< PreviousPRODUCTIVITY AND EFFICIENCY overlooked. It’s not uncommon to still see workers looking over hundreds or thousands of products on a line, turning them over one by one to make sure no packaging is ripped and no foreign material has found their way inside. This is a slow process by any means, and also a risky one as humans are prone to losing focus when repeating the same task over and over, and human error remains one of the big problems leading to product recalls. As line clearance is an oft- overlooked part of manufacturing, it also becomes one in which great savings can be made – and these go beyond simply making a line quicker. If clearance and set-up of a new product line is enhanced, then a factory can take on a wider product portfolio, pumping out extra batches or even an extra product entirely. This allows companies to make their existing assets work harder for them and save on investment in new factories – which can be expensive both in financial terms and also in time. A proper factory can take up to five years to be completed, and then will require new staff and training. Being able to enhance existing lines to take on more products saves on all of this. In terms of making line clearance and new line set-up as efficient as possible it’s best to fully embrace Industry 4.0 and digitalisation. If quality control and assurance is taken care of by vision inspection machines, then these can flood a line and be used at every stage to flag and highlight defective product, which can then be quickly and easily removed by employees. This is easier if products are serialised, because the machine and database can then reference the defective serial number with a quick scan and highlight where it is kept, saving further time. In addition, this can then be backtracked if there is any foreign material in a food product for instance, to identify if that happened in the factory or if it was a problem when the raw material came in. It can even identify every potentially contaminated product in the batch served by that material, and flag them for removal. The amount of time this can save is staggering, and it can also be applied to line set-up when a factory line needs to work on a new product. Traditionally, everything needs to be changed by hand when lines are switching, which is a time- consuming exercise, but a smart factory system can use pre- programmed templates for different products, and alter checkweighers, conveyors and packaging machines to suit the new product. This not only makes change over quicker and easier, but also removes another potential point for human error, as a single missed decimal place on a food ingredient, or a forgotten spool of packaging changed on a child’s toy, could lead to an entire batch of flawed product that needs to be scrapped. Industry 4.0 and digitalisation is by no means new, but it is being adopted far too slowly in our region – and in our country. The technology has been a staple in China for the longest time, which is why Chinese products are being produced cheaper and more efficiently than things here. With countries – especially ours – wanting to become more independent however, there will be renewed focus on protecting the UK’s manufacturing sector, and it will be up to ours to adopt and adapt these new technologies or be left behind. 20 Business Link www.blmforum.net In terms of making line clearance and new line set-up as efficient as possible it’s best to fully embrace Industry 4.0 and digitalisation.www.blmforum.net Business Link 21 PRODUCTIVITY AND EFFICIENCY22 Business Link www.blmforum.net CORPORATE FINANCE A ccording to research undertaken by Xero, the cloud-based accounting software platform for SMEs, nearly fifty-two per cent of all invoices issued by small businesses are paid late. Perhaps unsurprisingly given the economic uncertainty of late, fifty-one Financial lifelines The state of the economy, rising inflation and the cost of living have all made payment of bills tricky, which is expected to cause a culture of late or unpaid invoices. We look at the options available to businesses in this situation. www.blmforum.net Business Link 23 CORPORATE FINANCE per cent of small business owners said the problem of overdue payments has gotten worse over the past three years. Figures from the Federation of Small Businesses, meanwhile, found that late payments cost the economy £2.5 billion every year. This might become worse in the coming months thanks in no small part to the state of the economy, rising inflation and an overall worsening of many company’s cash flow positions. Invoice financing is the simplest means of releasing cash tied up in a business’s outstanding invoice. In short, it sees a business sell its invoices to a third party who will advance some of the funds it is worth up front for a cut. Thousands of businesses rely on this kind of financing to maintain a healthy cash position, whilst others use it to take back control of cashflow issues stemming from late and unpaid invoices. Perhaps the biggest draw is that businesses can be paid most of an invoice within forty-eight hours instead of the typical thirty-to-ninety-day period. As with all forms of financing, however, there are things to consider – namely the kind of invoice finance a company requires. From invoice discounting to spot factor, there’s different options, so finding the right one is key. It’s also important to look at individual providers themselves, as some will insist on managing credit control themselves which could, understandably, alienate some customers. Combined with small business loans, invoice financing can have a powerful