Whatever You Do, Don’t Follow the Example of the Energy Sector!

As part of the RTA Business Complaints series this week, we’d like to take the time to warn you not to follow the example of the complaint burdened energy sector!

Sell Your Company with RTA Business

Are you looking to sell your business? Do you want to walk away with the most money possible for all of your hard work? If this is you, come to RTA Business Consultants; the business sales broker with the skill, knowledge and expertise, to ensure we find the right buyer for your company.

That experience has taught us that complaints are anathema to the business owner looking to sell on their firm for profit. A potential buyer sees these complaints? You might as well give up on selling it right now, they’ll certainly give up on buying it; they’ll think it’s not worth the hassle!

Just Look at What They’re Doing and Do the Opposite

We’ve taken the time over the past few weeks with the RTA Business complaints series to warn you how not to invoke complaints, how to handle them, how to not handle them etc. Now we want to give you an example of what not to do.

And the complaint beleaguered energy sector is the perfect example of what not to do in every single way; how not to avoid complaints, how not to deal with them etc. Just look at what they’re doing and do the opposite.

Customer Complaints for the Energy Sector Have Reached Their Highest Ever Levels

Notably, the Guardian reported this week that customer complaints for the energy sector have reached their highest ever levels; 1.7 million for the big six energy companies this quarter.

According to consumer group Which?, who started to compile customer complaint data on the sector in 2012, the figure was a rise from the 1.5 million complaints recorded for the same period last year. Npower’s figure in particular was spectacularly bad; 83 complaints for every 1,000 customers.

So What Are They Doing That’s so bad?

So what are they doing that’s so bad, why are they getting so many complaints? How are they handling them? Well obviously rising energy prices is a part of it, but the issue is far more complex.

Executive Director of Which? Richard Lloyd put it best. The Guardian reported that Lloyd said: "Yet again, millions of customers are being let down by poor service from the big six energy companies. If they want to improve the low level of consumer trust in the energy market, suppliers must up their game now.

Give Your Customers Good Service!

That’s it; poor service is facilitating these complaints, and teams are handling them just as poorly. If you want to avoid the damage customer complaints can reap on your eventual plan to sell your business, learn a lesson from the plight of the energy sector, and make sure you give your customers good service!

Learn from Ryanair –Avoid a Price War

If you learn anything from the reports that Ryanair has seen its first profit drop in five years that have surfaced this week, it should be to avoid a price war. Profit drops are poison for those of you out there looking to sell your business.

The link between profitability and lucrative business sales are obvious. Any buyer interested in your business will be so because they see profit potential. If you can show them that they can use your business to make money, they’ll suddenly be a whole lot more interested in buying your business.

Naturally, this leads us to the conclusion that if you can’t show them high profit margins, then they’ll doubt that your business can make any money, and it’s more than likely they’ll end up saying no. Seeing profits drop as you’re selling, by the way, is particularly disastrous because it’s so immediate, it is bound to stick in any buyers mind.

The Misconceptions of a Price War

One of the easiest ways to drive down your profit margins is by getting involved in a price war. People usually get the wrong idea about this. The theory behind drastically cutting prices is that because you are cheaper than your competitors, people will come to you to buy the product/service you sell, because they’ll save money.

This is a terribly short sighted view of the realities of drastic price cutting policies. Yes, they can be lucrative in certain circumstances, but there are other things to consider. It may not, for example, attract enough customers to make it viable, as there may be issues of convenience or may not make enough money to prove profitable due to prices falling too far.

Ryan Air: A Case Study

Let’s look at what’s happening with Ryanair right now to see how drastic price cuts can have the opposite effect to those intended. It is a low cost airline that has been making money for years because it is popular with customers.

They recently went too far and engaged in a price war to compete with other low cost airlines. It has now seen its net profit fall to 523 million Euros (£426 million) for the year to March, down from 569 million Euros the year before.

This is why RTA Business Consultants suggest that if you’re looking to sell your business, you should think long and hard about whether engaging in a price war really will drive up your profit margins. If you’re not careful, it can actually damage them, turning off that potential buyer who otherwise would have signed on the dotted line and purchased your business!

RTA Business Asks: Why Should You Encourage Leadership in the Office?

The success of your business depends on a number of factors, however RTA Business we would suggest that increasingly, it depends on not just leadership you display, but the leadership that your employees take as well. Why is this?

The Changing Role of Leadership in Business

At RTA Business – the firm dedicated to helping you make a profit when you decide it’s time to sell your company – we recognise that potential buyers want to take on a business that has already shown that it is a success. Fostering leadership qualities at every level, is in our opinion, one of the best ways to do this.

