Sage Blog

I did it, the final cut of the grass before winter.  It’s always touch and go in October whether it’s going to be dry enough in Newcastle to mow the lawn one last time.  It got me thinking about what sorts of things small businesses might be up to in preparation for the coming season.

If you ask a person involved in accounting about stuff to do before the winter I guess it will depend on the industry. For retailers hopefully it will be one of the busiest times of year so they will be looking at getting their stocks and products right, but for barbeque distributors it’s likely to be time to either hibernate happy, or reflect and plan.  We’ve spoken to a number of UK businesses recently and here are some ideas on what to check before the coming winter…..

Image from miggslives/flickr

1.       Data storage

“Backups are done sporadically “ noted the MD at a timber merchant.  Maybe it’s a good time to tighten up on procedures – you don’t want to spend Christmas Day typing in last year’s accounts. A good example of an online backup service is Dropbox, which lets you save your files and documents in the cloud. You can set up your PC to sync certain files with your Dropbox account, which is a quick and easy way to automate your back-ups.  A simple online accounts service, such as our Sage One, will also take this pain away, as your data will automatically sit in a secure online location, accessible from anywhere.

2.       New income opportunities

An accountant we spoke to noted that “as a result of the recession customers are increasingly trying to have a number of income streams”.  This sounds similar to a recent Sage blog on how businesses could approach identifying new opportunities. A good source for some ideas is springwise.

3.       Remote working

If the snow causes as much chaos as it did last year, working from remote locations is going to be handy for business owners that never stop.  This is when running your business online (in the Cloud) with accounts software like Sage One, or keeping an eye on things with Sage 50 Mobile, will come in handy.

4.       The best deal

“Customers do haggle and our Reception have fixed prices they can discount down to, but no further”.  Speaking to a hotelier was a good reminder to always ask for a discount this season – the worst that can happen is the person says no.  “Shy bairns get nowt” as we say in Newcastle.  Learning how to negotiate is a useful skill for life generally.

5.       Clear, common team goals

A music venue we spoke to said that “every day we have a 15 minute ops meeting – all key people there – what is on today, complaints etc. Never more than 15 minutes.” A simple way of making sure that everyone knows what is their role in making it a successful day becomes even more important when mother nature makes life difficult.

6.       Collect the cash

A farmer we spoke to said that “cashflow is the biggest challenge – businesses are taking longer to pay”.   This isn’t the most original of tips in these tough times, but it’s worth saying again.  Look at your list of unpaid sales invoices today and pick one to call.  Letting the grass grow under your feet is less of a problem in winter, but keeping a close eye on who owes you money is necessary all year round.

Chris Stonehouse, The Sage One team

Having worked at Sage for over two years now, I’m acutely aware of the importance of culture, and also the physical environment I work in.

Admittedly, in previous roles before I joined Sage, I had an assumption that culture was an abstract ingredient that just existed. If there was any attempt to shape culture, it was usually handed down from senior people in the business, who tended to be very far away from me personally.

Probably not the best conditions to ensure success I’m sure you’ll agree.

An innovative approach to business

Something that is very clear from working at Sage, is that there is a very ‘flat’ structure to our culture. In other words, everyone from the CEO, to executives, to support lines and sales will afford you the time and opportunity to voice your ideas and contribute. The result is that ideas can come from anywhere, and this leads to a truly innovative approach to business, particularly important in a technology company.

Accountability

A culture like this doesn’t happen overnight though. It is bred over time, by empowering people, and giving them accountability. This is the hallmark of a business with a strong culture. However the intangible aspects (behaviours, impulses and decisions) are only part of the story.

A prevalent trend at the moment is to brand office spaces with the desired characteristics for employees to exhibit. This is something we’ve recently undertaken in Sage Accountants’ Division.

Aside from communicating desired behaviours, branding office space can also influence processes and how we communicate. For example, communal areas where people can talk mean that business can be conducted in a calm and relaxed manner. TV screens on each floor allow us to instantly feedback comments from our customers.