effect and literally keep businesses trading. Invoice financing is far from the only solution businesses can utilise to maintain cashflow. Asset-based finance, for example, is a specialised method of providing companies with working capital and term loans that use accounts receivable, inventory, machinery, equipment and real estate as capital – essentially, any loan to a company is secured by one or more of that company’s assets. This option is commonly used to pay for expenses when there are gaps in a company’s cashflow, but it is also frequently used for start-up financing as well as refinancing existing loans, financing growth, mergers and acquisitions, as well as management buy-outs and management buy-ins (more on those later). Although it’s not suited to meet every business requirement, it can prove useful for those that have stretched their 24 Á24 Business Link www.blmforum.net CORPORATE FINANCE credit limits with vendors and reached lending capacity at the bank. Private equity, on the other hand, is where investors provide long-term equity capital investment in a company in return for either share, a percentage stake in the business and, in some cases, a seat on the board. The draw for businesses is that private equity can be used to finance MBOs, or to provide equity capital to support growth plans. Although many businesses might be loath to dilute their ownership, private equity does offer a good option of raising capital for businesses that aren’t ready to list on the stock exchange. For those looking for capital quickly, it’s important to bear in mind that securing private equity is often a time-consuming process and securing funds isn’t always guaranteed. Another form of private finance is an angel investor – a high net worth individual who makes use of their own personal disposable finance and defers to their own judgement about making an investment. Angels would normally take an equity stake in a business in return for providing equity funds. As well as capital, angels can also provide valuable experience, knowledge and contracts, making them especially attractive to early stage businesses or smaller businesses looking to scaleup. Every investor is different and will therefore provide differing amounts, but typical investments range from between £10,000 and £500,000, though deals of up to £2 million have been known when angels group together in syndicates. Although angels are one of the most significant investors in start- ups, that shouldn’t deter more established firms from making enquiries. It’s important to keep in mind that securing an angel can be a difficult and protracted process, as well as being harder to research and contact www.blmforum.net Business Link 25 CORPORATE FINANCE compared with a private equity firm. As we have already explored, capital is often sought to help fund management buy-outs (MBOs) where a company’s management team purchases the assets and operations from the current business owners. From a manager’s perspective, an MBO is an attractive option as it allows them to take the reins and enjoy greater control and freedom owning the business rather than serving as an employee. It’s equally advantageous from a seller’s point of view as it allows corporations to shed non-core divisions or for company owners to retire. A typical MBO will see a management team pooling resources to acquire all or part of the business they manage, and this financing is often comprised of personal sources, private equity and seller financing. A management buy-in (MBI), on the other hand, is where an external management team acquires a company and replaces the existing management team. In an MBO, the management team is a known quantity and therefore has a greater understanding of their business and its employees, but an outside management team will need to become acquainted with a company’s operations, as well as build up relationships with clients and staff. Faced with an end to government financial support schemes, rising energy costs, continuing uncertainty surrounding the Russian invasion of Ukraine and the cost of gas – and all that on top of a worsening late payment epidemic – it can be easy to succumb to doom and gloom. It’s simple to point out what’s wrong, harder to look for workable solutions. Yet seeking financial help and advice shouldn’t be difficult. There’s a plethora of financial experts across our region there to offer guidance and solutions to keep businesses afloat. 26 Business Link www.blmforum.net IT AND COMMUNICATIONS I n any modern business, IT and telecoms provide the means for maintaining ease of communication and operations. From the selection and care of hardware such as computers and mobile devices, to the software and technical support systems which enable calls and conferencing, their successful integration makes all the difference in boosting flexibility and efficiency, whenever and however you choose to work. Let us take you through some of the areas best supported by these technologies, and how you can incorporate them to guide and maximise every moment of each working day. Effective communication is vital for any organisation, and IT and telecom services allow seamless contact between employees, departments and external stakeholders. The collaboration, timely decision-making and improved productivity they offer is often enabled by the networks that may connect devices and users within and outside of an organisation. Setting up the most suitable network for your business’s communications is a great starting point when putting your IT and telecoms strategy into action. However, the choices you make in your network provisions