB are traditionally seen as a provider of business software with strong sector strength in the accounting profession. In the accounting profession they occupy a position of trust. Their name and their products are extremely well known.

Technology has done a great deal to remove geographical restrictions with routine tasks being outsourced away from the UK where costs are far lower. The benefit to the company outsourcing should be reduced cost, the ability to deal with peaks and the ability to specialise in higher level areas. For this to work you need to trust the provider that they can deliver and provide work of high enough quality. MYOB have obviously given this some serious thought because they now not only supply business software they also provide an outsourcing service to their clients.

In short they have:

I recently met MYOB's David Clough who is leading the charge. David is very knowledgeable and a quick preview indicates that much thought and time has been given to making the service work well for their clients.

Technorati Tags: small business medium sized business sme smb blogging accountants  sme-blog  technology

New media

Media and technology make for an exhilarating mix.  The new media has allowed companies and organisations to engage with their customers in new ways.  Business sectors known to be traditionally conservative now have blogs and podcasts.

The technology used does not replace the age old media requirement for good content.  A good demonstration of the importance of content can be found by considering the BBC.  The BBC uses technology as the tool with which to deliver its content.  The BBC website provides more than just news it also provides online radio, video and podcasts.  Recently it was given the green light to put television content online by the Trustees. The BBC has an awesome archive of content and the potential revenue streams that could be generated in the future from this new media property are enormous.   

The SME doesn’t have the BBC’s content (or web hits), but it still needs good content to attract its  target audience of customers and potential customers.  That may sound obvious, but how many website projects concentrate on graphics, layout and the technicalities of how to load content without much thought to the content itself?  Very often the content is the customer’s job.  Unfortunately, it turns out that the customer may be an excellent distributor (say), but is not such a wonderful writer.

Writing good content is hard work even with professional help.  Why bother?  Isn’t the cost of writing the content greater than the benefit?  Absolutely not!  Writing good content for SME’s is about finding out what customers value and care about.  Anytime spent understanding your customer and demonstrating the fact is always going to be time well spent.

Technorati Tags: small business medium sized business sme smb blogging accountants  sme-blog  technology

Excel guru

Simon Hurst of the ICAEW's IT Faculty is undoubtedly an Excel guru.  He has some excellent Excel tips that he shares online at his new blog, the Beancounters Guide to Technology.

The benefit of the online approach is that Simon has, rather neatly, included animation as well as screenshots and text.  Well worth a look.

Technorati Tags: small business medium sized business sme smb blogging accountants  sme-blog  excel

A moment in the sun

Recently the weather in the UK has been wonderful and we've had our moment in the sun.  By some strange coincidence so have I.

First there is a profile article from Liz Loxton of Best Practice magazine and then a mention in AccountancyAge by editor in chief Damian Wild.

Damian manages to mention accountants and rapper Vanilla Ice in the same article.  Quite a feat.  It's also good to see the Wiki Wednesday event get such a favourable mention.

Liz's article gives my views on using technology at work and to benefit business.  As a professional journalist she does a much better job at explaining it than I ever could.

Moment of glory over and it's back to making the teas. 

Technorati Tags: small business medium sized business sme smb blogging accountants  sme-blog  technology

Technology vs staff cost

Occasionally, as part of work, I get out to the odd awards ceremony.  The last one was the Financial Sector Technology awards in Park Lane.  This is very much an event for large companies.  Big IT teams.  Projects with budgets of £100m are quite possible. Normally, not my kind of event, but we were nominated this year.  RBS won, but the event was worthwhile as I got to meet fellow SME nominee Paul Turner from Advantage Finance.

That's Paul in the picture (right) with comedian Fred MacAulay. Paul's a lovely guy who deserves a lot of credit for saving his SME some serious manpower time - three people full time.  He helped turn a largely manual process into an automated one by the use of a redesigned website; reducing manual processing and unnecessary duplication.

Paul's SME is not the only one that can benefit by the use of technology to save costs. In the past this type of technology was only cost effective for large companies, but costs have fallen dramatically.  Staff cost (especially in the UK) is now often more expensive than the technology.