Innovative offices

A great example of a branded office space is Google offices, particularly the Googleplex in California. Walls are painted with bright primary colours reflecting the Google logo and fun, vibrant brand. Live searches that are being conducted around the world are beamed straight into the communal areas, highlighting global trends, and informing product development. There’s even a slide and a fireman’s poll! Evidence if any were needed that Google is a fun and innovative place to work. This also reflects a culture of innovation, where developers spend 30% of their time working on anything they like. Complete responsibility and accountability in action, and this results in a constant stream of new products like Gmail, Chrome, Wave and Circles. Granted, not all of them have been a resounding success, but they are prime examples of a brave and innovative approach to business.

Boosting creativity

You might not have Google’s budget but here are a few cheap and cheerful things you could do in your office to boost creativity:

• Always focus on the desired characteristics of the brand – Are you repositioning the brand, or simply maintaining what you already exhibit? This should form the essence of the branding in your office space.
• Involve your employees – There will be certain degree of control needed, but always ensure that you encourage content and ideas from your employees. It’s where they will be working after all.
• Refresh your content – Try and stay on top of refreshing the messaging in your office. Strategic plans have defined stages, so ensure you have the right message at the right time.
• Be brave and innovative – It’s not just customers who like innovation, employees thrive on it too. Try and incorporate original ideas and media into your office. It’ll get high levels of engagement.”

What is clear from all of these activities is that they are the starting point for delivering exceptional customer service. If you focus on and take care of your staff, they will be in the best position possible to offer customers superior service, and also extoll the virtues of the brand.

Having empowered our staff in Accountants’ Division, we’re starting to see results, like winning the Customer Service Training Award this year, and also signing up our 10,000^th Sage Accountants’ Club member, so long may this process continue.

Daniel Duran, Sage Accountants’ Team

Last night the final episode of The Apprentice, series seven was broadcast. The show saw the remaining four candidates interviewed mercilessly and their planning skills scrutinised. Planning is a fundamental aspect of business success – without foresight, attention to detail and relevant research, you can’t expect to achieve your best results.

Getting started

Novelist Mark Twain said “The secret of getting ahead is getting started” and never is this truer than in business. By starting out from an informed position, prepared for every eventuality, you can dramatically increase your chances of success. Strong business plans operate to long-term goals, not quick fixes. So, when Lord Sugar made his final, suspense-filled decisions, he was selecting an individual with a credible, well thought through plan that would hold water in a changing business world.

Work to your strengths

One candidate described his business plan as “amazingly brilliant.” While the plan may have shown creative flair, the judges were looking for something more meaningful – a practical, considered approach. Another stumbling block highlighted in The Apprentice was that candidates failed to stick to what they knew. If you have experience in a particular area, or specialised knowledge of a subject, use it! Work to your strengths wherever possible. One candidate who bucked this trend was Susan Ma who, as well as proving herself capable of picking out winning products and grasping complex concepts, also stuck with what she knew for her business plan. Multi-millionaire businessman Lord Sugar admired Susan’s approach and expressed disappointment that another candidate, Helen Milligan, who had experience in the baked goods sector, had written a business plan that strayed so far from her field of expertise.

Writing a business plan

Our Sage Planning for Business software will help guide you through the trickier areas of creating a winning business plan. But if you’re currently putting together your own business plan, here are a few vital points to help you get started.

• The audience – who are you speaking to? Whether you’re communicating with the bank, investors, potential partners or buyers, you need to consider the language they’re accustomed to reading, the information that will hold most significance and the details that could sway their decisions.
• The executive summary – this should be a concise, easy-to-digest overview of your plan.
• Your business, its products and services – don’t forget the basics. Spell out exactly what your business will offer.
• Your markets and competitors – use this area to show that you’ve conducted thorough research. A strong understanding of your markets and competitors will make your plan far more viable.
• Marketing and sales – a key planning area. However outstanding your products and services are, you need to communicate clearly how you’re going sell and promote them.
• Financial forecasts – this section will be the bottom line for your audience so invest some time in getting it right.
• Presenting your business plan- keep it short and to the point, have a trusted acquaintance read it through and avoid distracting design features.

Jason Sullock, Small Business Team

We recently exhibited at the Business Start Up Show at Excel, in London.  It was a great show.  It always is.  We had an unusually large stand this year – one with a drinks and food bar at its centre.

This bar has always been a bone of contention with me; yes, it brings customers to the stand, but are they really interested in ‘us’?  And why can’t they clean up after themselves?  It’s not like there’s not a bin provided!

