The Intervallum Conference for 2010 has now come to a close, but once again it has proved to be extraordinarily beneficial to the strategic direction of the business.
As always with these types of events, it is absolutely necessary to get the entire team away from their normal organisational surroundings (and phones/emails) to have some uninterrupted and quality time working "on" not "in" the business. This really does lead to the most incisive creativity of all.
And it worked well. Some very good thoughts and ideas were brought into play, particularly with regard to business development and additional services that can be offered to our clients (and clearly relevant during this prolonged economic downturn and very slow recovery).
The end result is that the whole team have been left fully enthused and totally focused about getting back into the workplace, working on the new ideas and projects formulated at the conference, and taking Intervallum (and our clients) forward.
Sunday, 18 July 2010
Sunday, 13 June 2010
Book Review - "Faff" by Mike Pagan
In his book, "Faff", Mike Pagan highlights the way in which so many business people have a tendency to allow their focus to drift and "Faff About" doing the things they like or want to do, which don't necessarily add any value to their business, instead of doing the things they need to do to take their company or idea forward.
The book is full of anecdotal and humorous stories from Mike's experience, and gives lots of practical advice and tool kits to help you to focus on what activities really are important to you and need your attention if you are going to take your business, career or life forward.
As Mike himself says, you can dip in and out of this book and use the tools when required (i.e. you shouldn't be running all of the tools at the same time) and come back to some of his other templates and suggestions as and when you need to.
This is definitely a book to read now to de-clutter yourself and move onwards more efficiently - don't faff about, get your copy today.
Monday, 31 May 2010
What is an Interim Finance Director and how can one add value to your business?
Many business people are not totally clear on exactly what an Interim Finance Director is. The objective of this article is to answer that question for you and suggest areas where an Interim FD can add value to your business.
When would you need the services of an Interim FD?
This can vary from client to client, but the 3 main requirements are:-
1) The owners of the business want to sell their company and therefore need a financial professional to get their business in order, assist with the preparation of the sales memorandum, take the company through the due diligence process and then assist in the negotiations to achieve a satisfactory deal and take it to legal conclusion. In 2005 I assisted in the sale of a Telecoms business to Lord Young, and on 3rd April 2008 (just hours before the Capital Gains Tax rule change came into force) I helped a £200m t/o construction business to go through a £154m secondary buyout, assisting the owner/directors to realise personal wealth.
2) A safe pair of hands - when a company's permanent FD resigns, he can often be gone within a month. The search and selection process, interviewing routines and successors notice period can on average, be a 5 to 9 month period. An interim FD can quickly enter this company at the point of original resignation to spend almost a month with the outgoing FD to quickly understand his knowledge and experience of the business in order that projects can continue and that the valuable company knowledge from the original FD can be kept warm and the baton can be effectively handed over to the incoming permanent FD.
3) Turnaround situations and cash issues - as the credit crunch took hold, and the economy tanked, several businesses found themselves reducing in activity levels and strangulated by a lack of cash. Several Private Equity companies moved from potential outward investment to an inward look at their portfolio of businesses, as some of these came under pressure - which was exasperated by the debt funding that had to be serviced. Therefore I have been called into such businesses in a "dash for cash" to meet loan repayments, followed by a restructuring and cost cutting exercise (and in most cases a refocus on strategy) in order to turn the company around and allowing them to continue as a going concern.
How can an Interim Finance Director add value to your business?
The fact that the company is maintained as a going concern after the extreme scenario of a turnaround means there is still value of some description for the business owners (and employees and creditors for that matter) as compared to a total wipe-out and liquidation. Successful negotiations with the crown by an interim can effect a time to pay arrangement and give valuable breathing space to get cash in. A good Interim FD will quickly get a grip on the cash management, effecting a daily cash report and forecast to highlight any future pinch points and navigate the business around the rocks.
Once the position is stabilised, the financial process and systems will be reviewed and "best in sector" solutions will be applied i.e. to ensure the most efficient collection of cash.
In a sale situation, an experienced Interim FD can quickly prepare the necessary financial data to support the sales memorandum, oversee the due diligence process and resulting negotiations, and ensure that the best price has been attained at deal conclusion.
