< Previous20 Business Link www.blmforum.net PRODUCTIVITY & EFFICIENCY IN MANUFACTURING SPOTLIGHT Even better, well-trained operators gain back their education costs by adeptly handling the complex machinery you can then confidently invest in, by contributing to higher production yields. From here the layers of improvement insight are almost endless in the era of Industry 4.0, where data analytics play a pivotal role in decision-making and constructive predictions. Machine downtime and maintenance present substantial challenges that manufacturers are addressing through the adoption of ‘predictive maintenance’ systems. Sensors on machinery can collect a stream of data, analysing when equipment is likely to fail. This allows for proactive maintenance, minimising unplanned downtime and increasing overall output. At the same time as enabling proactive maintenance, data can be utilised in other areas such as the consumer field, to analyse and feed back the landscape of future trends. Unforeseen challenges are inevitable in manufacturing—yet another reason to keep an outlook of openness to change in the interest of reliably efficient procedure. Consider a pharmaceutical company implementing contingency plans. By diversifying suppliers and maintaining strategic stockpiles of critical materials, they mitigate the impact of supply chain disruptions, ensuring consistent production output. Regulatory compliance changes are one of the most significant challenges for manufacturers, covering areas from basic procedure, safety and hygiene to details like transparency, information and labelling requirements. Proactively monitoring regulatory updates through dedicated compliance management systems ensures timely adjustments to production processes. Navigating government regulations is crucial for manufacturing operations to perform at their best and most responsible, exemplified by an automotive manufacturer ensuring compliance with emissions standards and safety regulations. This proactive approach avoids costly penalties and maintains a smooth production process, where regulatory adherence becomes integral to operational stability and efficiency. Compliance inevitably has a knock-on effect in providing quality items, with easy-to-overlook areas like inefficient order fulfilment directed by management and organisational quotas. In an e- commerce fulfilment centre, the implementation of automated guided vehicles enhances picking accuracy and www.blmforum.net Business Link 21 PRODUCTIVITY & EFFICIENCY IN MANUFACTURING SPOTLIGHT speed, reducing order completion times. But yet another challenge in this area is inventory management, with excessive or inadequate stock levels both potentially slowing and interrupting supply to your waiting customers. Thankfully the solution here can be as simple as a just-in-time system, to receiving materials and optimise storage space for easy access and movement. Lack of collaboration in product development is another challenge addressed by efficient manufacturing practices. In a consumer goods manufacturing company, the implementation of Product Lifecycle Management (PLM) software fosters collaboration among design, engineering, and production teams. This streamlined communication accelerates the product development cycle. Good collaboration also means skill sharing and educating one another, which makes training a must for keeping employees equipped with the latest knowledge. Cooperation for productivity extends even further still, as might be seen in a pharmaceutical manufacturer partnering with research institutions. By sharing resources and knowledge, they accelerate innovation together, leading to the development of new, efficient manufacturing processes. This collaborative spirit becomes a catalyst for advancements by both parties. Benchmarking against industry standards and adopting best practices is a proven strategy, built on discovering from the leaders and innovators around you. Consistently learning, implementing proven methodologies and being willing to adopt new techniques results not only in better systems, but better quality of products and service. Nurturing continuous improvement is unmatched as a direct route to growing and easing heavy task loads; even more so when all employees are encouraged to suggest process enhancements. Regular feedback loops and improvement initiatives create a workplace where efficiency isn’t just a one-time goal, but an ongoing pursuit ingrained in the company’s ethos, demonstrating the role of a co-operative culture in sustaining efficiency gains. The path to productivity is as diverse as the manufacturing landscape itself. It requires a comprehensive and adaptive approach, tailored and readjusted to the unique challenges of the industry, to unlock the full potential of your manufacturing operations now and in the future. © stock.adobe.com/Gorodenkoff22 Business Link www.blmforum.net CORPORATE FINANCE Financial stress is often high at the beginning of the year, which only puts more importance on thinking of your future success. For businesses this means holding on to a growth mentality, championing your most creative ideas, and staying open to every available support avenue. While grassroots options are always there for businesses looking to raise funds independently, a wealth of diverse lenders is out there, ready to help with maintaining the stability you need for all your expansion efforts. Whether you’re leading a start-up or an established business, bold plans for the year are likely on your mind when you think about how you want to