Small Business Matters

Is your business ready for Christmas?

Christmas is one of the busiest times for trading, and with just five weeks to go, the next fortnight is going to be crucial for small businesses across the country. Business owners need to ensure there is enough stock and staff on hand to manage the demand, as well as finding the time to get the all important Christmas decorations up!

Get online
As consumers become savvier and prioritise price and convenience when doing their Christmas shopping, the internet is becoming the preferred tool for browsing and purchasing. Traditionally Christmas accounts for a fifth of annual online sales and this year is set to be no exception in reaching that target. According to a new survey by eDigitalResearch and IMRG, 93% of us will be shopping online for Christmas presents this year. Despite the recession, online sales will remain strong and 71% of people are prepared to do half or more of their shopping over the internet.  With this in mind, if small businesses want to reach all their customers and maximise profits, they have little choice than to be online.

Global Entrepreneurship Week: Intuit takes to the airwaves!

As we mentioned earlier in the week, in honour of Global Entrepreneurship Week our resident small business specialist, Catherine Harrell, took to the airwaves to discuss why entrepreneurs are so important to the UK economy and to offer some top tips on starting a new business in tough economic times.

Catherine chatted with more than 20 stations around the UK, sharing insights that prospective small business owners and those who have already taken the plunge can use to be ensure their success.

Couldn’t get to the radio in time? Click the podcast below to hear Catherine’s interview with BBC Surrey (104.6FM).

BBC Surrey Interview

Throughout the day, Catherine offered these top tips:

Put your plan on paper – whether you’re approaching a bank or your friends and family, getting a strong business plan in place is crucial to securing funding. This should cover how you plan to attract customers to your business, as well as what your contingency plans are for when things go off track.

Tune in for advice and to win small business prizes!

In honour of Global Entrepreneurship Week, tomorrow morning our resident small business specialist, Catherine Harrell, will be featured on local radio stations across the UK providing top tips to small business owners and prospective entrepreneurs on how to survive and succeed in the recession.

 

For more information on when and where you can tune in, please see below:

 

• Colourful Radio, UK (at 08:35)
• BBC Sussex and Surrey, Surrey (at 08:45)
• Phoenix FM, Brentwood, Essex (at 09:05)
• Lanarkshire's L107, Lanarkshire (at 09:15)
• Asian Star, Slough Berkshire (at 09:25)
• Radio Verulam, St Albans (at 09:35)
• 209radio (Cambridge), Cambridge (at 09:45)
• GTFM, Wales (at 09:55)
• Radio Cardiff, Cardiff (at 10:15)
• Harborough FM, Harborough (at 10:25)
• AFAN FM, Wales (at 10:35)
• 91.8 Hayes FM, Hillingdon, Ealing, Hounslow (at 10:45)
• Heart 103.1 and 102.8, Kent (at 10:55)
• Gold Kent, Kent (at 10:55)
• 101.8 WCR FM, Wolverhampton, West Midlands (at 11:05)
• Play Radio, Southampton and Winchester, Hampshire (at 11:15)
• Sunrise Radio National, UK (at 11:25)
• Kismat Radio 1035, Greater London (at 11:25) 
• BBC London 94.9, Greater London (at 22:45)

 

There will also be competitions to win free copies of QuickBooks SimpleStart (RRP £89.95) and £100 worth of PC World vouchers on the following stations, so listen out for your chance to win.

 

• Heart 103.1 and 102.8, Kent
• Metro Radio, Tyne & Wear
• 96.4 The Eagle, Guildford Surrey
• TFM, Teesside
• 96.3 Radio Aire, Leeds & West Yorkshire
• Bang Radio, North West London
• Swansea Sound, Swansea
• Waves Radio, Peterhead
• Central FM, Stirling & Falkirk
• Imagine FM, Stockport
• Isle of Wight Radio, Isle of Wight
• Fire 107.6, Bournemouth

 

Global Entrepreneurship Week 2009

This week (16-22nd November) is Global Entrepreneurship Week 2009 (GEW), a worldwide movement of entrepreneurial people, with millions unleashing their enterprising talents and turning their ideas into reality.

To coincide with GEW, we have surveyed over 2000 people in the UK*, and found that a third of British people want to, or have already started their own business. However, the recession has had a damaging effect on entrepreneurial confidence, as 40% of those that do want to set up their own business blame the recession for delaying their plans. Only 14% believe that now is a better time to start a business than a year ago.

Our research shows that the desire to become an entrepreneur is still alive and kicking for lots of Brits, but many are putting off the decision due to worries about the recession. As small businesses contribute more than 50 per cent of the UK turnover and employ almost half the working population, it is clear that more must be done to restore confidence and encourage entrepreneurship in the UK.

