The south east women in business conference held in Wexford on the 19th and 20th of September last was a tremenduous success.

The speakers who addressed a wide range of topics were very well received. You can obtain full details of each of the presentations from the conference blog at www.southeastwomeninbusiness.com.

One of the speakers - Paula Fitzsimons, Management & Strategy Consultant and GEM Co-ordinator in Ireland, challenged the audience to “Go For Growth. What’s Stopping You?” Paula spoke about the entrepreneurial environment in Ireland, stating that approximately 2,000 people each month set up a business in Ireland - and of these roughly 500 are set up by women.

Paula also undertook a questionnaire survey of the audience on the day and provided summary feedback on same later in the conference. She found that of all of those surveyed:

• 88% plan to grow their business over the next five years and most expect to increase their current net profit levels over this period ;
• A minority of just 3% envisage selling the business within that timeframe, while a further 9% are happy for their business to remain as it is;
• One in three of the entrepreneurs surveyed currently have a company turnover of less than €50,000, although the turnover of a significant number is between €50,000 and €100,000 (14%) and a further 22% have a turnover of between €100,000 and €250,000;
• At present most of the businesses are focused on the local market (62%) with smaller numbers focused on regional (14%) and national markets (18%) with a few having export markets as their dominant focus (6%);
• Over the next five years fewer of the entrepreneurs expect to be focused on their local market as their dominant market focus (38%), with an increase in those looking to regional, national and export markets;
• Interestingly, in five years time 15% of the entrepreneurs expect to be predominantly focused on export markets;
• Almost half of the women entrepreneurs attending the conference currently have no direct employees (44%) but they do not expect to stay this way for very long;
• In five years time, over 37% expect to have between 6 and 10 employees, with a further one in four expecting to employ over 11 people. 

Paula also asked the entrepreneurs attending the conference to identify the barriers that  inhibit them from fully achieving their growth ambitions.

The survey findings revealed that the main obstacles were perceived to be internal to the entrepreneur,  rather than factors in the external environment, with the most frequently mentioned being:

• desire to protect work-life balance;
• lack of confidence;
• recruiting the right people;
• challenges associated with managing employees;
• lack of finance; and
• a fear of failure. 

The entrepreneurs had a variety of suggestions as to the best manner in which these barriers could be overcome. Several suggested that it would be helpful to have support to think through the strategic direction of the business, others suggested the support of a Mentor/Coach, ideally someone who has been successful in developing their own business.

Training in developing greater know-how with regard to specific functional issues (e.g. marketing, financial management, staff management and training, systems development and administration) was also suggested as a means to overcoming the barriers to growth. Finally a role for regional support networks was identified as being helpful.

Paula Fitzsimons says the responses to the survey indicate the perception that women do not want to grow their businesses is misplaced. In the words of the EU Action Plan “Entrepreneurial growth rarely happens accidentally: an explicit growth orientation, first and foremost a mindset, is needed.”

Paula says that “We already know from our research that the existence of role models and peers has a positive impact on encouraging early stage entrepreneurship.  That is why we are putting together on a pilot basis a series of roundtables  to provide exactly the kind of support requested by these women, offering peer support under the direction of a ‘lead entrepreneur’ – someone who has established and is running their own business.  The lead entrepreneurs will all be giving their time to this initiative on a voluntary basis. Our plan is to create a forum to support ambitious women entrepreneurs to realise their growth ambitions successful businesses going forward. Our motto is simple -  Going for Growth?  Let’s do it!”

The ‘Going for Growth’ initiative is being supported by the NDP Gender Equality Unit, which is supported by EU funds and by Enterprise Ireland. 

‘Going for Growth’ is part of a wider initiative to encourage more women to start their own business, which includes the first National Women’s Enterprise Day, on Wednesday 21 November at the Mullingar Park Hotel, Mullingar, Co. Westmeath, which is being organised and run by the County & City Enterprise Boards (www.nwed.wordpress.com). 

