Why Business Coaching

 

Why Business Coaching Services are

Vital for a Small Business Owner

In such financially testing times, you might think that hiring business coaching services has no place on your list of priorities. However, the opposite is actually true. As shown in this blog post on the ‘Benefits of Coaching,’ plenty of entrepreneurs have testified to the wonders of gaining outside business coaching. From growing their business more efficiently to helping them overcome hurdles along the way.

Whatever the state of the economy is, you’ll need all the help that you can get. To prove this point further, we’ve listed some of the top reasons why every small business owner needs the business coaching services of an executive coach, a business coach, or an entrepreneur coach, regardless of circumstances.

Identify any issues in your business

More often than not, we become so buried in our trade that it becomes difficult to see what we’re doing wrong. A business coach can offer you an objective rundown of your business. They easily discover systemic problems that you may have overlooked and help you find the best solutions for them.

For example, this article lists a couple of challenges coaches can help you with, including the lack of business growth, which is a common problem for many business owners. Acting as a second pair of eyes and providing invaluable insight, coaches can help you identify the points you can improve on.

Enforce accountability and offer feedback

Sometimes, the biggest setback to the growth of a business isn’t its operations but its owner’s negligent practices. This could come from any angle. Such as your leniency with employees, forgotten campaigns, or even accounts you’re not paying attention to. A business coach can help you prioritize projects and keep you on track. Plus, their steady feedback will be crucial in knowing how far you’ve come in your journey to achieving your biggest goals.

Recommend solutions for growth and expansion

For small businesses, boosting brand awareness and gaining a large customer base can be an uphill struggle. And, for those who are feeling unsure of how to improve their business performance, a small business coach can offer tailored recommendations to help them overcome this particular roadblock. 

Smaller businesses often have difficulty with strategic planning and lack a cohesive digital marketing and social media plan. Instead of following the herd and doing the same as anybody, hiring a coach could give you the direction that fits your personality and behavior. It will make it easier to execute and, even more importantly, keep up with it. Thus increasing your chances of success.

Challenge your mindset and offer new perspectives

You know how the adage goes: two heads are better than one. This is a wise principle to have, especially for small business owners and even more so for those who operate as self-employed people. Whether you’re thinking of new campaigns, sales strategies, leadership skills, or reforms to better your operations, your ideas will always turn out better if you run them through an experienced professional.

A business coaching program with like-minded owners who exchange ideas and opinions supervised by a professional coach, that asks the right questions no employee, friend, or family member asks. Business coaches don’t only suggest solutions to the CEO. Moreover, they help refine the systems you – as the business leader – already have in place as well.

If you still wonder why you would need a coach, picture this: suppose you were a talented singer (or the parent of one) with ambitions, surely you would want as much help as you can get?  

Share their vast expertise and knowledge

You may think that you know all that there is to know about your trade. However, you’d be surprised at the sheer amount of insight business coaches can provide you with. “What we’re taught about sales and marketing isn’t relevant,” says business coach Katrina Ruth as she narrates the things she has discovered over her 13-year career. “The way to connect with people, call them to action, and create change in their lives is to be a heart-and soul-led person.”

Experience is indeed the best teacher, and a small business coach or executive coach – has it in spades whether you’re new to the industry or a long-time player. Whether it’s an average market day or the midst of an economic crisis, a small business coach will always play a significant role in the success of your business. Thus, coaches will challenge your thinking, provide solutions, and walk you through the path to success.

Failures are the stepping stones to success.

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Why startups failed in 2022

Startup Founders Talk Business

Being your own boss sounds like a dream come true for some people, but it's not without challenges. More people than ever are starting their own businesses, but what can they do to keep from becoming one of the 20% that fail within the first two years?

To find out, we surveyed around 500 startup founders about what worked, what didn't, and what they might have done differently in their initial business phases. In addition, we analyzed data on startup failures from the past five years to see what went wrong.

Failure To Land

The effects of the pandemic left scars on the business world. But there's more to the story for many of the startups that failed in 2022. First, let's see what some of the top causes were.

Almost half of startups failed in 2022 due to insufficient funding or investor interest. Nearly as many business owners simply ran out of cash. Surprisingly, although many businesses failed in recent years due to issues related to COVID-19, the pandemic was the third most common cause we found and responsible for only one-third of startup failures.

Remaining vigilant and being innovative is still key. If we've learned one thing from the pandemic, it's the importance of being able to pivot — which is why we're diving into that next.

Pivotal Momentum

Succeeding in the face of disaster requires both obstacle awareness and adaptability. How likely were businesses to pivot from their initial strategy, and what worked for them?