Acting as a safe pair of hands protects valuable company information and ensures its safe transfer to an incoming permanent FD, rather than leaving a finance vacuum at the top of the company and a very steep learning curve for the new incumbent, which can prove very costly.
In summary then, "What is an Interim Finance Director?" He or she is a vastly experienced financial professional, often overqualified for the role, who can parachute into your business at very short notice to assist with a specific issue, project or transaction and deliver results quickly.
At Intervallum we pride ourselves with the delivery of high quality interim service provision combined with the ultimate flexibility - you turn the tap off at the point when you have had all the required targets and services delivered, and your thirst has been quenched. Whether you are looking to sell your business, have a need for a safe pair of hands between permanent Finance Directors, or require urgent assistance with getting cash into your company fast, your Intervallum Interim will add value to your business from day one.
We are the sledgehammer to crack your walnut - remember, when you need and Interim, choose Intervallum.
When would you need the services of an Interim FD?
This can vary from client to client, but the 3 main requirements are:-
1) The owners of the business want to sell their company and therefore need a financial professional to get their business in order, assist with the preparation of the sales memorandum, take the company through the due diligence process and then assist in the negotiations to achieve a satisfactory deal and take it to legal conclusion. In 2005 I assisted in the sale of a Telecoms business to Lord Young, and on 3rd April 2008 (just hours before the Capital Gains Tax rule change came into force) I helped a £200m t/o construction business to go through a £154m secondary buyout, assisting the owner/directors to realise personal wealth.
2) A safe pair of hands - when a company's permanent FD resigns, he can often be gone within a month. The search and selection process, interviewing routines and successors notice period can on average, be a 5 to 9 month period. An interim FD can quickly enter this company at the point of original resignation to spend almost a month with the outgoing FD to quickly understand his knowledge and experience of the business in order that projects can continue and that the valuable company knowledge from the original FD can be kept warm and the baton can be effectively handed over to the incoming permanent FD.
3) Turnaround situations and cash issues - as the credit crunch took hold, and the economy tanked, several businesses found themselves reducing in activity levels and strangulated by a lack of cash. Several Private Equity companies moved from potential outward investment to an inward look at their portfolio of businesses, as some of these came under pressure - which was exasperated by the debt funding that had to be serviced. Therefore I have been called into such businesses in a "dash for cash" to meet loan repayments, followed by a restructuring and cost cutting exercise (and in most cases a refocus on strategy) in order to turn the company around and allowing them to continue as a going concern.
How can an Interim Finance Director add value to your business?
The fact that the company is maintained as a going concern after the extreme scenario of a turnaround means there is still value of some description for the business owners (and employees and creditors for that matter) as compared to a total wipe-out and liquidation. Successful negotiations with the crown by an interim can effect a time to pay arrangement and give valuable breathing space to get cash in. A good Interim FD will quickly get a grip on the cash management, effecting a daily cash report and forecast to highlight any future pinch points and navigate the business around the rocks.
Once the position is stabilised, the financial process and systems will be reviewed and "best in sector" solutions will be applied i.e. to ensure the most efficient collection of cash.
In a sale situation, an experienced Interim FD can quickly prepare the necessary financial data to support the sales memorandum, oversee the due diligence process and resulting negotiations, and ensure that the best price has been attained at deal conclusion.
Acting as a safe pair of hands protects valuable company information and ensures its safe transfer to an incoming permanent FD, rather than leaving a finance vacuum at the top of the company and a very steep learning curve for the new incumbent, which can prove very costly.
In summary then, "What is an Interim Finance Director?" He or she is a vastly experienced financial professional, often overqualified for the role, who can parachute into your business at very short notice to assist with a specific issue, project or transaction and deliver results quickly.
At Intervallum we pride ourselves with the delivery of high quality interim service provision combined with the ultimate flexibility - you turn the tap off at the point when you have had all the required targets and services delivered, and your thirst has been quenched. Whether you are looking to sell your business, have a need for a safe pair of hands between permanent Finance Directors, or require urgent assistance with getting cash into your company fast, your Intervallum Interim will add value to your business from day one.
