Podcast Summary
Expanding a Business through Acquisitions and Speaking Engagements: Business owners should define their objectives and consider strategic partnerships, such as buying a business or speaking at conferences, to grow their reach and delegate tasks. Clear goals and effective communication are essential for success.
Claire, a successful financial director who started her own advisory firm, faces the challenge of growing her business despite being fully booked and exhausted from her time. To overcome this, she is considering buying an accounting firm to expand her reach and delegate tasks, and focusing on speaking at entrepreneurship conferences to raise awareness about her unique value proposition. However, she is still uncertain about her long-term goals and the direction she wants her business to take. It's important for business owners to clearly define their objectives and decide whether they want to build a business for sale or use it as a cash cow for investments. Claire also mentioned that many businesses don't realize the importance of management accounting and the value a non-tech finance director can bring to the table. Overall, the conversation highlights the importance of clear goals, strategic partnerships, and effective communication in growing a business.
Leaving high-powered jobs for personal priorities: Individuals may choose to leave high-stress, high-paying jobs to focus on personal relationships and lifestyle, even if it means taking a pay cut. Entrepreneurship or starting a business can be an attractive alternative. Seek advice and learn from experts at events like Investopreneur to grow your business.
High-powered jobs in London, despite the great salaries, can lead to burnout and excessive demands, causing individuals to reconsider their priorities and even take a pay cut to focus on their lifestyle and personal relationships. This was evident in the stories of two individuals, one being a former Finance Director, who left her high-stress job to become an entrepreneur, and another who worked for a fast-growth tech company before starting their own business. The constant traveling and long commutes that come with such jobs can also lose their appeal, making it essential to maintain a balance between work and personal life. As we move through our summers and other seasons, it's crucial to remember that there is more to life than just a high-powered career. Additionally, entrepreneurs and business owners face unique challenges, and seeking advice and learning from experts can be beneficial. Events like Investopreneur offer opportunities to connect with professionals in various fields, such as mergers and acquisitions, marketing, and property buying, to gain valuable insights and grow their businesses. These events provide a supportive environment for networking and learning, making them an excellent resource for those looking to expand their knowledge and skills.
Affordable Business Coaching and Online Education for Entrepreneurs: James Inclair's Entrepreneurs University offers affordable coaching and resources for business growth, while Claire, a successful business owner and Chartered Accountant, explores online education through YouTube master classes and seminars
James Inclair offers Entrepreneurs University, an affordable coaching program for business growth, with access to his proven strategies, swipe files, blueprints, and cheat sheets for just 49.99 a month. Claire, a Chartered Accountant, runs a business helping clients increase profits, improve cash flow, and grow their businesses, and she's exploring launching an educational side to her business with online master classes and seminars. Claire has found success on YouTube, with over 1,000 subscribers in less than a year, and she uses software like vidIQ for content ideas and trends in her niche. Her team handles video editing and thumbnail creation, but she plans to make them look less "teenage" in the future.
Leveraging speaking engagements for business growth in professional industries: Speaking for free at entrepreneurship events can lead to valuable leads and credibility in professional industries. Securing speaking engagements takes time and practice, but can ultimately result in charging more and reaching larger audiences.
Focusing on speaking at professional events as a way to reach potential clients can be an effective growth strategy for a business, especially for those in the professional space like accounting. Speaking for free at entrepreneurship conferences can lead to valuable leads and ultimately, the ability to charge more. However, it can be challenging to secure speaking engagements without payment, and it may take some practice to become comfortable speaking in front of large audiences. Networking events can also be useful, but it's essential to focus on speaking engagements rather than just attending. Additionally, reaching out to banks and sponsoring their conferences can provide opportunities to speak to large audiences of potential clients. Lastly, speaking at accountancy conferences can help establish credibility and lead to recommendations from other professionals. Overall, speaking engagements can be a valuable tool for growing a business, but it takes time and effort to secure and perfect the skill.
The importance of practice and experience in public speaking and business growth: Practice and experience are crucial for improving skills, especially in public speaking and business. Focus on building a business that attracts ideal customers and consider licensing or franchising as alternatives to buying an accounting firm for growth.
