Podcast Summary
Navigating business challenges during the pandemic: Adaptability and deep industry knowledge are crucial for businesses to thrive during uncertain times. Quick response and effective guidance can help businesses weather crises.
Adaptability is crucial for businesses, especially during uncertain times like the ongoing coronavirus pandemic. Imogen Edmonds, a HR consultant with a focus on early years education, shared her experience of navigating the challenges her business faced due to the pandemic. With 5 employees and a revenue of over £100,000, her business had been operating for 16 years, primarily serving the educational sector. Imogen explained that having a deep understanding of her industry allowed her to provide effective advice to her clients. However, when the pandemic hit, her business was significantly affected, with frequent changes in government advice causing chaos and uncertainty. Despite this, Imogen's ability to adapt quickly and provide responsive guidance helped her business weather the crisis. Unfortunately, some businesses in her industry attempted to profit from the situation by furloughing their staff and collecting both their national educational grant money and the government's £25,000 grant. However, the government eventually u-turned on this policy, leaving some businesses in a difficult position. Overall, Imogen's story highlights the importance of adaptability and deep industry knowledge in running a successful business, especially during challenging times.
Government funding changes caused confusion and frustration for businesses during the pandemic: Smaller businesses with lower operational costs benefited from funding adjustments, while larger businesses with higher overheads felt unfairly treated. Late notice of changes caused issues for those relying on external help for payroll calculations.
The sudden change in government funding rules for businesses during the coronavirus pandemic caused confusion and frustration for many, particularly those in the childcare sector. Those with lower operational costs, such as village hall nurseries, stood to benefit significantly from the scheme, while larger businesses with higher overheads felt they were unfairly treated. The late notice of these changes, which came just before the portal for applying for the grants was set to open, caused issues for many businesses that relied on external help for payroll calculations. Despite the logic behind the funding adjustments, the lack of communication and advanced warning led to feelings of being treated unfairly. The biggest challenge for businesses, including the one being discussed, is adapting to the financial impact of the pandemic and the resulting changes in revenue streams. The speaker shared that they had a successful April due to quick response and online sales, but anticipate that the overall business plans for the year may be affected by the number of businesses being impacted.
HR services for nurseries based on employee count: Red Wing HR offers flexible HR services to nurseries based on their employee count, with a monthly cost of around £100-£120 for 10 employees, including services like managing conversations, grievances, and creating employment documents.
Red Wing HR offers HR services to nurseries based on the number of employees they have, with a 12-month contract. The company believes that a longer contract is unnecessary due to the unpredictability of business growth. For a 10-employee nursery, the monthly cost is around £100-£120, and Red Wing HR provides various HR services including managing conversations, grievances, disciplinaries, offer letters, contracts, employment policies, and handbooks. The company's founder, prior to COVID-19, focused on sales and marketing for their business and aims to expand it by allowing nurseries to buy services when they need them. Red Wing HR's goal is to help nurseries reach more customers and increase passive income.
Leveraging Social Media and HR Solutions for Business Success: Building a strong brand presence on social media and partnering with a reliable HR solutions provider can lead to a high lifetime value for businesses. Expert advice and cost-effective solutions can help businesses navigate complexities of hiring and regulations, leading to a loyal customer base that stays for an average of 10 years.
Investing in building a strong brand presence on social media and partnering with a reliable HR solutions provider can lead to a high lifetime value for businesses. The speaker shares his experience of having a following that could potentially put clients into an HR company, and the value of employing more people to increase the chances of business success and longevity. He also mentions the importance of having expert advice to navigate the complexities of hiring and regulations. The speaker's business model includes using an HR solutions provider as a partner, while handling most HR functions in-house. He emphasizes that even when clients may decide to handle HR functions in-house, the relationship doesn't necessarily end, as they may still require guidance and support. The speaker's business has found success in providing training and using software to deliver cost-effective solutions, leading to a loyal customer base that stays with the business for an average of 10 years.
The importance of retaining customers and building strong relationships: Stay connected, provide value, educate customers, engage staff, leverage social media, have a clear vision for the future, and focus on making the business sellable.
Retaining customers and building strong relationships with them is crucial for any business, especially in the face of competition and changing circumstances. The speaker shared an example of a customer who tried to do things herself but eventually returned, highlighting the importance of staying connected and continuing to provide value. Educating and training customers, particularly their staff, can help improve their management skills and keep them engaged. The speaker also emphasized the power of social media, specifically Facebook, for reaching new customers and building communities. When it comes to growing a business, it's important to have a clear vision for the future, including a desired profit level and a plan for making the business sellable. The speaker shared that they value having a profitable, boutique business and are focused on making it a sellable asset in the future.
Growing a business to sell or turn into a passive investment: To build a profitable business for retirement, aim for £500,000 to £1,000,000 in revenue, hire good management and staff, and focus on strategic decision-making with the help of a financial controller or accountant.
To build a profitable business that can be sold or turned into a passive investment, it needs to reach a certain revenue level and operate without the owner's excessive involvement. The speaker aims to retire in 10 to 13 years and intends to have a business generating around £500,000 to £1,000,000 in revenue. This will enable the hiring of good management and staff, making the business more enjoyable for the owner and increasing its value. However, managing the middle management and affording good staff are challenges that come with growing a business. The speaker emphasizes that entrepreneurship combined with effective management is the key to success. The hiring of a financial controller or accountant is a significant step for business owners, as it allows them to enjoy their business more and focus on strategic decision-making.