grow. However, while like- minded individuals may rally around a promising idea or product, it can still be difficult to make the first sales. Some of the most inspiring success stories, especially for new businesses, go back to an idea hatched in a bedroom or garage and boosted by personal savings. But even these lucky few would have been propelled forward by people Stem the stress Stem the stress www.blmforum.net Business Link 23 CORPORATE FINANCE willing to invest, and a lucky brush with funding, stakeholders, or investors at the right time. Traditional opportunities such as high street banks may offer assistance under the right circumstances, but eligibility in a minefield of terms and conditions can present more problems than gains. It’s difficult for aspiring entrepreneurs to avoid the personal debts that put off establishments focused on profit. In circumstances like these, businesses must find alternative means of raising capital. Thankfully for newcomers, there are loans and grants specifically for start-ups, providing a lifeline for businesses seeking financial support. Specialist lenders are also reliable contacts when you’re working on launch and long-term expansion. But for the already established and successful, tailored support is equally instrumental in making the most of raised capital to facilitate expansion plans and long-term growth. Giving time and attention to removing the obstacles to growth, lenders outside of the finance old-guard recognise the need to alleviate financial burdens, offering loans to clear business debts. The consideration of commercial secured loans from property, including warehouses and light industrial units, is another worthy direction for companies eyeing a wider commercial footprint or expansion into larger premises. Of course, almost every means of support will require investing personal or business capital. It’s here we hit the most difficult issue to resolve; the fact that good business © stock.adobe.com/ipopba 24 Á24 Business Link www.blmforum.net CORPORATE FINANCE revolves around making money. There’s an age-old adage that one needs to spend money to make money, but this is a phrase much more easily trotted out with hindsight than acted on in a time of jeopardy for your venture. The past few years have witnessed a tendency to adopt a defensive stance in adverse conditions, resulting in a slowdown in investment, new deals, and a cooling off of merger and acquisition activity in the business realm. Factors such as the aftershocks of Brexit and political insecurity have contributed to businesses taking the cautious approach, and focusing on surviving over thriving. As we begin another year of austerity in many areas, you’d be forgiven for maintaining this stance so there’s a better chance of weathering the uncertainties. The downside to being careful is that it presents challenges for existing businesses on the expansion or acquisition trail, as well as start-ups and entrepreneurs seeking to launch new products or services. Although EU exports took a dip this year, there are still recent signs of more profitable trade that advocate for taking those leaps of faith, as UK exports in 2022 reached £340 billion and exceeded our pre-pandemic profit. If this pattern of recovery continues, it’s likely to bring hope of renewed success as both the UK and EU adjust to the new norm after Covid and Brexit’s difficult echoes through our economy. These positive indicators are paving the way for greater levels of investment, expansion deals, mergers and acquisitions eased by the support of lenders. The corporate finance sector isn’t immune to market changes and new developments. To remain relevant, the sector must embrace opportunities presented by new technologies or risk being left behind. The transformative power of the internet and digital technologies has reshaped the business landscape over the last decade or so. Since 2021, the UK has signed three new trade agreements with Australia, New Zealand, and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, an Asia- Pacific trade bloc of 11 countries. But in the last couple of years, two digital trade agreements have been signed with Singapore and Ukraine. Crowdfunding has been another marker of a profound change in how businesses and individuals are working digitally to raise capital; this approach enables a product or service to be pitched directly to a vast pool of potential investors, eliminating middlemen (though crowdfunding platforms claim their share of the capital). Corporate finance specialists are clamouring to adapt to these new funding streams, but it’s not a matter of one source www.blmforum.net Business Link 25 CORPORATE FINANCE 10 strategies to increase the value of your business Whether you’re planning to sell your business in the future or simply want to enhance its long-term potential, there are several strategies you can implement to increase its overall value. 1. Focus on revenue and profitability. Prioritise efforts to boost revenue and improve profitability. 2. Build a competent management team. Invest in hiring talented people, delegate responsibilities effectively, and develop a succession plan. 3. Diversify your customer base. Reducing dependence on a small number of customers is a smart move to mitigate risk so focus on expanding your customer base. 4. Develop intellectual property and competitive advantages. Intellectual property and competitive advantages provide a distinct edge in the market and attract potential buyers. 