The practicalities of implementing a new accounting system

Today, there are many accounting systems to choose from. In recent years, there has been a move to "cloud" based systems and for those businesses "starting out", this has been a natural choice.

The "cloud" has facilitated the outsourcing, or partial outsourcing model, under which Secantor operates. It has enabled business owners to take advantage of a wide range of financial, commercial and strategic expertise at an affordable price. The trick is to engage the right amount of expertise at the right level and to have this as an "on demand" basis. Accounting systems in the "cloud" help the owner manager, or family business, to control their business, day or night, by having "real time" visibility over the management information.

The fact that the Finance Director might not be physically be at  the owners side does not matter. They are on call, on an "as needed basis" . Typically our FDs will visit a business for between 2 days a month and 3 days a week providing a cost effective resource and helping to implement an effective finance function. Whilst the FD may not be "on-site" all of the time the owner/manager has complete  and continuous visibility over " real time" management information which monitors the key performance indicators of the business. In many fast moving businesses this is critical to gauge the impact that decision making is having on the performance of the business.

For many established businesses the thought of changing or developing accounting, or management information systems, is full of trepidation. These systems are "mission critical" and the old adage of "why try and fix what is not broken" often comes into play. However, at Secantor we have considerable experience amongst our people of  developing and implementing new systems for clients, enabling businesses to remain "cutting edge". We are able to lever off practical experiences of our clients that can provide comfort to taking the next step.

To learn more, please contact Secantor. www.secantor.co.uk

Nigel Bacon
CEO

Valuing People Businesses and Adding Value to People Businesses.

I think it is fair to say that we are experts at valuing and operating people businesses. That is partly because we are a people business, and secondly, because all of our people have significant business experience, which we share with each other for the benefit of our clients.

Of course, all businesses are, to a greater, or lesser extent, people businesses. These days what used to be "pure play" people businesses can be enhanced through the use of technology, and indeed that is what we have done in our own business. So the value of our business not only lies in the great people that we have, but how we harness and magnify our people's efforts through the use of technology. In that way, we add real value for our clients which is something which others struggle to replicate.

In valuing people businesses the size of business is often a factor. The reason is not so much about growth for growth's sake, if we remember the adage "turnover is vanity, profit is sanity and cash is reality", it is more about dependencies. For instance, I have spent a large part of my career buying recruitment companies and marketing services companies, both of which are highly people dependent. A feature of both of those sectors of the market for smaller businesses is both customer concentration and a dependency on key individuals within the business, which increases the risks for a purchaser. The individuals are usually the owner managers themselves who are often the driving force behind the business. How do new owners ensure that the traction that has been created by that owner manager endures into the future? We have a number of models around acquiring people businesses that can be highly beneficial, and tax efficient, for both the vendor and the acquirer.

People businesses are typically valued around a price earnings ratio based on a cash free/debt free balance sheet. We can advise clients on how to build and lock in value to their business and how they can make it attractive to the acquirer. This is not a superficial gloss, but forms part of the overall strategic direction that can be built over time.

To find our more on building value into your business contact Nigel Bacon CEO Secantor

www.secantor.co.uk

The world has changed

It is often said that nothing really changes but in our world but some things have, and  mainly based around technology.

Externally, for some of our clients this has proved very exciting. Particularly new internet retailing businesses. One of our clients has developed an offshoot retailing business which has grown from nothing to £0.5m turnover in less than 12 months. This particular business is breaking new ground. However, there are many examples of web based retailers "disrupting" traditional businesses all of which gives rise to opportunities, since if businesses don't move forwards and embrace change, they will inevitably go into reverse, and eventually fail. It is often helpful for businesses to obtain support with a strategic review of their business, since management are generally very much involved in operational matters, and don't regularly stand back and look at the broader picture and the opportunities that might await.

It often helps to have someone challenge their thinking and this does not necessarily mean that this person should have deep industry knowledge, but a good grasp of strategic thinking. Many of our people have this sort of training that wraps discipline around an "away day" to add structure and outcomes. Management often appreciate having an objective person to challenge their thinking in a constructive way.

Internally, we have seen substantial benefits from the IT revolution, allowing us to develop communication systems and automation of our business, for the benefits of our associates and clients. Of course, it has also enabled our prospective, and new clients, to better conceptualise our particular slant on outsourcing and the fact that someone might not always be on a clients physical location does not mean that they cannot be involved on client work and be accountable for that work.

All of this leads us to a brighter future with our clients benefitting from cost effective expertise as part of their team.
www.secantor.co.uk

Nigel Bacon
CEO Secantor
01564 330677

The climate is good for scalable investments and disruptive technologies, but what about zombie companies and the threat of interest rate rises?

