12 www.homebusinessnetwork.co.uk Issue 2 July 2009 www.homebusinessnetwork.co.uk 13
CASE STUDY :: WORKS WITH WATER NEED TO KNOW SNAP SHOT
Jules Birch: Looking to expand
How to keep on top
Graham Cooke
of cashflow
Web Doctor, Google UK
By David Robertson, Chief Executive, Bibby
Financial Services
When launching (or re- smaller players from day one.
launching) a product in the past, Search advertising gives CASh flow is the lifeblood of business and
it was often difficult for SMes businesses a mass audience is crucial at every stage of a firm’s lifecycle,
to compete with their larger, by allowing them to bid to regardless of size or sector. Despite the regular
more established national or appear against terms related publication of government figures that a third
international rivals. national to their product, and only of businesses fail within the first three years
print and TV advertising was paying if their ad is clicked. of trading, most failures could be avoided if
only an option for companies This can be measured business owners are vigilant when it comes to
with a sizable marketing budget accurately and offers strong managing cash flow levels and identify potential
and a national presence, while return on investment. issues early on.
smaller companies could The US market has rightly
only afford local advertising, been identified as a key health
What does it do?
generating only local leads, food market, but Google’s
Poor cash flow is one of the main reasons for
SNAP SH
OT
limiting growth opportunities. export Adviser tool suggests
business failure. Without cash it is impossible
The internet has levelled this company may also have
to purchase raw materials or new equipment
the playing field. not only has big opportunities to exploit
and pay staff wages. every firm has different
Name: Danielle Barbereau
it cut the costs of logistics, lower online advertising
financial pressure points caused by late
Location: Sheffield
distribution and service, but costs in Germany, Australia,
payment, seasonal peaks or sudden large bills.
Company Name: Solace Space
it has also opened up national Canada, Japan and Russia.
Managing cash flow is about being prepared and
Age: 51
and international markets to See google.co.uk/exportadviser.
dealing with these effectively.
Most useful item: Computer and mobile phone
Why I need this
Home worker tip: Do something you love. It is
effective cash flow management is vital if your
wonderful to work from home, but it can be lonely,
business is to survive and succeed. Yet very
so network at every opportunity, to market your
often, it is neglected. Many business owners
idea, but also to get support. Make the day work
Andrew Colwell get embroiled in generating and fulfilling sales,
for you. I like to start very early, but I love going
disregarding factors such as financial controls
for a walk once or twice a day (I keep my mobile
Group Marketing Director, B2B Marketing
and forward planning. As a result, businesses
phone on!) to take a break. It has made me fitter!
suffer and their survival is threatened.
Web: www.solacespace.com
TheRe are a number of health issues and natural/green
How does it work?
“I am just staring out as a home worker but
initiatives that Jules Birch and issues. Once you overlay this with
The following tips will help you manage cash flow:
have been planning this for six months. The
her team can undertake in order transactional data of consumers
• Credit check customers – make sure new
aim is to provide tailor made workshops for
to generate brand awareness that have a history of purchasing
Nutrients firm hopes US expansion will bring a healthy future
customers are creditworthy before you
private individuals and corporate clients,
and demand. Whether choosing health products you can start to
commit time and resources and agree
either in-house or away-days. This could be
to adopt a direct marketing see how the focus on the prospect By Philip Smith
“It took me over a year to find a manufacturer “It’s a major market for us. each time we launched a
payment terms in advance.
pre-retirement coaching, dealing with change,
strategy or otherwise, Works audience is becoming tighter. By
who could produce the product to the specific new product we have been inundated with interest
turning redundancy into opportunity, executive
• Invoice promptly – don’t delay sending
With Water should always be selecting data that is within certain JUleS Birch has big plans. She wants to sell her
standard. I didn’t want to produce a nutritional from the trade and consumers in the US. When we
and business coaching or personal coaching. The
invoices out and make sure they are correct
cognisant of ensuring that it age bands, you can then begin to naturally-derived healthcare products that aim to
drink and fill it full of preservatives.” Works With were water-based it was a no-no; shipping water
kind of people I see myself helping are executives
before issuing.
targets its audience effectively. focus different products to the control blood pressure, cholesterol and minor skin
Water’s range launched in May 2006 and was wouldn’t have be practical.” The plan is to sell direct
having to implement change and professionals
From a direct communication right groups – the acne product complaints such as acne in the US.
quickly listed with Waitrose, Tesco, Morrisons, to the US via the web.
