Presentation Transcript

1. Good practice in business for language schools

   Company governance, risk External advisers, financial advice, business restructuring Complying with the law in your country Employees Information technology (IT) Financial issues Managing your workflow Cape Town Conference April 12 Business management

2. Ian Powney

   Chartered accountant, qualified with KPMG Finance Director and Company Secretary of IH Trust/London for 3 years Elected Treasurer/Board member of EAQUALS Range of commercial and not-for-profit experience Cape Town Conference April 12 Business management

3. Objectives of this workshop

   Look at your school from different perspectives Don’t put issues in boxes, they overlap Pick up some new ideas (if you are a school owner you probably already know much of this) Talk about YOUR issues Find out where to get more information Cape Town Conference April 12 Business management

4. Company governance

   Big decisions What business(es) are we in: strategy Major investment and contracts Independent checks on decisions Need different perspectives Ownership role Non-executive directors Delegated authority Cape Town Conference April 12 Business management

5. Risk rating matrix

   Cape Town Conference April 12 Business management

6. Examples of risks EXERCISE - ASSESS THESE

   No clear strategic vision Difficulty in recruiting suitable staff Can’t pay the rent Someone else copies your name Economic downturn affects your market Reputation damaged by incident Cape Town Conference April 12 Business management

7. Business continuity

   Major disaster IT fails Emergency office IT re-start Communications Replacement school Cape Town Conference April 12 Business management

8. Using external advisers

   Property consultant / project manager Insurance broker Bank Academic / marketing More detail: Financial Legal Information technology (IT) How to find the right advisers for you Cape Town Conference April 12 Business management

9. Financial advice

   Audit Accounting Taxation Sales (value added tax (VAT) etc) Profits (corporation tax etc) Payroll (income tax, national insurance etc) Cape Town Conference April 12 Business management

10. Advice on business restructuring

    Due diligence Acquiring another existing business Merging with another business Becoming part of a “franchise” Selling your business Cape Town Conference April 12 Business management

11. Financial issues

    Key ratio: gross margin on each product group (margin / sales) Deferred income Currency issues (exchange rates) Cash flow Bank accounts Borrowing Investing surplus cash Cape Town Conference April 12 Business management

12. Information technology (IT)

    Is it risk-free? Get it checked Does it work for the users? Training Can your IT department communicate? Outside advice Web site support Cape Town Conference April 12 Business management

13. EXERCISE – what changes (journals = debit/(credit) are needed to correct for:

    €10,000 new computers arrived on 30 December, not paid for until 15 January 2012. An outstanding Sales Invoice for €5,000 was paid on 29 December, but the bank did not process it until 2 January 2012. You find an error in the course booking system: a €15,000 course was booked for November 2011 but the correct date is November 2012. Cape Town Conference April 12 Business management

14. Complying with the law in your country

    Company registration Contracts Property Protecting your brand More detail: Contracts Employees Cape Town Conference April 12 Business management

15. Contracts

    Sales – your standard courses Sales – special programmes Supplies – long term contracts What is a contract ? Payment terms Right to cancel Cape Town Conference April 12 Business management

16. Managing your workflow

    Filing cabinet Electronic files – reference system “To do” lists “In” pile – keep clearing it “One touch” technique Respond to emails immediately Diary DELEGATION Cape Town Conference April 12 Business management

17. Employees – legal

    Recruitment Clear job specification Agency or direct advertisement Protection of vulnerable people Grievance / disciplinary procedures Redundancy – local laws Termination for poor performance / discrimination Payroll taxes Employer pension obligations Cape Town Conference April 12 Business management

18. Saving for retirement – example

    Earnings 40 years x €30,000 (assume no inflation) Saves 15% = €4,500 per year = €180,000 IMPORTANCE OF TAX RELIEF Makes good investments, worth €400,000 in year 40 Buys annuity at 5%, gives €20,000 per year Other options: sell your investment Cape Town Conference April 12 Business management

19. Employees – how do you keep them?

    EXERCISE Cape Town Conference April 12 Business management