5. Strengthen financial management. Maintain accurate and up-to-date financial records, manage your cash flow effectively, reduce debt, and improve working capital management. 6. Enhance your brand and reputation. Develop a compelling brand identity and a positive reputation. 7. Establish strong relationships. Fostering strong relationships with key stakeholders and cultivate trust, communicate transparently, and deliver on your promises. 8. Create scalability and growth potential. Position your business for future growth by identifying opportunities for expansion, diversification, or entry into new markets. 9. Document standard operating procedures (SOPs). Well- documented SOPs streamline your business operations and reduce reliance on your personal involvement. 10. Seek Professional Advice. Engaging the expertise of business sector specific consultants and your accountant. Increasing the value of your business requires a strategic and proactive approach and by focusing on certain areas you can make your business more sustainable and attractive to buyers. Newland House, The Point, Weaver Road, Lincoln, LN6 3QN Kings Head Office Suite, 52 Queen Street, Market Rasen, LN8 3EN Email: hello@nicholsonsca.co.uk © stock.adobe.com/chaylek being inherently superior to another. Rather, it’s about recognising the diverse challenges and dangers each source presents. While sourcing funding through digital hubs and perhaps some extra marketing can bring huge returns for specific products and services, this method lacks the reliability required for businesses to hinge their hopes on. This is especially true for new companies, which must be especially careful where their focus goes while any early funding lasts. In 2023, the entrepreneurial landscape in the UK displayed remarkable resilience. Even amid economic pressures, the start-up sector not only persevered but flourished, witnessing the establishment of nearly half a million new businesses nationwide. This proof of the enduring spirit of British entrepreneurship not only inspires new ventures, but reassures the established, as these young businesses lead the way in fostering business innovation and economic growth across the country. The corporate finance sector’s ability to respond to new possibilities ensures its continued relevance in helping new businesses shape the corporate landscape for years to come. As for the more experienced among us, the key to navigating the complexities of growth and adaptability lies in staying agile, embracing the innovation that opens new pathways to financial success. © stock.adobe.com/insta_photos26 Business Link www.blmforum.net IT AND COMMUNICATIONS R ansomware is a form of cyber-attack which infiltrates systems, encrypts data, and holds it hostage until a ransom is paid, causing downtime for businesses and the potential to leak sensitive customer data. Notably, infamous incidents such as the NHS Wannacry attack in 2017 exemplify the destructive potential of such breaches. The report underscores the UK’s inadequate and antiquated regulatory frameworks, flagging the susceptibility of critical national infrastructure due to reliance on outdated IT systems. Despite warnings issued by entities like the National Cyber Security Centre (NCSC), these findings decry a dearth of substantial investments in fortifications to pre- empt a looming crisis. The JCNSS report serves as a clarion call, emphasizing the urgent need for a paradigm shift in the nation’s cybersecurity approach. This should signal a call to action for the smallest of businesses. How can we take preventative measures into our own hands? First and foremost, business leaders must reframe their approach to cybersecurity, understanding that investment in protective measures are integral business decisions. Base level analysis of value and benefit is a good starting point, but given the risk evidently posed, deeper analysis is required of the risk and exposure incurred by specific actions. This requires auditing current processes and decision making methodologies for risk, including digital footprint, dark web exposure, leaked data, and compromised credentials. Furthermore, this analysis should be undertaken regularly to pick up on increased risk early. Auditing of processes should also involve company data’s nature and then its’ significance. In other words, what data is critical to the business (thus rendering it unable to function should it be lost) and what data will impact customers (such as payment and contact information). Understanding what information could disrupt business operations is key to establishing what threats are most likely to occur, and which protective and preventative tools will be most helpful. One notable aspect here is the focus on “compromised credentials.” Business focus should turn more to prevention rather than cure, as the information linked to the digital footprint merely provides insights into what has been previously exposed and is accessible to threat actors. However, it doesn’t offer guidance on averting future incidents. The first such preventative tool is using an encryption service. Encryption emerges as a paramount defence mechanism against data breaches and theft incidents. Investing in tools like BitLocker for Windows and FileVault for Apple devices to encrypt tablets/laptops’ hard drives, will ensure that data remains unintelligible to unauthorized individuals, mitigating the risk associated with device loss or sale. For safeguarding business emails, employing S/MIME certificates for end-to-end encryption and digital signatures adds an additional layer of protection against phishing scams (emails from purportedly legitimate companies for the purpose of inciting Staying ahead of cyber theft The United Kingdom finds itself atop the list of the world’s most cyber-threatened nations, according to a recent report. Issued by the Parliament’s Joint Committee on the National Security Strategy (JCNSS), the report found that the UK remains ill- equipped to thwart large-scale ransomware assaults. 