Social networking sites offer free advertising, a direct method of communication with customers and a way to increase the hits on your company's website
In the last decade the internet has become ubiquitous with business. It is now unheard of for any small company that wants to taken seriously to not have a professional looking website. All indications are that this is the way that social networking is going - that in ten years it will be as common for SMEs to have a presence on social networking sites as well as their own internet site.
Social networking is a way for small companies to raise their profile, directly communicate with clients and potential clients, create natural weblinks back to their site and engage in free marketing.
The most common social networking sites are Facebook, Bebo and Twitter. Social networking is a relatively new phenomenon and can be defined as the grouping of individuals into specific groups, like a community.
According to a recent O2 survey, an estimated 700,000 small businesses are using the social networking site Twitter with 6,000 more joining every day. The poll of 500 small firms found that 17% are already using Twitter, with 25% of these SMEs signing up to the social networking site in the last month.
Nearly a third of those surveyed said they had saved up to £1,000 since signing up and 16% claimed that they had been able to save up to £5,000.
Read more: http://www.newbusiness.co.uk/articles/internet-advice/why-your-firm-should-be-using-social-networking
www.ukba.co.uk
Tuesday, 31 March 2009
Monday, 30 March 2009
Improve your profitability
Now more than ever, maintaining profitability is the goal of all businesses.
But with the day-to-day demands of running your company, it can be easier said than done. Knowing your business better, cutting costs, increasing efficiency and making your staff more productive all play a part.
Click here to see more on a video.
Click here to download a free trial of Microsoft's and find out more about how IT can save you money.
Source: Microsoft
www.ukba.co.uk
But with the day-to-day demands of running your company, it can be easier said than done. Knowing your business better, cutting costs, increasing efficiency and making your staff more productive all play a part.
Click here to see more on a video.
Click here to download a free trial of Microsoft's and find out more about how IT can save you money.
Source: Microsoft
www.ukba.co.uk
Sunday, 29 March 2009
A new breed of entrepreneurs arise from the recession!
Research has shown a new breed of 'super entrepreneurs' is evolving as a result of the downturn.
These business owners, who Darwin would have been proud of, are making themselves fit to survive the current downturn and thrive in the future.
Super entrepreneur profile
The study, conducted by Bibby Financial Services, shows that the the new breed of 'super entrepreneur' is most likely to be:
- Female
- Aged between 45 and 54
- Living in the South East
- Have started their business between 1995 and 1999
- Running a business with a turnover of between £250,000 and £500,000
- Running a business that employs five or more people
- Experienced two downturns including this one
Related statistics from the study
-79% of small and medium-sized firms making, or planning to make, positive steps in order to survive and face economic uncertainty head on.
- 69% of owners and managers claiming the recession has encouraged them to keep a closer eye on their finances.
- 84% of owners and managers also making positive changes specifically in relation to their clients/customers and suppliers.
- 37% are cutting their marketing or advertising and 33% are even going as far as to use their personal savings to ensure the existence of their business.
- 28% are scaling back on production and 26% are having to bring services back in-house
- 7% are downsizing premises or cutting office spend altogether and opting to run the business from home.
- Experience counts
The figures from the Bibby study also show there is no substitute for experience - over half (54%) of business owners and managers have never experienced a prior recession or downturn.
But it is business owners who have ridden out past downturns who are more likely to be scrutinising their finances more carefully, with 81% of business owners who’ve experienced a number of downturns since the early 1980s paying more attention to finances compared to just 64% of those who’ve experienced this recession only.
However, 35% of those who started their business in the last three years know they need to develop their understanding of financial management.
Source: Bystart
www.ukba.co.uk
These business owners, who Darwin would have been proud of, are making themselves fit to survive the current downturn and thrive in the future.
Super entrepreneur profile
The study, conducted by Bibby Financial Services, shows that the the new breed of 'super entrepreneur' is most likely to be:
- Female
- Aged between 45 and 54
- Living in the South East
- Have started their business between 1995 and 1999
- Running a business with a turnover of between £250,000 and £500,000
- Running a business that employs five or more people
- Experienced two downturns including this one
Related statistics from the study
-79% of small and medium-sized firms making, or planning to make, positive steps in order to survive and face economic uncertainty head on.
- 69% of owners and managers claiming the recession has encouraged them to keep a closer eye on their finances.
- 84% of owners and managers also making positive changes specifically in relation to their clients/customers and suppliers.
- 37% are cutting their marketing or advertising and 33% are even going as far as to use their personal savings to ensure the existence of their business.
- 28% are scaling back on production and 26% are having to bring services back in-house
- 7% are downsizing premises or cutting office spend altogether and opting to run the business from home.
- Experience counts
The figures from the Bibby study also show there is no substitute for experience - over half (54%) of business owners and managers have never experienced a prior recession or downturn.
But it is business owners who have ridden out past downturns who are more likely to be scrutinising their finances more carefully, with 81% of business owners who’ve experienced a number of downturns since the early 1980s paying more attention to finances compared to just 64% of those who’ve experienced this recession only.
However, 35% of those who started their business in the last three years know they need to develop their understanding of financial management.
Source: Bystart
www.ukba.co.uk
Saturday, 28 March 2009
It is important to cut costs in turbulent conditions - how can IT help?
As the current economic storm gathers up pace, more and more businesses are being affected. So how can IT help you fight through these turbulent conditions?
By using different IT tools, you can empower your organisation to work smarter, not just harder….saving money and time across the board.
There hasn’t been a more important time for you to take a good look at where your money is going and start making bold decisions -which could be the difference between making it through the recession and not.
Here are some examples of savings you can start making within your business today with IT:
- Reduce travel costs by 20 - 40%* through switching to web and video conferencing
- Lower office costs saving 30 - 40%* through enabling employees to work from anywhere
- Cut the costs of hardware and power usage through use of virtualisation technologies
- Set up intranet sites quickly and cost effectively enabling teams and individuals to be more productive
*Forrester Research, October 2007 - Total Economic Impact of Microsoft Unified Communications Products and Services.
www.ukba.co.uk
By using different IT tools, you can empower your organisation to work smarter, not just harder….saving money and time across the board.
There hasn’t been a more important time for you to take a good look at where your money is going and start making bold decisions -which could be the difference between making it through the recession and not.
Here are some examples of savings you can start making within your business today with IT:
- Reduce travel costs by 20 - 40%* through switching to web and video conferencing
- Lower office costs saving 30 - 40%* through enabling employees to work from anywhere
- Cut the costs of hardware and power usage through use of virtualisation technologies
- Set up intranet sites quickly and cost effectively enabling teams and individuals to be more productive
*Forrester Research, October 2007 - Total Economic Impact of Microsoft Unified Communications Products and Services.
www.ukba.co.uk
Friday, 27 March 2009
Small businesses are being hit by a steep rise in the cost of credit insurance taken out to cover bad debts
Many are finding they are unable to get cover at all.
Credit insurers have confirmed they are increasing premiums by up to 40% for clients who are renewing their contracts, and in some cases by much more. They are also refusing to provide cover for some operating in high-risk sectors such as retailing and construction and are turning away large numbers of new customers.
Credit insurance covers small firms for bad debts suffered if one of their business customers is unable to pay, usually because it has become insolvent. Without it, firms themselves are forced to take on the risk of customers not paying. If the amount owed is large and not paid, the business could be forced to close.
Shaun Purrington, regional director at Atradius, one of the biggest credit insurers in Britain, said: “It is fair to say that compared with six months or one year ago small businesses will find it more difficult to get credit insurance. I’m afraid that the appetite of credit insurers to write new policies has declined.
“Companies that come to us and ask for cover on firms [they wish to trade with] that are clearly in financial difficulties, or that are operating in very difficult sectors, will find it nearly impossible to get cover.”.....read more.
Source: TimesOnLine
www.ukba.co.uk
Credit insurers have confirmed they are increasing premiums by up to 40% for clients who are renewing their contracts, and in some cases by much more. They are also refusing to provide cover for some operating in high-risk sectors such as retailing and construction and are turning away large numbers of new customers.
Credit insurance covers small firms for bad debts suffered if one of their business customers is unable to pay, usually because it has become insolvent. Without it, firms themselves are forced to take on the risk of customers not paying. If the amount owed is large and not paid, the business could be forced to close.
Shaun Purrington, regional director at Atradius, one of the biggest credit insurers in Britain, said: “It is fair to say that compared with six months or one year ago small businesses will find it more difficult to get credit insurance. I’m afraid that the appetite of credit insurers to write new policies has declined.
“Companies that come to us and ask for cover on firms [they wish to trade with] that are clearly in financial difficulties, or that are operating in very difficult sectors, will find it nearly impossible to get cover.”.....read more.
