Newsletter November 2011

Time Management

Let’s face it, there’s only so much one person can do. When starting up in business you have an idea of how you plan to spend your time. After a while reality kicks in & you find yourself spending more time on non productive tasks than you do on the productive ones.

Productive Activities

These are activities that help to generate income. This is where the majority of your time should be spent. These tasks include:

• Marketing
• Perfecting goods & services
• Developing effective sales techniques
• Providing quality customer service

Non Productive Activities

These are tasks that take you away from the main business activity - generating income - & causes you to focus more on tasks that don’t. The list of non productive activities are endless. Here are a few:

• Constant problem solving
• Frequent customer complaints
• Incurring fines & penalties as a consequence of poor business administration
• Inadequate staffing

Get the balance between productive & non productive time right & the rewards are endless. Get it wrong & the consequences can be severe.

Working Capital

Working capital - the amount of money available for financing business activities. Why is working capital so important? Put it this way. Run out of cash & business grinds to a holt. So what can be done to ensure that a healthy working capital position is maintained?

• Forecast your future cash position months in advance
• Anticipate your borrowing requirements
• Put your plans into action
• Monitor the position regularly
• Take corrective action where appropriate

A healthy working capital position is 2:1 (£2 of liquid Assets for every £1 of debt).

Useful links

Time Management
- Mind Tools
- Personal Time Management for Busy Managers

Working Capital
- What is Working Capital? - Bized.co.uk
- Definition of Working Capital - Global Investor Glossary