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You’ve got a fabulous idea for a new business but are unsure about which business model you should work with. We take a look at B2B vs B2C to help you decide if selling to customers is right for you, or you’d prefer to sell directly to other businesses instead.

What Are the Differences in Selling B2B vs B2C?

You are in business to sell your products or services and make a profit. You’ve got two choices when doing so: sell to the consumers who are the general public or sell to other businesses who will either resell your products or use them to make their products.

Depending on the products you sell, this decision may already have been taken away from you. For instance, if you sell pulp for papermaking, you are most likely going to sell to another business who can turn that pulp into paper. If you sell baby clothes though, you’re probably going to sell directly to your customers.

Let’s take a look at the main differences between both of these business models.

B2B or Business to Business model:

  • selling your product or service directly to another business
  • often requires large product quantities delivered on a set date
  • requires a long-term relationship between you and your buyers
  • involves more people in the buying decision and process
  • possibly selling your product at a lower price than a consumer would pay for it
  • less of a lead pool to grow to purchase your product or service
  • requires in-depth knowledge about and sharing of your product or service
  • a more complex and involved selling process
  • payments are often received a month or later after product/service delivery

B2C or Business to Consumer model:

  • selling product or service directly to individual customers
  • wide lead pool to target and sell to
  • top price for your product/service paid by the customer
  • small quantities sold at a time
  • fewer people involved in the buying process
  • short relationship with customers
  • customers interested in benefit to themselves
  • instant payment upon purchase
  • easier to sell to individual customers than large corporations

As to which path your business should take, it comes down to whether it would work for what you sell and if you are happy to sell that way. Remember though, that both business models will still require the standard business considerations: a website, good bookkeeping and financial management, a business plan, cashflow management and outsourcing. The good news is, we can help you with all of those! Get in touch with our team today to arrange a chat about your business and how we can help.

Employees at businesses both large and small are now telecommuting/ working from home. Many companies around the world are restructuring their management practices to meet the challenges and opportunities of managing remote teams.

Now with the spread of the COVID-19 and workers being asked to work-from-home the need for managing remote teams is higher than it’s ever been.

Because they tend to be more agile and open to change, small businesses are particularly well positioned to adapt to telecommuting. Increased productivity and happier employees who appreciate the added flexibility are just a few benefits winning over small business owners.

But telecommuting also presents some challenges – in particular, two core issues: keeping track of what remote workers are doing and ensuring that remote and in-house teams form a cohesive unit.

These tips can help you effectively manage and support your remote employees and ensue the ongoing success of a remote business.

Promote Communication and Accountability when Managing Remote Teams

Defining expectations and setting up methods to track results are essential elements of remote team management. Here are a few ways to make sure your remote workers understand what is expected of them:

  • Set up a shareable daily work log your remote workers can use to report their progress on ongoing projects (Google Drive offers some good options).
  • Utilize a project management system to exchange messages, assign tasks and monitor projects rather than relying solely on email.
  • Determine key indicators for success for each remote worker and share these indicators with your employees (these might be daily, weekly or monthly goals).
  • Conduct regular reviews with remote workers to assess their performance.

Include Remote Workers in Office Culture

Positive work culture and employee engagement are quickly becoming top priorities for business managers who want to retain top talent. These tips will help your remote workers feel just as valued and validated as your in-house team.

  • If your in-house workers enjoy a monthly pizza party, don’t forget to include your remote workers. Invite them to attend, have a meal delivered to them or offer a gift certificate to a favorite restaurant.
  • Get to know and spend time with your remote workers, just as you would with in-house staff. Set aside a few moments each day to inquire about their families, personal interests, recent challenges and successes.
  • Consider pairing up remote workers to complete complex tasks. You’ll improve efficiency while helping remote workers feel like part of the team.

Ready to Enjoy the Benefits of Managing Remote Teams?

If the benefits of  managing remote teams outweighs the risks in your view, try offering your staff a work day from home a week – then, if it works out, you can try hiring remote employees. Some small business owners hire a remote employee in another region – a great way to expand their market.

If you trust your employees to work hard no matter where they’re located, the main thing to remember is fostering teamwork. A monthly meeting that everyone is required to attend can encourage stronger relationships, allow opportunities to clear the air or discuss any challenges – and improve a sense of teamwork and camaraderie.

Got a question about your business? Get in touch with the team at MBP. We can help you develop a remote working tech stack, implement HR policies for remote working and health & safety as well as work with you on your business culture and performance.

If you’ve been told you need to complete an organisational review, or are now wondering if you need one, read on. An organisational review is a great tool to help you:

  • Improve the way your business is structured.
  • Solve any performance issues.
  • Change the culture of your business.
  • Fix any relationship or communicational problems.
  • Increase productivity.
  • Catch up with fast moving external changes.

Completing an organisational review involves collecting data to process, organise, share and interpret in relation to your business. The ultimate goal: improve the way your business works. You will be looking at three key areas:

  • Strategic – developing insights on how things are working now, so you can make informed decisions, and goals in the future.
  • Foundational – collate the information needed to achieve your new strategic direction.
  • Improvement – identifying what you will do to improve the way your business works.

Each business should complete an organisational review at least once per year. We’ll explain how to do this next.