Further information on the Going for Growth initiative may be obtained from the National Director: Paula Fitzsimons – paula@fitzsimons-consulting.com

Sean.

www.kceb.ie

You could be forgiven for thinking that Ireland is about to spin into an economic abyss, everytime you open a newspaper, tune into the radio or turn on the television. The media seem to be playing on our cultural disposition towards defeatism and negativity in this country or on what the economist Cathal Guiomard refers to as the ‘Irish Disease.’ The doom and gloom even makes good entertainment, with economists now becoming household names!

Yes there is no doubt that some sectors of the economy, in particular construction and civil engineering are currently experiencing a considerable slowdown, but this must be put in the context of the incredible growth that these sectors have enjoyed over the last 15 years. If we look at other indicators in the economy - facts and figures, we might get a more balanced view.

I am thinking for instance of the rate of small business starts, which I think can be taken as a reliable indicator of the mood within the local economy. I posted previously on the latest Bank of Ireland (BOI) ‘Start Up Barometer’, which revealed that the rate of new business start-ups is actually on the increase - with over 10,000 new companies having been formed in the first 6-months of 2007, which is slightly ahead of the same period last year.

Furthermore, the latest Global Entrepreneurship Monitor (or GEM) Report found that Ireland remains one of the foremost countries in the EU in terms of entrepreneurship, with 7.4% of the adult population either actively planning or having recently established a new business, compared to 5.5% for the rest of the EU. GEM also reports that 44% of Irish adults perceive that there are good opportunities to establish a new business at present and 50% believe that they have the necessary skills to establish and run a new business.  This is extremely encouraging.

The facts and figures therefore would appear to suggest that the economic climate in general and the environment for small business in particular still remains positive. This point can be further emphasized by taking an historical comparison with say the 1990’s, before the birth of the Celtic Tiger. Back then, it would appear that people set-up in business in spite of rather than with the aid of the prevailing economic conditions of the time.

It is sometimes easy to forget that far from being a leading European economy back in the early 1990’s, Ireland lagged some considerable distance behind the rest of the EU:

• we had high rates of unemployment (at in excess of 15% - compared to just under 5% today) the economy was losing jobs rather than creating them at the current rate of around 75,000 per year – that’s a growth rate of almost 4%;
• we had extremely high interest rates (hovering around 15% compared to 4% today);
• we had high rates of emigration (around 75,000 people per year were emigrating from the country, compared to almost 100,000 per year currently coming into the country);
• we had very high rates of taxation;
• we had high rates of business failure; and
• we had no micro-enterprise support agency providing advice and assistance to people wishing to set-up in business. A wide range of business supports are now available to those in business or thinking about starting one, with the first point of contact being the County Enterprise Board.

So don’t let yourself be talked into a state of doom and gloom. Rather, go get yourself a brochure for Enterprise Week, which will take place from 1st to 5th October next, and attend as many of the events as possible to see the importance that enterprise and entrepreneurship has and continues to make to the local economy. Contact us for your brochure TEL: 056 7752662; E-Mail: enquiries@kceb.ie

Sean.

www.kceb.ie

Enterprise Week is now just 2 weeks away - starting on Monday 1st October.

The Minister for Trade at the Department of Enterprise, Trade & Employment, John McGuinness, TD will launch the packed schedule of events planned for Enterprise Week in Kilkenny, at a breakfast briefing to be held in the Newpark Hotel on Monday 1st October.

The Minister performed the regional launch on Monday last in Clonmel. He noted that ‘Enterprise Week’ aims to raise the profile of the importance of small business to the local economy, and the fact that over 50 events will be held across the south east region during the week. 

We are hoping that Enterprise Week will create a real buzz around the south east in general and Kilkenny in particular. We are very pleased with the broad programme of events that we have organised in conjunction with our partners - Kilkenny Chamber, Kilkenny Women’s Network, Kilkenny Chapter of Business Network International and the Kilkenny Business Club.

Just click on the Enterprise Week Home Page on www.spiritofenterprise.ie for more details of the full programme of events to be held in Kilkenny during Enterprise Week from 1st to 5th October next.

Hopefully we shall see you at some of the events.

