Sidekick: Operational support for small businesses

Welcome to the latest in our series of posts delving into the diary of a fractional CxO, providing you with a deeper insight into the daily activities and experiences of these versatile professionals.

This post is from Steve Kessel who has a wealth of experience and expertise in operations with predominately small to medium size businesses. Steve Kessel has played a pivotal role in empowering businesses to thrive, allowing the owner to focus on their core strengths. His forward-thinking approach, combined with an acute commercial understanding, has positioned him as a trusted advisor in the ever-evolving business landscape.

Diary of a Fractional Operations Specialist:

Focus: Operational issues - Finance - Growth

Client 1: Financial Prop Trading company - Back traders with capital in the financial markets.

Client 2: Medical and Hygiene Supplies - B2B and B2C

Potential Client 3: Pet supplies - B2B and B2C

Client 1

Monday

Operations - Risk Management - Last week, one of the traders had too much risk on his books - basically they were ‘overdrawn’ as their trading losses increased. I ran some models, analyzed data then sat down with the trader explaining the rules in place and they will be dismissed if it happens again. Discipline is Number 1 rule as a trader.

Operations - Office move/ space - I had an early morning meet with the owner. The company is looking for new flexible office space in 3-6 months' time. Fortunately, I know a flexible office broker who I have used before. I made a call to the broker to give him the brief. He will save the company time and money. As well as sourcing the office space and working with the broker, I will manage and coordinate the office move.

Finance - Data analysis - Worked on some data analysis for traders' performance for the rest of the day.

Tuesday

E-mails at 7.00 am for Client 1 - take kids to school day - then headed to the office of Client 2 for the entire day.

A quick WhatsApp with the owner at midday for Client 1. Ran through a couple of smaller outstanding items which I will deal with remotely this afternoon.

Wednesday

Finance - I reviewed year end accounts from the auditor - spotted a couple of mistakes - got them back with adjustments. Sent to the owner to review together.

Operations - Hedge fund project - The company is looking to get some form of regulation to get into the hedge fund business. He wants me to research and report back in 2 weeks.

Growth - Marketing - Attract new traders - thinking how I can do this.

Thursday

Data analysis - Performance - Reviewed my data analysis on the other traders' performances. Arranged to sit down with all of them next week. I have worked with over 100 traders in my career using data analysis and trading psychology and a trader has one of the hardest jobs in the world to be consistently successful.

Operations - Issues management - Couple of small operational bits I had to deal with - all sorted. Some of this is mundane but it is only a small part of my function for a business like this. I gain a lot of hands-on experience in all aspects of the business to make up for this part of the job. Plenty of owners do not like doing this type of work and nor do they have the time to do so.

Client 2

Monday

Operations - Issues management - The owner called me in the morning - he has an issue with one of our suppliers. Spoke to the account manager @ the supplier and resolved.

Tuesday

Finance and data analysis - Suppliers management - There have been many price increases from suppliers. Made final updates to spreadsheet with all the data - Cost/ Selling Px / GP per product / Volume analysis etc. He has 500 different lines of products and 8 different suppliers!

I am O.K. with spreadsheets but the one I created 2 years back has 30 worksheets and it is getting tougher to work with this many worksheets! Is it best to start again or rebuild the existing spreadsheet?

Operations and data analysis - Amazon and eBay management - making sure inventory up to date/ deal with any customer issues/ logistical compliance issues. Analyzed selling data we get from Amazon - made some price changes to be more competitive - hopefully their algos pick it up 😊

Finance - Finished monthly management reports for the owner.

Wednesday

Growth - Sales - We discussed increasing B2B business last week - I spoke to a company I found on LinkedIn who can help with direct marketing - the salesperson can potentially get me 30 quality leads.

B2C - I am looking around to get more business straight to our website. Small margins so for every 1 BP spent I need to return 3 BP to break even. I am working on a marketing plan with small budgets [if possible!].

Thursday

Finance - Debtor management - His biggest client is a late payer. Small businesses like this really struggle with cash flow.

Spoke to the CFO of the client and he said we would see if he can get Accounts to pay it sooner than they do. You need to be subtle as they are a big part of his income and I do not want to annoy them by ‘demanding’ earlier payment. I will follow up after next month’s payment. A customer paying on time is one of the most crucial aspects of a small business.

Operations - Logistics - Dealt with a few operational and logistical issues with Royal Mail and Parcel force. In addition, I managed to claim 300 BP from Parcel force for late delivery of 30 parcels. Every penny counts.

Operations - Supplier management and bottom-line profitability - I have been speaking to the main suppliers about reducing the recent increase in supplier prices. I ran some data and asked them to focus on reducing the largest purchased products rather than asking them to reduce prices for all products. We recently increased prices for our clients [not as much as we have experienced price increases from the suppliers] so I am trying to get back some margin for the company.

I left early to pick up the kids, so I did some work for Client 2 at home in the evening. It is all about flexibility for myself so I can run 4 clients at the same time. I make this clear to my clients.

Friday

Dealt with a few outstanding issues for both clients.

Fridays are my research/ ideas/ networking days.

Every week, I look at my connections and see if I can pair people up. This week, I connected a data expert I know with a football agent to see if they have any mutual interests. I do not expect anything $ in return - there are now 2 people who will remember me next time an opportunity may come up which I they think I may be interested in. Pay forward is my motto.

I had coffee with the proprietor of an out-sourcing telephony company - remote receptionists. He is looking to raise money. I arranged to meet for a coffee to discuss whom I could possibly introduce to someone from my network who may want to invest.

Someone has asked if I want to take over the running of a dog supplies business - leads, harnesses, beds etc. Started researching brands. I got an opinion from my wife who is a CMO. Fortunately, she did not charge me for her time 😊 He sent me all their financials and I will report back next week to the owner with a synopsis. Generally, I have found small business like this will be at cc 30 % GP.

If anyone knows someone in the dog product business and they have experience growing sales either B2B or B2C please give me a yell.

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Thoughts on the week for small business owners:

Cash flow - With the companies who hold stock, the more success the more cash is needed as cash is tied up in stock.

A stock management system may manage cash flow a bit better with more efficient ordering of stock.

Has anyone used a stock system like ‘Unleashed’?

Any other ways to improve cash flow for Client 2?

How to convince small owners to invest in systems especially with smaller margins?

All, have a good rest of the week

Throughout the week, Steve emphasises the importance of cash flow management for small businesses, addressing challenges related to late payments, operational and logistical issues with courier services, and negotiating with suppliers for better pricing. He also showcases his commitment to networking and building connections, offering assistance and expertise to others.

Overall, Steve Kessel's diary highlights his dedication, flexibility, adaptability, and ability to drive positive change for small businesses across different industries. His analytical mindset, operational expertise, and passion for growth make him a valuable asset to any organisation seeking fractional support to enhance their operations and achieve sustainable success.

Steve can be reached at www.sidekicksk.co.uk and steve@sidekicksk.co.uk