Practice and experience are crucial for improving skills, especially when it comes to public speaking or running a business. The speaker shared how starting out with small clients and rehearsing helped him become confident in front of large audiences. He also mentioned the concept of neuroplasticity, which is similar to muscle memory, and how it applies to speaking. Regarding business growth, the speaker considered buying an accounting firm to speed up the process but was hesitant due to the time commitment required to manage it effectively. Instead, he suggested focusing on building a business that attracts ideal customers, allowing for the fishing of even more profitable clients. This approach can lead to a commercially profitable enterprise that can operate without the business owner's constant involvement. Additionally, the speaker mentioned the possibility of licensing or franchising coaches as an alternative to buying an accounting firm. This model can provide a steady stream of clients and income without the need for managing an entire firm. Overall, the key takeaway is that practice, experience, and building a strong business are essential for personal and professional growth. It's important to find the right balance between managing day-to-day operations and focusing on long-term goals.
Acting as business coaches adds value to small businesses: Accountants can offer coaching services to increase client value and loyalty, similar to Disney's upselling strategy, or consider buying an existing firm for quick growth.
Accountants can increase their value to small businesses by not only providing accounting services but also acting as business coaches. This approach creates a stickier client relationship, as businesses may continue to need coaching even after their accounting needs are met. The speaker suggests that accountants could build a large client base through bookkeeping services and then transition some clients into higher-level coaching services. This model is similar to Disney's, where the company offers a low-cost entry point to its products or services and then upsells to higher-value offerings. The speaker also suggests considering a leveraged buyout of an existing accountancy firm as a way to quickly build a client base and expertise without having to start from scratch. Overall, the key takeaway is that accountants can differentiate themselves and provide more value to small businesses by offering coaching services in addition to traditional accounting services.
Monetizing a Masterclass Business is Challenging: Few exceptions exist for substantial recurring revenue from masterclass-style businesses, prioritize personal life or income goals, and remember it's not impossible to find riches in niches.
Building a successful business, especially in the masterclass style, is not an easy feat. Despite having a large audience and producing a significant amount of content, the speaker mentioned the struggles of monetizing it sufficiently to cover the time and resources invested. They emphasized that only a few exceptions exist of individuals who have achieved substantial recurring revenue from this model. However, the speaker acknowledged that it's not impossible and that there are riches in niches. Ultimately, it's essential to decide what one wants from their business – whether it's a cash cow, a potential sale, or a balance of both. The speaker's personal experience showed that prioritizing personal life over income was a choice they made, and it's essential to remember that when considering business goals.
Buying an accountancy firm with a commercial property for greater freedom and financial security: Consider buying an accountancy firm with a commercial property, grow it to a size with a team, and eventually sell for passive income and client relationships.
To achieve greater freedom and financial security, one could consider buying an accountancy firm with a commercial property, growing it to a size where a team of qualified professionals can handle most of the work, and eventually selling it while retaining relationships with high-value clients. This strategy allows for the reduction of time spent on day-to-day operations and the increase of passive income. However, it's essential to have a minimum of 3 full-time professionals in the team to ensure smooth operations and avoid being drawn into day-to-day tasks. Building a team and selling the business is a common approach in larger firms. Ultimately, the key is to determine what one truly wants, whether it's location independence, more freedom, or a larger team, and to plan accordingly.
Building a capable team for financial management: Invest in coaching and mentoring to build a capable team for financial management, delegating operational tasks to allow focus on strategic decisions.
Building a team for financial management in smaller businesses can be challenging, especially when trying to hire top-tier accountants. However, it's possible to find and develop talented individuals with the right attitude and training. This approach can be more effective than trying to hire an expensive expert directly. Additionally, operational finance tasks can be delegated to these team members, allowing business owners to focus on higher-level strategic decisions. This requires patience and investment in coaching and mentoring, but it can lead to a capable and motivated team. Remember, even successful business owners had mentors and learned the ropes through experience.
Expand business by offering advisory services and buying an existing practice: Accountants can grow their businesses by offering advisory services to clients, acquiring existing practices, and building a strong team to manage operations.
Accountants can expand their businesses by offering advisory services to their existing clients, creating stickiness and potentially upselling to higher-tier packages. This strategy allows accountants to serve a larger client base, increasing the chances of attracting ideal clients. Additionally, buying an existing accountancy practice with a strong team can provide a solid foundation for growth, enabling the new owner to focus on business expansion rather than day-to-day operations. This approach offers tax benefits, such as capital gains tax relief, and can lead to financial freedom for the accountant. The key to success lies in acquiring a team that can manage the business and provide a strong moat against competition.
