Take inspiration from the Olympics
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Can SMEs take inspiration from the world of sport? Steve Websdale, director of funding group Venture Finance, shares his views. Securing the 2012 Olympic Games is fantastic news for Britain, not only for our athletes but also as a boost for British business. The question is can we live up to the challenge, and are we ready for it following our poor performance in the World Championships? Businesses rely on financial assistance and guidance from external advisors in the same way that athletes rely on sponsorship and coaching. The dedication and strength needed to compete in Olympic events can also be translated to the business community, where running a small or medium sized company often takes an equal level of determination and stamina! So what lessons can business leaders learn from leading sportspeople? *Synchronised swimming - Working as part of a team can help to reduce the burden of running a firm and make things run more smoothly. Learn to work in harmony with your staff and advisors and you will reap the rewards. *Weightlifting - As the company figurehead, it may feel as though you have the weight of the world on your shoulders but it needn't be this way. Remember to take time out for yourself and delegate tasks wherever possible in order to reduce your stress levels. The DTI advises that: "Achieving a good work life balance is important for people at all levels, and that includes small business owners and managers." *Decathlon - Owners of small companies often feel that they are expected to be an expert in every area of business but, unlike decathletes, you don't have to be an all-rounder in order to succeed. There are many organisations and services set up to help SMEs, such as Business Link and the Chambers of Commerce, as well as a range of outsourcing firms that can take over any number of business functions. Factoring companies, for example, can actually manage your sales ledger and improve your cash flow. Make the most of this expertise and concentrate on the things you do best. *Marathon - The DTI's Insolvency Service recorded 2,900 corporate insolvencies during the first quarter of 2005. With these statistics in mind, it becomes clear that longevity is the Holy Grail of business. In order to achieve this, firms should try to avoid short-term solutions and consider the bigger picture. For example, making redundancies during a recession may seem like the best way to save money. However, when things start to pick-up you will be faced with the added cost and trouble of finding reliable, experienced staff again, which could impact negatively on your ability to make the most of the upturn. By ensuring you have a watertight business plan, and considering the implications of any decision, you will be more likely to stay the distance. *Hurdles - Every business experiences difficulties, so it is important to remain optimistic and take the lows with the highs. Poor financial management is the reason behind many business failures, but careful planning and a steady cash flow can help you through the hard times. One way to achieve this is through invoice finance, which releases the value of invoices for immediate use, rather than having to wait for debtors to pay their bills. Finally, take encouragement from the words of philosopher William James, who said: "Most people never run far enough on their first wind to find out they've got a second. Give your dreams all you've got and you'll be amazed at the energy that comes out of you."
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