• Be strict with credit control – have a strong
who need both business and personal coaching.
and data perspective it has to the youth audience, the blood But first she has to build the brand and awareness
Booths and Julian Graves. With the backing of The Walker Trust (investors
process for chasing up invoices – issuing
I used to be in full time employment, as the
plenty of options to target pressure product to the middle of her range of three sachet-based supplements and
Then disaster struck. “It all went to pieces. in Blackburn Rovers FC and Flybe), which has an
monthly statements and reminder letters if
director of the Modern Languages Teaching
consumers with lifestyle traits aged or older age groups. to do that, securing listings in the major supermarkets
I had just launched two new ranges and was equity stake in the business, Works With Water is now
payments are late.
Centre, at the University of Sheffield. But turning
that would indicate that they Additional targeted initiatives and health food shops in the UK is critical.
sitting with five products when the supplier looking to generate at least a £1.2m income next
• Know your customers – keep an eye on
50 made me take stock of my life. It made me feel
would be more likely than identifying the appropriate key Jules is confident. her four year old firm has
experienced major production problems during year - a massive rise from this year’s revenues of
customers’ payment trends and spot potential
that it was time to work for myself, and to bring
average to buy their products. words for pay per click campaigns already suffered some serious set-backs to get to
the spring of 2007 and continuing throughout
❝
The challenge
£100,000 - from off-the-shelf sales and direct via the
problems before they become major issues.
various strands of my life and career together.
For instance, Jules could select and the SeO strategy will start this stage but with the backing of a major investor,
2008,” says Jules, 46. “These difficulties for Jules is how to ecommerce site. The sachets sell at around £12 for a
I wanted to find deep work satisfaction and to
• Take stock – holding stock means your cash is
a prospect audience that has to deliver internet leads via both ingredients from a leading Swiss supplier and Jules’
impacted heavily on us, resulting in insufficient
feel empowered and fully responsible for my life.
generate awareness
week’s supply and £50 for a month’s. That projection
tied up so plan ahead and keep stock levels to
an interest in organic products, natural and paid for search. own background in sales and marketing (she spent
product to satisfy the retailers. We ended up is before any sales in the States are factored in.
Indeed, launching Solace Space is a life-changing
a minimum.
20 years in the confectionery, pharmaceutical and with just one product. Frankly we were lucky to
of, and demand for,
But it is still just a projection. The challenge for
experience for me and is a chance to really
nutritional sectors), Works With Water could soon be kept on the shelves.” the products.
❞
Jules is how to generate awareness of, and demand
• Manage suppliers – shop around for better explore and share a passion that I have had all of
be a name on everyone’s lips. But the set-back could turn out to be a blessing for, the products. She has her sights set on target
deals and negotiate longer credit terms. my professional life.
“Know what you can claim – In some circumstances you can The company is in the nutraceutical sector
for the business based at Jules’ home in Ribble outlets such as holland and Barrett and Boots to • Keep the cash flowing – review funding to
It was while working as a manager that I got the
claim the full costs of working from home for things such (using extracts of food to create a medicinal
Valley in lancashire. She had to rethink the model complement the supermarkets. “With the water- ensure it meets your business needs. Take a
idea. I loved training and mentoring people and
as rent, utilities and even a percentage of your broadband effect) and Jules’ first range of products involved
and now the newly re-launched range consists of based drinks we were being pushed into a category look at alternative solutions such as invoice
got real satisfaction from realising that, with my
fees. however the rules are complicated and it’s best to seek suspending the remedies in bottles of spring water.