will depend on your business needs. For instance, a LAN or Local Area Network connects devices within a limited geographic area, and is therefore well-suited for internal communications exclusive to an office building or campus. LANs are typically fast, secure, and cost-effective, making them ideal for day-to-day business operations – they can also be linked to Wide Area Networks or WANS so that multiple offices, branches or locations can stay interconnected on a global scale. Virtual Private Networks or VPNs, which are commonly used for remote access to a private network, provide a secure and encrypted communication channel suitable for remote work, telecommuting and accessing sensitive information over public networks. But perhaps the greatest flexibility is provided by cloud networks, from which applications, storage and computing power can always be accessed, provided that there’s an internet connection. For businesses that require on-demand scalability, cost- efficiency and Seamless integration There’s nothing quite like a downed IT system to paralyse a company – showing just why it’s important to get it right straight away. www.blmforum.net Business Link 27 IT AND COMMUNICATIONS the ability to access resources remotely, the ability to connect anywhere offers boundless freedom. With your network set up, you can enjoy reliable connectivity between employees, departments and business locations whether by telecoms, email or video calls. Real-time collaboration keeps a workforce connected regardless of where they are, which improves teamwork, boosts productivity, and accelerates any ongoing projects. But to make traditional voice communication and telecoms even easier, making additions such as VoIP (Voice over Internet Protocol) enables voice communication over the internet instead of traditional phone lines, allowing for integration with other communication channels, such as email and instant messaging. For a more centralised approach, a unified communications or UC system instead integrates various communication channels, including voice, video, messaging and conferencing, into a single platform. By unifying communication tools, employees can access and manage all their communications from one interface, streamlining workflow and encouraging a collaborative work ethic. Providing employees with 28 Á28 Business Link www.blmforum.net IT AND COMMUNICATIONS mobiles, or software that allows them to make and receive calls using their smartphones or computers, is now well- established as a means of keeping connected from home. But beyond the basic freedom of mobile working, applications can provide employees with unlimited access to work-related tools and communication channels. Instant messaging apps allow real-time team communication, file sharing and discussion threads, with the collaborative features of apps enabling employees to work together from anywhere. Video conferencing and virtual meetings are supported by many providers with features such as screen- sharing, chat functionality and participant management, to make webinars and presentations feel as smooth and friendly as they would in- person. When these applications are integrated with the expansiveness of cloud storage, paperwork stress can be taken off the table for truly seamless organisation that includes everyone. There are endless layers to the productivity tools that can be added on with these everyday streamlining solutions. Project management resources enable remote employees to manage tasks, track progress and collaborate on projects, with notifications, task assignment and responsive activity feeds to keep all employees on track. For capturing ideas while on the job, note-taking and documentation software are there for taking minutes on brainstorming sessions, or creating to-do lists of next steps agreed in meetings. Learning management also let staff expand on their retinue of skills with online training courses or development programs on anything from leadership and www.blmforum.net Business Link 29 IT AND COMMUNICATIONS entrepreneurship to marketing and creativity. Even at the end of the day, time and expense tracking lets employees log their work hours, track project-related expenses, and submit their last reports whether on-site or remotely. These applications streamline administrative tasks, provide accurate data for billing or reimbursement, and ensure efficient time management to start off the next day with less anxiety and more fruitful optimism. When internal processes and productivity are at their best, IT and telecoms can then be turned to providing better customer experiences. Through websites, online portals and mobile apps, customers can freely and conveniently access information, make purchases, and interact with customer support staff. Opening communication channels to email, live chat and social media engagement further enable prompt customer support and personalised interactions, which all serve to foster loyalty and satisfaction. The integration of IT and telecom in business environments has transformed the way organisations communicate and operate, allowing all involved to stay connected internally and externally. Unbroken information flow, improved decision-making, more organised meetings and better customer experiences are only enhanced as technology continues to evolve. Keeping up with these advancements and the benefits they offer is a positive influence on any business’s potential and competitive edge. The more thoughtfully and tactfully you implement IT and telecoms systems, the more direct and beneficial dialogues with employees and customers alike will become.Next >