Source: TimesOnLine
www.ukba.co.uk
Thursday, 26 March 2009
The internet will help companies survive the recession
One in five small and medium-sized companies believe that the internet will be the most important tool in helping them beat the recession, according to research conducted by Easynet Connect.
The survey of 225 SME IT managers also revealed that 74% of small businesses use the web to grow their company profile and over 50% believe that the web would put them on a level playing field with bigger companies.
"The critical difference between now and the recession of the early 90s is the internet, which could easily be the most important tool in helping small businesses through the current down turn," said Chris Stening, managing director of Easynet Connect.
"The internet has meant that businesses are much better equipped this time around. In the early 90s we were a world away from e-commerce, online marketing, or having a mobile workforce, let alone using cloud computing or holding video conferences with customers on the other side of the world."
www.ukba.co.uk
The survey of 225 SME IT managers also revealed that 74% of small businesses use the web to grow their company profile and over 50% believe that the web would put them on a level playing field with bigger companies.
"The critical difference between now and the recession of the early 90s is the internet, which could easily be the most important tool in helping small businesses through the current down turn," said Chris Stening, managing director of Easynet Connect.
"The internet has meant that businesses are much better equipped this time around. In the early 90s we were a world away from e-commerce, online marketing, or having a mobile workforce, let alone using cloud computing or holding video conferences with customers on the other side of the world."
www.ukba.co.uk
Wednesday, 25 March 2009
Think tank says small businesses will be 'drivers of the recovery'
A call to break up the banks, split retail and investment banking, and provide a lot more support for small companies....
The New Economics Foundation (NEF) says that the latest Government efforts to revive the economy will not work as the UK's banks have become 'unfit for purpose'.
Don't throw good money after bad
The organisation has urged the Government to rebuild a sound financial sector. Instead of 'throwing good money after bad', NEF suggests the Government should:
de-merge the big banks
separate retail banking from corporate finance and securities dealing
support community finance initiatives and small businesses, who will be the drivers of the recovery. (Small businesses provided 59% of private sector jobs in the UK in 2007).
Banking failures and failed rescue attempt
The report, IOUK: banking failure and how to build a fit financial sector, looks at the behaviour of the UK's banking sector. If finds that the nation's banks have withdrawn from the heart of communities, sidelined their basic business, lost touch with the real needs of their customers and become structurally unable to serve them, it says. While flooding the economy with inappropriate credit they contributed to a financial drought in disadvantaged areas and starved small businesses of the credit they needed to survive.
And the Government's rescue attempts have so far failed. Despite virtual nationalisation and a £37bn bailout of the biggest banks, the Government seems powerless to force banks to lend appropriately.
NEF says that The Enterprise Finance Guarantee scheme which replaced the Small Firms Guarantee Scheme has failed to kickstart lending (despite Lord Mandelson's claims in an announcement slipped out quietly on 20 February in response to media criticism) and is weighted in favour of larger firms.
Yet a "sleeping architecture" of a more robust local financial infrastructure exists in the credit unions, community finance and local enterprise schemes that are working on the frontline of financial exclusion.
The paper includes case studies of viable businesses failed by the banks but supported by this parallel infrastructure. The report's authors say that this sector should be supported and a UK Community Reinvestment Act be brought in to force banks to partner with them.
Comment from the author
Sargon Nissan, Business and Finance Researcher at NEFand co-author of the report, commented:
"The Bank of England has reached a dead end with interest rate cuts and the decision to flood the economy with £75 billion of new money through 'quantitative easing'; is just another form of bail out. The Government is in denial if it thinks we can go back to business as usual; that's what caused the crisis.
"If banks became too big to let fail, how can the answer be to make even fewer banks even bigger and keep channelling all the funds through them? We need to bring banks back to their original function, break them up and return them to a scale where they are in touch with the communities, people and businesses they should have been serving all along."
www.ukba.co.uk
The New Economics Foundation (NEF) says that the latest Government efforts to revive the economy will not work as the UK's banks have become 'unfit for purpose'.
Don't throw good money after bad
The organisation has urged the Government to rebuild a sound financial sector. Instead of 'throwing good money after bad', NEF suggests the Government should:
de-merge the big banks
separate retail banking from corporate finance and securities dealing
support community finance initiatives and small businesses, who will be the drivers of the recovery. (Small businesses provided 59% of private sector jobs in the UK in 2007).
Banking failures and failed rescue attempt
The report, IOUK: banking failure and how to build a fit financial sector, looks at the behaviour of the UK's banking sector. If finds that the nation's banks have withdrawn from the heart of communities, sidelined their basic business, lost touch with the real needs of their customers and become structurally unable to serve them, it says. While flooding the economy with inappropriate credit they contributed to a financial drought in disadvantaged areas and starved small businesses of the credit they needed to survive.
And the Government's rescue attempts have so far failed. Despite virtual nationalisation and a £37bn bailout of the biggest banks, the Government seems powerless to force banks to lend appropriately.
NEF says that The Enterprise Finance Guarantee scheme which replaced the Small Firms Guarantee Scheme has failed to kickstart lending (despite Lord Mandelson's claims in an announcement slipped out quietly on 20 February in response to media criticism) and is weighted in favour of larger firms.
Yet a "sleeping architecture" of a more robust local financial infrastructure exists in the credit unions, community finance and local enterprise schemes that are working on the frontline of financial exclusion.
The paper includes case studies of viable businesses failed by the banks but supported by this parallel infrastructure. The report's authors say that this sector should be supported and a UK Community Reinvestment Act be brought in to force banks to partner with them.
Comment from the author
Sargon Nissan, Business and Finance Researcher at NEFand co-author of the report, commented:
"The Bank of England has reached a dead end with interest rate cuts and the decision to flood the economy with £75 billion of new money through 'quantitative easing'; is just another form of bail out. The Government is in denial if it thinks we can go back to business as usual; that's what caused the crisis.
"If banks became too big to let fail, how can the answer be to make even fewer banks even bigger and keep channelling all the funds through them? We need to bring banks back to their original function, break them up and return them to a scale where they are in touch with the communities, people and businesses they should have been serving all along."
www.ukba.co.uk
Tuesday, 24 March 2009
Six habits of successful managers in a downturn
As all business owners will be more than aware of the economic situation is currently a challenging one. Those SME owners who steer their companies through the current choppy economic waters will have the following characterisitcs:
Being in control
In the current climate, it's easy to feel at the mercy of forces beyond your control. Winners take ownership of their own destiny. No-one can control the macro-economic climate just now. Nevertheless, you can still control what you do in your business. You can have an inspiring vision and communicate it well; be proud and confident about what makes your business great; make plans and invest wisely, and grasp opportunities others are too timid to spot.
Confidence
These days it's tempting to focus only on today and tomorrow. You and your people also need a compelling vision for the medium to long term future. Communicating a confident vision for the business and yourself in an inspiring way will have a knock-on effect on other people in the business, your customers and suppliers.
Be distinctive
In a recession, some owner managers will scrabble for any business they can get their hands on. As a result, they risk losing sight of their product or service's unique selling point and can end up being treated like a commodity and coming under severe price pressure. Winners clearly articulate the distinctive benefits they bring to their customers.
Winners clearly articulate the distinctive benefits they bring to their customers
Ensure your offering is distinctive and customers are prepared to pay for it. If you are clear about your distinctiveness, you could be better off increasing prices rather than reducing them, even if it means losing customers who don't value you and may be costing you money.
Strength
You need to be absolutely rigorous in managing your business. Focus on the things that really matter, manage cash religiously, challenge costs and waste. Make immediate bottom line improvements by chasing debtors, insisting sales staff adhere to a tight pricing system, negotiating supplier discounts, reducing fixed costs and shedding unprofitable customers. Your plan must be robust enough to survive variances and you need indicators that give you early warning signs of change.
Wisdom
Don't be tempted to stop all investments. It preserves cash in the short term, but restricts the ability to take advantage of the downturn and is de-motivating. Some owner managers will take big risks in an attempt to drive sales. Winners continue to make wise investments for the future.
Differentiate between investments that are crucial to bringing about your vision and those which are discretionary. Before moving into new markets and launching new products, consider whether you have fully exploited existing niches.
Being prepared
For canny businesses, a recession is an opportunity to redefine their sector and their position in it. Understand your sector and keep a keen eye on your competitors. You may gain access to markets, potential customers, premises and people who in better times might not be so readily available. From weaker competitors, you may be able to acquire customers or key staff. You may even be able to acquire some of your competitors. In all cases, be ready to seize opportunities to grasp the upside of the downturn's.
Source: Gerard Burke, Programme Director at Cranfield School of Management
Subscribe to "How To Become A Better Leader" - a regular bulletin on current thinking regarding leadership:
www.ukba.co.uk
Being in control
In the current climate, it's easy to feel at the mercy of forces beyond your control. Winners take ownership of their own destiny. No-one can control the macro-economic climate just now. Nevertheless, you can still control what you do in your business. You can have an inspiring vision and communicate it well; be proud and confident about what makes your business great; make plans and invest wisely, and grasp opportunities others are too timid to spot.