Flexibility and adaptability are crucial during challenging times. Without them, a business can find itself quickly struggling when up against even the slightest strain. In 2022, 40% of startup founders had to pivot to avoid failure. Redirecting a business requires unorthodox thinking, and the methods used to do it varied, even between the sexes.

No matter how a founder pivots to save a business, there's no way to know if it will succeed. Women tended to show more confidence in their strategies than men, with 39% saying they felt "very confident" that their pivot would be successful. Meanwhile, men most commonly reported feeling only "moderately" so (34%).

While even the best-laid plans can lead to ruin, business ownership means putting your best foot forward. Fortunately for those who put time and effort into these readjustments, their pivots were successful 75% of the time. Now, the question is, what worked best?

Words to the Wise

Founders have advice for anyone looking to take the leap and launch a new business. Whether you're trying to run your own company or collaborating with those who do, consider these recommendations they shared.

Preventing failure begins with preparation. That's probably why, given the chance of a redo, 58% of founders said they would do more research and create a stronger business plan before launching a new business. Half of them also wished they'd had better marketing to reach their target customers.

As for the top advice for aspiring business owners, most founders (79%) shared that learning from mistakes is the most important skill to cultivate. Over half also said that creating a solid business plan, listening to your customers, and making sure there's a demand for your product in the first place is vital. All these tips are sure to make for an adaptable business that's ready to hit any curveballs the world throws.

Steering Away From the Crash

Although we found a strong business plan and thorough research to be top keys to startup success, one of the most important (albeit difficult) tips was learning from what hasn't worked in the past. But overall, a combination of strategy and adaptability are the best skills to hone for anyone looking to start a business. Take it from your peers who have launched businesses through the pandemic and survived to tell the tale.

The Best Pitch Deck Ever

 

In 2022, 47 percent of startups failed due to a lack of funding. If you’re feeling uneasy about nailing your next startup presentation, we feel your pain.

We won’t lie to you; raising funds is one of the most nerve-racking parts of building a startup. Sadly, that’s something most startups will do at one point or another. Your big idea has existed in your mind for a while. You’ve probably even built an MVP that’s already gaining traction.

But to scale, you need funding, which is why you need a pitch deck to bring your idea to life in the minds of potential investors. We’re here to give you a much-needed leg up on fundraising. 

In this article, we’ll show you how to nail your next startup presentation.

The Basics of a Startup Presentation

A startup presentation, also known as a pitch deck, is a concise and visual summary of your business concept that you show to prospective investors to convince them to fund your business.

Although potential customers can also be the target audience, we will concentrate on VCs (Venture Capitalists) and angel investors in this article.

A pitch deck typically contains information about your target market, your product’s specifications, your general vision, and the problem your product is attempting to solve.

But let’s be more realistic: A startup presentation will not get you an immediate funding. You know, no one moves on to signing payment immediately after the presentation. 

So this is more about grabbing investors’ attention and securing the next meeting—without this, you most likely won’t advance to the funding stage.

Having said that, pitching to investors isn’t the same as pitching to customers. Let’s take a cursory glance at the differences between the two.

Here is a quick rundown of the differences between pitching to either of the two:

• Audience: The primary distinction lies in the target audience. When pitching to investors, your audience consists of potential financial backers who are primarily interested in the business’s financial viability, growth potential, and return on investment. On the other hand, when pitching to customers, your audience comprises individuals or organizations that are potential consumers of your product or service. They are more concerned with the value proposition, benefits, and features of the offering.
• Objective: The objective of pitching to investors is typically to secure funding for your business. Conversely, when pitching to customers, the primary goal is to generate interest and persuade them to purchase your product or service.
• Language and tone: The language and tone of the pitch will vary based on the audience. When pitching to investors, you need to adopt a more analytical and financial tone. In contrast, when doing sales presentations, the language should be more relatable and customer-centric, addressing their emotions, desires, and aspirations and using a tone that resonates with them.

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How Can I Tell If My Business Is Highly Or Under Geared?

If I begin Invoice Discounting – How will my business’ gearing be affected?

Most businesses become aware that outside Credit Analysts always ask, “Is this business adequately geared?”

The question can puzzle a businessman. This article gives a simple way to understand the concept:

What the Credit Analyst is after here is to compare the amount of money the applicant has invested in his own business compared to the amount of money other people’s money they are risking.

A good banker would like to see that the Credit Applicant has at least put into his business an equal amount as other people are risking.

In other words he would like to see a My Money compared to Other People’s Money expressed in a ratio of 1:1

Then if he was going to lend money to the business he would prefer only to lend up to half the amount that the businessman has invested in his own business 1:.5

Example:

Let's say a businessman has invested $10,000 in his own business. According to the given ratio of 1:0.5, the lender would only prefer to lend up to half the amount that the businessman has invested.