28 Áwww.blmforum.net Business Link 27 IT AND COMMUNICATIONS © stock.adobe.com/James Thew28 Business Link www.blmforum.net IT AND COMMUNICATIONS readers to reveal personal information), securing both customers and stakeholders. In addition to these measures, encrypting confidential files and folders using accessible tools like AxCrypt, Folder Lock, VeraCrypt, DiskCryptor, amongst others, further helps to protect company-sensitive data. Exploring resources like Encrypting File System (EFS) for Windows offers an additional avenue for robust encryption protocols. Finally, businesses can use an SSL/TLS certificate to encrypt the traffic between your website’s server and users’ browsers. SSL certificates come in various validation levels and types. You can secure multiple main domains under one single certificate, an unlimited number of subdomains or both. The application of online filters stands as the second potential shield against online threats. The implementation of DNS filters blocks access to websites hosting malicious, spam, phishing, or inappropriate content within an organization’s network. DNS filtering services operate by curating and maintaining a catalogue of flagged websites. Additionally, users can manually compile a list of specific domain names or IP addresses for blocking, ensuring stringent control over network access. Should any employee attempt to visit a restricted site, the DNS filter intervenes, rendering the site inaccessible. Whilst defending against external attacks is crucial, safeguarding outbound data is equally imperative. Egress filtering is aimed at preventing sensitive information or malicious software from leaving the network. This strategy helps businesses avert inadvertent or intentional data leaks by employees, ensuring that critical information stays protected within the network perimeter. According to experts, employee training is one of the most powerful preventative measures against cyber- attacks. Raising awareness among your employees about potential cyber threats and their impacts on the business, coupled with guidance on preventing such attacks, can significantly mitigate risks within your organization. This will typically involve understanding the most common type of threat for your business, how employees can identify these threats, and the preventative or mitigating steps they need to take to protect themselves, customers, and the business. It’s essential to invest time in devising or hosting comprehensive training programs to equip staff at all levels with this knowledge. A prime example is BOXPHISH, which offers a range of phishing simulations designed to assess your organization’s vulnerability to attacks while enhancing internal awareness regarding the latest threats. With a selection of realistic templates mimicking actual cyber threats, companies can track users who fall for the scams and analyse company-wide weak spots. Following these simulations, bite-sized training modules, comprising concise video-based learning and quizzes, aim to deliver engaging content on the best practices for preventing cybersecurity breaches. The final, and (some may argue) most important measure to implement is that of a cyber insurance policy. Even with meticulous precautions, adept hackers might find a path into your system. Implementing a cybersecurity insurance policy serves as a crucial cushion in case of an attack. Following a high-level cyber assault, businesses typically face temporary closures to investigate the breach and implement necessary measures for future prevention. A cyber insurance policy mitigates the financial burden associated with the attack, covering incurred costs, and expediting the process of restoring your business operations. © stock.adobe.com/zeenikawww.blmforum.net Business Link 29 NEW YEAR, NEW SUPPLIERS © stock.adobe.com/VERTEX SPACE L oyalty is its own reward, or so the saying goes, but 2023 has been a difficult year with the state of the economy and the geopolitical strife, and businesses are having to cut costs wherever they can. Quite often, it’s the suppliers who take the brunt of that – and it may be with good reason. It’s difficult to make drastic changes without adding more work, whereas switching one supplier out for another can be much easier, assuming the new supplier is good enough that they don’t run into instant problems. Furthermore, new suppliers are often prepared to offer better deals to secure a new client. Loyalty may be its own reward, but it often feels like existing suppliers grow complacent with your business and don’t reward your loyalty to them with much else, and we all know the value of switching up our car insurance every year. Sadly, loyalty often doesn’t offer any rewards at all. For the most part, it’s all about stability. The years past have been choppy to say the least and it’s easy to see why businesses might appreciate a less complicated relationship with suppliers. The best supplier How effective are your suppliers? Are they pulling their weight? With rising economic strife across the country, it may be worth spending the first few months of 2024 checking if yours are supporting you as much as they should be. 30 ÁNext >