We are the sledgehammer to crack your walnut - remember, when you need and Interim, choose Intervallum.
Friday, 21 May 2010
Election to Vice President of ITC Powertalk Lichfield
I am delighted to announce that I have been invited, and unanimously elected, to take up the position of Vice President of the ITC Powertalk Public Speaking organisation in Lichfield.
The speech that I delivered earlier in the evening was very well received and possibly contributed towards my being nominated for this role.
I look forward to assisting in bringing more people to this organisation to learn the skills and receive the mentoring for improving their own public speaking techniques and presentation structures.
The speech that I delivered earlier in the evening was very well received and possibly contributed towards my being nominated for this role.
I look forward to assisting in bringing more people to this organisation to learn the skills and receive the mentoring for improving their own public speaking techniques and presentation structures.
Monday, 10 May 2010
Alexander Daniels Launch Event
It was a great pleasure to be invited along to the Hotel du Vin in Birmingam recently.
One of Britain’s most prominent business leaders helped to boost Birmingham’s standing as a financial services centre by officially launching the Baskerville House offices of new financial recruitment consultancy Alexander Daniels.
Lord Digby Jones of Birmingham was among more than 80 guests including representatives from leading Midland companies and accountants, lawyers and other financial professionals at the firm’s launch event.
The former Trade Minister and Director-General of the CBI spoke optimistically about the economic outlook for the Midlands and applauded Alexander Daniels for bringing high quality value-added financial recruitment services to the city.
Digby gave one of his highly amusing, passionate, yet poignant trade mark speeches; full of his pride in the West Midlands and his determination to improve the region's skill sets, much criticism of our current political system, and his astonishment at how this country repaid it's greater ever leader, Winston Churchill, for saving the free world - by giving him the sack in the 1945 General Election.
The major networking occasion was hosted by experienced founder directors Jamie Rodden, Nick Pearce and Ian Mourbey, who were joined by the firm’s backer entrepreneur Andy Foote.
A highly successful launch event that was well attended by the business community and enjoyed by all - well done Alexander Daniels.
Friday, 16 April 2010
10 Top Tips to Improve Your Cashflow
Although many businesses still use profitability as their main Key Performance Indicator (KPI), if you run out of cash then you have no business left to operate (and the measure of profit or loss becomes completely irrelevant).
Good cash management is imperative to every business, but never more so than in the current economic climate. With optimism slowly returning to the business community, there is incredible pressure on companies to return to a growth profile at the earliest opportunity. This can be very dangerous because if working capital is already stressed, and business picks up, then the need to increase working capital at a time when lenders are looking to keep it held back could push the company into a scenario of slow cash flow strangulation or, even worse, to over trade.
By properly organising the credit management area of a business and injecting some structure and metrics into the cash collection process, as well as getting “stuck-in” to the traditional chasing routines (phone calls, Dunning letters, instigation of legal action etc.), you can make a huge difference to your working capital at a time when it really counts.
Here I highlight my “10 Top Tips to Improve Your Cashflow”: -
1) Credit Check – it is key to the whole process that you ask any prospective customer requesting a credit account to complete a form detailing their trading status, registered address, company number, VAT number etc in order that their credit status can be reviewed by one of the industry standard providers, such as Dunn & Bradstreet, and an opinion can be formed as to what credit level (if any) would be appropriate to start trading on.
2) Purchase Order – you must make sure that a valid purchase order is obtained from the customer in line with their accounting policies and system. By omitting this stage you are running the risk of the client suggesting that whoever made the order request wasn’t acting on behalf of them, and this could therefore cause delays in getting paid on that order.
3) Terms & Conditions – ensure that terms (i.e. payment due 30 days after the date of invoice) are fully known for each customer, and that each customer is aware of them too (you would be surprised how often these details are not fully known internally or externally!!!).
4) Daily invoicing – wherever possible, raise invoices on a daily basis. The earlier the date of creation (and therefore the tax point), the sooner the invoice will become due and payable, and the more efficiently you will be able to unlock the cash from it. Never leave the invoicing process to one large batch run at month end, otherwise you will add a significant amount of days to the cycle and risk greatly damaging your cash flow.