I was pondering this as I collected the umpteenth empty cup from a computer pod, and whilst heading across the stand to the bin, grumbling about untidiness, I was stopped by a lady who was sat nearby who was ‘people watching’.

She said “It’s a great stand you’ve got here, you know?”

To which I replied “thank you”, and took a seat next to her, asking her name and what she liked about the stand.

Her answer was so unusual it prompted me to write this blog post.

What Laura said was “Your stand is so open and welcoming.  It’s almost a ‘destination’ stand… and you know” looking at the rubbish in my hand, “a Mother’s love is unconditional.”

Looking slightly confused I asked her what she meant.

“Well… your stand and your team are doing such a good job of being open, friendly and helpful, that despite the fact some people leave litter, people are flocking to your demos and you’re creating a hugely positive impression of caring for your audience.

So – a mother’s love is unconditional – you’re giving your ‘love’ unconditionally to your customers, and you’re being rewarded for it.  Despite a bit of mess, you’ll be better thought of by everyone using your stand – whether they’re buying today or not.”

Now isn’t that an interesting way to look at marketing?  And, with a bit of lateral thought, I’d like to bet that applies to Social Media too.

So, here are five of my observations and learnings that you might want to consider when doing anything ‘social’, and that includes networking, events, and online:

1.      When you’re talking to your customers, you must always ‘give’.  You will get some people who take advantage, but the vast majority will respect you for it.

2.      You will always have detractors.  You will always have evangelists.  Your job is to make sure that the evangelists outnumber the detractors at any one time.

3.      Always do what you say you will do, even if it costs you time or money.  The fact that you do ‘it’ despite it costing you, builds trust and integrity in your customer’s mind.

4.      Give the customer an ‘experience’.  Make sure they will take away a positive view of you.  Even if they don’t buy there and then, they will become your advocates.

5.      If you find you cannot fulfil your end of the bargain, apologise, and tell them the real reason why you cannot do what you said you would do.

What would you add to this list?

Jason Sullock, Small Business Team

Jason and his team are busy organising Sage World, a free business event.  Register for your Sage World ticket today.

Sage World, our free event for start ups and small businesses, is back!

Ok, I’m not one to blow my own trumpet but…..“flawless,”  “amazingly inspiring,” “excellent can’t wait for the next one!”  is some of the feedback we received after the first ever Sage World last year. And we’re not just picking the best quotes, the stats back it up too, 93% of Sage World attendees loved it.

Still not convinced? Check out the guest blog The Best Business Event? from one of last year’s attendees Wildfire Digital Media. They loved it too and we didn’t even pay them to say so.

[End of trumpet blowing.]

What is Sage World?

Well, if you went last year you’ll know Sage World was a different kind of event, an immersive two day experience for the UK’s small businesses. Inspirational keynotes, practical hands on seminars and that priceless one to one time with our technical experts brought everything a small business needed to one place.

We’re in the process of finalising the programme for this year’s Sage World but we guarantee it’s going to be good and even better than last year.

When and where is it?

You’ll only have to wait a little longer for the next one as Sage World is back for another year, taking place at a fantastic new venue EventCity in Manchester on the 12^th and 13^th of October.

The best part?

It’s completely free and we’ll even throw in some lunch (not literally, that could get a bit messy).

How do I get a free ticket?

So, to make sure you don’t miss out, book your free place now at www.sageworld2011.co.uk

Nicole Matues, Sage World Team

The Apprentice is back!  It’s that time of year again that leaves us all asking “where do they find these people?”

The task was simple. Lord Sugar handed both teams a miserly £250 to come up with a business to make as much profit as possible from fresh fruit and vegetables.

The Project Managers

The girls chose Melody as Project Manager.  When I say ‘chose’, I mean Melody battered her colleagues into submission by reeling off her vast array of talents, skills, experience and prophecies on great leadership.  The highlight was Melody’s alleged one-on-one mentoring from the Dalai Lama himself.

Hmmm… orange or grapefruit?”

On to the real star of the first episode – the boys’ Project Manager Edward.  An Accountant by trade, Edward was intent on ruling with an iron fist.  He showed a unique mix of being incredibly bossy whilst simultaneously not having a clue what he or anyone else was supposed to be was doing.