Confidence
These days it's tempting to focus only on today and tomorrow. You and your people also need a compelling vision for the medium to long term future. Communicating a confident vision for the business and yourself in an inspiring way will have a knock-on effect on other people in the business, your customers and suppliers.
Be distinctive
In a recession, some owner managers will scrabble for any business they can get their hands on. As a result, they risk losing sight of their product or service's unique selling point and can end up being treated like a commodity and coming under severe price pressure. Winners clearly articulate the distinctive benefits they bring to their customers.
Winners clearly articulate the distinctive benefits they bring to their customers
Ensure your offering is distinctive and customers are prepared to pay for it. If you are clear about your distinctiveness, you could be better off increasing prices rather than reducing them, even if it means losing customers who don't value you and may be costing you money.
Strength
You need to be absolutely rigorous in managing your business. Focus on the things that really matter, manage cash religiously, challenge costs and waste. Make immediate bottom line improvements by chasing debtors, insisting sales staff adhere to a tight pricing system, negotiating supplier discounts, reducing fixed costs and shedding unprofitable customers. Your plan must be robust enough to survive variances and you need indicators that give you early warning signs of change.
Wisdom
Don't be tempted to stop all investments. It preserves cash in the short term, but restricts the ability to take advantage of the downturn and is de-motivating. Some owner managers will take big risks in an attempt to drive sales. Winners continue to make wise investments for the future.
Differentiate between investments that are crucial to bringing about your vision and those which are discretionary. Before moving into new markets and launching new products, consider whether you have fully exploited existing niches.
Being prepared
For canny businesses, a recession is an opportunity to redefine their sector and their position in it. Understand your sector and keep a keen eye on your competitors. You may gain access to markets, potential customers, premises and people who in better times might not be so readily available. From weaker competitors, you may be able to acquire customers or key staff. You may even be able to acquire some of your competitors. In all cases, be ready to seize opportunities to grasp the upside of the downturn's.
Source: Gerard Burke, Programme Director at Cranfield School of Management
Subscribe to "How To Become A Better Leader" - a regular bulletin on current thinking regarding leadership:
www.ukba.co.uk
Monday, 23 March 2009
Why you must communicate more with your staff
Research by the CMI found that 62% of employees felt their MD/CEO was out of touch with staff feelings.
In an economic downturn it is more important then ever that small business owners lead their companies and do not simply hope that things get better. Business leaders must plan and prepare to make sure that they address and manage the specific challenges that are currently being faced by their companies.
All small business owners must ensure that they are communicating effectively with staff. This is a major issue, and can have a significant effect on the morale and productivity of your workforce.
Read more - click here.
Source: http://www.newbusiness.co.uk
www.ukba.co.uk
In an economic downturn it is more important then ever that small business owners lead their companies and do not simply hope that things get better. Business leaders must plan and prepare to make sure that they address and manage the specific challenges that are currently being faced by their companies.
All small business owners must ensure that they are communicating effectively with staff. This is a major issue, and can have a significant effect on the morale and productivity of your workforce.
Read more - click here.
Source: http://www.newbusiness.co.uk
www.ukba.co.uk
Sunday, 22 March 2009
Discipline and grievance: the new Acas Code of Practice explained
The new legislation should provide an easy to use and efficient system for dispute resolution, enabling disputes to be resolved in the workplace before they escalate to employment tribunals.
In theory, this should save you time, money and stress.
Sections 1 to 7 of the Employment Act 2008 makes the following changes:
- Existing statutory procedures for dealing with discipline, dismissal and grievance issues will be repealed.
- A revised Acas Code of Practice will be introduced.
- Tribunals will have discretionary powers to adjust awards by up to 25% if employers or employees fail unreasonably to comply with the Acas Code.
- Acas' to provide a free early conciliation service.
- Tribunals will be allowed to award compensation for financial loss in certain types of claims.
Read more - click here.
Source: Forum for Private Business
Saturday, 21 March 2009
The Late Payment Cycle
Despite the Late Payment legislation UK businesses are taking the longest time on record to pay their bills.
Businesses are currently taking over two months to settle their debts according to the credit checking company Experian. This is an increase of two days in the last year.
As usual the larger companies are taking longest with an average of 82 days and smaller companies now averaging over 61 days. However it is usually the smaller companies who are most likely have cashflow problems.
The industries who have increase their payment days most are:
Electricity,
Property,
Pharmaceuticals,
Beers, Wine and Spirits,
Oil and Gas have all increased by over five days.
The longer a company takes to pay the their invoices could be an early warning indicator to cashflow problems. If you are running a business then you need to monitor the speed at which your customers pay their bills, because while the invoice is unpaid the money is at risk.
Remember a sale is not a sale until the invoice is PAID.
If the invoice is not paid then the money is at risk and could be lost.
Therefore businesses should press harder to be paid on time with in the terms of the agreement. Companies are all under pressure to hold onto cash for as long as possible.
This can lead to a battle of wills between the credit controller of the supplier and the purchaser ledger manager of the customer.
The figures indicate that the late payment culture is getting worse.
This can lead to a battle of wills between the credit controller of the supplier and the purchaser ledger manager of the customer.
Businesses should not be acting as an unpaid bank for their customers.
www.ukba.co.uk
Businesses are currently taking over two months to settle their debts according to the credit checking company Experian. This is an increase of two days in the last year.
As usual the larger companies are taking longest with an average of 82 days and smaller companies now averaging over 61 days. However it is usually the smaller companies who are most likely have cashflow problems.
The industries who have increase their payment days most are:
Electricity,
Property,
Pharmaceuticals,
Beers, Wine and Spirits,
Oil and Gas have all increased by over five days.
The longer a company takes to pay the their invoices could be an early warning indicator to cashflow problems. If you are running a business then you need to monitor the speed at which your customers pay their bills, because while the invoice is unpaid the money is at risk.
Remember a sale is not a sale until the invoice is PAID.
If the invoice is not paid then the money is at risk and could be lost.
Therefore businesses should press harder to be paid on time with in the terms of the agreement. Companies are all under pressure to hold onto cash for as long as possible.
This can lead to a battle of wills between the credit controller of the supplier and the purchaser ledger manager of the customer.
The figures indicate that the late payment culture is getting worse.
This can lead to a battle of wills between the credit controller of the supplier and the purchaser ledger manager of the customer.
Businesses should not be acting as an unpaid bank for their customers.
www.ukba.co.uk
Friday, 20 March 2009
10 ways to speed up payment
Cash is king. The majority of businesses that fail do so because of cashflow issues.
Question:
What are the 3 most important things in business?
Answer:
Cashflow, cashflow, cashflow!
Cash flow is the life blood of any business and more businesses go bankrupt because they fail to keep the cash flowing than fail for any other reason.
The Inland Revenue and HM Customs are now much more aggressive in chasing monies they think are owed to them now that they have lost their privileged creditor status.
Insolvency
A company or business is insolvent if they cannot pay their creditors as the invoices fall due.
In order to avoid this happening you need to ensure that you get paid on time by your customers so that you in turn can pay your suppliers when their invoices fall due.
So what are the 10 steps you can take: click here.
www.ukba.co.uk
Question:
What are the 3 most important things in business?
Answer:
Cashflow, cashflow, cashflow!
Cash flow is the life blood of any business and more businesses go bankrupt because they fail to keep the cash flowing than fail for any other reason.
The Inland Revenue and HM Customs are now much more aggressive in chasing monies they think are owed to them now that they have lost their privileged creditor status.
Insolvency
A company or business is insolvent if they cannot pay their creditors as the invoices fall due.
In order to avoid this happening you need to ensure that you get paid on time by your customers so that you in turn can pay your suppliers when their invoices fall due.
So what are the 10 steps you can take: click here.
www.ukba.co.uk
Thursday, 19 March 2009
SME debtors increase by 40%
Overdue payments to small and medium-sized businesses in the UK increased by over 40% last year, taking the total that small companies are owed to over £25bn, according to research by Bacs Payment Schemes Limited.
The number of SMEs owed money across the UK increased from 51% in 2007 to 57% in 2008, and the national average of outstanding payments owed to small firms increased to £38,000 - up £8,000 from 2007.
Small businesses in the Midlands have been hit the hardest in the UK, with the average company in this region claiming overdue invoices amounting to just under £70,000.
"Late payment and bad debt are the scourge of business owners. Often, they are major factors behind businesses being forced to close," said Phil McCabe, spokesman for the Forum of Private Business.
