Franchise Advice Education is key
John Davies of Just Cash Flow PLC on why “Too many small businesses don’t survive”
a number of costly mistakes. “I have great empathy with one of the postings the article prompted, with a lady remembering seeing the heartbreak caused by her employer going into administration and the redundancies that followed. Too many small businesses don't survive. “I wasn't calling for more bureaucracy – that would only serve to stifle small businesses and the next generation of entrepreneurs. Quite the opposite – let's give creative talent the foundations to build tomorrow's successful businesses. “Creativity and entrepreneurship
are great attributes but you still need to get the basics right. If you plan to see the sun rise each day but spend all your time running west you are never going to achieve your goal.
“Let’s give talent the foundations to build tomorrow’s businesses”
T
“No matter how creative you are, or enthusiastic, hardworking and bloody- minded, your plan needs a fundamental basic – head in an easterly direction. Basics matter and learning the basics before starting your business will be a great investment."
here has been much discussion and debate around whether a national qualification for company directors should exist. In fact, a recent debate took place
in a live Twitter discussion on the subject (this can be seen at www.justcashflow. com/mddegree) and the conversation saw a number of viewers participate. Some believed it was a bureaucratic idea that may stifle market competition. Others felt that a qualification would help individuals understand how to navigate the daily complexities of corporate life from the top and may even prevent businesses from going into the red in the future. John Davies, marketing director of Just Cash Flow PLC gives his thoughts on the subject, based on personal experience, as well as considering the cases he sees referred to Just Cashflow seeking funding. John says: "I have followed with great
interest the debate caused by my call for a national, university-led qualification for potential directors. I suggested it should cover a range of topics including finance, employer responsibilities, sales, marketing and planning.
“I believe this for two main reasons.
Firstly, Just Cashflow sees a lot of applicants that are totally on top of their business, KPIs and future investment plans. Too many, however, don't appear to grasp the basic business fundamentals and, as I said in the original article, alarm bells start to ring when someone doesn't know the difference between a cashflow forecast and a profit and loss statement. These people are going to struggle to raise finance." John explains that this opinion stems
from his own personal experiences. "When I first started out in business I fell into the trap of not knowing what I didn't know. If I had studied for the type of qualification I am proposing I would have been able to avoid
John wraps up his points by acknowledging that a university-led qualification may prove too expensive or time-consuming for some. The debate, though, served a good purpose if it caused entrepreneurs to stop and think about where they can gain valuable knowledge and education before opening for business. Just Cashflow offers a flexible cash facility to UK franchises of between £20,000 and £500,000 as an alternative to overdrafts or loans. They want to support franchise business with a sound business plan and a good understanding of their finances. n
JUST CASH FLOW PLC
For more information on Just Cash Flow and the range of solutions, visit
www.justcashflow.com/franchise or call 0121 418 5516.
March 2015 |
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