The task

The girls opted to produce and market pasta and fruit salads, while the boys went for freshly squeezed orange juice and soup.

Things quickly pear-shaped for the boys though.  Their juicer broke, panic set in, and the production line of orange faltered.  A vital selling opportunity at breakfast time was missed, and from then on it was an uphill task for the boys.

The boardroom

The outcome?  The boys lost.  It was always going be difficult when your Project Manager has to ask “Is this an orange?” when faced with a box full of oranges.

So up-stepped Edward to face the music, tin helmet on and encyclopaedia of excuses at the ready.  Lord Sugar immediately pulled Edward up on his strategy, business plan, costs and revenue projections.  The main issue being Edward didn’t have any of these.

Cue machine-gun fire of clichés from Edward:  “bottom-up approach”, “I don’t fit the mould”, “when I am producing, that is production”.  Unfortunately Edward’s perception of himself as a creative, maverick leader didn’t convince Lord Sugar.

The boys lost because they didn’t get their numbers right – an astonishing oversight with a trained Accountant as their leader.  Here at Sage we’re big fans of Accountants, but Edward didn’t do you justice.

Edward failed because he didn’t play to his strengths.  Instead of sticking to the fundamentals of projecting costs, sales and revenue (by the way we have software that can help with that), Edward wanted to be an inspirational leader.  Unfortunately he got it wrong.

The moral of the story?  Play to your strengths, stick to what you’re good at and don’t try and be something you’re not.  Personally I was sad to see Edward go.  There was plenty more entertainment left in him I’m sure. He could have even been the next Stuart “The brand” Baggs.

As for the other candidates…

Tip for the top: Helen or Gavin

Next for the chop: Glenn or Edna

Watch the Apprentice on the BBC iPlayer.

Iain Ramsay, Small Business Team

While dusting off the bunting, making my son’s ‘prince outfit’ for the Royal-Wedding-dressing-up-day at school and preparing myself for the ‘wedding of the year’ on Friday, I was struck by a series of tenuous links between the Royal Wedding and the story we’re telling here at Sage in our latest marketing campaign.

You may have seen our new materials focusing on our 30 year heritage as a British software company – if not, take a look here – www.ourbusinessnation.co.uk. The brochures, emails and website celebrate the best of British business and focus upon a handful of the 800,000 British organisations we are proud to support through our business software and services. Together we’ve come a long way over the past 30 years.

In the beginning

Like the Middleton family business which was built from the ground up to become the successful, profitable business it is today, Sage was also borne out of humble beginnings. Having started following a dinner time conversation between four like-minded people in Newcastle 30 years ago, the company now has a customer in every postcode area in the UK, supports 1/3 of the FTSE 100 and is the engine behind many of the most innovative and entrepreneurial British businesses.

Down to earth

Whilst the Royal family has often been criticised for being out of touch with the British public, here at Sage we pride ourselves on truly understanding the needs of British businesses. With a global Business Partner network that covers 50 countries and stretches every part of the UK, we are never far from our customers. Together, we are dedicated to building intimate and long-lasting relationships with our customer base to help and support them every step of the way, from initial implementation to managing growth and change. We have learnt how much our customers value the business expertise we and our Business Partners provide. Working together, we build competitive advantage into everything our customers do.

Uniting a nation

The Royal Wedding will unite a nation. Personally, I’ll be furiously waving my flag, coo-ing at ‘that dress’ and weeping at the “I DO” moment. But even if you’re not a monarchist, you may at least be celebrating a long weekend off work!
At Sage, we unite our own nation – one of remarkable businesses under Our Business Nation. We’re proud of our heritage as a home-grown British business and are honoured to support such a diverse range of organisations through our CRM, ERP, HR and Payroll software. They number hundreds of thousands in the UK, but here are just a few:

• The Eden Project which welcomes over 1 million visitors a year
• National Assembly for Wales which represents the interests of Wales and its people
• Blenheim Palace, the birthplace of Winston Churchill with over 300 years of heritage
• Playdale Playgrounds, a family run and owned business, since 1735
• Knights of Old, a leading transport and distribution company, which is over 100 years old
• Shaws of Darwen who have been manufacturing sinks for over 100 years.

