Allan McLeod The Business Journey_Nov2014

@TheBusJourney #SMEJourney

The Business Journey

4 November 2014


Allan McLeod

mlmhere to calm the waters

mlm Solutions

here to help calm the waters

Lessons from curing Zombies

Allan McLeod

mlm Solutions

TITLE

The Zombie business

Definition – a businesses which is burdened by debt,

generating just enough revenue to pay down interest,

but no realistic hope of getting itself into the black,

let alone making a profit.

FSB Scottish Members Survey –

• 47% of members borrow to ensure cash flow.

TITLE

UK National Debt

“At the end of March 2014, Public sector net debt was

£1.3 trillion

equivalent to 75.8% of GDP.” – Office for National Statistics

July 2013 -

March 2014 -

TITLE

UK Debt

“Public sector net debt was £1.45 trillion (79.9% of

GDP) in September 2014, an increase of £100.7

billion compared with September 2013.” – Office for

National Statistics, 21 October 2014

October 2014

TITLEReshape Reschedule Restructure

Insolvency Tools

Our approach

“To provide a solutions based approach to financial distress,

using the wide and varied tools within our armoury.”

- mlm Solutions

TITLE

case study – Project Eric

Profile Distressed retailer selling high value essential products

Est over 60 years ago

Turnover circa £300k

7 staff

Issues Importer and distributor for the essential product until 2004

Business did not adjust and began to accrue debt

Directors then borrowed by re-mortgaging, personal credit cards

and loans from family and friends

Poor stock control

Declining share of market

“Gentle & caring approach”

TITLE


Solution Restructure the business -

1. Deposits policy 2. Stock policy

3. Business governance 4. Implementation of KPIs

5. Sales & Marketing strategy 6. Debt reduction plan

7. Hive down 8. Succession planning

Outcome Cash flow immediately improved

Business now marginally profitable, and paying down debt

Directors personal debt being rescheduled via DAS

Previously technically insolvent, now restructured to pay debt in full

Business saved and Directors saved from bankruptcy

Directors’ home safeguarded

TITLE


simple tools to reshape any business for a healthier

future

Business Governance

“The system of rules, practices and processes by which a business is directed and

controlled.”

• Set recurring meetings which attendees can not deviate from.

• Create a set agenda with a settled and recognisable structure.

• Spread the responsibility to others, to build engagement & effective delegation.

Implementation of KPIs

“A set of measures that a business uses to gauge performance.”

Sales & marketing strategy

“Understanding your client’s needs, and your client choosing you.”

Standing Agenda Monthly (sales & marketing) Meeting Date ____________ 8am – 10am Chair: Director / Manager / Meeting Organizer etc Attendees: Attendee 1 Attendee 2 Attendee 3 Apologies: None Please read: Last month’s action points

Sales & Marketing 8am – 8.30am 8.30am – 9.30am

Results

Review of last month’s actions points

Results – KPI report (see below)

Budget Next months projects & targets

Competitor analysis.

Brand awareness.

Digital (website, apps etc) & SEO Update

Pricing structure

Customer charter

Advertising, Media & PR

Who

Director Manager

Admin

Dir ?? ?? ?? ?? ??

Operations 9.30am – 10am

Procedures

Progress on procedures manual

Other

?? ??

KPI Report Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Stock levels

- Target 1,200 1,150 1,100 1,050 1,000 950 900

- Actual 1,152 1,142

Shop sales

- Target 40 40 40 60

- Actual 45

Online Sales

- Target ? ? ? ?

- Actual ?

Google tics

- Target ? ? ? ?

- Actual ?

Monthly Sales & Marketing Meeting Action points

Month : ____________________________ Present : Owner name, Manager name, etc

No. Point

Action allocated to

Agreed date

1

2

3

4

5

6

7

8

9

10

11

12

Completed by Who? Date issued Date? Date reviewed _______________________________

TITLEReshape Reschedule Restructure

Insolvency Tools

Our approach

Key messages –

• If it’s broke, fix it !!!!

• There is a wide range of tools at our disposal.

• Timing is critical, the sooner tackled, the better the result.

• Use your network. It’s your greatest free resource.

mlmhere to calm the waters

mlm here to help

calm the waters

www.mlmsolutions.co.uk

Allan McLeod

07500 373715

[email protected]


Questions for Allan?