"The amount of money owed to small firms has soared over the past year as big businesses seek to create credit lines for themselves by squeezing their suppliers. In addition, despite the Government's pledge to pay its suppliers within 10 days, public organisations continue to be among the worst culprits."
www.ukba.co.uk
The number of SMEs owed money across the UK increased from 51% in 2007 to 57% in 2008, and the national average of outstanding payments owed to small firms increased to £38,000 - up £8,000 from 2007.
Small businesses in the Midlands have been hit the hardest in the UK, with the average company in this region claiming overdue invoices amounting to just under £70,000.
"Late payment and bad debt are the scourge of business owners. Often, they are major factors behind businesses being forced to close," said Phil McCabe, spokesman for the Forum of Private Business.
"The amount of money owed to small firms has soared over the past year as big businesses seek to create credit lines for themselves by squeezing their suppliers. In addition, despite the Government's pledge to pay its suppliers within 10 days, public organisations continue to be among the worst culprits."
www.ukba.co.uk
Wednesday, 18 March 2009
Further decline for the manufacturing industry
The UK's manufacturing output declined for the 11th consecutive month, according to figures released by the Office for National Statistics.
The output of manufacturing industries fell by 2.9% between December and January with the transport equipment sector suffering the largest fall in the sector of 10%.
"The critical priority is to ensure that the vital skills base within manufacturing is not lost during this recession. Urgent measures are needed to help viable and well-managed firms hold on to their trained and skilled employees," said David Kern, chief economist at the British Chambers of Commerce.
The Confederation of British Industry recently revealed that last month demand for UK manufactured goods dropped to its lowest level since 1992.
www.ukba.co.uk
The output of manufacturing industries fell by 2.9% between December and January with the transport equipment sector suffering the largest fall in the sector of 10%.
"The critical priority is to ensure that the vital skills base within manufacturing is not lost during this recession. Urgent measures are needed to help viable and well-managed firms hold on to their trained and skilled employees," said David Kern, chief economist at the British Chambers of Commerce.
The Confederation of British Industry recently revealed that last month demand for UK manufactured goods dropped to its lowest level since 1992.
www.ukba.co.uk
Tuesday, 17 March 2009
700,000 businesses on Twitter - 6,000 per day joining!
According to a recent O2 survey, small and medium-sized businesses are looking to Twitter as a way to cut marketing costs and directly communicate with clients and potential clients.
The poll of 500 small firms found that 17% are already using Twitter, with 25% of these SMEs signing up to the social networking site in the last month.
Nearly a third of those surveyed said they had saved up to £1,000 since signing up and 16% claimed that they had been able to save up to £5,000.
"The increase in small businesses using converged devices such as smartphones combined with the simplicity of Twitter represents a fantastic opportunity to further raise their profiles and increase efficiency," said Simon Devonshire, head of small business marketing at O2.
The poll of 500 small firms found that 17% are already using Twitter, with 25% of these SMEs signing up to the social networking site in the last month.
Nearly a third of those surveyed said they had saved up to £1,000 since signing up and 16% claimed that they had been able to save up to £5,000.
"The increase in small businesses using converged devices such as smartphones combined with the simplicity of Twitter represents a fantastic opportunity to further raise their profiles and increase efficiency," said Simon Devonshire, head of small business marketing at O2.
Follow me on Twitter - http://www.twitter.com/paulgreen
Good supplier relationships are critical in the current economic uncertainty
A recent survey of 500 SMEs by HSBC revealed that 91% of respondents think that having a good relationship with a supplier who knows their business and is therefore more willing to be flexible is essential.
The ‘Value of Relationships' report also found that 31% of respondents said that their suppliers could save them money and 11% think they would be able to offer them useful advice when times are tough.
Small businesses reported that trust is the number one factor in making a supplier relationship work, with 56% of respondents listing this as the most important factor. Reliability and consistency of service was listed as the second most important factor and only 9% of businesses surveyed isolated value and cost as the defining factor of a good relationship.
"SMEs recognise that good relationships with suppliers are vital to help them navigate through testing economic waters," said Noel Quinn, head of commercial banking in the UK at HSBC.
"For suppliers committed to helping businesses succeed, it is clear that having a close relationship comes from developing a good understanding of the company and building trust."
www.ukba.co.uk
The ‘Value of Relationships' report also found that 31% of respondents said that their suppliers could save them money and 11% think they would be able to offer them useful advice when times are tough.
Small businesses reported that trust is the number one factor in making a supplier relationship work, with 56% of respondents listing this as the most important factor. Reliability and consistency of service was listed as the second most important factor and only 9% of businesses surveyed isolated value and cost as the defining factor of a good relationship.
"SMEs recognise that good relationships with suppliers are vital to help them navigate through testing economic waters," said Noel Quinn, head of commercial banking in the UK at HSBC.
"For suppliers committed to helping businesses succeed, it is clear that having a close relationship comes from developing a good understanding of the company and building trust."
www.ukba.co.uk
Monday, 16 March 2009
European Investment Bank's €15bn fund for SMEs
In the current economic climate it is more important than ever to ensure that you are doing everything possible to increase your company's access to finance.
The European Investment Bank set up a €15bn fund in September, that the first UK banks signed up to in January, with the sole purpose of lending money to small and medium-sized firms at a discounted rate over the full term of the deal.
UK Banks signed up for the EIB's scheme include; The Royal Bank of Scotland/Natwest, Barclays Bank, Close Brothers, and most recently, Abbey. RBS is borrowing 250m, Barclays 150m and HBOS secured a 250m loan to lend to UK SMEs.
Any small and medium-sized business that employ less than 250 staff and have a viable business plan can apply to any of these banks for access to the EIB loan.
Find out more: click here.
www.ukba.co.uk
The European Investment Bank set up a €15bn fund in September, that the first UK banks signed up to in January, with the sole purpose of lending money to small and medium-sized firms at a discounted rate over the full term of the deal.
UK Banks signed up for the EIB's scheme include; The Royal Bank of Scotland/Natwest, Barclays Bank, Close Brothers, and most recently, Abbey. RBS is borrowing 250m, Barclays 150m and HBOS secured a 250m loan to lend to UK SMEs.
Any small and medium-sized business that employ less than 250 staff and have a viable business plan can apply to any of these banks for access to the EIB loan.
Find out more: click here.
www.ukba.co.uk
Sunday, 15 March 2009
Cost of running a business falls
The data revealed that costs for SMEs fell by 2.9% in the Q4/08, mainly due to the decline in the price of fuel and raw materials. Energy prices dropped over 18% and raw materials almost 12% in the last three months of 2008.
Despite the decrease in the price of goods small firms have been hit by a decline in consumer confidence and spending and the lack of inflation is resulting in a very depressed marketplace.
"Small businesses now have to quickly adjust to this deflationary environment with some benefiting more than others," said Mike Bowman, head of More Than Business.
"However, deflation is bad news for businesses that have their assets tied to property or large amounts of stock already purchased as it will be losing value day by day."
Source: More Than
www.ukba.co.uk
Despite the decrease in the price of goods small firms have been hit by a decline in consumer confidence and spending and the lack of inflation is resulting in a very depressed marketplace.
"Small businesses now have to quickly adjust to this deflationary environment with some benefiting more than others," said Mike Bowman, head of More Than Business.
"However, deflation is bad news for businesses that have their assets tied to property or large amounts of stock already purchased as it will be losing value day by day."
Source: More Than
www.ukba.co.uk
Saturday, 14 March 2009
Cash Flow Concerns Grow As Late Payments Bite
The latest research released by Lloyds TSB Commercial Finance has found that 29% of small and medium sized companies (SMEs) reported cash flow problems in the second half of 2008.
70 per cent of these companies cited late payment of invoices by their customers as the number one issue, as a growing number of firms stretch their credit terms and hold onto cash.
Simon Featherstone, managing director of Commercial Finance, said: "The research shows that late payments were already negatively impacting cash flows in the second half of 2008.
"With economic conditions remaining tough, it's vital that advisors and funders work with their clients to examine where the threats lie and look at ways and means of strengthening their cash flow going forward.
"It's no surprise that we're seeing a rise in the number of businesses enquiring about products such as factoring and invoice discounting. These forms of finance enable businesses to release the value held in assets, such as invoices, machinery or stock, to quickly strengthen cash flow.
"The use of debtor insurance policies is also on the increase as businesses look to protect themselves from the worst effects of customer insolvencies."
The figures are taken from Lloyds TSB Commercial's Business in Britain survey which polls over 3,400 UK firms, the majority of which have a turnover under £15million.
The study also found that firms in wholesale and distribution and the construction industries were most likely to suffer from late payments (83 and 80 per cent respectively) whilst companies in the hotel, catering and leisure industries faired comparatively well with just 32 per cent blaming late payment.
Download a free cashflow template by clicking here.
www.ukba.co.uk
70 per cent of these companies cited late payment of invoices by their customers as the number one issue, as a growing number of firms stretch their credit terms and hold onto cash.