It’s understandable why many people still believe that leadership is a top down matter. After all, this is the view that has dominated for years, and people are often reluctant to accept that we are living in an evolving business climate, where initiative often yields the highest profit margins.

The Relationship between Initiative and Expertise

And initiative really is the key point here. The modern company is trading in a diversified world. That is why it pays to practise a wide business model that takes advantage of every profit margin avenue possible, to generate revenue. Increasingly, a business achieves this by hiring a diverse staff roster that has differing areas of expertise.

Therefore, it’s quite clear that you are hiring employees with different skills sets from your own to fully take advantage of all the opportunities displayed to you in order to become a success. They have the knowledge you don’t, which means that they can spot the profit potentials you may not be able to recognise. You need to encourage leadership to ensure that your employees have the confidence to run with these observations and bump up your profit margins.

RTA Business on the Need for Leadership

This is why you need to encourage leadership in the office. The only way a that a buyer is going to purchase your business is if you show them how it can benefit their bottom line, and hiring a diverse staff roster that is secure in using their specialised skill set to make your company successful will do that. At RTA Business, we know that encouraging a culture of leadership and rely on the skills of those you hire.

RTA Business’ Top Four Tips to Improve Employee Relations

One of the most difficult areas of management is striking the perfect balance with your employees, and if you need help improving your strategy in this pivotal area, then you might want to take a look at RTA Business’ top four tips to improve employee relations.

A business is only as good as the people that work for it, and those people tend to be more productive, to contribute more to your business, if they are happy. An unhealthy relationship with the boss is a major reason why an employee may be unhappy at work, as they feel unable to forge a positive working relationship with their boss, and as such, they are not fulfilling their full potential.

If you are looking to eventually sell your business, you need to create a positive working atmosphere, to ensure that when it comes time to sell, your business is the best it possibly can be and is more than capable of attracting a buyer. That is why employee relations is a key area of your management style, and if it’s an area somewhat lacking, you need to improve them if you ever hope to sell your business.

The Top Four from RTA Business

There are multiple ways you can improve employee relations, however some are more effective than others, and these top four tips from RTA Business should drastically improve relations in your office.

1       Politeness: It’s a basic issue, but you’d be surprised how often employees quit their jobs because of an impolite boss. Everybody in that office deserves respect and if they don’t get it, their productivity, and thus your bottom line, will suffer due to resentment.

2      Incentive: Whilst you must be the authority figure for your employees, they need to also see you as the person who can reward them if they follow your direction and work as hard as they possibly can. Incentivise your employees to motivate them.

3      Co-Operation: This tip is pivotal. No employee wants to simply feel like a drone, following direction without any input. When a major business decision comes up, consult with your employees to make them feel involved. It will show them that you value their opinion and respect them. Respect usually fosters respect.

4      Outside of Work: Whilst you don’t need to build an intimate relationship outside of work, it helps to at least show an interest in your employee’s life away from the office. It shows that they are not just another number to you and endears them to you in return. 

UK Interest Rates Fall in March

The UK economic recovery seems to be gaining momentum at the moment, as this month that rate of UK inflation fell. What does this mean for those of you are there who are thinking of putting your business up for sale right now?

Inflation is the rate that consumer prices for goods and services goes up against real wage rises. If there’s a rise in inflation, it means that customers have less purchasing power. A fall, therefore is advantageous to the business community, as it means that customers have more purchasing power to the pound, stimulating spending.

The Rate of Inflation

So what does this latest fall in the rate of inflation mean and what are the specifics? According to the Office of National Statistics (ONS), UK inflation, as measured on the Consumer Price Index, slipped from 1.7% in February to 1.6% in March.

This figure actually further establishes an ongoing statistical trend running through UK inflation right now; it’s fallen for the third month in a row. Furthermore, inflation is sitting well below the Bank of England’s 2% target and it has done so for some time.

This latest Consumer Price Index figure is the lowest recorded since October 2009 and it isn’t the only inflation news coming through right now, as the nation’s other significant measure of inflation, the Retail Price Index, slipped from 2.7% to 2.5%.

Specifically, experts are suggesting that the biggest reason for the fall of inflation across the board came from petrol prices. They actually (and quite unusually for petrol) stayed level between February and March. In contrast they rose 2.2p per litre the month before.

However Petrol Prices weren’t the only reason that inflation fell across the country, clothing prices also contributed and so did food prices. So what does this mean the business sales industry?

What This Means at RTA Business

Because this is the sixth consecutive time inflation rates have fallen rather than risen, the gap spanning average wage growth (they rose by 1.4% in three months to January) and price rises for consumer goods continues to shrink, it means that consumer purchasing power has strengthened.