Practical advice for small businesses to handle the VAT rate change

With the end of the year fast approaching, small businesses will need to get ready for yet another admin challenge: the VAT rate change. On Friday 1st January 2010, business owners will wake up to the after effects of a 13 months 15% VAT reduction and return to the usual 17.5% rate. Despite the fact that an extension of the VAT reduction would be favourable, small businesses can still get the most out of this transition if they plan well in advance.

To quickly adjust to this change, small businesses can rely on some easy to follow top tips:

Inform your customers – Businesses should start making their customers aware of the VAT change as soon as possible to avoid disappointment or misunderstandings. It is important to clarify that the increase in prices of goods and services is due to the VAT rate change and it is not discretionary. In certain instances, it may also be appropriate to give customers practical examples of what the prices will look like from January 2010. Businesses that interact directly with the public, such as retailers, should display announcements in their shops and create bespoke banners for their websites.

Be aware:
1. Of the Price Marking Order 2004 - As January is traditionally a busy time for traders, you might not have time to adjust all your ticket prices on the 1st.  It’s worthwhile remembering that, under the Price Marking Order 2004 (SI 2004/102), you have up to 14 days to do this.  Until then, you can display general notices that advise your customers that an adjustment in price, to take account of the VAT change, will be made at the till.

Have your say - the BIS is proposing that this period should be extended from 14 to 28 days.  Responses to this consultation must be received by Monday 23 November 2009.

6 hours extra grace on VAT rate change - but still a headache for small businesses

It was reported this week that the Treasury has agreed to delay the VAT increase by six hours. This is welcome news for businesses that would have previously had to make the change at midnight on New Year’s Eve – especially the pubs, clubs and restaurants that will be open for business. The reprieve also applies to retail and telecommunication businesses that will be operating beyond midnight on 31 December 2009, and although good news, it doesn’t make the admin challenges of the adjustment for small businesses any easier!

Come January, business owners will wake up to the after effects of a 13 month 15% VAT reduction and return to the usual 17.5% rate and as such, have to face the problem of trying to sell products and services at higher prices to customers who are still hesitant to buy.

The VAT reduction came into force in December 2008 to help consumers with the recession. However, the fact is that the UK is still officially in recession and therefore, consumers are not likely to have more cash to splash in 2010 and will not like hiked up prices!

Optimistic outlook from small businesses

It seems the mood has changed to a more positive tone amongst small businesses in recent weeks. There is a general consensus that conditions are improving.

This week, The Times in conjunction with Barclays, released results from over 3,700 small business owners, who were surveyed on how they felt about the recession. Overall, the survey suggests a much more positive view from small business owners in comparison to six months ago. Many feel that the weight of last year’s recession has been lifted and their outlook for the New Year is a lot more upbeat. In fact, more than 60% of respondents were feeling confident about the future of their business.

Switching priorities:

While last year the priority for small businesses was very much focused on keeping cost down and the doors open for business, the priority is now shifting to expansion and growth, with small businesses investing in the new technology, people and expanding their product lines. 53% of those surveyed planned to grow their business throughout 2010; this is a significant increase from this time six months ago when just 42% of respondents had the intention of expanding.   

It’s obvious that small business owners have endured a tough year with their strategies being tested to the max. Only recently, it was reported that the UK economy was still in recession – yet, despite this, small businesses are showing real determination and grit, and now it seems, feel optimistic about their future.

Strike set to continue

So the postal strikes are set to continue, and hopes for a trouble-free two months in the run up to Christmas don’t look promising!

The walk-outs across the country have being going on since June now, that’s nearly five months of disruption, and it is fast becoming one of the most frustrating times – especially for the smaller companies, who rely solely on Royal Mail to deliver their letters, parcels and goods to customers.

Whereas bigger players, for example Argos and Ebay, have the flexibility to sidestep Royal Mail so their customers don’t feel the effects, small businesses are left troubled by the ongoing disputes, which may have a crippling affect on trade, especially with one of the busiest periods approaching. According to a poll conducted by the Federation of Small Businesses, strikes could cost every UK small businesses up to £5,000.

It’s no surprise then, that according to a survey from the British Chambers of Commerce, 75 percent of small businesses are looking elsewhere for a more reliable service. Richard Tyler, Enterprise Editor at the Daily Telegraph is encouraging businesses to walk away and consider alternative postal providers:

“the best punishment for any organisation that abuses its position is for its customers to walk away. Complain first, yes. If they don’t change their behaviour, that’s it!”