Simon Featherstone, managing director of Commercial Finance, said: "The research shows that late payments were already negatively impacting cash flows in the second half of 2008.
"With economic conditions remaining tough, it's vital that advisors and funders work with their clients to examine where the threats lie and look at ways and means of strengthening their cash flow going forward.
"It's no surprise that we're seeing a rise in the number of businesses enquiring about products such as factoring and invoice discounting. These forms of finance enable businesses to release the value held in assets, such as invoices, machinery or stock, to quickly strengthen cash flow.
"The use of debtor insurance policies is also on the increase as businesses look to protect themselves from the worst effects of customer insolvencies."
The figures are taken from Lloyds TSB Commercial's Business in Britain survey which polls over 3,400 UK firms, the majority of which have a turnover under £15million.
The study also found that firms in wholesale and distribution and the construction industries were most likely to suffer from late payments (83 and 80 per cent respectively) whilst companies in the hotel, catering and leisure industries faired comparatively well with just 32 per cent blaming late payment.
Download a free cashflow template by clicking here.
www.ukba.co.uk
Friday, 13 March 2009
Health & Safety - easier for SMEs
The HSE is consulting SMEs as it considers new strategies to ensure that complying with regulations is easier.
The HSE has stated that it wishes to ensure that all SMEs meet their legal obligations "in a manner proportionate to the risks posed by their work activities".
"The HSE is clearly acknowledging that small businesses face very different challenges to [their] larger counterparts when it comes to fulfilling health and safety criteria," said James Thompson, a partner in law firm Ward Hadaway's health and safety team.
"This is an encouraging move because what is appropriate for sizeable companies with many employees may not work for SMEs."
The HSE is still insisting that all small firms have at least one person who is in overall charge of a company's health and safety policy, but reiterated that does not have to be a member of staff and can be an external person.
The HSE has stated that it wishes to ensure that all SMEs meet their legal obligations "in a manner proportionate to the risks posed by their work activities".
"The HSE is clearly acknowledging that small businesses face very different challenges to [their] larger counterparts when it comes to fulfilling health and safety criteria," said James Thompson, a partner in law firm Ward Hadaway's health and safety team.
"This is an encouraging move because what is appropriate for sizeable companies with many employees may not work for SMEs."
The HSE is still insisting that all small firms have at least one person who is in overall charge of a company's health and safety policy, but reiterated that does not have to be a member of staff and can be an external person.
Thursday, 12 March 2009
Wage Subsidy Fund
A wage subsidy fund would help reduce the amount of staff that SMEs are forced to cut due to the recession, according to the TUC and FSB.
The TUC and FSB have called on the government to subsidise up to 60% of a worker's wage by a combination of a specially set up fund and the job seekers allowance.
With unemployment figures in the UK steadily increasing - it currently stands at just under 2m - the TUC and FSB claim that the government could support over 600,000 employees a year at a cost of £1.3bn.
A number of European countries such as France, Italy, Spain and Germany have already set up such a fund to try and reduce the amount of staff that are laid off as firms seek to cut costs.
"Where they are needed, wage subsidy schemes provide a quick and effective way to cut costs for struggling businesses and vital financial help for hard-pressed employees," said Brendan Barber, TUC general secretary.
The TUC and FSB have called on the government to subsidise up to 60% of a worker's wage by a combination of a specially set up fund and the job seekers allowance.
With unemployment figures in the UK steadily increasing - it currently stands at just under 2m - the TUC and FSB claim that the government could support over 600,000 employees a year at a cost of £1.3bn.
A number of European countries such as France, Italy, Spain and Germany have already set up such a fund to try and reduce the amount of staff that are laid off as firms seek to cut costs.
"Where they are needed, wage subsidy schemes provide a quick and effective way to cut costs for struggling businesses and vital financial help for hard-pressed employees," said Brendan Barber, TUC general secretary.
Wednesday, 11 March 2009
Employee tribunals on the rise
Age discrimination claims have risen by 27% in the last year as the recession leads to more staff cut-backs.
Source: Research by law firm Eversheads.
The European Court of Justice (ECJ) is due to decide on a landmark case this week whether the British government's decision to allow employers to force staff to retire at 65 breaches their human rights.
Hundreds of age tribunal claims have been postponed, awaiting the ECJ's decision and the ramification this will have on UK employment law.
"Too much of the discussion about age discrimination and the age regulations has focused on the issue of enforced retirement at age 65," said Chris Ball, of the Age and Employment Network.
"Age discrimination can occur at any time throughout an individual's working life and it frequently does at the recruitment stage."
Source: newbusiness.co.uk
Source: Research by law firm Eversheads.
The European Court of Justice (ECJ) is due to decide on a landmark case this week whether the British government's decision to allow employers to force staff to retire at 65 breaches their human rights.
Hundreds of age tribunal claims have been postponed, awaiting the ECJ's decision and the ramification this will have on UK employment law.
"Too much of the discussion about age discrimination and the age regulations has focused on the issue of enforced retirement at age 65," said Chris Ball, of the Age and Employment Network.
"Age discrimination can occur at any time throughout an individual's working life and it frequently does at the recruitment stage."
Source: newbusiness.co.uk
Tuesday, 10 March 2009
UK firms adapt to recession
Short and medium term business confidence has risen simultaneously for the first time in 13 months........
This is according to the latest Business Trends report by accountants and business advisers BDO Stoy Hayward LLP. The modest rise of BDO’s Output and Optimism indices suggests businesses have accepted the realities of the recession and are adapting their plans to manage against the downturn.
Despite this, the labour market picture remains bleak with BDO’s Employment Index dropping from 94.2 in January to 91.7 in February, suggesting a further 320,000 people will be added to the unemployment register over the next three months. However the increases in both the Output and Optimism Index, which predict economic growth, is a tentative sign that the recession has been factored into confidence and business planning and is in stark contrast to the collapse of these indicators since October.
The result also indicates that businesses are taking swift and decisive action to tackle the challenges of the recession, including halting production or implementing new employment strategies to keep costs down. This tactic is further illustrated in the report which reveals that while there has been a reduction in full time employment figures, part time employment actually rose by 33,000 in October – December 2008.
Peter Hemington, Partner at BDO Stoy Hayward, says: “Optimism remains low and businesses expect the economy to continue to contract, but companies are now adapting their business models for an uncertain future. It’s still too early to say if business confidence has hit rock bottom and we’ve already seen a number of false dawns, but this month’s modest increases are encouraging. We must watch carefully to see if this is the start of an upward trend.”
The report’s Optimism Index, which measures business confidence two quarters ahead, rose to 90.5 in February from 89.9 in January. Similarly, the Output Index that measures order book strength and short run turnover expectations in the next quarter edged up to 88.3 in February from 88.1 in January 2009 - a 29 year low.
Source: BDO
This is according to the latest Business Trends report by accountants and business advisers BDO Stoy Hayward LLP. The modest rise of BDO’s Output and Optimism indices suggests businesses have accepted the realities of the recession and are adapting their plans to manage against the downturn.
Despite this, the labour market picture remains bleak with BDO’s Employment Index dropping from 94.2 in January to 91.7 in February, suggesting a further 320,000 people will be added to the unemployment register over the next three months. However the increases in both the Output and Optimism Index, which predict economic growth, is a tentative sign that the recession has been factored into confidence and business planning and is in stark contrast to the collapse of these indicators since October.
The result also indicates that businesses are taking swift and decisive action to tackle the challenges of the recession, including halting production or implementing new employment strategies to keep costs down. This tactic is further illustrated in the report which reveals that while there has been a reduction in full time employment figures, part time employment actually rose by 33,000 in October – December 2008.
Peter Hemington, Partner at BDO Stoy Hayward, says: “Optimism remains low and businesses expect the economy to continue to contract, but companies are now adapting their business models for an uncertain future. It’s still too early to say if business confidence has hit rock bottom and we’ve already seen a number of false dawns, but this month’s modest increases are encouraging. We must watch carefully to see if this is the start of an upward trend.”
The report’s Optimism Index, which measures business confidence two quarters ahead, rose to 90.5 in February from 89.9 in January. Similarly, the Output Index that measures order book strength and short run turnover expectations in the next quarter edged up to 88.3 in February from 88.1 in January 2009 - a 29 year low.
Source: BDO
Monday, 9 March 2009
VAT rate change - no help to SMEs
82% of SMEs feel that the Chancellor's VAT rate cut was not a good idea.
According to a survey released today. The findings of the survey, conducted by mid-market business software house Access Accounting, will make difficult reading for the government as it looks at ways to stimulate the suffering economy.
The Chancellor's 2.5% VAT rate cut has been in effect for almost three months, yet 51% of businesses say that the change is not doing enough to stimulate the economy. 27% believe that it was a good start, but that the Chancellor needs to do more. Overwhelmingly, 98% feel that the rate change will not result in any material increase to their business.