Investing in financial management and internal resources saves time, energy, and money: Hiring a team of financial experts and young, skilled individuals for marketing and design tasks can lead to improved financial management, increased business value, and more efficient work.
Investing in financial management and internal resources, such as bookkeepers, finance directors, and a marketing team, can significantly reduce stress, provide valuable insights, and increase the value of a business. The business owner shared how they never had to worry about cash flow, VAT, or payroll after hiring a team, despite having grown from a £2.5 million to a £12 million business. They also emphasized the importance of having real-time access to financial information and being able to sell a business as an investment rather than just the business itself. By having a fully qualified accountant in-house and delegating tasks, the managing director was able to focus on growing the business and providing value as a consultant. Additionally, having a team of young, skilled individuals for marketing and design tasks can lead to more efficient and effective work. Overall, the investment in these resources may seem expensive, but it can lead to significant time, energy, and financial savings in the long run.
Offering a free consultation call to attract new customers: Provide a free half-hour call to help potential clients with HR issues, increase chances of signing up for further services, and grow email list. Effective during uncertain times and economic instability.
Offering a free consultation call can be an effective way to attract new customers, especially during uncertain times. The speaker shares how he applied this strategy successfully in his HR business. He suggests offering a free half-hour call to help potential clients with their HR issues. After the call, if the client is satisfied, they may be more likely to sign up for further services. The speaker also mentions that he has seen success with this approach in the past and believes it could be particularly effective during times of economic instability. Additionally, the speaker emphasizes the importance of growing an email list and utilizing virtual speaking opportunities to reach a wider audience.
Effective marketing strategy for businesses: Offering a free consultation or service call: Providing a free consultation or call can assess fit, build trust, and lead to increased conversions and revenue for businesses in industries where clients may not actively seek services until they encounter a problem. Clear sales and marketing strategy and skilled salesperson are also crucial for growth.
Offering a free initial consultation or service call can be an effective marketing strategy for businesses, particularly those in industries where potential clients may not actively seek out services until they encounter a problem. This approach not only allows businesses to assess the fit between their offerings and potential clients' needs but also builds goodwill and trust. The conversation also touched upon the importance of having a clear sales and marketing strategy, as well as the potential benefits of investing in a skilled salesperson to grow a business. The discussion also highlighted the idea that providing a solution to a pressing problem can be a powerful motivator for customers to make a purchase, even if the cost is typically high. Overall, the experiment of offering a free consultation or call could lead to increased conversions and revenue for businesses.
Hire a salesperson for business growth during economic downturns: Investing in an experienced salesperson can help generate leads and close deals, allowing business owners to focus on their expertise and grow revenue during economic challenges. Government loans can facilitate hiring and offer commission based on results.
Hiring an experienced salesperson can significantly grow your business, especially during challenging economic times. This person can focus on generating leads and closing deals, allowing you to focus on your area of expertise. You can afford to invest in a good salesperson by offering them a base salary and commission based on results. This arrangement can be facilitated through government loans designed to help businesses during economic downturns. By having a dedicated salesperson, you can convert more leads and turn them into long-term clients, leading to increased revenue and growth for your business. While digital marketing efforts are important, face-to-face sales interactions can be particularly effective and should not be overlooked.
Securing Flexible Business Loans for Hiring and Growth: Secure flexible loans without upfront repayments and fees for hiring a salesperson, focusing on growth and vision. Invest in HR advice for effective recruitment and management.
Securing a business loan without upfront repayments and setup fees can provide valuable flexibility and potential growth opportunities. This approach allows businesses to hire a salesperson at their own pace and focus on marketing and visionary thinking, while the salesperson handles sales. However, it's crucial to take the time to find the right salesperson and invest in professional HR advice for effective recruitment and employee management. Utilizing resources like ebooks and consultations can help businesses navigate HR challenges and set themselves up for success. By focusing on long-term planning, reverse engineering business goals, and investing in the right team, businesses can build a successful enterprise within a reasonable timeframe.
The Value of HR Advice for Businesses: Investing in HR advice can save businesses money, provide valuable guidance, and give owners peace of mind. Retainer services offer affordability and reassurance.
Investing in HR advice, particularly on a retainer basis, can be a cost-effective way for businesses to protect themselves and provide their management with valuable tools. Imogen, an experienced entrepreneur with 16 years in the industry, emphasized the importance of having HR support and shared her positive experiences with Peninsula. James Sinclair also highlighted the affordability and reassurance of having HR advice readily available, as he has been using Peninsula for the past 14 years. For those interested in accessing James' coaching without the high price tag, he encourages joining his Entrepreneurs University, which offers weekly coaching for a monthly fee of 49.99 GBP. Additionally, listeners can receive a free coaching call from Imogen by mentioning James' name when contacting her through her website, www.redwinghyphensolutions.co.uk. Overall, the benefits of securing HR advice can save businesses money, provide valuable guidance, and give business owners peace of mind.