Sean.

www.kceb.ie

I posted earlier on our “Getting Your Craft Product to Market” Programme, which we are co-sponsoring with the Crafts Council of Ireland (CCOI). We had a very good attendance (some 18 craft workers in all) at our information seminar to outline the programme on Wednesday 5th September last in the Newpark Hotel, Kilkenny.

We have selected Helen Kenneavy of ‘Celtic Roots’ http://www.celtic-roots.com/ to deliver the programme. Helen has been in business in her own craft company for almost 20 years, and she will be sharing some of her valuable experience gained during that time with the participants on the programme.

Helen presented at the information seminar and she stated that “there has been more change in the marketplace for craft in the last 5 years than there has been in the previous 15 years.” And she said that perhaps the biggest change of all is the fact that consumers are more discerning now - that they are very clear about what they want and where they can get it, and this has significant implications for craft producers, the quality of their product and in particular their marketing, branding and packaging. Helen emphasised that it will be these areas in particular that she will be addressing in the “Getting Your Craft Product to Market” Programme.

Helen went on to give some extremely helpful ’nuggets’ of advice including:

• the importance of telling the story behind the craft product (i.e. the making process, the materials, the colours, the location, the history - basically the importance of creating your signature);
• craft producers will typically need at least 20% of sales Turnover each year derived from new products;
• depending on the sector - craft producers should be introducing new product lines at least every 2-3 years;
• it is easier to find sales for new products in existing markets than to find sales for old products in new markets;
• approximately 10% of Turnover of the craft business each year should be reinvested in marketing (e.g. attending trade fairs, exhibitions, website, brochures, etc.)

Helen also emphasised that one of the major benefits of participating in the programme will be the opportunity to access the comprehensive market information that the CCOI have collated over the past 2 years, especially their detailed profiling of the consumers.

A stimulating discussion followed Helen’s presentation and the evening also proved to be an excellent opportunity for the craft makers to meet and network. The majority of those in attendance have now regsitered to take part in the Programme. I shall keep you posted of their progress on the programme.

Sean.

www.kceb.ie

I have posted previously on our ambition to establish a national centre for creativity (nc4c) here in Kilkenny - the creative heart of Ireland.

The advisory board met for only the second time last week to consider what and how we will go about achieving this ambition. I outline below some of the issues discussed at our meeting:

What is Creativity again?
Creativity is the act of turning new ideas into reality.
Creativity involves two processes: thinking - then producing.
Creativity by individuals and teams is a starting point for innovation
Innovation is the production or implementation of an idea.
If you have ideas, but don’t act on them, you are imaginative but not creative.

Why does Creativity matter?

We agreed that it’s important to consider how to engage people’s creativity.
Creativity matters in business, education, government, arts and community.
It matters for individuals, for children in school, for students in college, for professionals in the workplace and for the local community.
How else do we create a sustainable future, with new and better ways of doing things?
Creativity is key to engaging people and can be pursued in many areas.

How can we stimulate Creativity?

We can deliberately teach creativity — helping people to learn how to think in new ways, develop their strengths, imagine alternatives and generate ideas.
We can develop cultures of creativity in individuals and in organizations, where everyone’s creativity is encouraged and valued and leads to transformational innovations in products and services.
We can link entrepreneurship, research and creativity so that people know how to translate great ideas into real businesses, producing more jobs and a flourishing economy.
We can help use creativity to get people involved in actively imagining and creating their communities.
 

What’s missing?

Creativity is not being encouraged, facilitated and supported in Ireland in an organized, concerted fashion.
We believe therefore that there is a need for a nc4c in Ireland to focus on stimulating and advocating the importance of creativity throughout all aspects of society by developing supports and techniques to help people harness more of their inherent creative abilities.

The big ambition?

The nc4c is the national centre of excellence for the research, understanding and promotion of creative thinking techniques within the community, education, business and public sectors in Ireland.