When asked what other steps the Chancellor could take to help SMEs, 21% of respondents suggested that the Chancellor should force banks to pass on rate changes to business overdrafts and loans. 19% want to see a decrease in corporation tax rates and 16% want increases in tax allowances for small and medium businesses. 16% also want to see a reduced legislative burden on employers, while 13% want better protection for small and medium businesses from bad debt situations.
Kevin Misselbrook, Customer Services Director of Access Accounting said, "The Chancellor needs to start listening to UK businesses. Cutting the rate of VAT has clearly done nothing to stimulate business or the economy. The results of this survey show that more could be done to help boost the economy without putting greater time and cost pressures on small businesses."
When asked about the cost of implementing the VAT change, 53% of businesses estimated that it cost less than £100. However the time-costs associated with the change varied; 42% had to spend half a day to make the changes, 25% required less than a day, 15% used 1-2 days, 12% are still addressing the issue to date and 6% took more than 2 days. With 4.7 million businesses in the UK, (according to the Department for Business Enterprise & Regulatory Reform), the base cost to implement the changes, even at a cost of less than £100, cost UK businesses approximately £470 million.
Misselbrook continued, "The government is doing little to help SMEs survive the current economic situation. The VAT rate cut has been more of a burden than a boon to SMEs, forcing them to look internally for ways to save money and operate more efficiently."
In offering a solution for businesses, Misselbrook said, "It's very likely that the government will continue to play with business taxes. Businesses are already faced with a challenge as they look to 2010 when once again they'll need to implement the planned VAT rate increase. SMEs should be looking to update their accounting systems to ensure that they can implement any changes efficiently. They should also look to software vendors that demonstrate agility in responding to government legislation."
When asked how long it will take for the economy to recover, the largest group of respondents (47%) predicted twelve to eighteen months, 24% said eighteen to twenty-four months and 19% felt it would be twenty-four to thirty months or thirty months or more. Just 11% believe the recovery will begin this year.
Generally, 52% of respondents are uncertain about the economy. 25% report they are not confident and 15% are very unconfident about the economy; only 8% believe that they are confident at the moment.
"We are in an uneasy time and the importance of knowing the money you have in your business is crucial as it could mean the difference between surviving or not. Every company should have a transparent accounting system, helping businesses to monitor cash flow and budgets as well as conducting data analysis and importantly, being able to adjust to the governments ever changing demands."
Source: Access Accounts
According to a survey released today. The findings of the survey, conducted by mid-market business software house Access Accounting, will make difficult reading for the government as it looks at ways to stimulate the suffering economy.
The Chancellor's 2.5% VAT rate cut has been in effect for almost three months, yet 51% of businesses say that the change is not doing enough to stimulate the economy. 27% believe that it was a good start, but that the Chancellor needs to do more. Overwhelmingly, 98% feel that the rate change will not result in any material increase to their business.
When asked what other steps the Chancellor could take to help SMEs, 21% of respondents suggested that the Chancellor should force banks to pass on rate changes to business overdrafts and loans. 19% want to see a decrease in corporation tax rates and 16% want increases in tax allowances for small and medium businesses. 16% also want to see a reduced legislative burden on employers, while 13% want better protection for small and medium businesses from bad debt situations.
Kevin Misselbrook, Customer Services Director of Access Accounting said, "The Chancellor needs to start listening to UK businesses. Cutting the rate of VAT has clearly done nothing to stimulate business or the economy. The results of this survey show that more could be done to help boost the economy without putting greater time and cost pressures on small businesses."
When asked about the cost of implementing the VAT change, 53% of businesses estimated that it cost less than £100. However the time-costs associated with the change varied; 42% had to spend half a day to make the changes, 25% required less than a day, 15% used 1-2 days, 12% are still addressing the issue to date and 6% took more than 2 days. With 4.7 million businesses in the UK, (according to the Department for Business Enterprise & Regulatory Reform), the base cost to implement the changes, even at a cost of less than £100, cost UK businesses approximately £470 million.
Misselbrook continued, "The government is doing little to help SMEs survive the current economic situation. The VAT rate cut has been more of a burden than a boon to SMEs, forcing them to look internally for ways to save money and operate more efficiently."
In offering a solution for businesses, Misselbrook said, "It's very likely that the government will continue to play with business taxes. Businesses are already faced with a challenge as they look to 2010 when once again they'll need to implement the planned VAT rate increase. SMEs should be looking to update their accounting systems to ensure that they can implement any changes efficiently. They should also look to software vendors that demonstrate agility in responding to government legislation."
When asked how long it will take for the economy to recover, the largest group of respondents (47%) predicted twelve to eighteen months, 24% said eighteen to twenty-four months and 19% felt it would be twenty-four to thirty months or thirty months or more. Just 11% believe the recovery will begin this year.
Generally, 52% of respondents are uncertain about the economy. 25% report they are not confident and 15% are very unconfident about the economy; only 8% believe that they are confident at the moment.
"We are in an uneasy time and the importance of knowing the money you have in your business is crucial as it could mean the difference between surviving or not. Every company should have a transparent accounting system, helping businesses to monitor cash flow and budgets as well as conducting data analysis and importantly, being able to adjust to the governments ever changing demands."
Source: Access Accounts
Sunday, 8 March 2009
Business planning is more important than ever
Small businesses make up the vast majority of all businesses in the UK, yet fewer than half of these organisations have a plan in place should disaster strike. A number of high profile incidents, such as the recent extreme weather have brought sharply into focus the importance of business continuity plans for business of all sizes.
What classifies as a disaster for one company can be very different to another. If a small accountancy firm fails to back up its data, and has no plans for keeping that data secure in the event of a fire, it could be taken to court for failure to comply with data storage regulations affecting financial organisations.
Recent research carried out by the Confederation of British Industry (CBI) shows that, despite the fact that 60% of medium-sized firms currently use the internet in their supply chains, less than half of these have no security to cope with online attacks and no backup plans.
Read more here: http://www.newbusiness.co.uk/articles/business-continuity/business-planning-more-important-ever
Free Business Plan Template - click here.
What classifies as a disaster for one company can be very different to another. If a small accountancy firm fails to back up its data, and has no plans for keeping that data secure in the event of a fire, it could be taken to court for failure to comply with data storage regulations affecting financial organisations.
Recent research carried out by the Confederation of British Industry (CBI) shows that, despite the fact that 60% of medium-sized firms currently use the internet in their supply chains, less than half of these have no security to cope with online attacks and no backup plans.
Read more here: http://www.newbusiness.co.uk/articles/business-continuity/business-planning-more-important-ever
Free Business Plan Template - click here.
Saturday, 7 March 2009
Must your business diversify to survive?
As every small business owner will know, the current economic climate is extremely challenging. The UK is in its first recession since the early 1990's, and there is every indication that the situation will remain difficult for at least the rest of the year.
If your business is struggling then you must ask yourself whether you are doing everything possible to survive. What have you done to diversify your business? Are you and your staff putting in longer hours? Have you diversified your business in terms of staff roles, cross-training and what services and products you are offering your customers?
The economic downturn has changed the way that businesses need to operate. This is not the time to carry on operating the same way that your firm was before the recession; you must adapt to the changing conditions.
Read more here: http://www.newbusiness.co.uk/articles/business-continuity/why-you-must-diversify-survive
If your business is struggling then you must ask yourself whether you are doing everything possible to survive. What have you done to diversify your business? Are you and your staff putting in longer hours? Have you diversified your business in terms of staff roles, cross-training and what services and products you are offering your customers?
The economic downturn has changed the way that businesses need to operate. This is not the time to carry on operating the same way that your firm was before the recession; you must adapt to the changing conditions.
Read more here: http://www.newbusiness.co.uk/articles/business-continuity/why-you-must-diversify-survive
Friday, 6 March 2009
Tax doesn't have to be taxing
HMRC has released a series of online video guides to help small companies and start-ups with the complexities of the UK's tax system.
The guides, presented by Dan Snow, cover a variety of important tax topics - such as VAT, Corporation Tax, and PAYE.
The online guides also cover other areas such as the Construction Industry Scheme, importing and exporting, keeping accurate records, and things to consider when employing other people.
A new guide is also available alongside the videos - "Giving your business the best start with tax".
Dan Snow commented: "We've broken the information down into small video chunks, so that people can access exactly what they need to know. Hopefully this makes the new videos really useful for people and businesses."
Access them by clicking here.
The guides, presented by Dan Snow, cover a variety of important tax topics - such as VAT, Corporation Tax, and PAYE.
The online guides also cover other areas such as the Construction Industry Scheme, importing and exporting, keeping accurate records, and things to consider when employing other people.
A new guide is also available alongside the videos - "Giving your business the best start with tax".
Dan Snow commented: "We've broken the information down into small video chunks, so that people can access exactly what they need to know. Hopefully this makes the new videos really useful for people and businesses."