How to Complete an Organisational Review

Analyse Your Business

Once you’re ready to start your review, take time to gather some tools which can make the entire process easier. Some of the tools you may use include:

  • SWOT analysis – evaluate your business’ strengths, weaknesses, opportunities and threats.
  • PEST analysis – identify the external factors impacting upon your business; political, economic, socio-cultural and technological.
  • Competitor analysis – what are your competitors doing well? How are they placed against you?
  • Balanced scorecard – compare your past figures with your current ones, and your future predictions. Are they balanced? You are looking at things such as marketing, finances, impact, growth and operations.

Examine Your Business

Once you’ve gathered your review tools, then you’ll need to examine:

  • How your business is structured – Who does what? How are your tasks allocated?
  • Procedures and processes used by your business? How do people know what to do? How do different teams work together?
  • Your finances – do you have a budget? What are your main expenses and types of income? How can you improve things financially for your business?

From here you will have the information you need to make recommendations of what your business should do moving forward. You don’t have to do any of this alone though; we can help. Part of our job as business advisors is to help our clients understand where they are, where they’re going and how to get there. When you’re ready to take the next step and improve your business’ organisational processes, give us a call. The coffee’s on us.

Every day you will make decisions and choices based on your values. Whether you notice it or not, these values are an important part of your identity. They have a profound impact on the way you conduct yourself. Its the same for a business, so having a well defined set of core values is important for every organisation.

The Importance of Values in Business

Values are the essence of a company’s identity. They support the business strategy, vision and are they key drivers of the development of culture within an organisation. Your business values can not be forced upon you or made to fit. To work, they have to be organic. This means they have to be developed from within the organisation in order to be authentic to you and your team.

A clear set of values are the foundation for a great business culture. They make leading and managing your team (and client relations) a lot easier. When you have a team that lives and breathes your values they are far more likely to achieve your business goals. This aligned thinking and acting helps to make everyone (including you) enjoy going to work and deliver their best.

Culture eats strategy for breakfast. – Peter Drucker

Benefits of Developing Core Values

A defined set of core values has a range of positive impacts on a business and can help you to:

  • Build a clear foundation for your business culture because that this is fundamental to your business success,
  • Increase alignment within your team,
  • Clearly communicate what is important to you, your team and the business,
  • Determine the values that will drive your business to achieve its vision,
  • Result in defined values that will guide expected behaviours and how your team members will interact with each other and your customers,
  • Provide a framework and foundation for effective communication and as a result maintain more positive interactions,
  • Reduce workplace stress and tension and build better working relationships,
  • Set-up well defined values that act as ‘decision-making filters‘ for the day to day operation of the business,
  • Differentiate your business from that of your competitors,
  • Use as a primary recruitment and consequently a retention tool, so you obtain and retain the best staff that share those values,
  • Take positive actions because of an aspiration to live into the Core Values you develop together as a team,

Our Core Values

One of the first things we did when we set out on our business journey was to define our own set of core values that would help to guide us along the way.

Enjoyment

Approaching work and life with balance, passion and positivity.

We love what we do at MBP and we look forward to ‘just another day at the office’ because we know it’ll be a fun and rewarding day. We also work to make it as enjoyable as possible for our clients, an uphill battle at time as many people aren’t as passionate about number crunching as we are.

Quality

Providing outcomes that are accurate, usable and understandable.

There is no point in us doing what we do if we don’t make every effort to first get it right. We then make sure that  you, our client, understands what we have done. Understanding ensures that it can be usable information or actionable advice. Many accounting firms end their pursuit of quality at getting the number crunching spot-on. We take it a step further by engaging with our clients to make sure they clients actually understand the numbers. This is why we developed our Financial Awareness Coaching service.

Engagement

Open and friendly communication to inspire positive collaboration.

We firmly believe that your accountant isn’t someone that you should just see once a year. All of our services are designed to lower the barriers between client and accountant. We encourage regular and open lines of contact. This helps us to empower you to make proactive changes. Being proactive allows you to maximise opportunities and minimise threats to your business throughout the year.

Innovation

Leading through a commitment to proactive learning, development and challenging ideas.

We work in an industry that has seen disruptive change over a few short years. Our commitment to not fear but embrace this change has seen us go from strength to strength while many of our legacy colleagues have struggled.

Community

Sustainable commitments to our team, our clients and our greater community and environment.

The team at MBP know that the actions we take have a flow on effect to more than just the people within our four walls. It is armed with this knowledge and understanding that we engage and support the communities that we operate in across the country. From providing man power to local initiatives through to software, advice and support to community groups and charities across the country. We make a concerted effort to leave our communities stronger from our presence there.

Walking The Talk

At MBP we live and breath our values every day. They are what guide or relationships with our clients as well as with our team members, their families and the wider community. If you haven’t already, we recommend you look at identifying and defining your own core values.

Developing Your Core Values

Experience has shown that the most effective way to develop your Core Values is to have a neutral facilitator lead the process for you. This is why we have developed our Core Values Development service to allow you to create a set of core values for your business. These values will provide a great foundation for your business and will offer a guide for the way that you and your team interact with each other and with your customers and the wider community.

Give one of our MBP Business Advisors a call on 0800 86 85 86. Alternatively, flick an email through to mailbox@mbponline.co.nz to discuss how our Core Values Development service can help you and your business.