Understanding Business Finances with Management Accounts: Regularly producing and reviewing management accounts is essential for businesses to make informed decisions and avoid financial issues. Tools like QuickBooks and Sage help access financial information anywhere, eliminating excuses for neglect.
Producing and regularly reviewing management accounts is crucial for any business, regardless of size, to understand its financial health and make informed decisions. Many businesses, even those with substantial turnover, fail to produce monthly management information, missing out on valuable insights that can lead to increased profitability. The numbers in a business tell a story, revealing what's working and what isn't. Tools like QuickBooks and Sage now allow business owners to access their financial information from anywhere, eliminating excuses for not staying on top of it. Ignorance of VAT implications and cash flow mismanagement can lead to significant issues, as seen in the example of a business turning over 4 million that didn't realize their reported numbers included VAT and had large sums sitting idle in the bank. The importance of management accounts cannot be overstated, as they provide the necessary insights to effectively manage a business and make it grow.
Tax-efficient strategy of owning an office space for business use: Business owners can save on taxes and generate rental income by purchasing commercial properties for their businesses. However, managing cash flow remains a challenge even for successful entrepreneurs.
Purchasing a commercial property for business use, particularly an office space, can be a tax-efficient and financially beneficial move for entrepreneurs. This strategy, known as owning an "owner-occupied" property, allows business owners to operate their businesses from the property while also generating rental income from unused spaces. This was discussed in detail during the podcast, with examples given of successful business owners who have implemented this strategy. However, cash flow challenges can still arise when running a business, even for those who have achieved significant growth and profits. One business owner shared her experience of needing to secure stocking finance from banks but finding it difficult to obtain it due to the lengthy application process. She mentioned that she often funds her business expansions herself before securing external financing. Despite having a large portfolio of properties and making substantial profits, she emphasized that the challenge of managing cash flow remains a constant hurdle for entrepreneurs.
Early involvement of a financial expert for business growth: Engaging an accountant early on in business can lead to accelerated growth. Seek expert advice and consider attending conferences and podcasts to expand knowledge.
Bringing in a financial expert like an accountant early on in a business can significantly accelerate growth. The speaker regrets not having done so earlier in his own business and emphasizes the importance of having a bookkeeper and eventually a larger accounting team. He also suggests that getting on podcasts and speaking at conferences can be effective ways to raise awareness for one's business. The speaker shares his personal story of discovering the business seminar and personal development space through a movie and then going on to read more books and attend events. He encourages listeners to consider reaching out to Claire, the guest on the podcast, for accounting advice and offers a complimentary session on her website. Overall, the conversation highlights the value of seeking expert advice and being open to new learning opportunities.
Growing a Property Portfolio: Insights from a Success Story: Building a property portfolio can generate wealth, but requires continuous investment and careful consideration. Risks include potential government regulations and rising costs. Some investors shift to commercial property or limited companies for mitigation.
Building a residential property portfolio can be a significant source of wealth, but it requires continuous investment and may not be as passive as some people believe. The speaker shared how they grew their portfolio from one property to nearly 5 million pounds in six years, but acknowledged the concerns of potential government regulations and rising costs. They also discussed the shift towards commercial property as a more efficient investment for some. It's important to note that individuals' motivations and circumstances for investing in property vary. The speaker shared their personal perspective of holding onto properties for future retirement income, but acknowledged the risks and concerns of potential rent caps and increasing regulations. They also mentioned their recent transition to buying properties through a limited company to mitigate some of these risks. Overall, building a property portfolio can be a rewarding investment, but it requires careful consideration and ongoing management.
Exploring tax and stamp duty savings strategies for multiple properties: Leverage multiple dwellings relief, save on stamp duty with six or more properties, and consider larger projects for time efficiency when expanding real estate portfolio
There are strategic ways to save on taxes and stamp duty when buying or developing multiple properties. Claire, a guest on the show, shared her experience of buying a house with an annex and taking advantage of multiple dwellings relief. She also mentioned the potential savings from purchasing a portfolio of six or more properties. Currently, they are looking to buy a block of flats to expand their portfolio. The process of finding and acquiring individual properties can be time-consuming, so they are moving towards larger projects. If you're interested in growing your business through real estate, consider exploring these strategies. Remember, sharing this podcast with one person who could benefit from this information is a simple way to help spread the knowledge.