Technorati Tags: small business medium sized business sme smb blogging accountants  sme-blog  technology

Blogger beats accountants

Last July SME Blog posted on Catherine Sanderson and her blog at La Petite Anglaise.  She got dismissed from the Paris branch of accountants Dixon Wilson as a direct result of her blog. 

Google search Dixon Wilson and you’ll find her story on the first page.  On top of this she has just won compensation for her dismissal.  It all adds up to a total PR disaster.

This illustrates the dangers of not understanding how business is changing through new technologies.  It is going to be harder and harder to hide what really goes on behind closed doors.  That’s not a problem if you are proud of what you do, but beware if you are not.

Check out AccountingWeb for a further business persepctive.

Technorati Tags: small business medium sized business sme smb blogging accountants  sme-blog  technology

Budget 2007 - the good news

The good news for UK SME's on the budget is on VAT.  The cash accounting VAT scheme can now be used for businesses with an annual turnover limit up to £1,350,000 from 1 April 2007.  Currently the limit is set at £660,000.  That's a huge increase.

The VAT cash accounting scheme allows you to account for VAT (output tax) on your sales on the basis of payments you receive, rather than on tax invoices you issue. However, if you choose to use the scheme, you can only reclaim the VAT incurred on your purchases (input tax) once you pay your supplier.

This is good news for businesses with large trade debtors and good news generally for cashflow.

Technorati Tags: small business medium sized business sme smb blogging accountants  sme-blog  tax

Angry SME's

SME owners are angry with UK Chancellor Gordon Brown. Why?  Corporation Tax for small UK companies is going up in stages from 19% to 22%. 

Check out the recent BBC article on the tax rises.  The comments are from real people at the sharp end running their businesses. 

Raising taxes is never going to popular, but raising taxes for the small companies whilst corporation tax is going down for the large companies is rubbing it in.  Cushioning the blow are accelerated tax allowances on capital expenditure, but not all small companies need substantial capital expenditure each year.

The real pity for me is the lack of a strong voice for SME's.  You can bet there would certainly be a lot more uproar if the increases hit the large companies instead of the small. 

Technorati Tags: small business medium sized business sme smb blogging accountants  sme-blog  tax

Shared content

There is a vast amount of content being published and it is increasing. SME's risk drowning in a flood of information. Any organisation or blog that can deliver content that is relevant and valuable to us will flourish, but to remain successful they will need to adapt to new methods of distributing content.

Google know this and they are now much more than just Google search. Google Reader allows you to aggregate new content from websites in one screen using the Google Reader. Google call it "your inbox for the web."

Of more interest is the ability Google Reader gives you to share content. The below box contains content from a sample of 7 blogs I read using Google Reader. This is content that I find interesting. My hope is you will also find something new that is relevant to you.

Five years ago this type of content and its method of distribution just did not exist.  We are living in a technology revolution.  In 20 years time even this current method of distribution will be the technology equivalent of the black and white TV. 

A brief overview of the blogs included in the above Google shared box (click "Read more" in the above box for a complete list):

1. Accman - a mighty blog, essential reading for those interested in business and innovation.
2. Business of Martketing and Branding - if you think marketing is all about brochures then you really need to read this blog.
3. Business Two Zero - beyond the call technology insight with a unique business & marketing twist.
4. BusinessMatters - fellow accounting professional based in the English Lake District.  Good no nonsense advice (and I'm jealous of the new offices & lack of daily commute).
5. Eie Fluid - Heather's niche business blog.  Real life tales of running a small business.
6. Kite Blue - champion of the M in SME. Quite right, M's are constantly overlooked by the UK government where their SME focus tends to be on small businesses.
7. Tax Research UK - a unique blog that focuses on ethics and taxations. Yes, it is possible.

These are just a sample of some of the great blogs I read.  Many more are out there producing great content. 

Technorati Tags: small business medium sized business sme smb blogging accountants  sme-blog  technology

Reading ease

The Flesch Reading Ease test is designed to indicate how difficult a reading passage is to understand.  Higher scores indicate material that is easier to read; lower numbers mark harder-to-read passages.

