Take care of the essentials


management where you focus on developing your management team, leading employees and building your business strategy. Rather than responding to each difficulty as a one-off, develop systems and structures that make problems easier to handle in the future.


Invest in information systems Information is the lifeblood of most modern businesses. And companies produce lots of it, from financial records to customer interactions, employee details, regulatory requirements and so on. You need the right systems to keep track of, and effectively use, these stacks of data. Although you can delegate different responsibilities as your business grows, you need solid management information systems to manage effectively. The larger a business becomes, the harder it is to make sure information is shared and different functions work well together. In a small business with two or three


employees, informality is inevitable. However, as you grow, documentation, policies and procedures become more important. You need to instigate proper contracts, clear terms and conditions, effective employment procedures and so on. You can use established management standards to introduce best practice. Adopting quality control systems will help you make improvements and help persuade larger customers that your firm can be relied on. The right systems will provide short and long-term benefits. For one thing, you’ll have more effective operations. And if you ever sell the business, having well- run, efficient systems will bolster its value.


Don’t fear delegation The abilities that help you launch a business are not the same as those needed to help it grow. Though entrepreneurs create and grow new businesses sometimes they can hold them back. The trick is to make sure you accurately


assess your own abilities. It might be that you’d benefit from training in the skills


and attitudes needed to lead growth. Growing your business means delegating properly, trusting your management team and giving up day- to-day control of every detail. Excessive interference can stifle creativity and motivation in an organisation. And, as the business becomes more


complex, you need time management skills and the ability to focus on what’s important. You may even need to bring in outsiders to help. For example, you can hand responsibility for particular areas to specialists, or appoint a non-executive director. This isn’t easy for most entrepreneurs.


They can find it hard to take advice, especially if it’s at odds with their own instincts. But it can be vital in making the most of new opportunities. Entrepreneurs who know their limitations often make someone else managing director or chairman.


Embrace change It’s easy to fall into the trap of assuming that, because you’ve enjoyed success in the past, it’s guaranteed in the future. When you regularly revisit and update


your business plan it’s a great way of reminding yourself of changing market conditions and your need to respond. This could include engaging suppliers who’ll grow with you and meet your new priorities; renegotiating contracts to take account of increased volume; training and developing employees; keeping up to date with new technologies. Fully commit to your strategy, even


if you feel out of your comfort zone. You may have to take tough decisions such as making employees redundant or switching business from suppliers who have become friends. However, you could put your business at a dangerous disadvantage if you don’t make the necessary decisions. In any event, remember that it’s your unique business and you know it best. Take a considered, thoughtful and determined approach and you’ll reduce or eliminate any uncomfortable growing pains.


ANDREW DICKSON, FUND MANAGER AT BUSINESS LOANS SCOTLAND: “My advice would be to think deeply about the essentials – what business are you in, what’s your product or service, who are your customers, is there a market and a gap in that market that you can exploit, what price should you set? “In addition, you need to consider whether you have the capacity to increase supply and production. Do you have the people and the skills, resources and funding you need for growth? “When it comes to finance you should


explore how far your bank will support you with overdraft facilities, invoice finance, term loans and so on. An organisation like ours would come in if there’s a gap in the overall funding package, in other words when the business has exhausted traditional routes and the directors have put in as much as they can. “As far as general advice is concerned there


are several places you can turn to. Business Gateway offers help and support on skills, training, business planning and so on. Local authority business development teams often have good skills, knowledge and expertise. Many firms seek business development advice from their accountant first. And larger growing businesses can get tailor-made support from Scottish Enterprise. “There’s a simple motto – fail to plan and


plan to fail; make sure you have the right people in your business who have the right range of complementary skills, and make sure everyone – owner, management, staff and any shareholders – knows what the objectives are. “You need a well thought-out and well-


written plan. “Ultimately you can lose your business if


you don’t do your homework and carry out thorough research. “Remember, don’t bury your head in the sand. Surround yourself with the right people, listen and take advice. To stay ahead of the competition you need to understand what they’re doing. You know your business, but you need to think carefully about how you can add value and make sure that you continue to differentiate your product or service.”


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