Small Business Matters | A Blog for UK Small Businesses

Small Business Britain: On the airwaves!

As part our Small Business Britain campaign, our managing director Pernille Bruun-Jensen, took to the airwaves to discuss the importance of UK small businesses in the run up to the election.

She chatted with more than 20 radio stations around the UK, sharing the findings of our Small Business Britain survey, as well as some of the key tips that came from the research.

Couldn’t get to the radio in time? Click on the podcast below to hear Pernille’s interview with BBC Radio Northampton (104.2-103.6FM).

BBC Northampton

 

Some of the advice that Pernille shared from small business owners around the UK included:

Be heard! Use channels such as Small Business Britain to make sure your voice is heard, and to call on the government, elected bodies, banks and the wider business community to support your success and prosperity.

Make it personal – According to our research, 84% of small businesses believe that their ability to provide a more personal touch with customers is a key advantage. Start-ups and small companies can show a fresher, newer approach and take advantage of their flexibility.

Keep on top of accounts – Awareness of how much is being spent and for what is important. Our research showed that 85% of small businesses felt the best way to manage cash flow was to always keep accounts up-to-date.

Don’t be late – Most small businesses have experienced difficulty with timely customer payments. Put simply, if you don’t get paid, you won’t be in business for long. Our research showed that the number one way to avoid late payments is to set up clear payment terms at an early stage (48%).

If you want to know more about Small Business Britain or have some comments on the Charter, please get involved and post your thoughts on our discussion boards.

Top 10 Small Business Goals for 2010

The last 12 months have been incredibly tough for all of us, but we’re optimistic that 2010 will be a great year for UK small businesses. To succeed, businesses will need a sound understanding of their priorities and strategies. Based on our discussions with small business owners, we have come up with the Top 10 Goals for 2010 that every small business owner needs to think about.

Here is a taste of some of the tips on offer:

1. I will sort out my finances
Sometimes even the greatest business ideas can fail due to a simple lack of readily available cash. This is something that many small business owners find challenging to keep track of, but it’s vital to be aware of how much is being spent and for what, as is tracking VAT and making accurate returns. It is important to keep on top of bookkeeping right from the start, otherwise there is a risk of forgetting crucial costs or, even worse, failing to invoice a customer.

2. I will learn something new
Going solo can be nerve-wracking and lonely at times, however there is an absolute wealth of advice and top tips available online, as well as many forums and communities where other small businesses share their experiences. Our blog has advice and tips, including the ‘Secret Guide for Small Business’, which was created by small businesses for small businesses. Smarta, Enterprise Nation and BusinessLink are just a few other examples of sites where you can get free information and support.

The secret guide for small business success – from the experts themselves

If you’re an avid Twitter fan you may have seen that since the 1st December 2009, we’ve been asking our beloved Twitter followers and friends to tell us their top tips and tricks to help small businesses tackle some of the challenges they face today, and inspire budding entrepreneurs to grow and improve their business. Each day, over the 12 business days of Christmas (#12DOC) we asked topical questions that were significant to small businesses in the UK.

The response has been so good we wanted to share them with you all! So we compiled your fantastic insights into ‘The Secret Small Business Guide’, created by small businesses for small businesses. 
You can download it for free here .We asked about everything from coming up with a great idea and designing a top website, down to good time management and financial skills. The guide features tips from a range of entrepreneurs and small business owners and experts.

Some of the key tips include:

• Planning – one of the most important requirements for any entrepreneur is a business plan; not one that lives in your head or one that is consigned to an office cupboard, but a live business plan. (Alan Gleeson, Palo Alto Software Ltd)

• Be social – Social Media is a big thing right now and will only get bigger. Make sure you set up a Facebook page for your business and register with LinkedIn and Twitter. All this combined will generate results eventually, but it takes time. (Mark Adams, ACS Computer Services Ltd)

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.

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!”

Small Business Advice Week: Intuit talks tips!

As part of Intuit’s sponsorship of Small Business Advice Week, our managing director Pernille Bruun-Jensen, took to the airwaves to discuss the current environment for UK small business owners and offers some top tips on how to succeed.

She chatted with more than fifteen stations around the UK, sharing insights that every small business can use to be more successful.

Couldn’t get to the radio in time? Click on the podcast below to hear Pernille’s interview with London’s Colourful Radio (DAB Digital Radio).

In the segment, Pernille offers these tips:

1. Know where your money is going: Small business owners need to be aware of how much they are spending and for what, along with tracking VAT and making accurate returns. It is important to keep on top of bookkeeping right from the start otherwise there is a risk of forgetting crucial costs or, even worse, failing to invoice a customer.

2. Build and manage relationships to get the best terms: Relationships with banks, suppliers and customers should be checked regularly to be fully aware of all payment dates and their terms. Investigate if there is anything that could be modified to help maintain a healthy cash flow, such as moving key dates and adjusting payment terms.

3. Be sure to get paid: Ensuring customers pay on time or asking them to do it sooner, can improve everyday cash flow as can asking for extended credit terms with suppliers.

4. Forecast cash flow: Cash flow forecasting also helps to plan borrowing, with many banks requiring forecasts before considering a loan.

To see more tips on Cash Flow, Credit Management, Business Strategy, Human Resources and case studies for helping your business succeed, please have a look at our guide.

Video: Tips for succeeding in a recession

Pernille Brunn-Jensen, Managing Director Global Small Business at Intuit UK, discusses top tips for small business owners to survive the recession. Pernille responds to the question: *What step can small businesses take to help themselves?

The small business cash flow conundrum

Managing cash flow has been a major pain point for many small businesses during the recession. In our report on how small business Britain has been faring during the economic downturn, we asked respondents of our survey what actions they had taken to overcome this challenge.

 

The most popular strategy undertaken by respondents to combat cash flow difficulties was renegotiating deadlines with customers. The opposite of renegotiating with suppliers, this measure appears to have been successful for the vast majority, with 71% seeing a positive result. 

 

Small businesses turning to risky loans

It seems the lack of bank lending is continuing to impact small businesses as new research claims that small business owners are resorting to personal loans to improve cash flow. A survey of 505 small and medium-sized enterprises by investment bank Close Brothers has found that 30 per cent would take out a personal loan to finance their business while six per cent said they would use credit cards to fund operations. Although credit cards have been a staple form of finance for entrepreneurs since before the credit crunch hit, the proportion of small business owners using them has increased by 50 per cent since last year. Furthermore, a fifth of those who responded also said they would approach friends and family for the funds, which is double the percentage recorded by the survey last year.