I did some quick tests and found that a typical informal blog has a score of about 50 to 60, BusinessWeek scores from 40 to 50 and The Times 35 to 45. 

You can try it for yourself with a reading ease calculator at Online Utility. More importantly test it on your writing and get an online score on how easy it is to read.

Technorati Tags: small business medium sized business sme smb blogging accountants  sme-blog

Hello Alaska

Hello Alaska, population 660k and rising.  Welcome to SME Blog London, population 8m and overcrowded trains. 

If SME Blog can reach Alaska then anyone can.  It shows that SME's can have a worldwide marketing reach.  Your local niche now has the potential to be a worldwide niche.

Technology is breaking down geographical restrictions and not just for business - last year 1 in 12 newlyweds in the US met online .

 

Technorati Tags: small business medium sized business sme smb blogging accountants  sme-blog  Alaska

Philip Woodgate

Quote of the month

"The best way to explain a wiki is to look at one and use one yourself"

It certainly worked for me.

Technorati Tags: small business medium sized business sme smb blogging accountants  sme-blog

Wiki event

I don’t think anyone was expecting such a good turn out at last week's Wiki Wednesday technology event organized by David Terrar at GJ.  Normally, you get drop out.  I was expecting about 25.  We got drop in and around 40 people came.  If nothing else it demonstrates the interest in wiki’s.  Rightly so in my opinion, this is no brainier technology that is breaking down geographic restrictions on how people interact.

What is a wiki?  A wiki is a website that is as simple to edit as it is to read.  This makes a wiki a perfect online collaboration tool.  A wiki can be a complete repository of knowledge that evolves as a business grows.  Just think of all the emails that get lost in space, especially when the team changes over time.  The benefit of a wiki is that it can capture all the vital information to benefit new team members as they join. 

Clearly, it is not only businesses that can benefit.  A wiki can benefit any type of social interaction not least as a tool to raise awareness of social issues.

You can find out more details on the event and the next one at Microsoft on the events very own wiki.

Technorati Tags: small business medium sized business sme smb blogging accountants  sme-blog  technology

Philip Woodgate

Podcast - Peter Rogol

It’s easy to add video content to this blog.  All you need to do is cut and paste some HTML code into the blog article to be posted.   Websites, such as YouTube, provide the HTML code. 

The HTML code looks like this:

<p><object width="425" height="350"><param value="http://www.youtube.com/v/SOsWniPgA8M" name="movie" /><param value="transparent" name="wmode" /><embed width="425" height="350" wmode="transparent" type="application/x-shockwave-flash" src="http://www.youtube.com/v/SOsWniPgA8M"></embed></object>

The same principle applies to the below podcast by Dennis Howlett. The MP3 player and podcast were created using HTML code provided by ClickCaster.  It’s a great method of sharing podcasts. 

This podcast is a conversation with Dennis and Peter Rogol.  I work with Peter and here he shares his thoughts on how entrepreneurs should deal with the mountain of bureaucracy and compliance they face in the 21st century.

Technorati Tags: small business medium sized business sme smb blogging accountants  sme-blog  technology

Philip Woodgate

Multi touch screen

The Jeff Han's multi touch screen has certainly moved on since SME Blog last looked at it back in November.  The video really says it all: 

Thanks to David Terrar for pointing it out.  Imagine if all Vista machines came with this?   

Technorati Tags: small business medium sized business sme smb blogging accountants  sme-blog  technology

Philip Woodgate

Keep it simple

I have an overriding philosophy in life of trying to keep things simple.  It’s a good philosophy, but the problem is this:

It’s easy to make simple things complicated

It’s hard to make complicated things simple

A complicated problem can be broken down to something simple.  It’s a case of breaking the problem up into small easy stages.  It takes time, but the benefits are worth it.  The big mistakes tend to happen when people don’t understand what they are doing.