What will we do?
The nc4c is being established to:

1. Foster and support more effective use of creative thinking techniques within Irish industry, education and the public sector;
2. Conduct world-class research in creative thinking and its application;
3. Develop practical programmes for Irish companies to develop their creativity;
4. Contribute to the development of national strategies to promote creativity as a key driver of innovation and competitiveness;
5. Develop an international awareness of and establish Kilkenny - the creative heart of Ireland - as an international centre for creativity.

We have agreed a number of steps in the coming months to advance our ambition. I will keep you posted.

Sean.

www.kceb.ie

One of the many things we do in assessing an application for financial assistance, particularly in respect of a proposal from an existing business thinking of expanding, is to review the finances and the potential profitability of the proposal. 

We have found in many instances when doing this that promoters simply do not know the real cost involved in producing their product or service, with the result that they are often under-costed, which in turn negatively impacts on profits.

This is quite surprising as much of the success of a business will depend on how products or services are priced. If prices are too low, you will not recover your expenses.  If prices are too high, you will potentially lose sales.  In both cases you will not make a profit. 

Given the critical importance of understanding and controlling costing and pricing in running a business today, one of the regular support programmes that we at Kilkenny CEB run is on “Costing & Pricing.” 

These programmes help equip clients with the ability to manage their business more profitably and make better decisions by understanding what their product/service is worth to their customers and what it costs to produce them. 

Typically the programmes give participants the skills to:

• Establish a pricing policy;
• Understand the underlying cost base and how to incorporate this information in deriving the real cost of providing products/services;
• Implement a simple reporting system that enables them to record costs and improve profitability;
• Understand in both the short and long term the impact on the business financially of the introduction of new products/services; and
• Understand Management Accounting terminology and communicate more effectively with their accountants, bank manager, etc.

If you would like to find out more about how we can help you with managing your costing and pricing policy, please give us a buzz.

Sean.

www.kceb.ie

We at Kilkenny CEB are always keen to support activities or events that will contribute to the local economy and to increased business for the small business community. Well there is perhaps no bigger single event in Kilkenny than the Kilkenny Arts Festival!

There is a tremeduous buzz and hive of activity on the streets of Kilkenny at the moment and this is likely to increase over the course of the next 10 days or so (weather permitting of course), as the Festival takes place (from 1oth - 19th August).

It is perhaps Ireland’s largest international arts festival, now in its 34th year, and attracts leading artists and performers across all art forms from around the world. It provides a fantastic opportunity to showcase the medieval city of Kilkenny and it plays a key role in the local tourism industry, attracting thousands of visitors.

The wide range of events and activities hosted during the Festival helps to bring the arts to a wider audience, and it also provides a much-needed outlet for established as well as emerging artists and crafts workers to display their work (some of these artists and craft workers are clients of the Kilkenny CEB.)

It is estimated that the Festival will bring an additional spend of around €8Mn to the local economy over the 10 days that it runs! The Festival also helps cement Kilkenny’s reputation as the “Creative Heart of Ireland” as it showcases artistic excellence and nurtures local talent.

So if you are in the vicinity of Kilkenny over the next few days, then I would encourage you to come and get a taste of the Festival. It has something for everyone - check out the website www.kilkennyarts.ie

Sean.

www.kceb.ie

Business is all about getting, satisfying and keeping customers. Without sales there are no customers and without customers there is no business. Thus the critical importance of the selling and marketing functions.

Marketing involves anything you do that gets you in front of someone who is interested in what your business can do for them. Selling on the other hand is the one on one communication between you and your potential customer.

When you do something that creates awareness of your business (e.g. advertising) you are ‘marketing’ and when you talk with someone directly who has expressed an interest in your business, you are selling.

Selling is about the human interaction, on the phone or face to face with a customer, building rapport, finding out what your potential customer wants, identifying, establishing and agreeing their needs, presenting your products or services, making your recommendation - as well as closing the sale.

Many people need help to become more proficient in their approach to marketing and selling their business. This is where we at Kilkenny CEB come in. We have been offering training programmes, mentoring, technical assistance and providing basic advice to clients in all apsects of sales and marketing for the past 10 years or more. 