So, the maximum amount the lender would be willing to provide is:

$$10,000\times 0.5=5,00010,000\; \backslash times\; 0.5\; =\; 5,000$$

This means the lender would lend $5,000 to the business.

As we can see this is a very conservative but common approach in the banking community, more than likely not enough money to enable the business to grow and expand very quickly.

What happens then if I discount my invoices?

Most businesses who seek Working Capital by way of Invoice Discounting are likely to be highly geared. (Refer to our previous Blogs for more information on this topic)

But let’s look at what happens if a business’ Sundry Debtors are sold to a Financier:

• He would be able to payoff his overdraft!
• He would be able to pay off the bulk of his Creditors

So we can see that the business’ reliance on Other People’s Money has fallen away completely!

Therefore from starting out as a Highly Geared Business – the minute he discounts his receivables his business swings into an Under Geared one that Credit Analysts prefer to deal with!

Conclusion

Most businessmen do not want to rely overly on Other People’s Money. After all a banker can get out of bed one morning and demand repayment of his overdraft! – All overdrafts are repayable on demand!

This scenario is not possible if invoices have been discounted because the Financier has to wait until the tenet’s of the transactions have passed, the 30, 60 or 90 days credit the Supplier gives his buyers.

Here we are seeing another strong reason why a businessman should discount his invoices because, in theory, provided he keeps the working capital he has raised in the business, and keeps selling to creditworthy buyers he should always have enough money on hand to keep his Creditors paid, and will be able to see to it that wages are paid on time.

In the link below you will find information that can assist you in understanding Invoice Discounting and Modern Working Capital Techniques more fully and where to find the best providers of Working Capital for YOUR business.

Payment Accelerator

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Unlocking New Possibilities:

Unlocking New Possibilities: How Any Bank or Financial Institution Can Now Seamlessly Finance Invoices

So Providing Safe And Effective Working Capital To Developing Businesses Without Crippling Infrastructural Costs!

Sounds like a pipe dream to any Financier – because he knows that to provide Working Capital to developing businesses can very profitable!

Yet, he is cautious because he knows that this type of lending can be very risky indeed.

But what if I said to you, whether you represent a bank or any other type of Finance House, “Did you know that today you can indeed begin to offer Working Capital finance to YOUR business community safely and efficiently?”

Would you be interested?

OK, I know that most Financiers are very skeptical . . . . But what if I continued and said, “Do you know that I can take all the ‘grunt work’ out of this kind of lending for you? – More than that, using Modern Day Working Capital Techniques will be far safer and more profitable to you than by merely making loans or extending overdrafts?”

Ah, you are reading on . . . You must be getting interested!

Then if I said to you, “And you know what you will be able to make huge profits year after year with a minimal infrastructural cost!” . . . . “In fact, after set-up and on-boarding everything becomes ‘Done For YOU!’ – All you have to do is decide whether or not you wish to finance a particular trade transaction (and insure it if you think their is a need to do this) or not!”

If you have access to capital that is seeking an outlet, and all banks and Finance Houses do – YOU can soon be providing Working Capital effectively and safely to businesses in YOUR community!

By now you will be wanting more information? . . . . If so reach out to the contacts in the Resource Box below – Any one of us will be happy to assist you!

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How Does Invoice Discounting Help My Cash Flow?

The Businessman’s common dilemma – “How can I improve my Cash Flow?”

The answer may be far easier than you think, even if your Commercial Banker has said that he cannot assist you further.

Invariably Commercial Bankers are very conservative anyway and they do not think further than offering you an overdraft that more often than not does not help YOUR growing business.

Then someone starts talking about discounting your invoices that are due and payable at dates in the future.

Actually this is a very good way to raise Working Capital for your business because:

• As the Financier pays you out for ALL your invoices, your business already is ‘in the money’ so to speak to enable you to pay all YOUR creditor accounts on time, to the tenets of the terms stated in the invoices by your Suppliers.
• What a boon to you is that?
• But not only that, because the Financier buys your invoices on an ongoing basis you will find that you have enough money to pay your wages on time, every time and have money left over to keep the roof over your head and feed, clothe and educate your family!

As A Buyer: How Can Invoice Discounting Help My Cash Flow?

The Buyer’s Great Dilemma!

Let’s see what we can do to help him!

What Mr. Buyer needs to do, figuratively speaking, is to pile up all the invoices that require to be paid (his Creditors) and take them to a specialist Financier and ask him, “Sir please won’t you buy these invoices from me, and pay all these Suppliers who are pestering me for payment? – Then what I will do is that I will pay you in 60 days time, once all my Debtors (those that owe me money) have paid me?”