That’s really good news if you’re looking to sell your business right now. This is because if consumers are spending more, there’s more money to go around. It means not only that you are earning more, which makes your business look more attractive to a potential buyer, but that this buyer is more likely going to want to expand their business by buying yours. RTA Business knows now is a good time to sell.

UK Growth Largest of the G7 in 2014

The International Monetary Fund (IMF) recently made British business owners week as they announced that of the G7 countries, the UK is set to record the largest rate of economic growth over the current year. What are the obvious benefits for those people looking to sell their business?

It’s no secret that we’re in the middle of an economic recovery; in fact at this point, it’s practically gospel truth. Every set of data we’re presented with right now, whether it be about manufacturing, business confidence, the property market, GDP etc. is positive and most financial experts have suggested that by summer 2014, we’ll be recording pre-recession levels of growth.

However these latest figures hammer home just how strong the UK is right now in relation to everybody else, and this means that if you’re looking to sell your business to an international buyer, then there is never a better time to do so. Let the RTA Business Consultants blog break it down for you.

The G7 countries are the world’s seven most wealthy economies. Between them they hold 63% ($241 trillion) of global net wealth. The countries are the UK, the US (the world’s largest economy), Canada, Japan, France, Germany and Italy.

The fact that the UK is forecasted to grow more than any of the world’s other wealthiest nations, especially the US, is a testament in and of itself to the power of British industry right now. The numbers speak for themselves here.

According to the IMF, the UK economy is set to grow by 2.9% this year. This figure has been revised form the initial prediction the Fund made in January. At that time they predicted that the UK economy would grow by 2.4%. It also predicted that the UK economy would grow by 2.5% in 2015.

In contrast, the IMF said that the US economy will grow by 2.8% over the current year and that the Canadian economy will grow by 2.3%. Basically, at this point there is more potential for expansion in the UK economy than anywhere else. Potential for expansion will make your business look very attractive to international buyers dealing with less favourable circumstances.

Finally, the IMF predicted that the global economy is set to grow by 3.6% this year and an impressive 3.9% next year. Again, at RTA Business, we see this as good news for people looking to sell their business. Basically, more global economic growth means more money to go around meaning more people will be looking to buy.

At RTA Business, we recognise that the writing really is on the wall here. If you are looking to sell your business there really has never been a better time to do so. 

What do You Need to Consider When Starting your Own Business?

At RTA Business we understand that in order to make a profit from selling your business, you first have to actually have a profitable business. This is why it pays to know what you need to consider when starting a business. So what do you need to consider when getting a business off the ground?

For those aren’t sure what an entrepreneur is, it’s a person who sets up a business or businesses at financial risk to themselves. It’s somebody who takes a chance to make a profit. This means that to be successful as an entrepreneur and in starting your own business you have to be in a position to take risks.

If you are in a financially precarious situation and you take a risk that fails your business will have no chance of success. That’s why when you are looking to set up business you have to calculate when is the right time for you. 

You also need to think about your product; is it viable, will it sell, do the costs it takes to produce outweigh the potential profit you can make from it? If your product isn’t viable then your business won’t be lucrative. All entrepreneurial efforts depend on the product they are centred on.

You also need to look ahead. You may have a great idea, but it needs to be sustainable in the long time. Is there room for expansion, how long will it take before it starts making a profit. No matter how innovative your product is, if it isn’t sustainable in the long term your business will fail.

You also have to consider how you are going to market your product. What sort of marketing is it most preferential to, how are you going to fund such marketing attempts. You may have the best product in the world, but if there’s no way to effectively market it then it’s as good as useless to you.

Setting up your own business is one of the toughest choices you can possibly make in your career. However if you are successful the rewards are numerous; when the time is right you can sell it off and make a tidy profit. 

How Can You Use Language to Sell Your Business?

A key part of any strategy used to sell a business is the language said a strategy employs; after all the language tells people what your business is all about. How can you use language to sell your business?

The word’s you use to sell your business can make or break the sale. The right word or turn of phrase in the right place can hook a buyer in. Consequently the wrong word or turn of phrase in the wrong place can convince your buyer that your business is not one they want to purchase.

So what are the language rules you need to follow when crafting a sales pitch to advertise your business to potential buyers? Firstly, be positive; use positive words that highlight your business’ strength and potential for growth. Nobody wants to purchase a business that can’t even get enthused about its own benefits.

Secondly, don’t grandstand. It can seem tempting to write masses on masses to point out every benefit your business can bring. It’s over compensation. Stick to the facts and the arguments, keep paragraphs short, sweet and to the point. 

Also use your language to promote your unique selling point. Your unique selling point is the reason why a buyer will turn to your business over your competitors. Devote the language you use to emphasising said selling point and divert language away from the trivial details that detract from this lynchpin of your sales pitch.

