Small Business Matters | A Blog for UK Small Businesses

Love your local businesses this Valentine’s Day

Valentine’s Day is nearly here and this year we’re all in favour of sharing the love!

Why not go local when buying that all important gift and card for your loved one this Valentine’s Day? You win, your sweetheart wins and your local merchants win! 

One-of-a-kind gifts are a fantastic way to show your special one how much you care! Handmade cards, artisanal chocolates, bespoke trinkets and baubles are all for the finding in local shops and businesses.

Here are a couple of our favourite local small businesses we came across for gifts ideas this Valentine’s:

-    Lola’s handcrafted cup cakes – check out the Valentine’s love box

-    A dozen red roses from McQueens – what better way to be romantic

-    Chocolates from Coco – liqueur cherries and champagne truffles look rather tempting.

Why not see what’s local to you and share your favourites with us? We’d love some tips for next year!

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.

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!”

Finger on the [Business] Pulse

The 2009 Business Pulse research launched at this year’s Small Business Week (19 – 23 October) has uncovered some interesting statistics and trends from Small Business Britain.

One point that stood out to us was that 48% of small business owners said that advice is essential to advancing their business. The fact that many small business owners are calling out for access to better advice and resources is something that we have blogged about previously and that we feel very strongly about. Initiatives like Small Business Week are a good chance to shout about these issues, and to make sure that small businesses are getting the support they need.

The small business owners surveyed were also largely optimistic about the future. 62% said that they expected to see a significant growth in profit within the next 18 months, primarily through increased marketing spend and investment in technology. Interestingly, it was the businesses who want to be at the forefront of technology who were also the ones who said that they have been least impacted by the recession and were most optimistic about the upturn.

It’s not over yet, but the future’s bright!

According to a new survey from The Open University Business School there are few signs that the recession is lifting for Britain’s small firms. Over half of the firms (52%) surveyed have seen their sales fall, and the economic climate is still their top problem, as it has been for all this year. On the other hand the future is looking slightly brighter, with one third of respondents expecting to increase sales over the next three months.

One sales channel that many small businesses overlook is the internet. In fact, according to research from PayPal and Mr. Site, more than half of small businesses in the UK do not have an online presence at all. This could be costing them valuable sales, especially as many potential customers will use the Internet to research their options.

Cyber sisters

A recent Sunday Times Style magazine highlighted the success of female entrepreneurs who are flexing their business skills online. Currently there are an estimated one million female entrepreneurs in the UK, creating an impressive turnover of about £4.4billion combined. From shoes to ethnic greeting cards these ladies are making their mark in the cyberspace.

More and more business women are deciding to leave the bricks and mortar of the traditionally glass ceilinged corporate world, to run their home grown businesses online. Aside from the cheaper start up costs and opportunity to finally turn their creative ideas into reality, these ladies are enjoying the freedom of online business as well as the luxury and independence of being their own boss.