The Financier thinks about it, likes the Buyer and decides to help him by buying the pile of invoices off him!

What happens here is that a ‘financial load’ has been taken off Mr. Buyers shoulders.

The Financier simply pays the Buyer’s Supplier invoices, and the Financier waits for Mr. Buyer to pay him in 60 days time, as agreed!

So what has happened here?

Mr. buyer’s Cash Flow has received a shot in the arm, and all his suppliers have been paid.

Mr. Buyer is certainly a happy chappie! – Because his Cash Flow problem has been alleviated entirely, and he is ‘in funds’ so to speak to continue his business effortlessly.

Mr. Buyer has the money to pay his wages on time.

Mr. Buyer has the money to keep the roof over his head, to feed, clothe and educate his family.

Just because he, Mr. Buyer thought about the Invoice Discounting financial service.

Back to reality

Mr. Buyer could well be aware that certain of his Suppliers were Discounting their invoices due and were paying him on time every time.

Yes, Mr. Buyer could have considered doing the same thing, he could Discount his Debtors in the same way, raising Working Capital ust as some of his suppliers are doing.

The Financier, in this instance has had a choice, he could simply Discount the invoices that are due to the Buyer, or, he could have purchased the buyer’s invoices due.

Summing up

This article shows how flexible Invoice Discounting really is. It all depends how the Financier wants to proceed as he sought to help Mr. Buyer and what Mr. Buyer thought was the in the best interests of his business.

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What Is Invoice Discounting?

It is just true to say that many businesses are not even aware what Invoice Discounting is, never mind how this financial service can help any importing, manufacturing business dealing with the distribution of goods and services.

In this presentation we will just focus on what Invoice Discounting is in the concept of Modern Working Capital Techniques.

To help us we need to understand a few basic terms that are in the glossary below.

Glossary

Invoice: The document that covers the delivery of goods and services to creditworthy buyers as they move from Supplier to Buyer.

Copy Invoice: Is an electronic copy of the Invoice that flows through the Modern Working Capital Management system to create the Working Capital that a Supplier would seek.

The Financier: This could be a Division of a bank or specialist Finance House that provides this kind of finance.

Non-recourse Discounting: Here the Financier takes all the risk in the financing transaction.

With Recourse Discounting:

Here the Financier has the ability, as expressed in the Invoice Discounting Agreement, to seek payment from the Supplier should the Buyer fail to pay the invoice due on the stated date.

Retention Account: This is the amount retained by the Financier as he finances the transaction as a part safety net pending the Buyer paying the amount due. The Retention Amount is repaid to the Supplier, less the Discounting Fee and Interest Due, as the Buyer settles the transaction.

Elements of Cost

The Discounting Fee: The Financier will make a charge in for arranging the Working Capital that is being provided.

The Interest Component: This amount is calculated on the number days that the invoice will remain unpaid at prevailing Interest Rates for transactions of this nature.

These cost elements are not excessive, and the reasons for paying them are far outweighed by the benefits that a business gains in raising Working Capital in this way.

The Procedure

The easiest way to understand the procedure adopted in the process of raising Working Capital in this way is by studying the graphic below and understanding the comments under it:

• The 1st Step is for the Supplier load all his unpaid invoices up onto the system. This is very easy to do electronically today. (In the old days this was a manual clerical chore!)
• The 2nd Step is that a copy of all future invoices that are raised will flow into the Modern Invoice Management System so raising ongoing Working Capital for the business.
• The 3rd Step is that the Settlement Platform contacts the Buyer to ascertain that the invoice is genuine, and due for payment. The Platform also ascertains the date that the Invoice will be paid and the bank current account that will be credited with the amount due. This bank account can, in need be controlled by the Financier.
• The 4th Step is that the Platform after receiving the confirmation validating the transaction then prepares the invoice to be offered to the Financier who can chose whether he wants to finance the transaction or not. In addition, in need, the transaction can be insured.
• The 5th Step – If the Financier decides to finance the transaction he debits the facility account in his books and credits the Supplier with the proceeds of the transaction less the Discounting Fee, Interest and the amount to be withheld in the Retention Account.
• The 6th Step – The Financier now waits for the Buyer to effect payment on the due date to the credit of the bank account stipulated. On receipt of this payment the Financier returns the balance that he holds in the Retention Account to the Supplier that would be less Discounting Fee and Interest charges.
• The 7th Step is to stand and look in awe as to how this Modern Working Capital Management System has worked to provide Working Capital to the Supplier!

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