RUNNING a successful small business can be really challenging at the best of times but, in the current financial climate, there are so many more issues requiring the attention of the key decision makers within the business.
If you are a director of a small business it is vital that you have a good grasp of what is happening, both within the business and the external environment, and tight control of resources, both financial and non-financial.
Ann Clayton, education officer for the local branch of the Institute of Directors, said: ‘When running your own small business it is hard to balance your time between day to day activities and growing the business to secure its long term success in a fast changing environment. A highly effective board of directors should be able to plan and manage the growth, rather than being reactive to situations. This should lead to a highly effective company able to cope with new challenges.
‘The first step to achieving this is to have a clear strategy that is known to everyone in the organisation. If you don’t know what you are trying to achieve how will you know whether you are on the best course and whether you have achieved your goals? If there is no strategy a lot of time, and therefore money, can be wasted doing the wrong things even if you do them well!
‘The second step is to understand the finances and what the figures are telling you. Many people say they have a mental block to figures and accounts and therefore never fully understand the messages within them. If explained to you in a way that you could understand more easily, the accounts would cease to have that ‘scary’ feel. Good quality and relevant management information is also vital for you to monitor trends, efficiencies, changes in markets, etc.
‘The third step is to understand the legal and regulatory framework within which your business operates, ie the ‘‘rules’’ governing the business, so that you can fully understand your duties and responsibilities as a director of a small business. It is also important to have a well run and formal process for making decisions at board level. There are corporate governance principles for small businesses which give guidance on good practice and the effective running of board meetings.’
These aspects will be covered on a course called Directing a Successful Small Business to be run by the Institute of Directors in the Isle of Man.
The three day programme covers the three key fundamental areas described above:
Strategy, March 29:
l Developing your strategic thinking
l Market Analysis
l Managing Risk
Finance, April 19:
l Decoding the terminology and understanding your accounts
l Your financial role
l Tools to monitor the health of your business including liquidity and profitability
l Sources of viable finance
Business Structure and the Law, May 17:
l Understanding your duties and responsibilities
l The legal status of your business
l The purpose of the board
l Running board meetings
The course is available to Institute of Directors members and non-members. Each delegate has the option of whether to attend one, two or all three days and a discounted rate is available for bookings for all three days made and paid for by the end of February 2012.
This course was run for the first time in 2011. Bernie Murphy, managing director of OSA Recruitment, one of the delegates, said ‘The three day course was a wonderful introduction and insight into what is expected of you as a director within a small business.
‘It has helped me balance my time between day to day activities and growing the business to secure long term success in a fast changing environment. I would recommend this course as it is perfect both for current directors and those who are in a new business start up process’.
The local branch of the Institute of Directors is keen to help local businesses become even stronger and has worked hard to be able to bring IoD courses and other events to the Isle of Man for the benefit of both members and non-members.
For details contact Ann Clayton on annclayton@manx.net