Access them by clicking here.
Thursday, 5 March 2009
'Manu-services’ sector deserves government support
A new report from The Work Foundation today makes the case that if the government is serious about helping ‘the real economy’, loan guarantees and emergency funding ought to be extended to the manufacturing sector.
With the UK’s strength in financial services in question, those high and medium tech manufacturing businesses which have also developed strong service portfolios on top of their traditional product offerings – the ‘manu-service’ sector - represent one of ‘the best hopes’ for the upturn, the paper argues.
Ian Brinkley, associate director at The Work Foundation, said: ‘The question needs asking – what are we going to live on in the future? Modern manufacturing is once again facing a battering from the recession, but it would be a big mistake just to write the sector off. We need to preserve as much of the industrial base as possible because once it is lost it is near impossible to get back again. Despite the mythmaking around the demise of manufacturing, the sector remains extremely important for jobs, exports and GDP.’
Manufacturing and the Knowledge Economy describes the transformation of manufacturing over recent years. The old way of separating manufacturing and services does not now reflect the inter-connected, interdependent nature of modern manufacturing, it says. Companies such as Rolls Royce make as much, if not more, money from service contracts, sales of licences and hours of flight time on their engines as from the engines themselves. Car makers run finance houses; and pharmaceutical companies offer healthcare services as well as drugs. Such manu-service industries are typically adaptable, highly profitable and very knowledge intensive.
In the UK the share of manufacturing in total value added declined from 35 per cent to below 15 per cent between 1970 and 2005, whereas the share of ‘knowledge services’ (highly skilled, ICT-intensive service work) rose from 23 per cent to 46 per cent over the same time. However, a key driver behind the growth of knowledge services is manufacturers adding services to their primary manufacturing function. Frequently, products have become relatively cheaper as services have become more expensive.
High to medium tech manufacturing is producing nearly as much added value to the UK economy (10 per cent) as high tech services (11 per cent). And with the pound so low against other major currencies exporting opportunities have never been so competitive. This is welcome news, since 70 per cent of all manufacturing exports came from high to medium tech ‘knowledge economy’ manufacturing sectors.
Source: Work Foundation...read more.
With the UK’s strength in financial services in question, those high and medium tech manufacturing businesses which have also developed strong service portfolios on top of their traditional product offerings – the ‘manu-service’ sector - represent one of ‘the best hopes’ for the upturn, the paper argues.
Ian Brinkley, associate director at The Work Foundation, said: ‘The question needs asking – what are we going to live on in the future? Modern manufacturing is once again facing a battering from the recession, but it would be a big mistake just to write the sector off. We need to preserve as much of the industrial base as possible because once it is lost it is near impossible to get back again. Despite the mythmaking around the demise of manufacturing, the sector remains extremely important for jobs, exports and GDP.’
Manufacturing and the Knowledge Economy describes the transformation of manufacturing over recent years. The old way of separating manufacturing and services does not now reflect the inter-connected, interdependent nature of modern manufacturing, it says. Companies such as Rolls Royce make as much, if not more, money from service contracts, sales of licences and hours of flight time on their engines as from the engines themselves. Car makers run finance houses; and pharmaceutical companies offer healthcare services as well as drugs. Such manu-service industries are typically adaptable, highly profitable and very knowledge intensive.
In the UK the share of manufacturing in total value added declined from 35 per cent to below 15 per cent between 1970 and 2005, whereas the share of ‘knowledge services’ (highly skilled, ICT-intensive service work) rose from 23 per cent to 46 per cent over the same time. However, a key driver behind the growth of knowledge services is manufacturers adding services to their primary manufacturing function. Frequently, products have become relatively cheaper as services have become more expensive.
High to medium tech manufacturing is producing nearly as much added value to the UK economy (10 per cent) as high tech services (11 per cent). And with the pound so low against other major currencies exporting opportunities have never been so competitive. This is welcome news, since 70 per cent of all manufacturing exports came from high to medium tech ‘knowledge economy’ manufacturing sectors.
Source: Work Foundation...read more.
Wednesday, 4 March 2009
Recession Insights - Top 10 Critical Business Priorities
1 Provide excellent customer service. We can’t survive without customers, so don’t forget them. Listen and respond to their needs, demonstrate the value you place in them. Review customer and client feedback formally – this will be the litmus test of what you are delivering (and how) and will help to inform positive changes where necessary. Always go the extra mile for your most profitable and loyal customers.
2 Innovate. Develop new unique products and services to distinguish you from the competition. Focus on those that add tangible value or reduce costs for your customers and clients.
3 Invest in people. Offer customer-focused training and reward high performers. The most talented and valuable members of your workforce are those most able to move on during a slowdown. Introduce simple, cost-effective recognition programmes and allow them the flexibility to work where or when they need to.
4 Maintain quality. If you trade on quality, do not cut costs that are visible to the customer in the short term, compromising your reputation in the long term.
5 Reduce debt and manage cashflow. Tighten internal financial procedures immediately and look to secure longer term contracts where possible. The single biggest regret of struggling businesses was that they did this too late, or not at all, which speaks volumes.
6 Respond to the market quickly. Be flexible. Ccapitalise on your size and ability to change direction quickly. Carry out detailed risk assessments on all areas of your business and customer base – identify ‘safe’ areas to focus on.
7 Prioritise marketing. Do not cut budgets or stop advertising as a knee-jerk reaction to challenging trading conditions. The most successful businesses use slowdowns as an opportunity to grow, share and broadcast their message louder than the competition. Crucially, you need to remind your customers that you’re still in business and instil confidence in your existing clients. Slowdowns also offer greater scope for canny businesses to negotiate for favourable deals.
8 Forecasting accurately and plan realistically. Super SMEs tended to have a ‘slowdown plan’ in place. If you haven’t written one, start now. Encourage open and honest communication with your teams on what is realistic. Revisit old order-books to ensure no opportunities are being missed.
9 Know your market. Increase market knowledge and insight. Be seen as the thought-leader in your field and enable your workforce to become experts through sharing information. Use readily available free research online to boost your expertise.
10 Invest in technologies to help your people. The need to work more efficiently has never been higher up the agenda. Invest wisely in IT solutions focused on optimising your workforce productivity, reducing wastage and enabling smarter (not necessarily harder or longer) working.
Extract from: A Guide To Plain Sailing Through The Recession - Plantronic
s - www.plantronics.com.
The full guide can be downloaded here: http://www.sme-guide.co.uk/
www.ukba.co.uk
2 Innovate. Develop new unique products and services to distinguish you from the competition. Focus on those that add tangible value or reduce costs for your customers and clients.
3 Invest in people. Offer customer-focused training and reward high performers. The most talented and valuable members of your workforce are those most able to move on during a slowdown. Introduce simple, cost-effective recognition programmes and allow them the flexibility to work where or when they need to.
4 Maintain quality. If you trade on quality, do not cut costs that are visible to the customer in the short term, compromising your reputation in the long term.
5 Reduce debt and manage cashflow. Tighten internal financial procedures immediately and look to secure longer term contracts where possible. The single biggest regret of struggling businesses was that they did this too late, or not at all, which speaks volumes.
6 Respond to the market quickly. Be flexible. Ccapitalise on your size and ability to change direction quickly. Carry out detailed risk assessments on all areas of your business and customer base – identify ‘safe’ areas to focus on.
7 Prioritise marketing. Do not cut budgets or stop advertising as a knee-jerk reaction to challenging trading conditions. The most successful businesses use slowdowns as an opportunity to grow, share and broadcast their message louder than the competition. Crucially, you need to remind your customers that you’re still in business and instil confidence in your existing clients. Slowdowns also offer greater scope for canny businesses to negotiate for favourable deals.
8 Forecasting accurately and plan realistically. Super SMEs tended to have a ‘slowdown plan’ in place. If you haven’t written one, start now. Encourage open and honest communication with your teams on what is realistic. Revisit old order-books to ensure no opportunities are being missed.
9 Know your market. Increase market knowledge and insight. Be seen as the thought-leader in your field and enable your workforce to become experts through sharing information. Use readily available free research online to boost your expertise.
10 Invest in technologies to help your people. The need to work more efficiently has never been higher up the agenda. Invest wisely in IT solutions focused on optimising your workforce productivity, reducing wastage and enabling smarter (not necessarily harder or longer) working.
Extract from: A Guide To Plain Sailing Through The Recession - Plantronic
s - www.plantronics.com.
The full guide can be downloaded here: http://www.sme-guide.co.uk/
www.ukba.co.uk
Tuesday, 3 March 2009
Press Release: New help for Business Owners, by Business Owners
A new resource centre to help owners and MD’s of small and medium sized companies (SMEs) has been launched by UK Business Advisors (UKBA™).
