Talk Business

Hop on
Go for a helicopter ride at least once
a month, our funding expert Julian
Smith says
your chopper
money
This may sound like
extravagant advice
for an entrepreneur
who will be more
focused on bootstraps
than Bell helicopters, but of
course this is a metaphorical
helicopter I am referring to –
the real one can wait until the
exit has been achieved.
ANALYSIS VS. INSTINCT
The key to ongoing business
success is not only executing
successfully on a great idea,
but also consistently making
decisions that improve the
future direction of your
business. There are two ways
that we approach decisions –
analysis and instinct – reflecting
our head and our heart.
You will meet people who
are at different points on the
analysis/instinct spectrum, but
I expect most entrepreneurs
to have a reliance on instinct,
as that is linked to creation,
belief and the right side of the
brain. Without this influence,
it is hard to see how you can
create a new business or brand.
Without some analytical input,
however, decision-making can
become risky, as you will not
be taking into consideration
all the relevant information
available when deciding on a
course of action.
When you
come back
down to
ground, you
will have
greater clarity
IDENTIFY THE RIGHT KPIS
In order to give yourself the
best chance of making the right
decisions, you need high quality
information, which sheds light
on the trends in your business.
This will be very different
for each sector, but is likely
to include some KPIs (key
performance indicators). KPIs
may or may not be financial,
although they will be specific
and will provide an indication
of key trends.
For example, a subscriptionbased
business will probably
be interested in the number
of subscribers added in a
particular period, those lost
and therefore the net additions
in the period.
You should take time to
assess the right KPIs for your
business – not only will they
provide you with a better
insight on the trends, but they
can provide you with tools to
forecast your business more
reliably and consistently –
useful for any external debt or
equity provider.
A SENSE OF PERSPECTIVE
Armed with the relevant
data, you can make informed
decisions. Entrepreneurs need
to take time out from their
daily work every now and then
to consider the business trends
and data. It may make sense to
do this with a mentor or board
advisor to ensure that you can
benefit from an independent
perspective. and someone who
can act as a sounding board for
your thoughts.
So the advice is clear – take a
trip in your helicopter at least
once a month. You’ll have more
to do when you come back
down to ground, but you will
have greater clarity and belief in
your direction of travel.
Julian Smith is The Funding
Expert offering workshops,
consultations and public speaking
on finance. He has been advising
companies for more than 18 years
on how to position themselves for
investors, raising business finance,
mergers and acquisitions.
Contact: thefundingexpert.co.uk
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