During that time we have learnt that there are two key components to selling. Firstly, you must have a ’sales process’ or method (making selling an automatic and continuous business activity) and secondly, you must develop good interpersonal skills (the ability to communicate, convince, persuade and influence others).

You have to find out what your customers want, how they want to buy it and make sure you can meet their needs. We at Kilkenny CEB are just like any small business - we continually have to refine and adapt our sales process and interpersonal skills to ’sell’ our services to our clients, otherwise they simple will not come back.

In order to sell effectively, every business needs to look at 4 key points in the sales process:

1. Qualifying -  deciding who your target market is and who you want to sell to;
2. Meeting - getting face to face (or on the phone) with your prospective clients;
3. The sale - the process of analysing a buyers needs, recommending the product idea or service and persuading the buyer that the price is fair, the source is satisfactory and the time to buy is now;
4. Customer service - giving the customers what they want. 

Taking each of the above in turn:

Qualifying
This is about getting to know your market, then selecting who you can and want to sell to and setting ‘smart’ goals for your business. Smart being - Specific Measurable Achieveable Relevant and to a Timetable. For example “I want to sell 24 boxes of my product by next Friday” is specific, measurable (24 boxes) relevant (my product) and timed, (by Friday).

Meeting
You need to build rapport by listening to your existing and potential customers. Ask pertinent questions and listen to the answers. Don’t just hear what they say - listen. Listening involves paying attention and applying your mind to what is said and sometimes perhaps more importantly what is un-said.

The Sale
You need to present your sales proposal with enthusiasm.  Enthusiasm is the single most important factor in successful selling. Emphasise your U.S.P. (Unique Selling Points), talk about what distinguishes you and your product/service offering from the competition.

Explain in clear language the features of your product or service and the technical specifications that make it what it is. Present the advantages, but focus particularly on the benefits or gains your customer will derive from using your product or service. Remember that customers buy benefits. The Chinese have a saying that translates as: “Don’t sell the mousetrap, sell the absence of mice!”

However, resist the temptation of ‘talking up’ the features. Always answer customer’s questions honestly and don’t exaggerate or make rash promises.

Customer Service
If something goes wrong, put it right and then do that something extra. Keep your promises and you’ll keep your customers and in fact they’ll sell more for you - by telling others how happy they are to have you as a supplier.  Selling is about finding a need and satisfying it - keeping your customers happy!

We at Kilkenny CEB provide training, mentoring and advice on sales and marketing on an ongoing basis.  For further information on how we can help, please give us a buzz.

Sean.

www.kceb.ie

I have just returned from a welcome spell on annual leave refreshed and re-energised. And as the credit card statement from the holiday has been received, it has prompted me to post a piece on the precarious business of cash-flow management!

The ability to balance cash recieved in a business with the payment of bills as and when they fall due is a critical function in any business. 

Many owner/managers, particularly of small businesses fail to understand, overlook or simply ignore the importance of balancing the cash in and out of the business. In fact, poor management of cash flow is often cited as the primary reason for business failure!

Cash is the life-blood of any business and without it businesses would be unable to function. The main source of cash for any business is from sales. Other sources of cash include financing in the form of bank loans and overdraft facilities, grant aid, invoice discounting or directors’ loans and equity.

The main outflow of cash comprises stock, materials, salaries and other overheads like utility bills, tax and VAT, funding of work in progress, repayment of loans and capital expenditure.

When people think of poor cash flow, they think of a business with declining sales. But poor cash flow can also be a weakness within a business with increasing sales.

In fact, fast-growing companies are especially vulnerable to poor cash flow management. Profitability is no guarantee of success or even survival in business. You can operate without a profit but you cannot survive for any length of time without cash!