The resource can be found at www.ukba.co.uk and is specifically aimed at helping those owners and MDs. These people have the same problems as people running large companies, but without having the luxury of employees who can cover all the areas. The materials and advice available covers all key aspects of running a business including strategy, marketing, sales, human resources, finances and processes.
The big difference from most such information bases, is that all this material has been produced by people who work in SMEs, and in many cases actually run them. They are based on real life experiences, and not theoretical or academic papers from people not actually running businesses. The information is continually updated to reflect the changing economic environment and evolving technology. The information is backed up by access to the 80+ specialists in the UKBA™ organisation.
**Ends**
www.ukba.co.uk
The resource can be found at www.ukba.co.uk and is specifically aimed at helping those owners and MDs. These people have the same problems as people running large companies, but without having the luxury of employees who can cover all the areas. The materials and advice available covers all key aspects of running a business including strategy, marketing, sales, human resources, finances and processes.
The big difference from most such information bases, is that all this material has been produced by people who work in SMEs, and in many cases actually run them. They are based on real life experiences, and not theoretical or academic papers from people not actually running businesses. The information is continually updated to reflect the changing economic environment and evolving technology. The information is backed up by access to the 80+ specialists in the UKBA™ organisation.
**Ends**
www.ukba.co.uk
Recession Insights - Winning Behaviour
It is not just lack of investment in technology that characterises under performance in SMEs. Our research found that SMEs are also more likely to have reduced rather than increased training budgets over the past 12 months (37% have reduced training budgets compared to 24% who have increased them).
in a direct reversal, however, we also identified a new breed of 'Super SMEs’ (those that are actually booming through the slowdown) which are more likely to have increased (rather than decreased) training investment (39% have spent more on their training in the past 12 months while 28% reduced their training spend).
Similarly, while overall SME investment in marketing fell in the past 12 months (36% reduced marketing spend while 32% increased it), amongst our Super SMEs, 43% increased their marketing spend, compared to less than one in five who reduced it. There was also a net decrease overall in IT infrastructure spend. 29% spent less on this, while 27% spent more. Amongst Super SMEs 47% spent more on IT infrastructure and just 16% spent less.
The trends remain the same for employee benefits, flexible working and communication technology and new product development. In each instance the general trend amongst SMEs was to reduce spend. However amongst those SMEs which are currently experiencing growth, or have greater confidence in their long-term future, spend was up across the board.
Extract from: A Guide To Plain Sailing Through The Recession - Plantronic
s - www.plantronics.com.
The full guide can be downloaded here: http://www.sme-guide.co.uk/
www.ukba.co.uk
in a direct reversal, however, we also identified a new breed of 'Super SMEs’ (those that are actually booming through the slowdown) which are more likely to have increased (rather than decreased) training investment (39% have spent more on their training in the past 12 months while 28% reduced their training spend).
Similarly, while overall SME investment in marketing fell in the past 12 months (36% reduced marketing spend while 32% increased it), amongst our Super SMEs, 43% increased their marketing spend, compared to less than one in five who reduced it. There was also a net decrease overall in IT infrastructure spend. 29% spent less on this, while 27% spent more. Amongst Super SMEs 47% spent more on IT infrastructure and just 16% spent less.
The trends remain the same for employee benefits, flexible working and communication technology and new product development. In each instance the general trend amongst SMEs was to reduce spend. However amongst those SMEs which are currently experiencing growth, or have greater confidence in their long-term future, spend was up across the board.
Extract from: A Guide To Plain Sailing Through The Recession - Plantronic
s - www.plantronics.com.
The full guide can be downloaded here: http://www.sme-guide.co.uk/
www.ukba.co.uk
Monday, 2 March 2009
Recession Insights - Mobility & IT
One of the more striking findings of the research is that businesses that have invested strongly in IT infrastructure are currently showing the highest levels of performance. In particular, investment in mobility, thus optimising individual productivity in a climate where staffing levels are being reduced, appears to be emblematic of the ability to plan strategically and weather the vagaries of the economy.
Businesses that are fully enabled for remote and mobile working said that they are more than twice as likely to review their business plan on a monthly basis compared to those firms that have enabled none of their staff for mobile working (34% compared to 16%).
In general we found also that SMEs that have fully mobile workforces are 10% less likely to have been hit by the slowdown and are also 60% more likely to forecast turnover growth compared to SMEs that do not enaAble mobile working.
These figures are symptomatic of the fact that SME are all too often overlooking the most valuable asset of all – their employees.
The upshot is that 45% of SMEs do not believe they have equipped their workforce with the technology to reach their full potential. Only 37% of SMEs say that their workforce are fully equipped to work where and when they want, while just 4 out of 10 say that they provide the training and career development to maximise their workforce’s potential.
In a recent survey for communications company Aavaya, 92% of UK workers said they would find it attractive to work for a company that offered flexible working and 78% said they would consider changing jobs for the chance to work flexibly. Without the requisite tools, understanding and investment to thrive or survive, SMEs ignoring these sentiments risk losing their most unique proposition – the human talent that had previously been attracted away from the corporate world to seek a more exciting and fulfilling working life.
Extract from: A Guide To Plain Sailing Through The Recession - Plantronic
s - www.plantronics.com.
The full guide can be downloaded here: http://www.sme-guide.co.uk/
www.ukba.co.uk
Businesses that are fully enabled for remote and mobile working said that they are more than twice as likely to review their business plan on a monthly basis compared to those firms that have enabled none of their staff for mobile working (34% compared to 16%).
In general we found also that SMEs that have fully mobile workforces are 10% less likely to have been hit by the slowdown and are also 60% more likely to forecast turnover growth compared to SMEs that do not enaAble mobile working.
These figures are symptomatic of the fact that SME are all too often overlooking the most valuable asset of all – their employees.
The upshot is that 45% of SMEs do not believe they have equipped their workforce with the technology to reach their full potential. Only 37% of SMEs say that their workforce are fully equipped to work where and when they want, while just 4 out of 10 say that they provide the training and career development to maximise their workforce’s potential.
In a recent survey for communications company Aavaya, 92% of UK workers said they would find it attractive to work for a company that offered flexible working and 78% said they would consider changing jobs for the chance to work flexibly. Without the requisite tools, understanding and investment to thrive or survive, SMEs ignoring these sentiments risk losing their most unique proposition – the human talent that had previously been attracted away from the corporate world to seek a more exciting and fulfilling working life.
Extract from: A Guide To Plain Sailing Through The Recession - Plantronic
s - www.plantronics.com.
The full guide can be downloaded here: http://www.sme-guide.co.uk/
www.ukba.co.uk
Sunday, 1 March 2009
Recession Insights - Planning & Strategy
The message is clear. Businesses that review their business plans monthly are most likely to be riding the economic storm. According to our research, they are 42% more likely to be unaffected or booming during the slowdown. Businesses who are confident about the future are also three times more likely to have had a strategy in place for a worsened economic climate than those who fear for their survival.
One in twenty SMEs admitted that they don’t really have a business plan of any description (never mind a revised strategy for a global slowdown) while 17% said that their business plan only gets reviewed and revised once a year. At the root of this problem is the fact that 62% of all SMEs have never had to face a slowdown before. They never really needed a plan when times were good, and never anticipated that they would need one for the future. Six out of ten SMEs did not have a plan or strategy in place for a worsened economic climate.
A worrying trend for the wider economy, and indeed the future, is that the ‘young guns’ who have thrived for the past decade or more through good economic conditions were least likely to have put a strategy in place for bleaker times. Two thirds did not have a plan ready for harsher times, compared to 40% of 55 year olds, who by virtue of their age and experience, have seen something similar (if even vaguely) before. The younger working nation have much to learn from mentors of previous slowdowns and recession.
Extract from: A Guide To Plain Sailing Through The Recession - Plantronics - www.plantronics.com.
The full guide can be downloaded here: http://www.sme-guide.co.uk/
www.ukba.co.uk
One in twenty SMEs admitted that they don’t really have a business plan of any description (never mind a revised strategy for a global slowdown) while 17% said that their business plan only gets reviewed and revised once a year. At the root of this problem is the fact that 62% of all SMEs have never had to face a slowdown before. They never really needed a plan when times were good, and never anticipated that they would need one for the future. Six out of ten SMEs did not have a plan or strategy in place for a worsened economic climate.
A worrying trend for the wider economy, and indeed the future, is that the ‘young guns’ who have thrived for the past decade or more through good economic conditions were least likely to have put a strategy in place for bleaker times. Two thirds did not have a plan ready for harsher times, compared to 40% of 55 year olds, who by virtue of their age and experience, have seen something similar (if even vaguely) before. The younger working nation have much to learn from mentors of previous slowdowns and recession.
Extract from: A Guide To Plain Sailing Through The Recession - Plantronics - www.plantronics.com.
The full guide can be downloaded here: http://www.sme-guide.co.uk/
www.ukba.co.uk
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