The tax climate has arguably never been better for investors and particularly those wishing to take advantage of the tax breaks available through EIS and Seed EIS.

Many of these investors are looking to back disruptive technologies that can break new ground and shift the playing field. They are looking for opportunities that can be scaled quickly, on a worldwide basis, through digital marketing channels. At this end of the spectrum, the pace of change is both fast and relentless, driven by the need to retain "first mover advantage", particularly where it is difficult to secure IP on a global basis.

At the other end of the spectrum we have what has become known as the "zombie companies" that remain constrained by both their debt and their often outdated business models. These companies are in a circle which is spiralling the wrong way. Now that the indicators are there for interest rates to rise this could force the position, and these businesses should seek help whilst they still have options.

At Secantor we have the resources and capability to deal with both ends of the spectrum, and everything in between. It is not just about knowledge, although that is hugely important to us as an organisation, where knowledge sharing is a way of life, but also about our connections and credibility with providers of both debt and equity.

Nigel Bacon
Secantor CEO
Fulfilling Business Potential
www.secantor.co.uk

Secantor partners with Fleet Innovations

At Secantor we are not about selling intellectual property we are about knowledge transfer to enable businesses to fulfil their true potential. Much of this comes from our highly experienced and technically accredited people. However, part of it is about understanding some of the latest products that are in the market place that can help our clients become more efficient. An example of this is the PEAK mileage capture product from Fleet Innovations www.peakmiles.com .  Read how you can use GPS technology to take the strain out of mileage expense claims.

http://www.governmentbusiness.co.uk/index.php/company-focus/223-transport/5436-fleet-innovations

www.secantor.co.uk

Mentoring

We are not a recruitment company, we are a professional services frim/outsourcer dedicated to providing solutions to the SME community.

We do not believe in a "one size fits all" approach to business. The core of what we do  is providing an "Effective Finance Function", and this can be done in many different ways. Often I am told by prospective clients that they have a great financial controller or financial manager, but the business has got to a size where reliable historic financial information is simply not enough. In order for the business to grasp the opportunities that might lay head there needs to be a firm grip on "planning and control". The easy answer is to overlay a Finance Director. However, mentoring the Financial Controller to step up a level can be the preferred solution. I am often asked "how can I do that when I am already working full on". The answer often lies in helping everyone in financial function to take a step up which then gets us into the area of effective delegation.

For more about mentoring and effective delegation please ring me on 01564 330676.

Nigel Bacon
CEO
Secantor
www.secantor.co.uk

Strategy Days

Our clients fall mainly within the band of £2m t/o to £50m t/o. Many are either family businesses or entrepreneurial businesses run by owner managers.

Many of these clients lack formal management training, but have created successful businesses through hard work, resilience and robustness. These clients want experienced, qualified and commercial people to help them with Strategy and Finance. We are doing a number of roles with clients where I run strategy away days (usually two sessions per annum) and where we might also run their finance function either through a Finance Director or a Financial Controller (depending on the size of business and the requirement these might be part-time roles). This enables me to keep abreast of how the business is doing and "what drives the numbers", so that I can facilitate a strategy day, and, "hit the ground running".

It is amazing what can be gained by taking a step back and having a helicopter view of the business and the market it operates in. This can also help with exit strategies or succession within a business.

To find out more , ring me on 01564 330676

Nigel Bacon

CEO Secantor
www.secantor.co.uk

Vernon George appointed Regional Director for the East Midlands

I am delighted to announce that Vernon George has been appointed Regional Director for Secantor in the East Midlands.
Following a successful career with NatWest and the IoD, Vernon is ideally placed to help our SME clients in the East Midlands.

uk.linkedin.com/pub/vernon-george/6/a17/975

Nigel bacon
CEO
Secantor
www.secantor.co.uk

Secantor helps Palmer Hargreaves secure £4m of development capital from the Business Growth Fund

We are delighted to support Andrew Clift, Randy Weeks and all the team at PH to secure £4m of development capital from the Business Growth Fund. http://palmerhargreaves.com/news/palmer-hargreaves-announces-4m-funding-injection-from-bgf .

Well done to John Dernie of Secantor.