Businesses can implement a number of steps to help manage their cash flow. The following measures have been incorporated in many of our training programmes to help small business owners review their cash management practices:

Credit Control
If you sell on credit your cash inflow will be delayed from the invoice date according to your credit terms. It is essential that you are at all times in control and not the customer. The implementation of ‘Late Payments in Commercial Transactions Regulations 2002,’ which affects contracts entered into after the 8th August 2002, has assisted businesses in combating the problem of late payments;

Be careful of substantial financial commitments
Before taking on a large financial commitment including major new orders or new staff check that you have sufficient cash flow to cover the costs involved. Restrict the growth of your business to whatever you can comfortably afford to finance.  Try to insist on a part-payment of deposits on orders up front.  If you pay sales commission link it to receipt of payment rather than receipt of order;

Prepare a forecast
The most important tool owner managers have available to control the financial aspects of their business is the cash flow forecast. You need to forecast monthly commitments such as rent, salaries, bills, suppliers invoices and you must also forecast and budget for expenses that are not due every month, such as tax lump sum payments, rates or insurance premiums. It is good practice to build up funds steadily in a separate account to meet such commitments.  At the end of each week or month or quarter, compare the forecast with the actual results, and adjust your forecasts going forward if necessary.

Manage your creditors
A key strategy in cash flow management is to aim to bring cash into the company as quickly as possible, then hold onto your cash as long as possible by managing your accounts payable. That means, quite simply, taking as long as you’re allowed to pay your creditors without incurring late fees or interest charges to pay your company’s bills. You should not fall into arrears with your suppliers but you should manage payments for as long as possible without damaging the relationship.

Look out  for Warning Signs
The point of monitoring cash flow is to look for warning signs so you can spot problems and do something about them. Warning signs can be triggered in a number of areas. For example, are your sales fluctuating up or down? Has the amount of money due from your customers increased? How much money do you have in the Bank? Is stock turnover decreasing? Review your expenses and see what costs you can reduce without the business suffering. Every business should be constantly trying to reduce inefficiencies in production or administration to achieve cost savings.

Develop a good relationship with your bank

It is critical to develop a strong relationship with your bank. Make sure your bank is well informed of your business. In spite of your best efforts to manage your cash flow, you’d be very lucky not to experience a cash flow crisis at some stage or other.
Keep your bank manager up to date of any changes in your circumstances.  You should always keep enough cash on hand to cover expenses and as an added cushion for security. However, it is unwise to keep more money on hand than is necessary.  If your cash flow has become stable and predictable, you can consider investing your excess cash in an accessible, interest-bearing, low-risk account, such as a savings account.

The above Checklist although not exhaustive, illustrates a number of ways to take control of your cash flow in order to protect your business’s short-term reputation and position it for long-term success.

We at the Kilkenny CEB provide training in this area on an ongoing basis as an integral part of our wide range of supports to new and existing small businesses.  If you would like to learn more, just give us a buzz.

Sean.

www.kceb.ie

I shall be taking a break from posting to this blog for the next couple of weeks, as I will be on vacation somewhere on the island of Ireland? Although, with the current spell of incessant rain, I might be tempted to abandon my plans and defer in the hope that we will get what could be termed ’summer weather’ later on ….

Anyway, on the topic of vacation - ‘holiday entitlements’ is a subject upon which we get queries from clients from time to time. So if you are employing people, now is perhaps a good time to remind you of the holiday entitlements of your staff:

Full-time employees are entitled to four working weeks (i.e. 20 days) of paid holidays per annum. Holidays are earned on time worked by the employee.

Public Holidays

Full-time employees have an immediate entitlement to benefit from a public holiday. Part-time employees must have worked a total of 40 hours over a five-week period ending immediately before the public holiday to qualify.There are nine public holidays in the year:

• January 1^st
• St. Patrick’s Day (March 17^th) 
• Easter Monday 
• The first Monday in May 
• The first Monday in June 
• The first Monday in August 
• The last Monday in October 
• Christmas Day (December 25^th) 
• St. Stephen’s Day (December 26^th)  

Good Friday is not a public holiday.

If the public holiday falls on a day on which you would normally work employees will be entitled to one of the following:

1. A paid day off on that day

2. A paid day off within a month of the day
3. An additional day of annual leave
4. An additional days pay

Thats all for now. I’ll be back posting again in a couple of weeks.

Sean.

www.kceb.ie