This technique works well when you can apply logic.  Don’t use it for relationships (that needs the Sorry technique).  It also doesn’t work with the UK tax system.  Applying logic to the UK tax system to solve a problem is a dangerous game played with loaded dice.  The UK tax system is renowned as one of the most complex in the world.

Imagine then my surprise when I found out there is a Dummies Guide to Paying Less Tax 2006/07.  Quite amazing; I’ve ordered a copy to find out more.  Do they skate around the complex issues or break them down. Do they say "it depends". I would have loved a copy 18 years ago; it would have been a joy to witness the reaction from the Old School partners.

Technorati Tags: small business medium sized business sme smb blogging accountants  sme-blog  tax

Quote of the month

"Good heavens, where did January go?"

Time certainly does go faster as you get older.  Normal service will resume in February. 

Technorati Tags: small business medium sized business sme smb blogging accountants  sme-blog

Retail and the Good Life

A long break was just what the doctor ordered and now the New Year has well and truly begun it’s a pleasure to get back to the blog.

While I’ve been away Tesco have been hard at work.  Not content with their shops being open day and night for most of the Christmas Break, this retailer also has a new website called Talking Tesco.

It’s a fascinating concept; a content rich website completely dedicated to gathering views from the public on Tesco and the company giving a direct response.  Let’s not forget that Tesco takes 30 per cent of everything spent on UK groceries.  Is this a case of Tesco being innovative and leading the way to get a real understanding of their customers’ needs and concerns?  Mmm, well not exactly. 

Taking Graham Hoenes comments he must think it is more of a place to worship at the church of the holy Tesco than a place for balanced and informed views. He comments:

“They should rename it Talking B****ocks”

Tesco view it more of an opportunity to “put the record straight”. 

Depressingly anyone wishing to leave a comment on the Talking Tesco site must first agree to their legal terms and conditions.   The entire site has the feel of a PR vehicle to promote Tesco and help its case before the UK Competition Commission.  However, it is an indication of how large companies are adapting and using new technologies to communicate with customers.

On a lighter note one couple will definitely not be in any rush to visit Tesco.  They are taking the route of self sufficiency.  Noteworthy in this case as they actually live in the original property used in the Good Life series.  For those who don’t know this comedy series contained four of the UK’s best loved actors and actresses and made self sufficiently famous in the UK 30 years ago.   

I remember watching the series thinking the whole idea of self sufficiently was quite barking mad.  It’s strange that with the Eco and Organic movements how things have changed.

Technorati Tags: large business sme retail blogging accountants  sme-blog  technology

Philip Woodgate

Medium-sized companies by industry type

What industry types are medium-sized companies per the UK government?  The answer can be found on in the data on the Small Business Service website.

I've created a graph of the top 25 industry types based on the governments coding structure and definition of an M being a 50 - 250 employee enterprise.  Guess what comes out top?  Other business services: Legal, accounting, auditing, tax, market research and consultancy. The 21st century business is living in a complex environment and as a result there is a sizable business services sector. Love it or hate it I can't see it going away.

To get a clearer picture of the graph click on the below picture.

 

Technorati Tags: medium sized business sme smb blogging accountants  sme-blog

Philip Woodgate

Quote of the month

"The only time I take the wrapper off the trade journal is to put it in recycling."

Do you feel the same about your trade journal?

Technorati Tags: small business medium sized business sme smb blogging accountants  sme-blog

Philip Woodgate

Excel tips

I should confess now. It's a problem I've had for some years now. I'm an Excel junkie.  It's hard to kick the habit as it's everywhere I go.  I've tried other spreadsheet brands, but they just don't have the depth and finesse of Excel.  To me they just seem like Excel Lite.  No wonder we're all using it.

I came across an Excel article in PC World called Who Knew Excel Could Do That? Ten Top Tips.  It's good, very good in fact.  If you are an Excel junkie or just an occasional user it is well worth checking out. If you're time poor then at least try tip 5.

N.B. Just in case you miss it (I did initially) tips 6-10 are on a second page clickable at the end of the first. 

Technorati Tags: small business medium sized business sme smb blogging accountants  sme-blog

Philip Woodgate