Graham Docherty – Top Ten Tips

As a Chartered Accountant Graham has worked in the UK and overseas in a variety of industry sectors including Engineering, Property and Retail. For 25 years he successfully managed his multi-location sports retail company and property business.

1. Don’t surprise banks

Bankers are timid creatures and startle easily. Don’t surprise them by suddenly asking for more money. When preparing cash flows and you see a spike, show it. Don’t hide it because you think the bank won’t like it. If the business model stacks up the banks should see that.

2. We’ll make how much?

When doing budgets most sales people overestimate sales and department heads underestimate costs. Interrogate them and the likelihood is that that big profit won’t actually be as big as at first thought.

3. Ooh, I like that!

In retail don’t buy what you like. Buy what will sell. At trade shows it is easy to get carried away with clever salesmen with well merchandised product. Keep your commercial hat on and think what your customer will buy. Not the products that appeal to you. Buy what will sell not what you like.

4. Rule of 9

Most accountants know this trick. Everybody has to deal with numbers. If you can’t square something and the difference is divisible by 9 there is a good chance that you have simply transposed two numbers somewhere in your calculations.

5. Trust your instinct

Whether it is customers, suppliers, staff, a deal, an offer or whatever the human instinct is generally very efficient. If something doesn’t seem right there is a good chance it isn’t. Don’t overrule your instinct without real investigation to gain reassurance.

6. The customer is not always right!

When you have an issue with a customer remember to look at it from his point. He may not be right but you can’t simply tell him that. Win him over by a reasoned approach. You may have to compromise a little to keep him. If he has a complaint he is coming to you with a sense of grievance. Regardless of his logic you should disarm him first. Then talk.

7. It is all a bit overwhelming

Business can be very stressful and sometimes it is very difficult to know what to do next. Get out of the office. Go to a coffee shop with a used envelope and a pencil. Write down everything that is in your head on the back of the envelope. Number them in order of priority. Go back to the office and, without any distraction, start on each item in that order. No deviation!

8. Oh, go on!

There are many advisers who stand to benefit by you going ahead with something. Never proceed with something unless you are sure in your own mind that it is the right move. If things go wrong it is you who loses, not the advisors. Don’t do a deal because you are too embarrassed to pull out.

9. But the margin is fantastic!

Margin isn’t everything. You shouldn’t buy an inflatable dartboard simply because the margin is good. How hard is it to sell on? If it is very easy with little work, a lower margin may be the way to go.

10. We’re getting every quote. Great?

If you never lose a quote your pricing may be too low. Whilst you don’t want to be considered as an expensive company, losing the odd quote on price means you are probably about right.

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