Tag Archives: Food & Drink Business Finance Workshop

Fail to plan? Plan to fail.

The Food For Thought workshop in Barnstaple last month generated active and enthusiastic discussion of the topics covered in the presentations.

As a follow up I want to share some of the major points that were covered.

We kicked off the morning looking at business plans. Most of the businesses present didn’t have a business plan, and that wasn’t a huge surprise – business plans usually only come out when you want to borrow money or apply for a grant.

However when you do have a written down plan you are much more likely to achieve what you want from your business:

– You have a way to evaluate new opportunities; do they get you closer to your goal?
– You keep your own interests at heart rather than getting swept along by other people’s ideas.
– When times get tough you have a reminder of why you started on this journey, and encouragement to see it through.

A business plan doesn’t need to be formal, and it doesn’t have to be lengthy (the shorter the better!).

It’s also not supposed to be final – change it as you go, as you get more information and as your circumstances and views change. Both the businesses who said they did have a business plan updated their plans regularly.

So where do you start? In simple terms a business plan sets out:

Where you are now

Often a SWOT analysis is a good place to start. It’s a useful tool to separate out the good and bad things currently on your radar between:

Strengths and Weaknesses – internal factors; things you do well (better than your competitors?) or not, things that you have some control over.

Opportunities and Threats – external factors, like the economy and market trends. These are outside your control so any strategies you make need to be designed to take them into account.

Sometimes it’s easy to lose track of the distinction, but it is important as there is nothing more futile than trying to change something you have no control over.

Where you want to get to

It’s not your business who’s writing this, it’s you. Your goals need to come first, so what does success look like to you?

What makes a successful seasonal business?
Provide you with an income – well usually, but also:
Build a (inter-) national reputation?
Make you rich?
Follow a dream?
Make a tax loss?!
Close down in a controlled way?

How are you going to get there?

What does your business need to achieve in order to get you to the point where you can achieve your own goals?
More profit?
More sales?
More staff, to free up your time?

How long do you think it will realistically take to achieve this? Or, more importantly, how long have you got!

This is where your strategies come in. If you need more profit how will you get it? More sales? Better sales? New customers? New products!

How will you get these new sales? How will the customers find out?

Do you need different resources to deliver this? New tools? More cash? A better IT system?

Be realistic

I have worked with a lot of businesses whose plans have failed because the owner thought that they could grow sales without adding extra staff or production resources. Hope, or even will power won’t ever be enough to make the plan succeed!

You have to stay realistic when it comes to working out what you can do with your existing resources, and similarly when it comes to assessing the sales opportunity that you have. I mentioned the example of milk alternatives – while there is a market for these products there is a large proportion of the population who are happy drinking standard milk and so the market is naturally limited. A huge marketing budget will not necessarily change that, so growth plans have to reflect this.

Make a plan
At the end of the workshop the attendees took away a business plan template that they had completed during the morning. If you would like a copy of the template then drop me a line, or leave comment here.

Finance for Food & Drink Business Workshop 2015

Growth is a challenge for small businessesIt’s been a while since my last blog, in September last year I started a full time contract working as interim FD for a food business which was growing rapidly and faced a lot of challenges managing cashflow and ensuring all its new sales opportunities were profitable.

In July this year I handed over the FD reins and now I am back; focussing on Pound Lane with even more tools to help other growing businesses manage similar challenges.

Something that I overlooked in September was to report back on the success of the Food & Drink Business Finance Workshop that I hosted.

Review of Food & Drink Business Finance Workshop 2015

On the day we had representatives from 6 different businesses at the workshop and a useful forum developed where we discussed some of the challenges faced by small food businesses and shared ideas and tips for solving them.

Topics covered included:
Business plans – the impact of setting out what you would like your business future to look like and then committing your plans to paper so you can review progress against that target at some point in the future.

We heard from Jocelyn and Ferenc Droppa of Droppa and Droppa who were kind enough to tell the group about their original idea and how their business plan has evolved over the course of their business’ life.

“Not losing sight of why I got into business in the first place”

– Chris Smith on what he found useful at the workshop

Finance for Food & Drink Businesses Workshop
Ideas for recording and using accounting information
– the importance of organising your accounts to record figures that are useful to your business, eg splitting sales between several product types, not just between sales with VAT at 20% and sales with VAT at 0%.

The difference between profit and cashflow – every business needs to make a profit, but even the most profitable businesses can have cash crises. When it comes down to it cash makes the world go around so it is vital to understand what effects the cash flow in your business. I will come back to this in a series of blogs this autumn, because it comes up more and more in my work.

Mary Quicke Finance for Food & Drink Businesses Workshop 2015Mary Quicke of Quickes Traditional Cheeses also gave a presentation in which she shared some of her experiences from growing her business into an international brand without “selling out” the quality and traditional style of her cheeses.

One of most interesting points of her presentation was the fact that Quickes’ sales and marketing strategy is not focussed purely on profit, but on spreading business between different outlets as well, to reduce the dependence on any one customer – another way of helping to secure cashflow and protect the high quality/ high price niche that Quickes’ cheeses have.

We rounded of the morning with a buffet lunch, and continued conversation there. Everyone who took part enjoyed the workshop and took away useful ideas for their businesses.

I will be holding more workshops in 2017 and so if you would like to be included on the mailing list please get in touch.