So as the big day approaches, I will be watching the proceedings with baited breath. And remembering that from relatively humble beginnings, amazing things can happen…

Sarah Croft, Sage Mid Market Team

As part of our Sage People Advice service we keep our customers up to speed with HR, employment law and health and safety advice. One of the top topics with our customers lately has been the changes in paternity rights and what they need to do to make sure they tick all the boxes.

Matt Forrest, Small Business Team

Paternity rights; what’s changed?

Recently, paternity rules changed, meaning that new mums can transfer, or donate, some of their maternity leave over to the child’s dad (or the mum’s partner).

If you have any eligible new dads, they can potentially take up to 26 weeks’ additional paternity leave, on top of the two weeks’ ordinary paternity leave they are entitled to, after the birth or adoption of a child.

They’re also entitled to additional paternity pay, if the mother (or other adopter) has returned to work with at least two weeks of their statutory maternity or adoption pay outstanding.

How will this affect my business?

At this stage, it looks like the number of dads who actually request additional paternity leave (APL) or pay will be quite low. Remember that this extra right can only be taken instead of their partner’s maternity leave: she’ll have to return to work.

However, it’s still a good idea for you to prepare for the possibility of this happening: if any expectant fathers tell you that they want to take APL, will you be ready?

For instance, you’ll have to make sure that you have the resources ready to cover any male employee’s APL, just as you would for maternity leave.

To make sure you’re not discriminating against anyone, you’ll also need to make sure that your maternity packages are matched by your paternity packages.

Likewise, as with women on maternity leave who have the automatic right to “jump the queue” for a suitable alternative job in a redundancy situation, men on APL can now enjoy the same right.

Dads on APL also have the same right as women on maternity leave when it comes to keeping in touch days: make sure you offer them this opportunity.

What do I need to do now?

In addition to preparing for any APL requests, there are practical things that you can do now. If you haven’t already, you should update your maternity policy, your paternity policy and any related documents and forms to reflect these changes.

Matt Forrest, Small Business Team

Sage People Advice: For help with HR, employment law, Health & Safety advice for your business contact our Sage People Advice team on 0845 111 2450.

This month’s topic on HR Vision explores ‘The Ideas Economy’.

Sian Harrington debates the issue of the transition towards an ideas based economy, and the need to create a culture of innovation within an organisation.

But what is innovation and how can a business utilise it? What does an innovation culture look like? Will creating an innovation culture require greater investment from HR? And can technology help make innovation happen?

Here are Sage HR & Payroll’s top tips on creating a culture of innovation:

1. To be innovative, you need to support innovation

For businesses looking to their people to generate ideas to give them the competitive advantage, they must make sure their company fully support the ideas process. For an employee to show innovation they must first feel empowered to think differently within their role.

HR is central to driving empowerment initiatives in an organisation. Start by giving individuals greater accountability for what they do and provide regular opportunities for them to be involved in a wider range of work.

2. Cultivate the appropriate working environment

For innovation to thrive HR must take charge of creating the appropriate working environment. This means moving away from hierarchical structures which sees employees working in constrained roles, to more delayered structures that give people the option to work across departmental project teams.

Having a flatter structure will provide greater openings for cross-departmental collaboration and give people the flexibility and freedom they need to develop ideas. Encourage offsite working for both individuals and teams and consider the technologies needed to facilitate collaboration across the board.

3. Reward and recognition

It may sound obvious but people are more inclined to do what they are actually rewarded or motivated to do. If a business emphasis is cost-cutting and streamlining processes then people will not be inclined to develop new initiatives, whereas a business with an incentive scheme based around innovation will encourage creative thinking as part of day-to-day practice.

Create a clear reward and recognition policy to motivate your employees and recognise individuals or teams who have been involved in new projects – even if they’re deemed unsuccessful.

4. Lead by example

Although HR will drive empowerment initiatives, management also need to take accountability for energising the workforce. They must take an active role in supporting and sharing new ideas and align employees to a shared vision.

Ensure your leadership team promote business wide collaboration, listen to new ideas and actually embrace change with your organisation. Your leadership team need to champion experimentation through coaching and mentoring, and be prepared for smart risk taking, as with every opportunity, there is a chance of failure.