It’s also important to make sure that the structure of the language you use flows. An argument is effective because the paragraph builds on the point that was made in the paragraph before. Persuasive language works because it’s acts in tandem; don’t suddenly go off topic, it’ll confuse the reader.

Finally, get the specifics right. Whilst persuasive language accentuates a sales pitch, it’s the facts and industry specific language that really sell your business. If you make a mistake in this pivotal area, it casts doubt on your expert knowledge of your particular field. This reflects badly on your business; after all if you get things wrong about the industry in question then logically the business you run will as well.

At RTA Business we understand that crafting a sales pitch to sell your business is a balancing act. This is why it matters what words you use and how you use them; it really can make all the difference. 

When is the Right Time to Sell Your Business?

With the global economy moving out of recession many people are feeling more confident about making a profit on the  sale of their business. In light of this at the RTA Business Consultants Blog we decided to examine the issue in greater detail.  So when is the right time to sell your business?

RTA Business is a company that specialises in business acquisition. We have developed a reputation for aiding our customers in selling their business for an admirable profit margin. This means naturally we’ve had to analyse what goes into selling a business.

One core principle that we’ve strictly adhered to in becoming one of the UK’s largest business acquisition companies is that timing is everything.

This is a principle which applies to many areas of life. If you for example are looking to approach a company for a business deal, you can’t do it at any time. You have to watch and wait, see when their circumstances are more likely to lead them to be receptive to such a deal. Timing can often be the difference between failure and success.

So what are the rules of timing in business acquisition? The first one is one we’ve already touched on. Watch the market for your industry. We’ve already mentioned that the global financial recovery has meant that it’s more profitable to sell your business.

However you also have to watch your individual market. Markets rise and fall all the time; current affairs often see prices fluctuate on a daily basis. However if you watch and analyse your market you’ll be able to spot trends; use these trends to indicate when your business will be more lucrative to sell.

The next crucial element to consider is profitability. Has your business reached its prime profitability to sell?

The logic behind this is that a buyer will not want to purchase your business if they won’t make any money. It’s more about potential .They need to see that they have the potential to make money. If your business doesn’t have any potential prospects, it’s not going to sell.

The third factor is the buyer itself. Are there the buyers out there to actually buy your business?

This may seem obvious but it really isn’t. If you’ve built up a business on an idea that hasn’t fully caught on in the wider business community, there isn’t going to be someone you can sell to. They won’t have had the time to develop. There’s no point putting your business up for sale if there isn’t a buyer out there.

Timing is everything in this world. Make sure that when you decide to sell your business, you get the timing right. RTA Business would be happy to help you find the perfect time to sell your business.

How Can You Improve Your Business’ Appeal to Potential Buyers?

At RTA Business we’ve developed a sterling reputation as the UK’s leading business acquisition company. A key element of building this reputation was knowing how to improve a business’ appeal to potential buyers. So how can this be done?

Business acquisition is like any other commercial discipline. It depends on client relations. You rely on interaction with people to make a profit.

This means that you can have the most lucrative business in the world, you can have the largest profit margins and a clear path for growth and this still may not be enough. There is a reason marketing has grown to become one of the most lucrative industries in the world. When selling your business you can’t rely on fact alone.

That is because the modern capitalistic business world is competitive. Not only do you have to have a unique selling point, you have to make sure every single potential buyer knows about it. You’ve got to ensure that your business is the best it possibly can be so that buyers do not miss what an attractive opportunity this actually is.

Common Techniques

So this leads us to the question, how can you make your business more attractive to potential buyers?

Naturally the first point is to have a unique selling point. A potential buyer will know that in this mass consumer market you need a unique selling point to stand out, to ensure people that you product will enrich their lives in a way no other will. If they don’t see how the can use your business to do that, they won’t want to buy.

However a unique selling point is only one element of the equation .You also have to consider timing. When selling your business you want to walk away with the largest profit margin you possibly can.

However certainly types of businesses are in demand at certain times. Factors such as economy, demand, current affairs and social trends come into play in deciding when a buyer may want to invest their money in a specific type of business. Wait until your business is most in demand before you sell.

Thirdly you have to show that your company is profitable. Simple, but effective. Buyers want to make money, simple as that. Ask yourself about how you make your money, who is your target consumer, what products make the most money. Emphasise these positive money making qualities.

At RTA Business consultants we sell business’ every day, it’s why we’ve grown to become the leading business sales broker in the UK. We’ve seen what makes a business sell; in this market you have to emphasise your best qualities and play the game.

For more information about RTA Business Consultants, visit our website or follow us on Twitter.