three health-giving herbal supplements sold as in which we were not comfortable - the drinks finance, which can help by releasing cash tied
support, people worked towards realising their
TOP TIP
specialist help, the rules even change if you’re limited or a “nutraceuticals is all about maintaining healthy
sachets that can be added to water, juice, milk or section. With the sachets we will be sitting alongside up in unpaid invoices guaranteeing a flexible
potential. I have always passionately believed
sole trader.” levels. If you have high blood pressure and are
any drink. the health and nutritional products. But it does supply of working capital.
that change, if properly managed, can lead to
exploration and transformation to turn what may
Simon Dolan, Managing Director of Easy Accountancy
trying to lower it through diet and exercise, our It also means they can be more easily mean selling to a whole new group of buyers.”
There is also an option to add bad debt
product will act as a supplement to that,” she says. transported, opening up the lucrative US market.
initially appear to be a crisis into a positive and
www.workswithwater.co.uk
protection, which in the current economic
life-enhancing experience.
climate is invaluable and means that if one of
I plan to market Solace Space via the website
PHOTO COMPETITION HOME BUSINESS CLINIC
your customers becomes insolvent, the invoice
and through networking. I especially find women
finance provider takes responsibility for the bad
business networks very beneficial. I also employ
debt, ensuring you get paid even if one of your
the services of a PR company and it’s worth
Send us a photo and you could win a Lenovo Netbook
Janet Murfin from Halifax asks: major contracts fails.
every penny.
“We are an established two person environmental consultancy, and spend
What else should I know?
I eventually want to grow the business and
time on industrial sites in areas where mobile phones cannot be used. I am
would like to develop pre-retirement and
ThIS is your chance to win a fantastic entrant that supplies an image which
considering using an answering service/ virtual PA service for times when
If you think you are heading towards a cash
redundancy courses.”
lenovo IdeaPad netbook worth £250. It (rather like the main photo on the cover)
homebusiness
nobody is available to take calls. What are the pros and cons, and how can I
flow issue, don’t forget to keep everyone in the
is small and light, with a 10-inch screen most effectively brings together the
competition
differentiate from the numerous services of this type which are available?
picture. By informing your bank, suppliers and
and weighs just 2.65lbs. But despite three elements of Work, home and life.
customers and keeping them up to date you
“Set boundaries. let friends and family
being only one inch thick and easy to We will reproduce the best images on How to enter
Vincent Scammell, UK Sales & Marketing Director, Regus, replies: can tackle issues early on before they turn into
know that you are working and cannot
transport, it offers everything you’d the website homebusinessnetwork.co.uk Simply log on to:
“Using a virtual PA is a great way to ensure that calls to your business are major business problems later.
stop what you are doing when they pop
expect from a wireless-enabled and in future issues of home Business. www.homebusinessnetwork.co.uk
always answered by a person rather than going to a voicemail system, or even Many businesses feel backed into a corner by
round for a chat. Because you have
the demands of their key customers, as they can
laptop – plus terrific facilities for In all cases we will identify the person
a competitor. It adds another level of professionalism, and will give Janet peace
and click on the competitions
created a schedule you will know what
of mind as she attends her site visits. Pick a well established provider that has ill afford to lose a contract which makes up a
video communications. that has supplied the photograph. link to enter.
hours are for work and what hours are for
good people and technology to get the message to you in a timely fashion. With significant percentage of their revenue. however,
All you have to do is send us up Please send your entries via the website
TOP TIP
play. That way you can easily reschedule
any outsourcing approach there are always potential risks, but many of these by applying the basic cash flow tips above you
any personal interruptions to a time that is
to six original digital photos that show by Friday 31 July – but please note that
can be offset by selecting a well established and trusted provider with the scale can protect yourself against late payment and
more convenient.”
an image which symbolises working all photos supplied must be originals to offer a cost effective yet high quality service.” keep the cash flowing into your business.
Rachael Ross, purelypeppermint.com
from home. The winner will be the taken by yourself!
www.regus.co.uk
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