5) Forecasts – ensure you have a minimum of at least 12 weeks forward forecast visible, but preferably longer. This will give you a rounded cash position for the business, highlight pinch points and what action needs taking as a result, and help to define each month’s targeted collections for the Credit Control team.
6) Targets - set monthly collection targets for the credit control team and, if possible, write this on a white board in full view in order that the credit control staff can visualise this target. In addition, give them a daily update beneath this figure so that progress can be monitored as the month progresses. A target and actual daily average collection figure can really help to motivate the team towards achieving their goal.
7) Telephone chasing – as soon as an invoice becomes overdue (i.e. beyond terms) then the process of telephone chasing should begin. This will let the customer know that you are organised and systematic and serious about getting your cash in. During the call, ensure that there are no issues or disputes with the invoice – if there is an issue, it is imperative that this is resolved internally immediately in order that the customer’s query can be resolved, and that any further barriers to payment are removed. For repeat business clients, it also gives your team the opportunity to create relationships with members of the client’s Bought Ledger team which, if done well, can then help to make the collection process more efficient on a month by month basis.
8) Dunning letters – the Company should operate a strict regime of chasing letters to be activated on 15, 30 and 45 days beyond terms, with the vocabulary getting stronger with each. If a customer believes they are about to be taken legal then this will often unlock the outstanding cash.
9) Directors/Sales/Operations Team Members – if the telephone chasing and Dunning letters are getting nowhere, then a further step before going legal is to ask your Directors or members of the Sales and Operations teams to help. They may have relationships with key individuals in the customer’s company built during the initial marketing or sales negotiating process. Again, a call to the right person in the customer’s team can often help to unlock the cash quickly.
10) Legal action – if the telephone and letter chasing produces no results, don’t be afraid of going legal. There are many solicitors out there who will undertake the initial legal letter to customers for £2 + VAT each. No business likes to have CCJ’s entered against them, but will often wait for the legal letter to arrive before finally paying up.
Remember, the longer you leave it to chase overdue cash, the harder it becomes to eventually collect it!!!
If you need any further assistance with your cash management process then you should consider the services of an Interim Finance Director who can help you to ensure that the requisite systems are put in place and are fully functioning to their best effect. Email phk@intervallum.co.uk to arrange a meeting to discuss this further; Intervallum Limited can make a huge difference to your working capital at a time when it really counts.
Good cash management is imperative to every business, but never more so than in the current economic climate. With optimism slowly returning to the business community, there is incredible pressure on companies to return to a growth profile at the earliest opportunity. This can be very dangerous because if working capital is already stressed, and business picks up, then the need to increase working capital at a time when lenders are looking to keep it held back could push the company into a scenario of slow cash flow strangulation or, even worse, to over trade.
By properly organising the credit management area of a business and injecting some structure and metrics into the cash collection process, as well as getting “stuck-in” to the traditional chasing routines (phone calls, Dunning letters, instigation of legal action etc.), you can make a huge difference to your working capital at a time when it really counts.
Here I highlight my “10 Top Tips to Improve Your Cashflow”: -
1) Credit Check – it is key to the whole process that you ask any prospective customer requesting a credit account to complete a form detailing their trading status, registered address, company number, VAT number etc in order that their credit status can be reviewed by one of the industry standard providers, such as Dunn & Bradstreet, and an opinion can be formed as to what credit level (if any) would be appropriate to start trading on.
2) Purchase Order – you must make sure that a valid purchase order is obtained from the customer in line with their accounting policies and system. By omitting this stage you are running the risk of the client suggesting that whoever made the order request wasn’t acting on behalf of them, and this could therefore cause delays in getting paid on that order.
3) Terms & Conditions – ensure that terms (i.e. payment due 30 days after the date of invoice) are fully known for each customer, and that each customer is aware of them too (you would be surprised how often these details are not fully known internally or externally!!!).
4) Daily invoicing – wherever possible, raise invoices on a daily basis. The earlier the date of creation (and therefore the tax point), the sooner the invoice will become due and payable, and the more efficiently you will be able to unlock the cash from it. Never leave the invoicing process to one large batch run at month end, otherwise you will add a significant amount of days to the cycle and risk greatly damaging your cash flow.