5. Removing obstacles

Many organisations struggle to develop an innovation ethos mostly due to cultural barriers or process-driven hurdles. Often a fear of being punished for failure, barriers preventing collaboration or a lack of appropriate infrastructure for learning and sharing can impede innovation.

HR must take responsibly to uncover obstacles and pioneer change across the board. Simple tools like an ideas board on your company intranet can help learning and sharing, whilst applying a non-judgemental approach to all ideas and actively embracing the risk of failure will help shift culture barriers.

6. Practical processes

It’s all very well encouraging lots of new ideas but what are people meant to do if they’ve had one.  A clear process for capturing ideas and helping to turn them into practical solutions is vital – an innovation culture requires that people believe that their ideas will be listened to.

Implementing an online forum where employees can post new ideas provides a platform for developing concepts across an organisation. Line managers can also encourage the ideas process by holding regular discussion groups and brainstorming sessions.

7. Turning ideas into reality

Businesses need to provide the appropriate resources to ensure that good ideas have the chance of becoming innovative solutions. It is important to recognise the negative impact it may have if a lack of resource or organisational barriers mean ideas cannot be taken forward.

Having a flatter structure will make your organisation more adaptable to new projects, allowing for employees to attach themselves to different projects or work in secondments or job rotation roles.  Allocating time away from the day job will encourage employees to develop ideas, whether working individually or in teams. Encourage secondments and job rotation

8. Time

It is important to recognise that cultural changes will not happen overnight and in particular nurturing innovation rather than an operational way of thinking will require dedicated time and resource.

An innovation culture can easily become the ‘latest HR fad’ if it is not managed with clear objectives or a consistent approach.

9. Measuring innovation

It can be challenging to measure exactly how innovation has impacted your business and not every new idea will have clear tangible results connected to it, but attaching measurements will make rewarding employees, board-level buy-in and strengthening the innovation culture easier.

Innovation metrics should be tied in to your business or departmental strategic goals and consider individual or collaboration successes, resources or delivery timescales. Remember it may be significant periods of time before clear financial results are seen but this doesn’t make the project any less successful.

10. Celebrate success

Celebrate! Innovative organisations are places where people enjoy their peers’ work. So make sure your business encourages teams and departments to regularly share their successes and milestones achieved. Celebrating and sharing these events, both large and small is part of creating the innovation culture.

Why not encourage managers to organise offsite days to give individuals and departments the opportunity to talk about and present their work to others across the business?

Katie Slater, Sage HR and Payroll Team

We think that the new features and improvements in Sage Instant Accounts 2011 will give our customers (that’s you) more time to take care of your business. We also thought that you’d have some great tips on how to spend this extra time giving your business a boost and asked for you to send them in so that we could share them with other small businesses.

Well after much deliberation we have collated the top 50 tips and put them into a nice little booklet, handily title 50 Top Tips to Help You Take Care of Your Business, which is now available to download for free from our website – take a look and see how they can help your business

In the booklet you’ll find tips on everything from how to keep your workforce happy, social media and customer services to ordering stock and the importance of cash flow.

We’d like to say a huge thank you to everyone who submitted their business tip, and congratulations to our three lucky winners who’ll soon be receiving their Amazon Kindle:

• Sue Davis, Design Advantage
• Jermaine Edwards, Speak First Ltd
• Hilary Hinks, Arrow Project Services

Some of my personal favourite tips to take of business are;

“I try to nurture good dynamics and harmony in our team by ensuring that everyone is aware that they are equally valued, whatever cog they are turning within the big machine. We all fill our individual roles efficiently, support each other when necessary, and together we make it happen.”

Julie Kemp, High Tide Camber Sands Limited

“Embrace Social Media. Businesses need to be aware that sales and conversations about their brand or product are occurring whether they are present online or not. These conversations are happening millions of times per day on social media sites. Businesses that recognise this will be more successful.”

Joseph Leishman, d&e Office Solutions Ltd

“Follow up, Follow up, Follow up! Whether, you have met someone at a business event, spoken to a prospect on the phone, or made a commitment on email. Put a reminder and notes in your diary for a future time. People will remember you over your competition.”

Michael Gottlieb, The Smart Information Consultancy Ltd

We hope you find our 50 Top Tips guide useful. We’d love to hear from you, so let us know what you think.

Jack Ford, Small Business Team