Any SMEs wishing to learn more about how to secure development capital should contact us on 07887 826824

Nigel Bacon
CEO
Secantor
www.secantor.co.uk

Building Your Finance Function Part 2

Building your finance function is not a one size fits all exercise. There are a wide range of choices:

1) There is the people mix, in terms of matching the differing levels of seniority. Why go to a recruiter as the first stage? Prior to this you need to understand the apprtopriate staff mix for the finance function and this is where Secantor can help you; with the decisions about whether you should appoint at the bookeeper level, the mangement accountant level, the financial controller level or a part-time finance director. All of this will mean that you have the appropriate input of expertise and skills at the appropriate level. In this way you will end up saving costs on your finance function by ensuring the right amount of input, at the right level. Many businesses from £2m t/o upwards should have a finance director but you do not usually need a full time finance director until your turnover is in excess of £30m. At this level, it is not so much about time as it is about skills, and experience.

2) Growing businesses need to start to integrate their finance function as an information centre. This then delivers real value by helping management run the business, and to enable effective delegation that is required for growth.To achieve effective delegation mangament need  regular information for planning and control purposes.  Ensuring that the finance function is delivering value to management is the domain of the FD.

3) At Secantor we have many years of experience of developing finance functions for SMEs. We can help guide you through the maze of what at first sight only appears to be a cost. We can paint a picture for you of how your business might look in the future and the building blocks to get there.  An effective finance function should be coupled with stakeholder management, through your part-time FD so that you can focus on growing the business knowing that your investors and bankers are being kept informed. This means that there are no "shocks or surprises" building confidence that mangment are capable of running a larger business.

4) Systems and processes are critical in the development of the finance function and its linkages with other parts of the organisation. Secantor harnesses the talent of all its people to ensure the right solution for you.

5) Outsourcing. We have many clients that simply ask us to run their finance functions with agreed outputs this can not ony be cost effective but scalable to avoid those step changes you might experience through employing extra people.

For a free consultation call us on 01564 330676.
www.secantor.co.uk

How can a Secantor FD make you money?

All Secantor FDs are focussed on bringing value to businesses. Here are some of the ways they do this?

Firstly, they are not full-time and therefore concentrate on as "little as you need" so that they stay on the  shoulder of the entrepreneur or owner manager for the whole of the journey. Their time can increase or decrease according to the needs of a business, at any particular point in time. Their time is therefore utilised in a very cost effective manner.

Secondly, one of the first tasks of a Secantor FD is to ensure that the finance function is set up in an effective way. Often savings can be made in streamlining financial systems and processes not only to save cost, but also to deliver timely, relevant and reliable management information. So often finance departments have grown up in an adhoc way to ensure that a business is complying with the requirements of HMRC and its bank. We often find that routine tasks can be performed in a more effective way and that existing finance staff are capable and willing to do so much more, but need mentoring to achieve this. Driving efficiencies in finance means that the function can cope with greater volumes with little additional cost. Outsourcing maybe be an option but the mission critical nature of finance often means that owner mangers perceive the risks of going this route as too great. However, having a Secantor FD to help them through this process de-risks it leaving  owner managers to focus on growing the business.

Thirdly, the Secantor FD will look at the procurement processes and look at ways to implement cost savings without reduction in quality.

Fourthly, the Secantor FD will look at the cost of capital and determine the optimum capital and funding structures available to a business. The reputation of Secantor is important in raising finance whether it be tratidional bank lending, asset based lending, or equity funding from high net worth individuals (business angels) through  private equity, to the Alternative Investment Market..

Fifthly, the Secantor FD will look at the balance sheet of an organisation and in particular the working capital elements to see if there are areas for reduction to free up cash or, reduce borrowing requirements. They will use techniques such as economic ordering quantities and optimum stockholding levels to professionalise the management of working capital. A focus on the optimum use of scarce resources is fundemental to an organisation achieving goals that were previously unattainable, due to a lack of planning and control.

The above represent some of the areas where a Secantor FD can quickly make a difference. On top of this all of our FDs will be working with the mangement teams to contribute to the opportunities that might be avaialble to increase sales and profits and cash generation.

Why a Secantor FD? It is obviously true that there are many good indiviaul FDs who are able to help businesses. However, all of our people have gone through a formal recruitment, assessment accreditation process as well as having exemplary career histories before joining Secantor. They all have a desire to pursue a portfolio career with small and medium sized businesses where they can make a difference to performance. They all share the common values of Secantor (see www.secantor.co.uk) and work together to share knowledge, expertise and contacts/connections for the benefit of clients. The impact is demonstrated by the testimonials of our clients http://www.youtube.com/user/secantortv .

Lets talk about what we can do for you - 01564 330676.

Unique Service Offering for SMEs

I really think the SME marketplace is begining to understand the unique position we hold . We are so much more than a collection of indiviuals offered by part-time finance director companies. What we offer is holistic services for SMEs built around a team based approach, all of which is achieved in a very cost effective way.

Why have the knowledge of one person when you can exploit the knowledge of over 60 on a national basis?