5) Forecasts – ensure you have a minimum of at least 12 weeks forward forecast visible, but preferably longer. This will give you a rounded cash position for the business, highlight pinch points and what action needs taking as a result, and help to define each month’s targeted collections for the Credit Control team.
6) Targets - set monthly collection targets for the credit control team and, if possible, write this on a white board in full view in order that the credit control staff can visualise this target. In addition, give them a daily update beneath this figure so that progress can be monitored as the month progresses. A target and actual daily average collection figure can really help to motivate the team towards achieving their goal.
7) Telephone chasing – as soon as an invoice becomes overdue (i.e. beyond terms) then the process of telephone chasing should begin. This will let the customer know that you are organised and systematic and serious about getting your cash in. During the call, ensure that there are no issues or disputes with the invoice – if there is an issue, it is imperative that this is resolved internally immediately in order that the customer’s query can be resolved, and that any further barriers to payment are removed. For repeat business clients, it also gives your team the opportunity to create relationships with members of the client’s Bought Ledger team which, if done well, can then help to make the collection process more efficient on a month by month basis.
8) Dunning letters – the Company should operate a strict regime of chasing letters to be activated on 15, 30 and 45 days beyond terms, with the vocabulary getting stronger with each. If a customer believes they are about to be taken legal then this will often unlock the outstanding cash.
9) Directors/Sales/Operations Team Members – if the telephone chasing and Dunning letters are getting nowhere, then a further step before going legal is to ask your Directors or members of the Sales and Operations teams to help. They may have relationships with key individuals in the customer’s company built during the initial marketing or sales negotiating process. Again, a call to the right person in the customer’s team can often help to unlock the cash quickly.
10) Legal action – if the telephone and letter chasing produces no results, don’t be afraid of going legal. There are many solicitors out there who will undertake the initial legal letter to customers for £2 + VAT each. No business likes to have CCJ’s entered against them, but will often wait for the legal letter to arrive before finally paying up.
Remember, the longer you leave it to chase overdue cash, the harder it becomes to eventually collect it!!!
If you need any further assistance with your cash management process then you should consider the services of an Interim Finance Director who can help you to ensure that the requisite systems are put in place and are fully functioning to their best effect. Email phk@intervallum.co.uk to arrange a meeting to discuss this further; Intervallum Limited can make a huge difference to your working capital at a time when it really counts.
Tuesday, 6 April 2010
PHK’s Budget Comments on ITN National News
Many thanks for all the kind comments and emails that I have received since appearing on the ITN National news on budget day, where ITN were filming from the “marginal” constituency of Burton-upon-Trent.
I was asked to go along by the Chamber of Commerce to give the view of the business community, and was more than happy to do so.
On the day itself, after a "live" feed on the news before the budget speech was made, I was questioned for my opinion on the budget on “live” national TV just moments after the Chancellor had sat down (and with little or no time to reflect further on the points delivered), and was then subsequently filmed for a recorded piece for the news bulletin at 6.30pm.
For those of you that have asked, some of the footage can still be viewed at the ITN site via the following link: -
http://www.itnsource.com/jp/shotlist/ITN/2010/03/24/T24031035/?v=0&a=1
It was a thoroughly interesting experience, although I feel the real budget decisions are yet to be made and won't come until after 6th May.
I was asked to go along by the Chamber of Commerce to give the view of the business community, and was more than happy to do so.
On the day itself, after a "live" feed on the news before the budget speech was made, I was questioned for my opinion on the budget on “live” national TV just moments after the Chancellor had sat down (and with little or no time to reflect further on the points delivered), and was then subsequently filmed for a recorded piece for the news bulletin at 6.30pm.
For those of you that have asked, some of the footage can still be viewed at the ITN site via the following link: -
http://www.itnsource.com/jp/shotlist/ITN/2010/03/24/T24031035/?v=0&a=1
It was a thoroughly interesting experience, although I feel the real budget decisions are yet to be made and won't come until after 6th May.
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